Every successful company needs clean books.
Good accounting is not only crucial for a thriving business -it’s also a legal requirement.
But it can also be the source of confusion, and eats up precious company time.
And one common task brings misery to finance teams every month reconciling credit cards
Credit card reconciliation is the system accountants use to make sure that transactions in a credit card statement match those on the company’s general ledger. For effective and accurate bookkeeping, businesses need to know
that every transaction did in fact take place, and is what it says it is.
Most simply, accountants compare company credit card statements against the general ledger. If every payment in the ledger matches one in the statement, the ledger is accurate and the books can be closed.If parts of the ledger don’t match what’s on the credit card statement, the financial controller then needs to find out who made the supposed payments, and what has caused this discrepancy*.
The financial close process typically occurs monthly, with larger closing exercises happening at the end of each quarter, and the end of the financial year.