After explaining “What does POS mean in banking?”, we’ll discuss one of the tasks that every retailer and customer should do – POS reconciliation – to ensure that your financial activity is recorded correctly and that the amounts are accounted for.
POS reconciliation is an accounting task that compares two sets of records and sees if the figures match. It, in other words, confirms whether the amount left in the account is the same as the amount spent or received. By conducting POS reconciliation, retail businesses and customers can achieve greater accuracy and consistency in their financial records.
Read more: POS reconciliation – What is POS reconciliation?
The benefits of POS reconciliation are clear; it’s time to explain how.
The POS transaction on bank statements appear with the label POS to differentiate them from other types of payment methods. Thus, you can check your bank statement every month if you want to verify POS transaction lists by scanning for POS transactions among all instances of your debit card. If you don’t recognize any transaction, you can report the problem to your bank for investigation.
Here are 5 steps to reconcile your POS transaction:
- Compare internal records with your statements
- Identify transactions that you can’t cross-reference
- Verify incoming funds on both documents
- Contact your bank for suspected errors
- Maintain a balanced set of books