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Reconciling Payments - Best Practices
Reconciling Payments - Best Practices
Emily McClendon avatar
Written by Emily McClendon
Updated over 3 months ago

Accurate reconciliation of payments is essential for maintaining financial records and ensuring smooth business operations. Here are some best practices to follow:

1. Set a Cut-off Time

  • Establish a consistent cut-off time for recording payments in your practice management system (PMS).

  • Payments received after this cut-off time should be recorded as part of the next business day's transactions.

2. Use Batch Processing

  • Set up batch processing with your payment processor to group and process all transactions for a given day simultaneously.

  • Align your batch processing time with your PMS cut-off time.

3. Regular Reconciliation

  • Reconcile payments daily.

  • Compare end-of-day totals in your PMS with those from your payment processor.

  • Ensure all transactions match and account for any payments received after office hours in the next business day.

4. Record-Keeping

  • Maintain clear and organized records of all transactions.

  • Note any discrepancies between your PMS and the payment processor for prompt resolution.

5. Automate Reconciliation

  • Integrate your payment processor with your PMS to automate the reconciliation process, saving time and reducing errors.

  • Utilize available integration options, such as those offered by Stripe, for data synchronization.

6. Handle Discrepancies

  • Establish policies for identifying and resolving discrepancies between your PMS and payment processor.

  • Outline steps to determine the cause and correct the discrepancies.

7. Maintain Audit Trails

  • Ensure your PMS keeps audit trails for all transactions.

  • Use these trails to trace any transaction back to its original source if discrepancies arise.

8. Train Your Staff

  • Provide training to your staff on payment recording and reconciliation procedures.

  • This ensures consistency and minimizes errors.

9. Prioritize Security

  • Restrict access to payment information to authorized personnel only.

  • Ensure all payment data is encrypted to protect against unauthorized access.

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