27 Feb 2023
4 min read

Video: What’s the best way to reconcile card payments?

Two employees trying to reconcile employee credit card expenses manually instead of using a corporate expense management solution.

Table of Contents

    Real-time reconciliation explained

    The importance of card reconciliation

    Proper card reconciliation is essential for businesses too. The finance team must compare credit or debit card transactions with the corresponding receipts and invoices to confirm the spend is accurate, prevent fraud, and pinpoint any missing information.

    Finance teams reconcile credit cards regularly (often daily). Whatever the cadence, businesses can agree that the process is manual and time-consuming without the right technology.

    The biggest reconciliation challenges

    Businesses may face several hurdles when reconciling their financial records. Here are some of the biggest challenges:

    1. Volume of transactions: If a business has a high volume of transactions, it can be time-consuming to reconcile credit cards manually. This can lead to errors or inconsistencies in the records if not properly managed.
    2. Discrepancies or errors: Identifying discrepancies or mistakes can be challenging, especially if there are multiple sources of data or if the records aren't kept up-to-date.
    3. Human error: Mistakes can happen during reconciliation, especially if your team completes it manually. This manual process can lead to inaccurate records or errors that are difficult to detect.
    4. Timing: Identifying and correcting errors or discrepancies will be difficult if you don't complete the reconciliation process on time. The delays can lead to late financial reporting or inaccurate financial statements.
    5. Lack of resources: If a business doesn't have the necessary resources, such as staff or technology, it can be challenging to keep up with the volume of transactions and ensure accuracy.
    6. Complex transactions: Some transactions can be complicated, involving multiple parties or currencies, which can make reconciliation more challenging and time-consuming.

    Businesses often introduce technology to help streamline the reconciliation process and reduce errors. These introductions may include tech like using automated reconciliation software, spend management solutions, and accounting software or ERPs.

    Get the ultimate guide to selecting ERP x expense management integrations

    Getting fast, accurate reconciliations with Payhawk

    At Payhawk, we can help you achieve error-free, real-time reconciliations.

    The biggest benefits include:

    • VAT reclaims (with fewer missing receipts)
    • No more time-consuming manual entry and data matching
    • Zero errors thanks to data capture
    • And no time wasted on chasing receipts

    Ready to see how Payhawk can revolutionise reconciliations at your business? Book a demo today.

    Trish Toovey - Content Director at Payhawk - The financial system of tomorrow
    Trish Toovey
    Senior Content Manager
    LinkedIn

    Trish Toovey works across the UK and US markets to craft content at Payhawk. Covering anything from ad copy to video scripting, Trish leans on a super varied background in copy and content creation for the finance, fashion, and travel industries.

    See all articles by Trish →
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