Reconciling Your Credit Card Statement
Like clockwork, you get your credit card statement in the mail or go online to retrieve it from your credit card company’s website. You probably make a once over glance to make sure that everything looks okay. Looks okay? How do you actually know if everything is correctly balanced if you don’t do a credit card reconciliation? How do you know if the numbers that you see are all correct? After all, the credit card company could have made a mistake. They are only human.
You are putting a lot of trust into your credit card company if you do not do a proper credit card reconciliation for each monthly credit card statement. You reconcile your bank statement every month. Why not start doing the same for your credit card statement? Don’t let the process intimidate you. Once you learn how to reconcile a credit card statement the first time, it will get easier with each consecutive month. Besides, you will finally know if those charges on your credit card statement are calculated correctly.
What is Required
Quite naturally, there are a few things that you will need for your credit card reconciliation. They are your credit card statement, credit card receipts, and a system for reconciling your receipts. Basically, you want a way to make sure that your credit card receipts match up with what is billed on your credit card statement. If you want to use a manual paper and pen system to do this, you can. If you want to create an excel spreadsheet to track and reconcile your credit card receipts and then reconcile them to your statement, you can. Or, you may choose to do this reconciliation with a computer software package. Whatever way you choose to do you reconciliation, gather the proper tools for your individual system.
Put your receipts in order according to the dates. If you are using an excel spreadsheet, you can enter them into a spreadsheet as you get them. Keep them in order until your credit card statement arrives. It will be much easier to reconcile your statement if the receipts are in order by date. This way, you can just goes through and mark each one off according to the date that the purchase was made.
Match Receipts to Credit Card Statement
Basically, for each receipt that you have, you are going to match it to an entry on your credit card statement. This is the best way to learn how to reconcile a credit card statement. As you find the entry on your credit card statement, mark it off with a pen or pencil to indicate that it has been located and reconciled for the month. You are going to do this for each receipt. Make sure that the amounts on the receipts match exactly with the ones on the credit card statement.
When you have gone through all receipts in this manner, there shouldn’t be any open entries on your credit card statement. If there are entries still remaining, this means that the credit card has billed you for something that you did not purchase. Call your credit card company immediately for clarification.