Glossary
Expenses & Payables

Credit Card Reconciliation

By: Alec Hollingsworth
Updated:  
June 2, 2025

DEFINITION:

Credit card reconciliation matches credit card statements with accounting records to ensure all expenses are accurate and legitimate.
Credit card reconciliation is the process of comparing transactions recorded in your accounting system with those listed on your monthly credit card statement. This ensures that all expenses are accurately captured, legitimate, and properly categorized. The reconciliation process helps identify errors, unauthorized charges, or discrepancies between your records and the statement. For nonprofits, maintaining accurate records of credit card transactions is essential for transparency and accountability. Regular reconciliation also helps prevent fraud and ensures that funds are used according to the organization’s mission and grant requirements.

Key Takeaways

  • Ensures expense accuracy and legitimacy
  • Helps detect errors and prevent fraud
  • Supports financial transparency and accountability
  • Simplifies audit preparation

Why It Matters

It ensures accurate financial reporting, prevents fraud, and maintains donor trust.

Real World Example

A nonprofit organization uses a company credit card to buy supplies for a fundraising event. At month-end, the finance manager receives the credit card statement and compares each charge with receipts and entries in their accounting software. She notices an unfamiliar transaction and investigates, discovering it was an accidental double charge by a vendor. She contacts the vendor for a refund and updates the records accordingly. By reconciling the credit card statement, the organization ensures all expenses are accurate and accounted for, maintaining both compliance and donor trust.

How Aplos Helps

Aplos streamlines credit card reconciliation by allowing users to import statements, match transactions, and easily resolve discrepancies. Nonprofits can ensure that every expense aligns with their mission and reporting requirements, saving time and reducing errors during financial reviews or audits.
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Frequently Asked Questions

Why is credit card reconciliation important for nonprofits?

It ensures that all expenses are legitimate, accurate, and properly categorized, which is essential for financial transparency and donor trust.

How often should credit card reconciliation be performed?

Ideally, credit card reconciliation should be done monthly after receiving each statement to promptly catch errors or unauthorized charges.

Can Aplos help automate credit card reconciliation?

Yes, Aplos provides tools to import credit card statements, match transactions, and easily resolve discrepancies, saving time and improving accuracy.

Related Terms

Operating Budget
Budget Narrative
Cash Flow Projection
In‑Kind Contribution
Form 990-N
Supplemental Schedule

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