New York City Bookkeeping - Credit Card Statement Reconciliation

Credit Card Statement Reconciliation

Reconciling revolving credit card debt can be a challenge for many small businesses.

Entering the charges as the credit card is used will eliminate the need to do it when the statement comes each month, plus recording the transactions throughout the month will result in more accurate interim financial information. In many situations, for a variety of reasons, this is not practical for some businesses.

There are other alternatives. You could:

Enter one charge for the month for the total amount purchased using the credit card and manually reconcile the receipts to the statement. The detail lines can be entered as splits so the general ledger remains accurate.
Enter one charge for the month for the total amount purchased and code it to a credit card clearing account that will be reclassified based on the receipts. This method can be more cumbersome.
Enter the detail transactions individually when the statement arrives and any transactions without a receipt are noted as such in the memo field (so a report can be generated and cleared as receipts are obtained) or coded to a credit card clearing account pending reconciliation with the receipts.

Services