Reconciliation is the method of ensuring that the amount in the Accounting Systems represents the amount in the Payment Gateways and Commercial Transactions Statement-along with any relevant account details that may be needed. The irrelevant details could also be in the form of income tax.
Reconciliation lets the user’s finance departments ensure that the sums listed in the document are included in their account book and will include a concise description of any unacknowledged things.
The reconciliation includes the mechanism to verify that the transfers are still being handled, but that they’ve been handled appropriately.
By putting all details into a common database and comparing purchases at each stage in the time frame, the clients can immediately gain visibility into any anomalies somewhere along with the transaction lifespan. They also have the means to cope with any issues directly, and the leverage to go back to third entities and force them to change their conduct and/or reduce their prices.
For merchants with a huge amount of invoices and orders issued regularly, the payments are produced from online and offline channels and handled through the portal. The gateway passes the full balance (as a lump sum) at the end of the day.
The full balance is also passed over a few weeks, depending on the gateway, without any reference to the initial invoices or orders on which transactions are collected.
You can follow several ways of reconciling the merchant account. The reconciliation process could be formal or informal. You will have to monitor and review your transactions from each source. The sources could be the bank record or your record.
After reviewing the transactions, you will have to check and match the payments with the balance available in your account. The merchant environment plays a significant role in reconciling your merchant activity.
The Cloud factors API integration interface is utilized to enable real-time reconciliation of money transactions with Netsuite, Quickbooks, or any other enterprise systems, which may include a history of transactions with transaction ID recorded on the gateway. Merchant clients will need to choose the information they require and the genre they have to integrate better with their preferred financial statements.
Then, as normal, after all, expenses and returns are consummated with the Gateway bank account and Statements, the total balance remaining for transfer to the Gateway Report will be moved to the actual Bank Account.
Payments Reconciliation may not have to be that difficult. These days a set of tools have been put in place to make reconciliation as painless for accounting professionals to fit the various statements. However, the concerns mentioned above are still a difficult task.
To make reconciliation genuinely simple, the investors have to assist their merchants effectively deal with these challenges by removing the fundamental complex issues of reconciliation.