Credit Card Reconciliation – How to Reconcile a Credit Card Statement

Posted December 13th, 2010 and last modified April 15th, 2014

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.

Sort Receipts

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.

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14 Responses to Credit Card Reconciliation – How to Reconcile a Credit Card Statement

  1. Default Gravatar
    Debbie | June 5, 2014

    Can you toss the receipts after reconciling?
    Thanks, Debbie

    • Staff
      Shirley | June 6, 2014

      Hi Debbie,

      Thanks for your question.

      This decision is entirely up to you. You can disregard the receipts that you feel as though you’ll never need again.

      Cheers,
      Shirley

  2. Default Gravatar
    Casey | April 23, 2014

    I reconcile the company credit cards. Can you confirm if I don’t get some receipts I can’t claim the GST.
    I am new to the bookkeeping industry.
    thanks

    • Staff
      Shirley | April 24, 2014

      Hi Casey,

      Thanks for your question.

      The ATO website states that “You need to keep receipts and other evidence of all sales and purchases you have made for the business. You also need to have tax invoices and all documents relating to GST, wage and salary records.”

      Cheers,
      Shirley

  3. Default Gravatar
    Ricky | March 31, 2014

    Can you recommend a system to help record credit card transactions for reconciliation later when the statement arrives?

    • Staff
      Jacob | March 31, 2014

      Hi, Ricky.

      There are a number of systems cardholders can use to keep track of credit card spending. Banks and lenders will offer online platforms which can be used to view recent account activity. You can also use accounting software to record and monitor account activity. Unfortunately Ricky, I can’t recommend one particular piece of software over another. You may want to have a conversation with your lender about whether they’re able to provide a solution that fits with your current account set up.

      Thanks for your question.

  4. Default Gravatar
    hemath | February 13, 2014

    How do I reconcile a credit card transaction?

    • Staff
      Jacob | February 14, 2014

      Hi, Hemath.

      Once you’ve read through this page and have an idea of the information you will be required to provide to your lender, the next step is to get in touch with the lender and let them know that there may be a discrepancy in your card statement and your spending records.

      Thanks for your question.

  5. Default Gravatar
    kristy | April 22, 2013

    What is the easiest way to reconcile a visa card with multiple credit cards attached to it ?

    • Staff
      Jacob | April 22, 2013

      Hi Kristy. Thanks for your question. This basically refers to budgeting and planning. If you have a number of supplementary cards linked to the one account., each of these cards will have its own number and person’s name on it. You can manage these accounts, and keep track of their spending online easily enough, and you can use budgeting or planning software to record purchases, bills and repayments. Jacob.

  6. Default Gravatar
    PIERRE | July 18, 2012

    Is this available for me who lives in Gatineau, Quebec CANADA ??
    I WOULD LIKE TO REQUEST A CREDIT CARD RECONCILIATION .

    Thank You

    • Staff
      Jacob | July 19, 2012

      Hi Pierre. This is an Australian service only. Cheers.

  7. Default Gravatar
    claude | October 18, 2011

    which credit cards offer a user-friendly method to reconcile your payments? thanks!

    • Staff
      Jacob | March 28, 2013

      Hi Claude. Thanks for your question. With most credit cards, they offer online banking facilities, Electronic funds transfer is by far the easiest way to pay your card. Hope this helps — ask us a question if you would like to know more. Jacob.

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