Are you tired of the never-ending hours sifting through countless numbers, attempting to reconcile revenue accounts for your small business? Do you find yourself grappling with the complexities of this crucial financial process? If you can relate, rest assured that you are not alone. The revenue reconciliation process can often appear overwhelming, especially for entrepreneurs who already have their hands full with various responsibilities.
Docyt is here to help.
In this comprehensive guide, we will explore the most effective methods to reconcile your revenue accounts and introduce powerful solutions designed to simplify this process specifically for you – whether you are a small business proprietor, a finance professional, or someone simply seeking clarity in the realm of revenue reconciliation.
What Is Revenue Reconciliation? Why It Matters…
Revenue reconciliation is the process of recording and tracking revenue and matching it to your financial statements. Regular review of your revenue prevents reporting errors and provides an accurate snapshot of your company’s financial position, which helps you, as a business owner, make better decisions.
A well-controlled revenue reconciliation system gives businesses access to accurate top-line financials, which in turn, creates a transparent environment with the added benefit of intimately understanding your revenue, margins, and growth. This type of insight gives the baseline data needed to grow your business. Although regularly reconciling revenue is relevant to any business, as a small business owner heavily dependent on cash flow, or those with variable revenues, you will find that subscribing to this school of thought is especially important for maintaining a long-term sustainable operation.
How to Best Approach Revenue Reconciliation
Align Your Accounts and Records
To start the process of reconciling your revenue, it’s important your accounts and records align. This involves confirming that the revenue entries in your general ledger match the supporting documents or revenue management systems.
Review and Analyze Revenue Sources
Prioritize the review and analysis of your revenue sources: Carefully examine sales invoices, receipts, and other documents that record generated revenue to verify their accuracy with the amounts in your accounts. By diligently engaging in this process, you will easily spot inconsistencies or discrepancies and know how to correct them.
Compare Revenue with Bank Deposit
To effectively approach revenue reconciliation, consider comparing your recorded revenue with your bank deposits. You should cross-reference the amounts deposited into your bank account with the revenue you have recorded, then promptly investigate any discrepancies that arise, until resolved.
Reconcile Discrepancies and Adjustments
During the revenue reconciliation process, you may encounter discrepancies or adjustments that require attention. This could involve updating your general ledger, revising revenue accounts, or contacting customers and vendors for clarification.
What Are Your Next Steps?
We’ve established the intrinsic value of implementing a controlled revenue reconciliation, but where will you find the time to add this to an already overwhelmed schedule? Fortunately, you have solutions like Docyt’s AI-powered accounting automation software.
Here’s how Docyt works…
Seamlessly Linking Revenue to Accounting
At Docyt we know that your revenue management system, whether it’s a Property Management System (PMS) or Point of Sale (POS), is the heart of your business. It captures every transaction, every guest booking, every sale, and every service charge. Whether you’re in hospitality, retail, or e-commerce, the power lies in seamlessly connecting your revenue system to a robust accounting system that can ensure a streamlined data flow, reducing manual entry errors and enhancing real-time financial insights. At Docyt, we proudly support industry-leading POS and business management systems like Square, Stripe, Amazon, and many more. For those in the hospitality industry, systems such as ONQ, Oracle Hospitality, Fosse, and SkyTouch, among others, are easy integrations. If you are among the eCommerce world, we have you covered with partners like WooCommerce and Shopify. For all you restaraunteurs, integrating with systems like Clover, Toast, and Flexepos is as easy as 1-2-3. It doesn’t stop there, Docyt’s prowess extends to SAAS revenue systems like Stripe and a broad range of ERP and accounting platforms like Netsuite, Zoho, and QuickBooks. And finally, we cannot leave out our rock-solid technology partnerships with behemoths like Amazon Web Services, Google, and Intuit.
In addition to automation and seamless integrations, Docyt’s revenue reconciliation feature will provide you with:
- Detailed revenue analysis by payment processor, spend category, or day.
- Precise reconciliation by tracking each merchant processor account separately.
- Support accounting and real-time financial reporting for multiple businesses by generating individual and consolidated revenue reports.
- Separate reports for different revenue-producing departments.
- Docyt minimizes revenue loss through:
- Ensuring earned revenue matches daily deposits from merchant processors.
- Detecting cash theft by cross-checking cash earned with cash deposited.
- Docyt pulls data from your revenue systems and 12,000+ financial institutions, organizing it into various daily reports for actionable insights into your earnings.
There you have it. An AI-powered accounting platform that boasts a full suite of account reconciliation tools that seamlessly integrates with a large ecosystem of revenue management systems. A cutting-edge technology like Docyt offers you a game-changing opportunity to achieve financial harmony and unlock the true potential of your business.