Financial accounting is the heart of a company. It contains all of the company's transactions and these must be reconciled correctly. Especially when accepting payments via credit cards, delivery services and platforms, accurate end-to-end reconciliation is important to ensure your financial data is correct and complete. In this article, you'll learn why reconciling sales to rewards and rewards to bank details is so important and how the ReconHub solution can help you optimize these processes.
Why is end-to-end reconciliation so important?
Payments with cards and transactions via delivery services or marketplaces in particular involve many steps and parties. Not only the customers and the companies are involved, but also the payment service providers, banks and their platforms. The transactions from these different data sources must be precisely reconciled before they are included in financial accounting. This is where end-to-end reconciliation comes into play. It ensures that every entry is correct and that there are no errors that could lead to major problems later on.
If an end-to-end reconciliation is not carried out, errors and gaps can arise that distort your accounting. This can have a negative impact on liquidity planning and understanding your financial position. An accurate reconciliation helps you to clearly track all cash flows and ensure that each individual transaction has been processed and reimbursed correctly.
Reconcile Revenue with Compensation Data
Imagine you run a store with payment terminals, a webshop or a restaurant that works with delivery companies. Your customers pay with a card or via a marketplace that deducts a fee. Before you record the sales in the accounting system, this data must be reconciled with the payment information. This means you need to make sure that all deductions - such as marketplace fees, card fees or other deductions - have been correctly recorded and deducted from sales.
This process can be time-consuming and complex, as each transaction can have different deductions. Manual reconciliation is prone to errors, especially when many payments are received in a short period of time. Without this reconciliation, large accounting errors can occur, especially in accounts receivable. Incorrect sales data, unaccounted for fees or incorrectly recorded credit notes can distort the financial data and lead to problems with planning. This lack of transparency makes it difficult for you to get a proper overview of your financial situation, which can make audits more difficult later on or even lead to write-offs or liquidity problems.
Reconcile Settlement Data with Bank Data
The next step is to reconcile the settlement data with your bank details. Once you have checked that all deductions have been booked correctly, you need to make sure that these payments have actually been credited to your bank account. Especially when making payments via marketplaces or credit cards, there may be delays or differences between the bookings and the money received. These discrepancies can lead to uncertainty and make it difficult to know exactly how much money is actually available.
A reconciliation between bank data and payment data ensures that you can see exactly which payments have already been paid and which are still missing. This allows you to avoid bottlenecks and plan your finances better. By clearly assigning all incoming payments to the corresponding transactions, you can ensure that your accounting system is always up to date and that no open items are overlooked.
The Benefits of Reconciling Transactions and Payments
Reconciling these two areas - transactions and payments - offers you many advantages:
- Accuracy in accounting: by automatically reconciling sales and settlement, you avoid errors and can be sure that your financial data is correct. Accuracy in accounting is crucial to properly understand the financial health of your business and make decisions based on correct data.
- Transparency: You have a clear overview of your transactions and their status. This not only helps with financial planning, but also with audits and communication with partners and service providers. Transparent financial accounting ensures that you always know where your company stands financially and that you can carry out audits and collaborate with others without uncertainty.
- Quick error detection: Automatic reconciliation processes such as ReconHub help you to identify and rectify discrepancies immediately. This prevents small errors from causing major problems. When errors are detected early, it's easier to correct them before they affect other parts of the accounting department or the company.
- Efficiency: Manual reconciliations are time-consuming and error-prone. An automated solution saves you time and resources, allowing you to focus on more important tasks. Automated systems like ReconHub get the job done faster and more accurately than manual methods, giving you and your team more time for strategic tasks.
- Better liquidity planning: Ensuring that all payments are correctly reconciled allows you to better plan your liquidity. Knowing exactly which payments have already been received and which are still outstanding helps you to make the best use of your company's financial resources and be prepared for any shortages.
How ReconHub Supports You with End-to-End Reconciliation
The ReconHub solution specifically helps you with end-to-end reconciliation of payments, especially via cards, delivery services and marketplaces. ReconHub is one of the few solutions on the market that can fully automate this process. Automation makes it easier for you to keep track of all transactions at all times and identify discrepancies immediately.
- Automated transaction reconciliation: With ReconHub, your sales and rewards are reconciled automatically. This means that all transactions via cards, delivery services or marketplaces are analyzed and all deductions such as commissions or fees are recorded correctly. This automation ensures that no important details are overlooked and that every transaction is processed completely and correctly.
- Automated Reimbursement Data Reconciliation: Once transactions are reconciled, ReconHub automatically checks your bank details and ensures that all reimbursements have actually been received in your account. This automatic bank reconciliation ensures that you always have an overview of your cash flow and recognize discrepancies immediately. This helps you to ensure that all expected incoming payments are actually realized and that your account balance is always correct.
- Simple error handling: Thanks to ReconHub's near real-time processing, you can identify and resolve discrepancies immediately. As soon as a discrepancy is detected, the system displays it with details. This allows you to intervene quickly and easily without having to spend a long time looking for a difference.
Further Advantages of ReconHub
ReconHub not only offers you automated reconciliation, but also helpful tools for financial management. You can create detailed reports to better analyze your transactions and outstanding receivables. These reports give you valuable insights to help you make financial decisions and grow your business. ReconHub also enables better collaboration between different departments, as all relevant financial information is centralized and accessible to all stakeholders. This helps to avoid misunderstandings and optimize processes.
Conclusion
End-to-end reconciliation is important to keep your financial data accurate and traceable - especially for transactions with cards, delivery services and marketplaces. By reconciling sales with payment data and this in turn with bank data, you ensure that your accounting remains accurate and error-free. ReconHub offers you fully automated support to help you manage your payment processes efficiently. This saves you time, avoids errors and gives you a better overview of your financial situation. Accurate and transparent accounting is key to the success of your business, and with ReconHub you have the right tools to ensure this success. Take advantage of the opportunities ReconHub offers you and keep your financial processes under control so you can focus on growing your business.
