Until recently, reconciliation of payments is often considered a mundane, manual task.
The process for payment reconciliation can vary depending on the type of business and the types of payments due. For example, a company seeking payments from consumers may use strategies that are slightly different than business-to-business payments. These steps may involve matching invoice data to income to find discrepancies, reaching out to those who owe payment or reconciling errors with various financial institutions.
Reconciliation via disparate reports involves a cumbersome process of checking payment information against bank records to make sure that they are actually consistent. With this approach, many complications can arise. When snags occur with a specific payment when reconciling manually, it’s not always evident where or what the problem is. All that you can see is that the amounts don’t match. As a result, a sometimes lengthy hunt begins.
According to the latest statistics, many companies still manually reconcile all payments that come from clients or other sources. Unfortunately, this can result in payments or data going missing.
Thankfully, a variety of electronic payment reconciliation steps are available on the market today so companies can automatically gather and compare all of the relevant reports they need, and then send the results to the proper team.
How Does It Work?
With today’s innovative technology, once data is collected, the next steps involve sorting and assigning all of the data. This can be done by business line or any other factors determined by management so relevant information stays together. Then, each piece or collection of data can be assigned to the relevant account for that data. The next steps typically include transferring all of this data through PCI compliant means so it is easily accessible to those who need to review deposits and chargebacks.
Card processing is also a step in payment reconciliation. This can include transactions, and the contact names and key details of these customers. It’s vital that most organizations have a software or third party hosting that can support this step in order to process payments and secure credit card information.
The last steps involve assessing the information that the payment reconciliation program has produced. Typically, team members have to contact payees or file data for regular reviews. If payments are not able to be reconciled, they are considered outstanding and, in most cases, they become a top priority to resolve.
Automated Payment Reconciliation Solutions
By automating your reconciliation process you can reduce staff time, and. discover more accuracy. And at the end of the day, typically only out of balance conditions need to be dealt with.
Today’s technology solutions that allow for automatic reconciliation expedite this process, turning what used to be tedious task into an automated one.
With solutions like BillingTree’s, all matched settlement files are instantly reconciled, leaving you only with records that require investigation. These records are flagged so your staff is saved from troubleshooting and can begin to resolve.
Because BillingTree payment integrations have been designed to be as simple as possible, a very small amount of development will result in sizable benefits. Your customers will be able to accept electronic check payments and credit card payments, greatly reducing payment-funding times. And the transactions will automatically reconcile with your software, therefore minimizing manual payment posting.
Isn’t it finally time that you save on over-head costs, placing your focus and attention on more important things to grow your business? Prevent those end of the month headaches by reconciling daily with an automated payment reconciliation process. Get started today!