This guide was made for Managed Reconciliation Services customers. With this service, our Integration Specialists take the reins on reconciliation for all transactions synced by Amaka’s accounting integrations.
For those who would prefer to manage some or all of the reconciliation on their own, we can help to confirm accuracy and solve discrepancies.
Overview
Please refer to the relevant guide for your integration:
- Square + Xero Reconciliation Guide
- Square + QuickBooks Online Reconciliation Guide
- Square + MYOB Reconciliation Guide
- Square + Sage Accounting Reconciliation Guide
- Square + Holded Reconciliation Guide
- Shopify + Xero Reconciliation Guide
- Shopify + QuickBooks Reconciliation Guide
- Shopify + MYOB Reconciliation Guide
How to handle common discrepancies
At times certain amounts won’t match exactly. This can be due to a range of reasons. Here’s how to handle the most common discrepancies:
At times certain amounts won’t match exactly. This can be due to a range of reasons. Here’s how to handle the most common discrepancies:
Third-party fees
Payment processors often deduct their fees before transferring the funds to your account. To account for these deductions, first generate a report from the payment processor detailing the fees. Then, record a journal entry to reflect the fee amount. Be sure to attach the report for documentation before finalizing the entry.
Incorrect tagging of payment types
If a payment was incorrectly recorded, such as cash being logged as a bank transfer payment, create a journal entry to rectify the allocation between the clearing accounts.
Expenses paid from the cash drawer
To account for any cash used for business expenses, create a journal entry, bill, or spend money transaction. Ensure that the expense is recorded in the correct account and supported by receipts.
Owner’s drawings
If the owner withdraws money from the cash drawer, document the transaction by creating a journal entry that debits the Owner’s Drawings account and credits the Cash Clearing account.
Unrecorded refunds
If a refund was issued but wasn’t entered into your POS system:
- Follow your normal process to allocate the deposit (money in) to the correct clearing account.
- For the refund, locate the refund transaction (money out) and assign it to the appropriate sales account. Make sure the correct tax type is applied.
Reconcile regularly to keep your accounts accurate
It’s important to reconcile your clearing accounts at least weekly, or even daily if you process a high volume of transactions. Frequent reconciliation helps prevent errors from building up, ensuring that your financial records are always up-to-date and you always know how much cash is truly available.
Regular reconciliation also makes it easier to track discrepancies, like fees and refunds, before they become significant issues.
Let us reconcile your books!
Our Integration Specialists can also take care of reconciling your books.
