Four methods of payment reconciliation
You can manually download data as an export file, integrate it directly into your system via an API or a webhook, or create automated workflows with Make or Zapier.
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What exactly is a payment reconciliation?
The purpose of the reconciliation of payments is generally to match the recorded payments – for instance, in the business books or financial statements – with the payments actually made or received. Depending on the company, this process is managed in a very individual way, either still manually or with the help of a specialised system. Either way, the necessary data must be collected and reconciled to identify any potential discrepancies.
How does payment reconciliation work?
Normally, a payment reconciliation involves several steps, all of which help to match the actual transactions with those recorded. This requires all payments to be captured and listed, as well as the bank statements. These data must then be reconciled with each other – ideally with the help of accounting software.
Through the automated connection of Payrexx to your accounting system, transaction data is automatically transmitted and no longer needs to be exported manually. However, if you do not work with an accounting program, you can also create a clear and filtered export according to your needs in your administration.
What types of payment reconciliation are there?
Depending on the transaction or dataset, a different form of reconciliation is necessary. Here are two important examples for your collaboration with Payrexx:
Reconciliation of Bank Disbursement: This involves reconciling those transactions that have been recorded in your company's cash account with those listed on your bank statement. This ensures that both amounts match.
Credit Card Reconciliation: This reconciliation is similar to the bank disbursement reconciliation but is specifically intended for credit card accounts. It is important for identifying unauthorised or fraudulent transactions.
Why is payment reconciliation important for your business?
Running a business successfully requires a lot of financial accuracy. However, this is not an easy task, especially with many incoming transactions. This is why payment reconciliation is so important: it not only ensures that financial records are correct but also that regulations are followed and there are no incorrect debits.
What is the difference between automatic and manual payment reconciliation?
The payment reconciliation can be managed either manually or automatically. Here are the main differences:
Manual payment reconciliation: In manual payment reconciliation, an employee must gather the financial data and compare it with the relevant documents themselves. This process is time-consuming but is facilitated by Payrexx's clear export overview.
Automatic payment reconciliation: In this type of payment reconciliation, a computer program handles the data matching. It is important that all essential information is transferred to the system. To ensure this is done effortlessly, you can quickly and easily connect your accounting system to Payrexx via API or Webhook.
What are the advantages of automated payment reconciliation?
Automating your payment reconciliation offers you various benefits. Here are some of them:
Speed. Automatic transaction reconciliation minimises effort and allows you to free up time for other tasks.
Accuracy. Automatic payment reconciliation is more reliable than manual data entry, thereby reducing errors.
Efficiency. By automating your payment reconciliation, you optimise your accounting and achieve an efficient workflow.
What risks are associated with automated payment reconciliation?
In order for the payment reconciliation to be reliably automated, various criteria must be met. For example, the data must be of impeccable quality and complete to ensure a smooth reconciliation. Especially with a multitude of payment methods, such as those offered by Payrexx, correctness is of great importance. As a payment provider, we place great importance on transmitting error-free data to you.
How does payment reconciliation with Payrexx work?
As a payment provider, Payrexx supports you in the best possible way with managing your accounting. Specifically, payment reconciliation can be optimised in three ways:
Manual data export: In your Payrexx administration, you will find not only an overview of all transactions but also the ability to create detailed and filtered exports in various file formats to use them optimally.
Connection via API: If you work with an accounting system, you can connect Payrexx quickly and easily via an API key and have the data transmitted directly.
Connection via Webhook: You can also create a webhook and specify which event should trigger the data transmission. This way, you receive everything necessary immediately.
Automation with Make.com and Zapier: Payrexx can be directly connected to Make to automatically capture and process all payment transactions and status changes. The Zapier integration also allows the use of incoming payments in Payrexx as triggers for automated workflows.
