Credit Card Reconciliation for Construction Companies
Credit Card Reconciliation for Construction Companies
Credit Card Reconciliation for Construction Companies
How to reconcile company cards without losing days at month-end
Key takeaways
Credit card reconciliation makes sure every card charge matches what’s recorded in your accounting system.
For contractors, each charge also needs the right receipt, job, and cost code.
Most of the time goes to tracking down missing receipts, jobs, and cost codes, not matching the statement to the books.
Capturing the receipt, job, and cost code when the purchase happens can take a lot of that work out of month-end.
Credit card reconciliation sounds pretty straightforward: compare the card statement to what’s in your accounting system and make sure everything matches.
For contractors, matching the charge is only part of it. A $600 charge at a supply house doesn’t tell accounting what was bought, which job it was for, where to code it, or where the receipt is.
When that information is missing, someone has to track it down before the books can close.
Do that across dozens of cardholders and hundreds of purchases, and card reconciliation can take days instead of hours.
Credit Card Reconciliation for Construction Companies
How to reconcile company cards without losing days at month-end
Key takeaways
Credit card reconciliation makes sure every card charge matches what’s recorded in your accounting system.
For contractors, each charge also needs the right receipt, job, and cost code.
Most of the time goes to tracking down missing receipts, jobs, and cost codes, not matching the statement to the books.
Capturing the receipt, job, and cost code when the purchase happens can take a lot of that work out of month-end.
Credit card reconciliation sounds pretty straightforward: compare the card statement to what’s in your accounting system and make sure everything matches.
For contractors, matching the charge is only part of it. A $600 charge at a supply house doesn’t tell accounting what was bought, which job it was for, where to code it, or where the receipt is.
When that information is missing, someone has to track it down before the books can close.
Do that across dozens of cardholders and hundreds of purchases, and card reconciliation can take days instead of hours.
What is credit card reconciliation?
Credit card reconciliation is how accounting makes sure the charges on the company card statement match what’s recorded in the books.
For contractors, there are three things to check:
Does the charge match? The amount on the card statement should match what’s in the accounting system.
Is there a receipt? Every purchase should have documentation showing what was bought.
Is it on the right job? The purchase needs the correct job and cost code so the job costs are accurate.
Matching the charge is usually the easy part. Tracking down the receipt and figuring out where the cost belongs is what takes time.
Why does card reconciliation take so long in construction?
Because a card statement doesn’t always give accounting enough information to know where a purchase belongs.
A statement may show that someone spent $850 at a supply house. It won’t tell you what materials they bought, which job they were for, or which cost code to use.
Then add the way construction companies actually spend money:
A lot of people are spending money in the field. Foremen, PMs, supers, and crews are buying materials, tools, fuel, and whatever else the job needs. That can mean hundreds of card charges to sort through every month.
The same person may be buying for several jobs. A foreman can hit the same supply house three times in a week for three different projects. The card statement shows where they shopped, not which job each purchase belongs to.
Receipts are easy to lose. Paper receipts end up in trucks, pockets, tool bags, or the trash. If they aren’t captured when the purchase happens, accounting may be chasing them weeks later.
Spend is spread across different accounts. Company cards, fuel cards, and supply house accounts can all have different statements and billing cycles. Accounting has to pull all of it together before close.
One purchase can cover multiple jobs. A single supply house run might include materials for two or three projects. Accounting can’t just assign the whole charge to one job, it has to know which items went where.
Charges don’t always show up when the work happens. A purchase made near the end of a job may not hit the statement until after the job closes, leaving accounting to figure out where that late cost should go.
For contractors, every missing receipt, job, or cost code means accounting has to stop and track down an answer before clearing the charge. Multiply that across hundreds of field purchases, and reconciliation can quickly turn into days of month-end follow-up.
Where the time goes
Here’s what credit card reconciliation can look like when most of the work waits until month-end:
Step | What accounting has to do |
|---|---|
Pull the statements | Gather statements from company cards, fuel cards, and other accounts |
Match the easy purchases | Connect the receipts and job information that have already been submitted |
Track down what’s missing | Ask the field for receipts, jobs, cost codes, or explanations |
Fix the exceptions | Split purchases, handle returns and credits, correct miscoded charges, and deal with duplicates |
Enter and review everything | Get the final information into the accounting system and make sure it landed correctly |
Reconcile the account | Confirm the final card balance matches the books |
Matching the numbers is the easy part. The time goes to finding the receipt, figuring out which job the purchase belongs to, and getting the right cost code before accounting can clear the charge.
