If you deal with merchant cards of any kind, whether it is Amex, Diners, VISA, Mastercard, then how do you know if the monies being deposited into your account are correct and accounted for unless these are being reconciled.
You could even have specialty merchant cards like Fleet, MotorPass or Motor Charge, BP Card, Caltex Star Card; for all these merchant transactions, you need to ensure that the funds being transferred to you are all accounted for and the correct fees being deducted.
If you are in retail of any kind, you will probably offer at least one of the common Merchant facilities for your customers to pay for your products and services. Reconciling the Merchant transactions and statement is extremely important to ensure you are accounting for all your sales.
Most people do not account for this correctly and this could be altering your turnover figures dramatically.
Did you know that Credit Card Merchants, charge you a fee for offering their method of payment to your customers. It could be less than 1% or as much as 3-4%. This is a fee that is taken from your sales figures. Your Merchant provider may charge this fee as a direct debit from your bank account each month, or may deduct it from your sales income before transferring the money to you.
How do you know if you are receiving all your sales transactions?
How do you know if the fee they are charging you has been calculated at the correct rate?
How do you make sure you are accounting for these fees, and the GST applied to them correctly?
How do you make sure you are claiming all these fees as a claimable business expense?
You make sure you have a bookkeeping system in place that accounts for all this. You need to ensure that these are being reconciled regularly. This is where About Bookkeeping and our team of bookkeeping experts can help. We have had extensive Merchant experience in monitoring, accounting for and allocating all the correct transactions, fees and charges to ensure your records are 100% accurate.