Reconciling business credit cards

So, you think you’ve got everything fully reconciled and you know within a few £’s what your cash position is going to be over the next few days: all of your suppliers’ invoices are entered into your cloud accounting system, along with the invoices you’ve issued to your customers, your employees are entering their expenses as they incur them, and you’ve even scheduled in when the rent, salaries and VAT are due.

…and then the credit card statement arrives.

Business credit cards are really useful things. Apart from the credit element, they provide a convenient way of paying for goods and services and can be issued to trusted employees with suitable spending limits applied. The fact that you can get up to 28 days of interest free credit is a bonus.

But their ease of use can lead to a level of expenditure building up that can be missed in your projections.

So, what to do?

Most online business banking services now let you see credit card transactions and balances in the same way as you can see information on the current account. When undertaking your morning reconciliation, it’s important to check the credit card transactions too and enter them into your cloud accounting software so that you have a full picture of the money coming into and going out of your business.

Unreconciled transactions can lead to you miscalculating the impact of money that is owed to you being overdue. With CaFE, you can match the money received and paid out from your bank account and with the transactions that are scheduled to take place each day.

Of course, reconciling several different accounts and cards can be a pain, so we’ve built CaFE to do it all for you. CaFE will show you the position on any business credit cards and highlight if there are any unreconciled transactions in the accounting software. A simple link takes you over to your accounting software to reconcile them.

When calculating the overall cash flow projection, CaFE will include any credit card payments that are due, so there are no nasty surprises when the statement arrives.

Now you are fully up to date and can pat yourself on the back for having everything – and this time, we mean everything – under control.

April 26, 2019 by Makoto Fukuhara Categories: Accountants and bookkeepers