What is credit card reconciliation?
Credit card reconciliation is how accounting makes sure the charges on the company card statement match what’s recorded in the books.
For contractors, there are three things to check:
Does the charge match? The amount on the card statement should match what’s in the accounting system.
Is there a receipt? Every purchase should have documentation showing what was bought.
Is it on the right job? The purchase needs the correct job and cost code so the job costs are accurate.
Matching the charge is usually the easy part. Tracking down the receipt and figuring out where the cost belongs is what takes time.
Why does card reconciliation take so long in construction?
Because a card statement doesn’t always give accounting enough information to know where a purchase belongs.
A statement may show that someone spent $850 at a supply house. It won’t tell you what materials they bought, which job they were for, or which cost code to use.
Then add the way construction companies actually spend money:
A lot of people are spending money in the field. Foremen, PMs, supers, and crews are buying materials, tools, fuel, and whatever else the job needs. That can mean hundreds of card charges to sort through every month.
The same person may be buying for several jobs. A foreman can hit the same supply house three times in a week for three different projects. The card statement shows where they shopped, not which job each purchase belongs to.
Receipts are easy to lose. Paper receipts end up in trucks, pockets, tool bags, or the trash. If they aren’t captured when the purchase happens, accounting may be chasing them weeks later.
Spend is spread across different accounts. Company cards, fuel cards, and supply house accounts can all have different statements and billing cycles. Accounting has to pull all of it together before close.
One purchase can cover multiple jobs. A single supply house run might include materials for two or three projects. Accounting can’t just assign the whole charge to one job, it has to know which items went where.
Charges don’t always show up when the work happens. A purchase made near the end of a job may not hit the statement until after the job closes, leaving accounting to figure out where that late cost should go.
For contractors, every missing receipt, job, or cost code means accounting has to stop and track down an answer before clearing the charge. Multiply that across hundreds of field purchases, and reconciliation can quickly turn into days of month-end follow-up.
Where the time goes
Here’s what credit card reconciliation can look like when most of the work waits until month-end:
Step | What accounting has to do |
|---|---|
Pull the statements | Gather statements from company cards, fuel cards, and other accounts |
Match the easy purchases | Connect the receipts and job information that have already been submitted |
Track down what’s missing | Ask the field for receipts, jobs, cost codes, or explanations |
Fix the exceptions | Split purchases, handle returns and credits, correct miscoded charges, and deal with duplicates |
Enter and review everything | Get the final information into the accounting system and make sure it landed correctly |
Reconcile the account | Confirm the final card balance matches the books |
Matching the numbers is the easy part. The time goes to finding the receipt, figuring out which job the purchase belongs to, and getting the right cost code before accounting can clear the charge.
How to reconcile company credit cards
The basic credit card reconciliation process is straightforward:
1. Pull every card statement.
Start with all the cards you need to reconcile for the month. If you use more than one card program, make sure you have every statement and billing period.
2. Make sure every charge is accounted for.
Compare the statement with what’s in your accounting system. Look for missing transactions, duplicates, returns, credits, or anything you don’t recognize.
3. Find the receipt for each purchase.
Match each charge to a receipt or invoice so you know what was actually bought. Anything missing gets flagged for follow-up.
4. Put the cost on the right job.
Assign the correct job and cost code. If one supply house run covered three jobs, use the receipt to split the purchase across those jobs instead of putting the whole charge on one.
5. Track down anything that’s missing or wrong.
This is where most of the time goes. Accounting has to chase missing receipts, confirm unknown charges, fix the wrong job or cost code, and get answers from the field.
6. Finish the reconciliation.
Once every charge is documented and coded, make sure the final credit card balance matches the books and that the costs landed on the right jobs.
The process is straightforward when the information is there. It slows down when accounting has to stop and track down missing receipts, jobs, and cost codes.
