Reconciling Payments - Best Practices

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.