Global cashless payments received a powerful boost, due to the pandemic, over the last two years. Subsequently 2022 is forecast to witness this trend climb even further. With global cashless transactions forecast to grow at an annual rate of 18% until 2025 (Research and Markets), your company’s financial management must adapt its underlying technology.
Such dramatic growth means that, as a medium to large enterprise, there are numerous sales points your business accounts must keep track of. Now, more than ever, ensuring that all sales payments are duly accounted for is critical for financial success.
Account reconciliation: the starting point
Account reconciliation enables your business to ensure all your financial data is in balance. By comparing different data records of the same transactions, your business safeguards financial accuracy and credibility. This essentially involves comparing two sets of data to make sure the numbers match and the transactions have thus been accurately recorded.
With many sources of income flowing in and out, your business may want to perform reconciliation for each of these different types of transactions. Including:
- Bank reconciliation
- Credit card reconciliation
- Supplier payment reconciliation
- Customer reconciliation
- Balance sheet reconciliation
- Cash reconciliation
to name a few. While all areas are important, credit card reconciliation has become increasingly important with the acceleration of cashless transactions.
Credit card reconciliation: from complex to clear
Credit card reconciliation involves comparing the credit card receipts with statements issued by the bank. This reconciliation is one of the more complex ones, but that can be mitigated by automating the reconciliation process.
As a medium to large enterprise, reconciling your company accounts automatically means you can eradicate errors, flag unauthorized transactions, and increase flexibility while simplifying how you manage your payment data. That’s more time and money for other critical tasks.
For credit card reconciliation you want a system that takes into consideration the entire web of payment points your business operates through. Collecting data automatically from:
- All ECR Webshops
- All acquirers
- All financial institutions.
Whether they are cash or cashless, no matter from which location they originate or in which currency the transaction took place.
Furthermore, your business would need to take all this information and integrate it into whichever accounting system your business uses.
ReconHub: How it works
ReconHub can help you do all that and more. Your financial accounting becomes easier, secure, and error-free. With software such as ReconHub, your business is covered for payments from any sales interface, automatically checked, reconciled and the data entered directly into your accounting software.
See it at the single transactional level
ReconHub takes reconciliation further by giving you more control and information on your business finances than with any other method. As a medium to large enterprise you have large sums moving through your business daily and individual transactions are too numerous to keep up with. When it comes time to reconcile, going through each transaction manually is not just time-consuming but costly as well. With ReconHub you can keep track of those individual transactions down to the single transactional level. Furthermore, when inconsistencies appear, ReconHub gives you the ability to see exactly where the source of that error is and what information is lacking or incorrect. This means you can reconcile with an in-depth view of all your transactions and spend the time you save focusing only on where the problems really are.
Full reconciliation with two cycles
Cashless reconciliation software often stops after reconciling your credit card transactions with those from your points of sale. Your business is then left with figures which don’t always match the figures on your bank statements. ReconHub takes your business that step further. Giving your business an all-in-one system with a second cycle of reconciliation built into the process. Read in-depth about the stages of automated reconciliation here.
Infrastructure hosted externally
Adopting reconciliation software is often accompanied by questions concerning IT and in-house system requirements. With the constant movement in transactions and the need to record ever-increasing amounts of data, it is no small consideration. AbrantixReconHub does the hosting and development for you, saving you the need for any expensive software or programming. Your business gains a straightforward process and easy collaboration with your existing IT structure and accounting system.
Forward-looking reconciliation
With any reconciliation process, adapting to newer payment methods and systems will be a constant challenge. Your enterprise will need to plan for these changes in order to remain competitive and to comprehensively cater to customer preferences.
With ReconHub your company is ready for the future. No matter which payment method emerges, ReconHub develops the new interfaces you’ll need to cover all channels. Looking ahead, taking control of your financial situation involves utilizing a comprehensive reconciliation process now plus a platform that covers you for any future scenarios.
If you would like to learn more or arrange a demo appointment for the ReconHub, please contact us!