Common credit card reconciliation problems
A few problems come up over and over:
Problem | What happens | What to do |
Missing receipt | The charge is there, but there’s no receipt showing what was bought | Ask the vendor for a copy. If you can’t get one, follow your company’s missing-receipt process |
Wrong job | A purchase gets charged to the wrong project | Confirm the job with the buyer and correct it before close |
Split purchase | One receipt includes materials for several jobs | Use the itemized receipt to put each item on the job it belongs to |
Duplicate payment | The company pays the vendor invoice and the card charge for the same purchase | Compare card purchases with vendor invoices before posting |
Charge for a closed job | A late purchase comes through after the project has closed | Have a clear policy for how accounting should handle late job costs |
Personal purchase | Someone accidentally uses the company card for something personal | Document it and handle repayment based on company policy |
Different statement dates | Company cards close on different dates | Align billing cycles where possible or make sure accounting has a clear process for each one |
The easiest time to get the receipt, job, and cost code right is when the purchase happens, not weeks later when accounting is trying to piece it all together.
How to make credit card reconciliation easier
The biggest improvement is to stop saving all the work for month-end.
Give each buyer their own card.
Accounting should be able to see who made the purchase without figuring out who borrowed whose card.
Capture the receipt when the purchase happens.
Take a photo right away instead of trying to find a paper receipt weeks later.
Get the job and cost code at the same time.
The buyer already knows which job the purchase is for. Capture that information before they move on to the next thing.
Follow up on missing information quickly.
If a purchase is still missing a receipt or job after a day or two, ask while the buyer still remembers it.
Review card activity throughout the month.
A weekly review keeps accounting from getting hit with an entire month of missing information at once.
Connect card purchases to your accounting system.
Once a purchase has the right job and cost code, that information should move into accounting without someone entering it again by hand.
The goal is to have most purchases already documented and coded before month-end. Then reconciliation becomes a final check instead of a month’s worth of cleanup.
How to reconcile company credit cards
The basic credit card reconciliation process is straightforward:
1. Pull every card statement.
Start with all the cards you need to reconcile for the month. If you use more than one card program, make sure you have every statement and billing period.
2. Make sure every charge is accounted for.
Compare the statement with what’s in your accounting system. Look for missing transactions, duplicates, returns, credits, or anything you don’t recognize.
3. Find the receipt for each purchase.
Match each charge to a receipt or invoice so you know what was actually bought. Anything missing gets flagged for follow-up.
4. Put the cost on the right job.
Assign the correct job and cost code. If one supply house run covered three jobs, use the receipt to split the purchase across those jobs instead of putting the whole charge on one.
5. Track down anything that’s missing or wrong.
This is where most of the time goes. Accounting has to chase missing receipts, confirm unknown charges, fix the wrong job or cost code, and get answers from the field.
6. Finish the reconciliation.
Once every charge is documented and coded, make sure the final credit card balance matches the books and that the costs landed on the right jobs.
The process is straightforward when the information is there. It slows down when accounting has to stop and track down missing receipts, jobs, and cost codes.
Common credit card reconciliation problems
A few problems come up over and over:
Problem | What happens | What to do |
Missing receipt | The charge is there, but there’s no receipt showing what was bought | Ask the vendor for a copy. If you can’t get one, follow your company’s missing-receipt process |
Wrong job | A purchase gets charged to the wrong project | Confirm the job with the buyer and correct it before close |
Split purchase | One receipt includes materials for several jobs | Use the itemized receipt to put each item on the job it belongs to |
Duplicate payment | The company pays the vendor invoice and the card charge for the same purchase | Compare card purchases with vendor invoices before posting |
Charge for a closed job | A late purchase comes through after the project has closed | Have a clear policy for how accounting should handle late job costs |
Personal purchase | Someone accidentally uses the company card for something personal | Document it and handle repayment based on company policy |
Different statement dates | Company cards close on different dates | Align billing cycles where possible or make sure accounting has a clear process for each one |
The easiest time to get the receipt, job, and cost code right is when the purchase happens, not weeks later when accounting is trying to piece it all together.
How to make credit card reconciliation easier
The biggest improvement is to stop saving all the work for month-end.
Give each buyer their own card.
Accounting should be able to see who made the purchase without figuring out who borrowed whose card.
Capture the receipt when the purchase happens.
Take a photo right away instead of trying to find a paper receipt weeks later.
Get the job and cost code at the same time.
The buyer already knows which job the purchase is for. Capture that information before they move on to the next thing.
Follow up on missing information quickly.
If a purchase is still missing a receipt or job after a day or two, ask while the buyer still remembers it.
Review card activity throughout the month.
A weekly review keeps accounting from getting hit with an entire month of missing information at once.
Connect card purchases to your accounting system.
Once a purchase has the right job and cost code, that information should move into accounting without someone entering it again by hand.
