Accounts Payables and Accounts Receivables (AP & AR) Solution

BitCurb provides you with a single enterprise grade reconciliation solution to address your credit card reconciliation needs.

What is Account Reconciliation – accounts payables and accounts receivables?

Accounts receivables and accounts payables are the assets and liabilities money balances for every running business.

At the end of each account closing period, your accounting team must verify that the detailed total of all accounts payable outstandings matches up with the payables account balance from your general ledger. That’s what the accounts payable reconciliation is. It requires matching of the invoices and other documents from your own general ledger with those on the supplier statement received.

Respectively, account receivables reconciliation is the process of matching the detailed amounts of unpaid customer billings to the accounts receivable total stated in the general ledger.

What Is the Process for Account Reconciliation

For the account receivables the steps would be:

  1. Get the trade receivables transactions from your general ledger
  2. Get the receivables detail
  3. Listing of unpaid customer billings is usually recorded in a subsidiary sales ledger.

  4. Classify outstanding transactions, investigate and make necessary corrections within the current reporting period
  5. Verify your aging report and sign off.

For the accounts payables the steps would be:

  1. Get a supplier statement document
  2. That is information received from your supplier’s accounting system, which lists all unpaid invoices at a certain period. It may also encompass any existing uncleared items such as credit notes and payments.

  3. Get your general ledger data and reconcile it with the supplier statement document
  4. Your accountants team provides the data corresponding to the current reporting period.

  5. Classify outstanding transactions, investigate and make necessary corrections within the current reporting period
  6. The remaining outstanding transactions after the reconciliation is done represent all missing credit notes, over-payments as well as potential duplicates. They have to be classified as exceptions and investigated.

    A possible resolution for exceptions that are usually result of due to bank fees, exchange rates conversion can be combined into a journal entry that is posted back to the ERP system.

  7. Verify your aging report and sign off.
  8. Once you are done with the investigations and possible corrections, you can go ahead and print out your aging report, displaying your outstanding transactions from your accounts based on time buckets. This marks the end of your period account reconciliation.

Accounts Payable and Accounts Receivable Reconciliation challenges

The account amounts are stored in the accounting system (i.e. general ledger). However those systems lack any more sophisticated functionality to address the AP & AR reconciliation process challenges and only support basic one to one matching.

Identifying and resolving quickly the transaction discrepancies in your accounts payable and receivable accounts is crucial for the financial health for your organisation.

Why Is Accounts Payable and Accounts Receivable Reconciliation Important?

Accounts receivable is an important aspect of a businesses' fundamental analysis. Accounts receivable is an asset and it measures a company's liquidity or ability to cover short-term obligations without additional cash flows.

Accounts payable management enables business owners to manage healthier cashflow. They could decide whether to pay on cash or credit in a period in order to extend the cash availability, maintain the business strong credit as well as a long-term partnership, and be in charge of their payments paying properly and when’s is due.

What solution does BitCurb offer for Accounts Payable and Accounts Receivable Reconciliation?

The aggregations on the supplier statements or on the receivables detail, along with possible bank fees applied when statements are prepared can tremendously affect the reliability of any automation. That’s a huge challenge for under staffed organisations or organisations dealing with a high volume of transactions in their AP or AR accounts.

BitCurb’s Crunch engine supports one to many reconciliation rules with adjustments. That’s a powerful tool to address the charge of any bank fees and currency settlements on your supplier statement or receivables detail, when matching against the charts of accounts data.

Our powerful reconciliation API provides unparallel in the reconciliation world possibilities for 3rd party integrations with accounting software or leading ERP systems. You can seamlessly integrate the process of posting back the reconciliation result into your system, or leverage the API capabilities to close a missing functionality gap in your software.

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