If your business sells direct to consumers, or if it places anything on company credit cards, it's important that you understand the role of a credit card receipt. For many of us, it is easy to forget how important receipts are until we find that we need them. For example, we may find there is a discrepancy in our bank or credit card statements, or that we need to return merchandise to the store. However, as a business owner, you should be concerned about credit card receipts for a different reason -- without it, your business may have trouble receiving payment if a customer questions the charge.
But what is a credit card receipt, anyway? Tune In to find out.
Credit card receipts are a transaction record
Simply put, these small slips of paper are a form of transaction record. Specifically, they document a credit card purchase. On each of these receipts, there should be a list of what was bought, how many, see unit price, and any extra charges. As a merchant, you need to provide a sales receipt for every transaction.
These receipts correspond with an invoice, whether you are the buyer or the seller of goods. In addition, they form part of your financial records and should be kept for several years.
Receipts help with credit card reconciliation
Every month, as part of your financial review, accounting should do a credit card reconciliation. This involves reviewing every transaction on your bank or merchant account statement. Not only will the reconciliation tell you what money was spent and where, and what your gross sales were, but it also helps detect fraudulent transactions. But the sooner you find these transactions, the sooner you and your staff you can take corrective action.
In short, every credit card receipt documents the exchange of money for goods and services. As a result, but they are an important part of your procurement and sales functions. Fortunately, with modern procurement software like ControlHub they are relatively easy to track. After all, as a transaction record these receipts can easily uploaded to the software and consulted as needed.