The goal is to have most purchases already documented and coded before month-end. Then reconciliation becomes a final check instead of a month’s worth of cleanup.
How Speedchain can help
Speedchain combines commercial Mastercard cards with spend management software built specifically for construction.
Each buyer gets their own card and captures the receipt, job, and cost code at the time of purchase.
That information then flows into the accounting system you already use, including Sage 300 CRE, Sage Intacct, QuickBooks Desktop, Spectrum, Viewpoint Vista, and Acumatica. Fuel purchases can also include the vehicle, odometer, gallons, and price per gallon.
By the time accounting starts reconciliation, most purchases already have the receipt, job, and cost code attached. Instead of spending month-end tracking down missing information, they can focus on the purchases that actually need attention.
O’Brien Construction cut its month-end close time by 60% after moving field spend to Speedchain.
Frequently asked questions
What is credit card reconciliation for construction companies?
Credit card reconciliation makes sure every company card purchase matches what’s recorded in the accounting system.
For contractors, it also means making sure each purchase has a receipt and is assigned to the right job and cost code.
How often should construction companies reconcile credit cards?
Credit cards need to be fully reconciled as part of the month-end close, but it helps to review purchases throughout the month.
Checking weekly makes it easier to catch missing receipts or job information while the purchase is still fresh.
How long should credit card reconciliation take?
It depends on how many cards and purchases you have and how much information is already attached to each transaction.
If accounting already has the receipt, job, and cost code, reconciliation can move quickly. If they have to track down that information at month-end, it can take days.
What should you do when a receipt is missing?
Start by asking the vendor for another copy. Many supply houses can find a purchase using the card and date.
If you can’t get a replacement, follow your company’s missing-receipt policy and document as much information as possible about the purchase.
How do you reconcile a purchase split across multiple jobs?
Use the itemized receipt to identify what was purchased for each job. Then assign those items to the correct jobs and cost codes in your accounting system.
Avoid guessing or splitting the total evenly unless that actually reflects what was purchased.
What’s the difference between bank reconciliation and credit card reconciliation?
Bank reconciliation makes sure the transactions and balance in your bank account match what’s recorded in your books.
Credit card reconciliation does the same thing for the company card account, but contractors also need to make sure each purchase has the right receipt, job, and cost code.
How Speedchain can help
Speedchain combines commercial Mastercard cards with spend management software built specifically for construction.
Each buyer gets their own card and captures the receipt, job, and cost code at the time of purchase.
That information then flows into the accounting system you already use, including Sage 300 CRE, Sage Intacct, QuickBooks Desktop, Spectrum, Viewpoint Vista, and Acumatica. Fuel purchases can also include the vehicle, odometer, gallons, and price per gallon.
By the time accounting starts reconciliation, most purchases already have the receipt, job, and cost code attached. Instead of spending month-end tracking down missing information, they can focus on the purchases that actually need attention.
O’Brien Construction cut its month-end close time by 60% after moving field spend to Speedchain.
Frequently asked questions
What is credit card reconciliation for construction companies?
Credit card reconciliation makes sure every company card purchase matches what’s recorded in the accounting system.
For contractors, it also means making sure each purchase has a receipt and is assigned to the right job and cost code.
How often should construction companies reconcile credit cards?
Credit cards need to be fully reconciled as part of the month-end close, but it helps to review purchases throughout the month.
Checking weekly makes it easier to catch missing receipts or job information while the purchase is still fresh.
How long should credit card reconciliation take?
It depends on how many cards and purchases you have and how much information is already attached to each transaction.
If accounting already has the receipt, job, and cost code, reconciliation can move quickly. If they have to track down that information at month-end, it can take days.
What should you do when a receipt is missing?
Start by asking the vendor for another copy. Many supply houses can find a purchase using the card and date.
If you can’t get a replacement, follow your company’s missing-receipt policy and document as much information as possible about the purchase.
How do you reconcile a purchase split across multiple jobs?
Use the itemized receipt to identify what was purchased for each job. Then assign those items to the correct jobs and cost codes in your accounting system.
Avoid guessing or splitting the total evenly unless that actually reflects what was purchased.
What’s the difference between bank reconciliation and credit card reconciliation?
Bank reconciliation makes sure the transactions and balance in your bank account match what’s recorded in your books.
Credit card reconciliation does the same thing for the company card account, but contractors also need to make sure each purchase has the right receipt, job, and cost code.
