What are the steps to reconcile a credit card statement?
What are the steps to reconcile a credit card statement?
- COMPARE THE DEPOSITS. Match the deposits in the business records with those in the bank statement. ...
- ADJUST THE BANK STATEMENTS. Adjust the balance on the bank statements to the corrected balance. ...
- ADJUST THE CASH ACCOUNT. ...
- COMPARE THE BALANCES.
What is reconciliation processes?
Reconciliation is the process of comparing transactions and activity to supporting documentation. Further, reconciliation involves resolving any discrepancies that may have been discovered.
Why is credit card reconciliation important?
Reconciling credit card account and merchant account statements with your company's own financial records ensures accuracy in your accounting process and helps detect fraud. Discrepancies can occur on either side of the transaction. ... Banks, credit card companies, and their systems make mistakes, too.Aug 27, 2021
How do you do credit card reconciliation?
- Sort your receipts. Keep your credit card receipts in a separate compartment in your purse or wallet so they aren't accidentally lost or thrown away. ...
- Match your receipts to your credit card statement. ...
- Notify your bank.
What does it mean to reconcile credit card?
What is credit card reconciliation? 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. ... If every payment in the ledger matches one in the statement, the ledger is accurate and the books can be closed.Oct 12, 2021
Do credit card accounts have to be reconciled?
The answer is yes. You most definitely still do need to reconcile all of your bank and credit card transactions. That's how you can make sure that what you've got in QuickBooks is accurate, not doubled up, and you're not missing anything.Apr 7, 2020