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Blog » Why Does Your Business Need Professional Credit Card Reconciliation Services?

Why Does Your Business Need Professional Credit Card Reconciliation Services?

Last updated: 02 Oct, 2023 By | 6 Minutes Read

Credit card reconciliation services

Corporate credit card reconciliation is a crucial process. It ensures the accuracy of financial records, controlling expenses, and maintaining transparency in business operations. If you believe that your company can do without it or manage it manually, it’s time to reconsider. This blog post will provide insights into the keys to reconciliation that can significantly benefit your business.

Taking a proactive approach to reconciliation is essential for effective financial management and streamlined business operations. Despite appearing as a routine task, this practice holds immense importance for your business. To begin with, credit card reconciliation ensures that your financial records precisely reflect card transactions. This accuracy is vital for making informed financial decisions and adhering to tax obligations.

Furthermore, by consistently reconciling corporate credit cards, businesses can exercise effective control over their expenses. This allows for the identification of spending patterns, areas where optimization is possible, and the detection of potential resource leakage.

Check This Infographic – Importance of  Account Reconciliation for Businesses OR Individuals

How to navigate through the complexities? The answer is outsource credit card reconciliation to experts who can accurately balance books every month. This will help you in a number of ways. First, you do not have to invest heavily on infrastructure and hire qualified resources.

These savings can be fruitfully used for business diversification and competitive product pricing so that you can ensure higher business growth and development. And next, you do not have to worry about keeping your books in order and can instead focus on the core competencies of your business.

Why your Business Needs Credit Card Reconciliation Services

Accurate matching of internal and external transactions

The process is initiated when credit card statements are received from the concerned banks detailing out debits, credits and charges. It is usually on a monthly basis. The outsourced agencies will set off the items against your internal records such as receipts against sales and debits against payments made. If any discrepancies are found, it will be submitted to you in the form of a report and corrective action can be taken.

Advice on remedial measures

When you outsource credit card reconciliation, the agency will help you in solving any items that are not reconciled. This is helpful in two ways. First, it reduces the pressure on you as you don’t have to go through a mountain of invoices and vouchers to get to the root of the problem. Everything is taken care of. Second, since external agencies are balancing the heads of accounts, you can be sure that there will be no fraudulent transactions that can possibly go through undetected. Hence, once credit card reconciliation is over, you can be sure that your accounts are accurate and precise in all respects.

Speed of processing

Outsourcing agencies complete the reconciliation process quickly and effectively. Any disputes with the credit card processor will be addressed speedily and journal entries made. Where errors have been traced, rectification too will be done immediately to iron them out. This is especially applicable in cases of chargeback. Most credit card service providers have definite time frames for sorting out any differences and do not entertain any representations for redress after a stipulated date from that of the transactions. By finishing the reconciliation process at the earliest, this possibility is totally negated.

Use of advanced software

Accounting Services providers use the latest and advanced systems and Credit card reconciliation software that almost automates the whole process. Data, both from ERP and general ledger on one hand and credit card statements and files on the other are imported and directly matched against each other. Any differences are immediately inspected by highly experienced and qualified accountants and measures taken for rectification. This includes taking care of chargeback issues from merchant service providers.

It is therefore seen that by taking the decision to outsource credit card reconciliation, you are in fact ensuring the accuracy and precision of a large number of accounting heads simultaneously. Hence, when the reconciliation process is over, the final balance sheet can be safely placed before stakeholders and lenders for increased credit limits or paying dividends.

Also Read: Lessen The Burden of Accounts Reconciliation. Start Outsourcing

One of the leading agencies in the field of credit card reconciliation is Cogneesol. We have long years of experience in this field and help our clients balance their books of accounts quickly and speedily. To know more, write to us at [email protected]