Steps for credit card reconciliation?

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Credit card reconciliation is the process of matching credit statements to receipts to find and correct any discrepancies. There are many ways to handle this process, with the help of advanced software, careful accountants, or even a reliable calculator. Financial experts often recommend keeping good records and account verifications as the best way to handle credit card reconciliation issues.

The first of many important steps in credit card reconciliation is to obtain a bank or credit card statement. This can be a paper statement that is mailed to an account holder, or it can be an online statement that can be found on the lender’s or bank’s website. Account statements are generally issued once a month, but may be issued more frequently at the account holder’s request. People with online banking options can get an updated account statement at any time simply by logging into their online accounts.

It is important to save receipts that can be verified on your credit card statement. Be sure to always ask for a receipt when paying with a credit card, and try to keep them organized by date. For online transactions or those that do not issue receipts, keep a ledger of the amount spent and the date of purchase. Many businesses have a different name for billing purposes than their store or operation; for example, purchasing a hot dog at a carnival may result in the charge being posted to Bob & Co Amusements, the owner, instead of Hot Dog A-Go-Go. As long as the total and the date match the receipts, it can generally be assumed that they match.

Once the statement is available and the receipts are organized, the actual credit card reconciliation process begins. Review the statement and make sure the receipts match in total and date. Mistakes are quite common in the credit card industry, and it can be surprising to discover just how many mistakes have been made. Please circle or highlight any discrepancies and be prepared to contact your credit card company and request a refund for an unauthorized transaction. Different credit institutions have different policies regarding credit card reconciliation; try to find an organization with lenient policies on money back.

Some people use reconciliation software or get professional help with credit card reconciliation. Software programs allow synchronization of a statement with receipts and take all the math out of the process. These programs are also great for businesses that process large numbers of credit card transactions, as they can quickly create a link between cash register systems and credit card machines, ensuring that the purchase total is the same amount that was charged. Professional accountants can manage the process for clients and will be able to investigate any discrepancies and provide documentation that can be given to the creditor for reimbursement.

Smart Asset.

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