We all need to reconcile payments regularly. For many retailers, matching POS reconciliation data with bank statements becomes time-consuming.
Our innovative Payment Type Breakdown Report offers a powerful solution to streamline this essential process.
Understanding the Payment Reconciliation Challenge
Accurate payment reconciliation ensures your financial records match actual transactions and that you see what is happening and what you think is happening.
The biggest problems besides the work, and its a lot of work
-Figuring out how the payment processing fees work when accepting card payments
-Dealing with delayed payments and settlement issues
-Businesses Doing third-party payment processors face time
Simplifying the Payment Reconciliation Process for Retailers
Our Payment Type Breakup Report is explicitly designed to address your reconciliation challenges. It provides retailers with a comprehensive breakdown of payment data organised intuitively.
Where to Find the Report
You will find it here.
See Reports> Sales - Register > Payment Type Breakup.
This report summarises payments for the bank's particular period broken up by days. The totals by payment type are listed on the report, with a Grand Total at the bottom. The report can be produced for any period on a daily, weekly, monthly, or even yearly basis.
Key Features and Benefits
The Payment Type Breakup Report offers several advantages that streamline your financial management:
-Daily payment summaries broken down by payment method
-Flexible reporting periods (daily, weekly, monthly, or yearly)
-Comprehensive payment type categorisation for detailed analysis
-Total calculations for quick reference
-Easy comparison with bank deposit records
How the Payment Type Breakup Report Works
Report Structure
The Payment Type Breakup Report presents a clear, organised view of your payment data with the following elements:
Column Headings and Organisation
The report includes these essential columns:
-Date: Transaction date
-Total Amount: Sum of all payments received
-Payment Type Columns: Individual columns for each payment method (Cash, Credit Card, EFTPOS, etc.)
I find this daily breakdown particularly valuable. Banking systems often split deposits across different days. With organised data, you can easily match your POS records with bank deposits despite timing differences.
The Reconciliation Process Made Simple
The Payment Type Breakup Report makes reconciling your sales with bank deposits significantly more efficient.
Here's a step-by-step approach:
Generate Your Report
Select your desired date range to view payment activities during that period comprehensively.
Compare with Bank Statements
Match the payment type totals from your report with the corresponding deposits in your bank statement.
Pay special attention to:
-Credit card batch totals
-Cash deposit amounts
-EFTPOS settlements
-Third-party processor deposits
Identify and Investigate Discrepancies
When differences appear between your report and bank statement:
-Look at transaction fees deducted by payment processors. They often do not match what you think they should be.
-Verify all refunds and chargebacks
-Ensure all sales are in your POS system. It is a worry if they do not.
Check for timing differences in deposits.
The most important thing is that payment providers have held up in their settlements. After being processed through your POS system, it can sometimes take up to 3 business days for the money to settle in your bank account. This is particularly problematic if you or your customer are not in the major banks.
Public holidays can be a problem.
I hate this one. Different systems close at different times. For example, some payment providers batch out at 11:00 PM, and transactions after will be counted on the next day.
Manual payment processing: Sometimes, a transaction is flagged, and then it needs to be processed manually rather than automatically. If so, you will see a delay.
It is for these reasons most professions do not perform daily reconciliations.
Leveraging POS Reconciliation Data for Business Growth
Leveraging Data for Business Growth
The Payment Type Breakup Report delivers value beyond essential reconciliation by providing actionable business intelligence.
Tracking Payment Trends
By analysing your payment data over time, you can identify valuable trends in customer payment preferences. This information helps you:
-Adjust your payment acceptance methods based on the charges levied.
-Forecast cash flow more accurately
Implementing Your Payment Reconciliation Strategy
To maximise the benefits of the Payment Type Breakup Report, consider these implementation steps:
Establish a Regular Reconciliation Schedule
Set a consistent schedule for reconciliation activities. I suggest daily or weekly. You do not want to leave it too far away. It gets hard to find out what someone did three weeks ago on Tuesday.
Integrate with Your Financial Systems
Connect your POS data with the bank records when possible for maximum efficiency.
Ready to Transform Your Financial Management?
Our clients use our Payment Type Breakup Report to save time and report discrepancies in their financial records.
Industry Insights
The Payment Times Reporting Scheme started in January 2021 and offers valuable insights into payment practices across Australian industries. According to the official Australian government source here, while primarily focusing on how large businesses pay small suppliers, the data reveals ssential trends relevant to retailers:
-Standard payment terms average around 30 days across most industries -Education and training businesses pay approximately 65% of invoices within their standard payment period -Long payment times (over 30 days) significantly impact small business cash flow and growth potential
Conclusion
This tool is handy for effectively managing and reconciling your POS Software with the bank.
Just another example of how our POS System gives you something you can use.
Written by:
Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.
