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Credit Card Account Reconciliation

Applies to Excel templates: "Georges Budget for Excel", "Georges Excel Checkbook Register", "Georges Excel Checkbook for Mac"

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What is credit card reconciliation?

Credit card account reconciliation is similar to bank account reconciliation except that a credit card account is a Liability (debt) type account as apposed to an Asset account like a checking account. Also, in the credit card reconciliation you are comparing and matching up your credit card register transactions that you recorded in the Excel register or other personal finance software to your monthly credit card statement produced by your credit card company. Also, instead of the typical checking account inflows (deposits and other credits) and checking account outflows (checks, payments and other withdrawals / debits), in a credit card account you are dealing with purchases / charges / cash advances (and other debits) and payments (and other credits) made to pay down the credit card balance. The debits and credits are from the banks records point of view.

 

Benefits of credit card account reconciliation?

Fraudulent credit card charges are very common and while the credit card company may notify you about fraud activity in your credit card account, you also have a responsibility to reconcile and check each transaction on your monthly credit card statement to make sure it is a transaction that you made or authorized. Also, the credit companies may a time limit in which you must report the fraudulent charges in order for them to remove them so reconciling your credit card account can help you spot transactions that you did not make or that are for the incorrect amount.  Also, if you spot a transaction that is fraudulent or not correct, you can file a chargeback with the credit card company to dispute the charge. Recording your credit card transactions in an Excel register or personal budget software and performing regular monthly credit card account reconciliations can help save you money.

In addition filing chargebacks for fraudulent card card transactions that you found while reconciling your credit card account or the bank alerted you to, the credit card company could have made an error such as a duplicate charge or incorrect charge for interest expense or a vendor could have intentionally or mistakenly overcharged you. Reporting errors to the credit card in a timely manner is important. Also credit card account reconciliation can help you have a better grip on your actual credit card balance owed and credit credit available credit.

 

Tools to help reconcile bank account?

Since the Excel register used to record your transactions is the same whether the account is a checking account or credit card account, you can use the same tools described in how to reconcile your bank account to help you reconcile the credit card account.

When you get done with your monthly credit card account reconciliation in "Georges Budget for Excel", "Georges Excel Checkbook Register" or "Georges Excel Checkbook for Mac", the "Total Cleared" near the top right of the Excel register should equal your ending credit card statement balance. However, even though you may have completed your monthly credit card account reconciliation, they may not equal if there were errors made in reconciliation process, such as you marked the wrong item as Reconciled (Cleared) in the Excel registers, or you marked an item as Reconciled (Cleared) in the Excel registers but the amounts were actually different, or there is an item on credit card statement that is not in your Excel registers, or your credit card register balance prior to doing the current account reconciliation was not reconciled properly. After reconciling your credit card account, if the "Total Cleared" near the top right of the Excel register does not equal your ending credit card statement balance, I would go over my credit card account reconciliation again and make sure that everything was matched properly, and that the Excel register balance prior to doing the current reconciliation was reconciled properly also.

 

Image below is example of "Georges Budget for Excel" 

How to reconcile credit card account

 

Image below is example of "Georges Excel Checkbook Register" and Georges Excel Checkbook for Mac" 

Credit Card Account Reconciliation in Excel Register

 

 

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