Payment reconciliation is a process, which allows you to track the exact financial status of your company. We'll review how it works and how your site can benefit from it.
Payment Reconciliation: In simple terms
So, what is e-commerce payment reconciliation? Simply put, this is a feature/process, which allows you to match your company's account balance with statements received from:
- Your bank account.
- Your payment gateway.
Reconciliation with partners and banks is one of those areas that seems to think after comparing the technologies everyone has in mind: anti-fraud, and so on. At the same time, in our process, we are faced with the fact that the back-office solutions are equally important in the payment business because companies can spend a lot of resources on the right process organization.
Why Is Compensation for Payment So Important?
Reconciliation of trading payments is important in all areas of business: physical or digital.
Here are some of the reasons why electricity tariff reconciliation cannot be avoided:
Taxes.
Whether you run a one-person business or an entire company with employees, you need to pay taxes. Payment reconciliation reflects the valid data you will use at the end of each financial period.
Fraud.
If done regularly - once a month - this method can easily target fraud attempts from colleagues, clients, and even employees. One of the most common schemes is the employee who hides money (especially money) received from customers. But comparing sales versus profit on reconciliation easily prevents this.
Statistics.
Another benefit we get from this process is a better understanding of which payment methods your customers prefer. Do they use Visa or Discovery mainly? Or maybe they go into digital wallets and cryptocurrencies? And what about unconventional payment options that are popular only in certain countries?
Problems.
No system is completely protected from bugs and glitches. With this process, you will avoid looking at checks from your business partners, tracking outstanding checks, preventing bank errors, knowing how much money there is in your company account, in fact, and so on.
Legal issues.
If there is a significant variation in your regular accounting, this may attract unwanted attention to the tax service - they may suspect tax evasion or other forms of fraud.
Time.
All in all, this approach makes things go faster, especially at the end of the financial period. Also, this helps to save staff time and effort. Or yourself, when we talk about the performance of one man.
These are the benefits that help you win a game when considering reconciliation for payment information. Over time, they will positively affect your environment.
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