WHAT IS PAYMENT RECONCILIATION IN E-COMMERCE?
It’s critical to maintain track of your business’s expenses and revenue. Maintaining a cross-check approach, such as payment reconciliation, is a tried and tested way to stay on top of expenditures and inflow. Internal expense documentation is documented using a system that has been established. When bank statements arrive, the costs and payments are double-checked to ensure that everything is in order.
Payment reconciliation is a bookkeeping technique that ensures accounting integrity by comparing internally documented financial data against bank statements.
BEST PRACTICES FOR PAYMENT RECONCILIATION
The digital move toward e-commerce has influenced back-office operations. While dealing with many payment sources, automating e-commerce transaction reconciliation can assist e-commerce businesses to stay competitive. Implementing these best practices can help you improve your e-commerce reconciliations and future-proof your Office of Finance.
ASSESS EXISTING PAYMENT RECONCILIATION METHOD
Balance sheet reconciliations are prone to causing bottlenecks and danger for a firm’s financial close and being a regular and frequently dull operation. Identifying possible difficulties and resolving them before they become more significant problems can help e-commerce companies build a more robust reconciliation workflow.
Because of the large volume of transactions in an e-commerce firm, reconciliation processes that are unstandardized and manual ultimately result in dangerous data entry, regulatory and compliance concerns, and other issues. Furthermore, if transactions are still reconciled manually and with spreadsheets, the time-consuming nature of the process can lead to workflow inefficiency, bottlenecks, and delays.
CONSIDER PEOPLE ALONGSIDE TECHNOLOGY
Organizations frequently place a high value on RPA (Robotic Process Automation) and digital transformation, but they must also value their employees. Failure to teach your finance and accounting team before using economic transformation technologies reduces your chances of success. Your transformation journey’s return on investment skyrockets when you refine your talent and empower them with the skills they need to succeed.
ADAPT TO THE CHANGES IN RECONCILIATION SCENARIO
If e-commerce shops wish to meet their consumers’ needs and deploy contactless and online payment solutions, they must keep on top of the digital economy.
Retailers have a complex business workflow due to third-party delivery services like UberEats and GrubHub, as well as online payment platforms like Apple Pay and PayPal. Accountants now have to reconcile different vendors daily. Previously, accountants followed POS transactions with credit card transactions to bank statements; nevertheless, monitoring credit card fees was the most challenging task. Handling credit card reconciliations manually has become extremely difficult because credit cards are connected with high-volume transactions.
As the demands for performance and compliance continue to rise, manual and time-consuming Record to Report (R2R) methods have become antiquated and inefficient.
AUTOMATE PAYMENT RECONCILIATION SYSTEM
Due to the expansion of many payment vendors, e-commerce companies struggle to reconcile multiple accounts in the current economy; therefore, the economic transition is the ideal chance. Organizations should automate their reconciliations in parallel with standardized reconciliations rather than automating them without first standardizing them. Using technology to speed up a flawed and disorderly process exposes businesses to greater risk. By creating the correct basis for financial automation, companies can get a faster return on investment.
By implementing these best practices, e-commerce businesses will be able to fully exploit existing obstacles as opportunities, upskill their employees, embrace processes and technology, and standardize and automate their reconciliations simultaneously.
PAYMENT RECONCILIATION BY EUNIMART
The Payment Reconciliation process from Eunimart helps you connect data from your company’s logistics, markets, and payments into a single platform for further research.
The Eunimart Payment Reconciliation module allows businesses to track all transactions on a single dashboard, allowing faster and more informed decision-making. The omnichannel system aids in the resolution of outstanding issues such as payments or fines while also keeping track of inventory, returns, and any pending claims. Furthermore, it ensures that the firm runs smoothly and that there are no significant concerns that could wreak havoc on their E-commerce operations.