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

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 carry out corporate credit card reconciliation very regularly, often daily, weekly, or monthly. 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 them all. 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.