Card Reconciliation and your company's cash flow
Posted: Tue Jan 21, 2025 6:57 am
Have you ever heard of card reconciliation? Do you know how to do it and what it is for? These are very pertinent questions that many business owners or managers face at some point in their careers.
It is very likely that you have experienced a moment like this: your company's sales, in a given month, were made using different forms of payment: cash, check, debit, credit, and credit in installments of up to six or more times.
In other words, you will receive a little now, more next month and even six months from now you will still be receiving money from that same purchase. While this situation is extremely common, not everyone is prepared for the chaos it causes in the cash register.
Have you planned to not receive the full amount during the month? How do you plan, monitor and deal with this difference in payment methods? That's where card reconciliation comes in. We at Granito will help you understand a little more about this. Let's go!
What is card reconciliation?
Card reconciliation is an essential practice for companies of all sizes. It is essential for organizations that want to take better care of their financial health and avoid unpleasant surprises.
Without control over all receipts on the correct dates, it is impossible nepal whatsapp lead to correctly monitor revenue, predict cash flow, and accurately account for the company's profits. Therefore, card reconciliation involves checking and validating information regarding sales and receipts made using credit or debit cards.
It means having control over everything you will receive, considering amounts and dates. With card reconciliation, you know what you will receive, when it will happen and how much you will pay in fees for each transaction.
What are the main types of conciliation?
Of course, card reconciliation is an extremely important process, but it is not the only one you should do in your company. There are three other types of reconciliation that you should know about and that should be done together, in order to complement the previous one and provide a complete view of your store's finances.
Sales reconciliation
The purpose of this reconciliation is to compare sales made with the card operator's data.
The most important step in reconciling your receipts is to save all the receipts, the sales receipts issued by the card machines . This flow is essential for better control.
Receipt reconciliation
This is the process that assesses whether you actually received the money for each sale. For example, card purchases must be in your bank account 30 days after the sale. Debit purchases must be in your bank account the following day.
To check this, you must compare the sales data with the amount that entered your account, considering the right time and possible discounts, such as fees charged by operators.
Bank reconciliation
The last type of reconciliation is bank reconciliation, in which you check the account balance and the incoming and outgoing amounts. It is important to monitor all of the company's financial accounts regularly, preferably daily.
This is also when you can monitor other payment methods, such as transfers or apps like PIX . To do this, compare your bank account statement with your business's internal control of inflows and outflows.
How to make card reconciliation easier?
The card reconciliation process can be laborious and time-consuming, but when you weigh it up, it is essential. A good strategy for keeping your cash flow under control is to create a card reconciliation spreadsheet.
This feature will help you understand and categorize your sales, giving you a better view of all your sales:
how much you will receive;
when will this happen;
how much you will receive per installment for each purchase;
what is the flag of each sale;
how much you will pay in fees per sale, depending on the brand, and much more.
By keeping a spreadsheet with this control, you will be able to understand all the cash flow, future receipts, fees and everything else you need to maintain an organization that will bring countless benefits to your company.
It is very likely that you have experienced a moment like this: your company's sales, in a given month, were made using different forms of payment: cash, check, debit, credit, and credit in installments of up to six or more times.
In other words, you will receive a little now, more next month and even six months from now you will still be receiving money from that same purchase. While this situation is extremely common, not everyone is prepared for the chaos it causes in the cash register.
Have you planned to not receive the full amount during the month? How do you plan, monitor and deal with this difference in payment methods? That's where card reconciliation comes in. We at Granito will help you understand a little more about this. Let's go!
What is card reconciliation?
Card reconciliation is an essential practice for companies of all sizes. It is essential for organizations that want to take better care of their financial health and avoid unpleasant surprises.
Without control over all receipts on the correct dates, it is impossible nepal whatsapp lead to correctly monitor revenue, predict cash flow, and accurately account for the company's profits. Therefore, card reconciliation involves checking and validating information regarding sales and receipts made using credit or debit cards.
It means having control over everything you will receive, considering amounts and dates. With card reconciliation, you know what you will receive, when it will happen and how much you will pay in fees for each transaction.
What are the main types of conciliation?
Of course, card reconciliation is an extremely important process, but it is not the only one you should do in your company. There are three other types of reconciliation that you should know about and that should be done together, in order to complement the previous one and provide a complete view of your store's finances.
Sales reconciliation
The purpose of this reconciliation is to compare sales made with the card operator's data.
The most important step in reconciling your receipts is to save all the receipts, the sales receipts issued by the card machines . This flow is essential for better control.
Receipt reconciliation
This is the process that assesses whether you actually received the money for each sale. For example, card purchases must be in your bank account 30 days after the sale. Debit purchases must be in your bank account the following day.
To check this, you must compare the sales data with the amount that entered your account, considering the right time and possible discounts, such as fees charged by operators.
Bank reconciliation
The last type of reconciliation is bank reconciliation, in which you check the account balance and the incoming and outgoing amounts. It is important to monitor all of the company's financial accounts regularly, preferably daily.
This is also when you can monitor other payment methods, such as transfers or apps like PIX . To do this, compare your bank account statement with your business's internal control of inflows and outflows.
How to make card reconciliation easier?
The card reconciliation process can be laborious and time-consuming, but when you weigh it up, it is essential. A good strategy for keeping your cash flow under control is to create a card reconciliation spreadsheet.
This feature will help you understand and categorize your sales, giving you a better view of all your sales:
how much you will receive;
when will this happen;
how much you will receive per installment for each purchase;
what is the flag of each sale;
how much you will pay in fees per sale, depending on the brand, and much more.
By keeping a spreadsheet with this control, you will be able to understand all the cash flow, future receipts, fees and everything else you need to maintain an organization that will bring countless benefits to your company.