Understand Credit Card Reconciliation in a simple way!
The process of the verification of data integrity between associated reports and credit card statements from the internal financial records of a company or merchant service providers is referred to as credit card reconciliation. The process begins when the associated transactions are compared with credit card statements and any transactions amidst them. This step is considered as very important as it helps in ensuring the correctness and accuracy of statements and balances of the credit card. The in-depth analyses help the accountants to identify any discrepancy whatsoever in the transactions and takes essential corrective actions.
Credit Card Reconciliation Process
The process of credit card reconciliation begins after receiving credit card statements or after the closing of the financial period. Each transaction in the credit card statement is minutely investigated by the accountants and the same is matched with the transactions pertaining to internal systems of the company. It encompasses inbound payments through credit card from the customers and outbound payments to the suppliers. In case, any discrepancy is detected, a thorough investigation is carried out for determining suitable corrective action.
When deciding appropriate corrective action, it may involve transaction disputing through a credit card processor. Errors or items can also be rectified by making suitable journal entries. This way transaction issues can be addressed appropriately. There may be limited time with the company for transaction disputes like charge backs and other issues by a merchant service solutions provider. Thus, it is important to ensure accuracy and speed in the entire process.
Read more :- Mistakes to be avoided in Tax Preparation
The process of the verification of data integrity between associated reports and credit card statements from the internal financial records of a company or merchant service providers is referred to as credit card reconciliation. The process begins when the associated transactions are compared with credit card statements and any transactions amidst them. This step is considered as very important as it helps in ensuring the correctness and accuracy of statements and balances of the credit card. The in-depth analyses help the accountants to identify any discrepancy whatsoever in the transactions and takes essential corrective actions.
Credit Card Reconciliation Process
The process of credit card reconciliation begins after receiving credit card statements or after the closing of the financial period. Each transaction in the credit card statement is minutely investigated by the accountants and the same is matched with the transactions pertaining to internal systems of the company. It encompasses inbound payments through credit card from the customers and outbound payments to the suppliers. In case, any discrepancy is detected, a thorough investigation is carried out for determining suitable corrective action.
When deciding appropriate corrective action, it may involve transaction disputing through a credit card processor. Errors or items can also be rectified by making suitable journal entries. This way transaction issues can be addressed appropriately. There may be limited time with the company for transaction disputes like charge backs and other issues by a merchant service solutions provider. Thus, it is important to ensure accuracy and speed in the entire process.
Read more :- Mistakes to be avoided in Tax Preparation
No comments:
Post a Comment