Reconciliation is an accounting concept that refers to the process of confirming that a set of two records are in agreement.
Payment reconciliation is an important task for accounting teams. It involves comparing an account payable with what has actually been paid or, in the case of an account receivable, with the actual incoming payment, to report any possible discrepancies.
This process is generally performed at the close of each financial period and entails a thorough examination of all account balances, which in the case of international businesses working with different currencies, can become complex and time-consuming.
To minimise manual reconciliation and free up the accounting department from administrative tasks, software tools like Kantox currency accounts make it possible to automate some steps in the collection and reconciliation processes.
Currency accounts and virtual IBANs are a cost-efficient solution for international businesses to design a streamlined collection process, with one IBAN per currency or even per client. This facilitates payment originator identification and simplifies reconciliation.