Practices to Improve Payment Reconciliation for eCommerce Business!
In the past few years, businesses from various categories have been forced to drastically change their operations and shift themselves to eCommerce platforms. Along with the rise of online shopping, the requirement for several payment methods has also arisen. eCommerce platforms provide their customers the options for online payment, and it has been boosted during the pandemic as customers opted more for the contactless payment method.
It can become troublesome for you to keep track of how much money you should receive from various eCommerce platforms as a seller. You can experience a lot of trouble if your logistic partner and wholesalers don’t follow the same payment cycle as yours. The eCommerce business requires you to have robust payment reconciliation software that can handle all the payments for you. This kind of software automates the payment reconciliation process to help you remain competitive while handling multiple payment vendors and customers. Here in this blog, we have mentioned important factors that can help you enhance the payment reconciliation process for an eCommerce business. Let’s get going and check out how you can improve this for sustainable performance.
Impactful Practices to Enhance the Payment Reconciliation Process
The ever-emerging eCommerce industry has undoubtedly become a profitable platform for you as an online seller. But to run your eCommerce business on multiple platforms, you may have to face the everyday challenges related to the payment reconciliation process. However, following some of the impactful practices related to this process can help you enhance it. To make it genuinely impactful, you can also use some of the payment reconciliation software such as eVanik. It can boost the improvement process. Let’s check out the impactful practices in the payment reconciliation process that you should adopt.
Assess Current Payment Reconciliation
Because of the sheer figure of transactions in the eCommerce business, the payment reconciliation process with an unregulated and traditional approach inevitably leads you to hazardous data entry. It also promotes regulatory and compliance issues. If you are still using the manual reconciling transactions using clumsy spreadsheets, it can result in inefficient workflow, other blockages, and delays. You need to go through your current payment reconciliation process to find out the glitches and keep track of all the transactions. To enhance this process, you need to identify the challenges and then work accordingly. In the Process of Assessing reconciliation, you can take the help of payment reconciliation software to automate this Process, diminish the errors, and save you enough time.
Work on Internal Controls
Operating the eCommerce payment reconciliation process, it is vital to involve an array of internal controls that can quickly identify and catch any possible issues such as accounting errors and fraud associated with payments. Internal controls basically work as software that can get installed in the entire standardized process. Implementing internal controls can help minimize the risks, establish the integrity of your business, and provide errorless financial statements. If you have a team of sales members and accountants, you should surely let them know about it and train them with internal controls. To apply the internal controls perfectly, you can also take the help of any payment reconciliation software.
Implicate Integrated Solutions
Most errors occur in the Process of Payment reconciliation at the stage of data analytics. You can spend your maximum effort to extract, select, and load the data despite identifying the results and assuring error-free financial statements. However, various software providers in the industry can provide you with software related to payment reconciliation. This software basically provides robust solutions to quickly diminish several errors related to this Process. This software includes technical solutions that automatically import and compile the transactional data from your ERP system, or it can directly extract it from several marketplaces you are selling your products on. It can provide you with an auto-generated list of all your transactions in a monthly, quarterly, and annually format. These software clarifies the mode of payment, product cost, and vendors’ commission. It automatically saves your time and makes it a valuable affair for you.
Analyze the Process on a Daily Basis
Miscalculations in payment reconciliation lead you to divergence in bank statements and put your business at extreme financial risk. That is why, as an eCommerce seller, you must focus on making this process as efficient and error-free as possible. You need to understand that, whether the payment reconciliation process is manual or automated, it can work efficiently only if you analyze it daily. It helps you monitor the gaps and other issues related to this Process. This regular practice provides you the opportunity to make improvements instantly. You must observe the time it takes to complete the reconciliation process and the number of discrepancies identified in this particular Process. You need to set a benchmark to reply to the Process in continuity till you get the best results. The analysis step is quite crucial as it provides you the room for improvements.
Embrace the Payment Transformation
Payment methods have changed rapidly in the past few years. Digitization brings various payment options and promotes the transformation in payment sections. Customers prefer cashless payments these days, and to meet their demands, you have to embrace the various payment transformations. Instead of cash payment, Google pay, Paytm, and Phonepay have taken over the market. Now you can experience that you have multiple vendors to reconcile regularly. Customers and vendors are now preferring credit cards as well to make payments. Managing the credit card fees has also added a burden to your shoulder. However, handling it manually can become highly complicated. Thus, being in the eCommerce industry, you must understand that postponing the payment transformation of your online business costs you more than the actual transformation does.
Hence, payment reconciliation is an exhausting yet essential task to perform if you sell products online. These days, it has become more challenging, but the above practices can extraordinarily help you perform the payment reconciliation adequately and skillfully. However, adopting an automated and integrated payment reconciliation process can make it an error-free and less time-consuming Process. It also lessens the risk of fraud and prepares smooth financial statements. It will also help if you keep an eye on the automation and workflow to keep it updated as per the customer demands and market trends.