Keeping track of finances is the most crucial aspect of business. However, it becomes a time-consuming nightmare when dealing with multiple merchant processors and accounts. This is where automated merchant processor reconciliation comes in, offering a powerful solution to streamline your finances and gain valuable insights. Let’s explore.
What is Automated Merchant Processor Reconciliation?
Traditionally, reconciling merchant processor statements involves spending hours in spreadsheets and manually comparing sales records and bank deposits to the statements. That tedious process is not only time-consuming but also error-prone. Automated Merchant Processor Reconciliation leverages AI to connect all your merchant accounts, download documents automatically, and then match them up with your internal revenue and bank data.
Benefits of Automated Merchant Processor Reconciliation with Highlighted Features
1. Deposit Tracking
Deposit Tracking refers to monitoring the deposits that a payment processor sends to a merchant’s bank account. It assists businesses in:
Improving Accuracy
Automates matching deposits from your merchant processor with internal sales records, minimizing human error and discrepancies.
Reducing Time Spent
Eliminates manual data entry and searching, freeing up staff for strategic tasks.
Swift Reconciliation
Quickly identify any unmatched deposits, allowing for swift investigation and resolution.
Enhanced Cash Flow Visibility
Provides a real-time overview of all deposits, including cash and merchant processor payments, to ensure effective cash management.
Reduced Risk of Fraud
Easier detection of missing or suspicious cash deposits compared to manual tracking.
Improved Internal Controls
Streamlines cash handling processes and strengthens internal controls.
2. Daily Reporting
Early Identification of Issues
Daily reports allow businesses to spot discrepancies or unusual activity sooner, leading to faster resolutions.
Informed Decision-Making
Provides readily available data for informed financial decisions based on up-to-date sales and cash flow information.
Transparency
Daily reporting fosters transparency within the organization by providing clear insights into daily finances.
3. Monthly Reporting
Effortless Month-End Closing
Automates report generation for month-end reconciliation, saving time and valuable resources
Insightful Analysis
Facilitates easy comparison of monthly reports for trend analysis and identifying seasonal fluctuations to assist leadership in decision-making.
Improved Compliance
Streamlines the generation of accurate reports for regulatory or tax compliance purposes.
4. Live Budgets & Reports
Real-Time Performance Monitoring
Provides instant access to up-to-date financial information for comparison with budgeted targets.
Proactive Cash Flow Management
Allows for adjustments to spending based on real-time insights into cash flow.
Improved Financial Forecasting
Enables the creation of more accurate financial forecasts based on live data.
Combining these features, automated merchant processor reconciliation offers a comprehensive solution for streamlined financial management, improved accuracy, and better decision-making.
Catch Hidden Costs & Lost Sales: Why Automated Merchant Processor Reconciliation Matters?
Automated merchant processor reconciliation is a crucial yet sometimes overlooked process for businesses that accept card payments. It involves meticulously comparing your internal sales records with the reports provided by your merchant processor. This ensures all transactions are accounted for accurately and prevents lost revenue due to missed transactions. Additionally, the process helps identify and confirm any processing fees or chargebacks deducted by the merchant processor.
