ToddLay

February 6, 2018

Late last year I was working with a new client that was having some challenges with their credit card account trying to get it to reconcile (this happens more than you think).

After we requested all of their credit statements for 2017 so we could start from the beginning of the year to reconcile all of the transactions to the closing statement balance, things got very interesting by the time we got to Q3.

We were able to sort out the initial challenges of transactions that were not entered and some payments that were not being recorded, but what we discovered there were several transactions like $1,127 and $1783, and a few others that totaled over $7,000 that the client had no idea what
they were.

When they contacted the call center for the suspicious company that ran these charges, they replied with it will take 30 days to generate a report to send them….

Furthermore, because these charges were now approaching 6 months aging on the account then raises the question for statute of limitations to correct it if it was unauthorized and then burden of proof is on the shoulders of the cardholder.

You might be thinking this would never happen to me I would catch $1,100 transaction, you might. But if you have a business that is running $50,000-$75,000+ of transactions a month through your account, you might not.

I suggest you have TWO sets of eyes looking over your accounting each month.  If you are are trying to do it yourself, then have have a bookkeeper that knows what they are doing review your financials with you. I guarantee they are going to catch something you missed, it’s what they do and its their skillset.