Overview
What is a clearing account and why is it important?
A clearing account temporarily holds transactions until they are matched with bank deposits. It ensures that payments and deposits align correctly.
How do I allocate deposits for different payment types?
Use your accounting software’s bank feed to allocate deposits from cash, card payments, or third-party platforms to the correct clearing account.
What does the Managed Reconciliation Services team do?
Our team handles the entire reconciliation process, ensuring that sales from your POS or e-commerce platform are accurately reflected in your accounting software. We also account for fees, refunds, and chargebacks and allocate deposits to the correct clearing accounts.
What information do I need to provide if I want the clearing accounts to be maintained by the Managed Reconciliation Services team?
You’ll need to provide your bank descriptions for the payment types you accept so we can accurately allocate them.
How do I handle discrepancies on my own, such as third-party fees or incorrect payment tagging?
You can handle discrepancies by creating journal entries. For third-party fees, create a journal entry to account for them separately. For incorrect tagging, adjust by making journal entries to correct the payment allocation.
How can I track and record owner’s withdrawals from the business?
Record owner’s drawings with a journal entry, debiting the drawings account and crediting the cash clearing account.
Why is regular reconciliation important?
Frequent reconciliation helps catch and resolve errors early, keeping your financial records up-to-date and accurate.
Let us reconcile your books!
Our Integration Specialists can also take care of reconciling your books.
