Payment reconciliation is generally used to reconcile the payments recorded - for example in the accounts or in the annual financial statements - with the payments actually made or received. Depending on the company, this process is handled very individually, either manually or with the help of a special system. Either way, the necessary data must be collected and reconciled in order to identify any discrepancies.

Normally, a payment reconciliation comprises several steps, all of which contribute to reconciling the actual transactions with the recorded ones. To do this, all payments must be recorded and listed, as well as the bank statements. This data must then be reconciled - ideally with the help of accounting software.

Thanks to Payrexx's automated connection to your accounting system, the transaction data is transferred automatically and no longer needs to be exported manually. However, if you do not work with an accounting program, you can also create a clear export in your administration that is filtered according to your needs.

Depending on the transaction or data record, a different type of reconciliation is necessary. Here are two important examples for your collaboration with Payrexx:

• Bank payment reconciliation: This reconciles the transactions posted to 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 that for bank withdrawals, but is specifically intended for credit card accounts. It is important for detecting unauthorized or fraudulent transactions.

Running a business successfully requires a great deal of financial accuracy. However, this is no easy feat, especially with many incoming transactions. That's why payment reconciliation is so important: it not only ensures that financial records are correct, but also that regulations are adhered to and that there are no incorrect postings.

Payment reconciliation can be handled either manually or automatically. Here are the most important differences:

• Manual payment reconciliation: With manual payment reconciliation, one or more employees must search for the financial data and compare it with the corresponding documents themselves. This process is time-consuming, but is made easier by Payrexx's good export overview.

• Automatic payment reconciliation: With this type of payment reconciliation, a computer program takes over the reconciliation of the data. It is important that all important information is transferred to the system. To make this effortless, you can connect your accounting system to Payrexx quickly and easily via API or webhook.

Automating your payment reconciliation offers you various advantages. Here are some of them:

• Speed. The automatic reconciliation of transactions minimizes effort and frees up time for other tasks.

• Accuracy. The automatic reconciliation of payments is more reliable than manual data entry. This minimizes errors.

• Efficiency. By automating your payment reconciliation, you optimize your accounting and achieve the most efficient process possible.

Various criteria must be met for payment reconciliation to run reliably and automatically. For example, the data must be of impeccable quality and complete in order to guarantee smooth reconciliation. Correctness is particularly important with a large number of payment methods, such as those offered by Payrexx. This makes it all the more important for us as a payment provider to provide you with error-free data.

As a payment provider, Payrexx provides you with the best possible support in managing your accounting. Specifically, payment reconciliation can be optimized in three ways:

• Manual data export: In your Payrexx administration you will not only find an overview of all transactions, you can also create detailed and filtered exports in various file formats in order to use them optimally.

• Connection via API: If you work with an accounting system, you can quickly and easily connect Payrexx to it via an API key and have the data transferred directly.

• Connection via webhook: You can also create a webhook and specify which event should be used to activate the data transmission. You will then receive everything you need immediately.