End-of-Day Reconciliation: A Streamlined Process for Dealerships

End-of-day reconciliation is when you verify that what happened at your payment terminals matches what's recorded in your DMS. Skip it, and small problems become big problems. Do it poorly, and you're wasting time without catching issues.

Here's how to build an efficient daily reconciliation process that actually works.

Why Daily Reconciliation Matters

Catch Problems Early

A missing payment from Monday is easy to find on Monday. Finding it during month-end close? That's an archaeological dig.

Prevent Accumulation

One unreconciled transaction is no big deal. Twenty unreconciled transactions is a nightmare. Daily reconciliation prevents buildup.

Enable Quick Resolution

When you find a discrepancy today, you can:

• Remember the transaction
• Ask staff who processed it
• Contact the customer easily

A week later? Much harder.

Simplify Month-End

If every day reconciles cleanly, month-end is just confirmation. No scrambling. No late nights.

The Efficient Reconciliation Process

What You Need

Reports:

• Terminal batch summary (from processor or terminal)
• DMS payment report (same date range)

Access:

• Terminal history/reprint capability
• DMS transaction lookup
• Processor portal (for detailed research)

The 15-Minute Process

This should take 15-30 minutes at most. If it takes longer, something's wrong.

Step 1: Pull Reports (2 minutes)

Get today's totals from:

• Payment terminals (batch total)
• DMS (posted payments total)

Step 2: Compare Totals (1 minute)

Do they match?

• Yes → Spot check and done
• No → Investigate

Step 3: Drill Down if Needed (5-20 minutes)

If totals don't match:

1. Break down by payment type
2. Compare individual transactions
3. Find the variance
4. Research the discrepancy

Step 4: Document and Act (2-5 minutes)

• Resolved? Note what happened
• Unresolved? Document for follow-up
• Systemic issue? Flag for process improvement

Step 5: Close Batch (2 minutes)

Ensure batch is settled for the day.

What Good Matching Looks Like

Transaction Count

Number of transactions should match:

• Terminals: 47 transactions
• DMS: 47 posted payments

If counts differ, you have missing or extra postings.

Dollar Total

Sum of amounts should match:

• Terminals: $23,456.78
• DMS: $23,456.78

If totals differ but counts match, you have amount discrepancies.

By Payment Type

Break down further:

• Credit card: Terminals $18,234.56, DMS $18,234.56 ✓
• Debit card: Terminals $4,567.89, DMS $4,567.89 ✓
• Cash: DMS $654.33 (no terminal record expected)

Common Discrepancy Types

Missing from DMS

Symptom: Terminal shows transaction, DMS doesn't

Causes:

• Integration failure with your DMS system
• Transaction declined but staff thought it went through
• Posted to wrong date/account

Investigation:

1. Check terminal detail for transaction status
2. Search DMS by amount or customer
3. Verify payment wasn't voided

Extra in DMS

Symptom: DMS shows payment not in terminal

Causes:

• Manual entry without terminal transaction
• Check or cash recorded
• Posted from different date

Investigation:

1. Review DMS entry details
2. Was it a cash/check payment?
3. Was it entered manually (and why)?

Amount Mismatch

Symptom: Same transaction, different amounts

Causes:

• Tip added after authorization
• Surcharge not properly tracked
• Keying error (if manual)

Investigation:

1. Compare original amount vs. final
2. Check for adjustments
3. Verify surcharge handling

Timing Differences

Symptom: Transaction in different day's batch

Causes:

• After-hours transaction
• Batch closed at unusual time
• Timezone confusion

Investigation:

1. Check transaction timestamp
2. When was batch closed?
3. Is this a cutoff time issue?

Handling Unresolved Items

The Investigation Log

Keep a running list:

Date | Description | Amount | Status | Owner | Resolution

Every unresolved item gets tracked. Nothing falls through cracks.

Escalation Timeline

• Day 1: Attempt to resolve
• Day 2: Escalate to supervisor if not resolved
• Day 3-5: Contact processor if needed
• Day 7: Must be resolved or have clear plan

Never let items linger beyond a week without action.

Resolution Documentation

When resolved, document:

• What was the issue?
• What was the resolution?
• How do we prevent recurrence?

Department-Specific Considerations

Service Department

Typically highest volume:

• Most transactions to reconcile
• RO payments should match
• Watch for split payments (multiple transactions on one RO)

Parts Department

Mixed transaction types:

• Cash more common
• Account charges (not terminal transactions)
• Wholesale may batch differently

F&I

Fewer transactions, larger amounts:

• Down payments need careful tracking
• Deal funding different from card payments
• Different timing than daily transactions

Common Roadblocks

"It takes too long"

If reconciliation takes more than 30 minutes:

• Reports may not be aligned (fix formatting)
• Integration may be creating extra work
• Process may be inefficient (streamline)

"I can never find discrepancies"

Without good search tools:

• DMS search capability may be limited
• Terminal history may be hard to access
• Consider better reporting tools

"No one has time to do it"

Make it non-negotiable:

• Assign specific person
• Make it part of closing routine
• Don't leave until it's done

"It's always off and we just adjust"

Stop accepting this:

• Find root cause
• Fix the systemic issue
• Adjustments should be rare, not routine

Building the Habit

Make It Routine

Same time every day:

• End of business day (before leaving)
• Or start of next day (before opening)
• Consistent time builds habit

Assign Ownership

One person responsible:

• Office manager typically
• Cashier supervisor in service
• Clear accountability

Track Completion

Log that reconciliation was done:

• Checklist or calendar
• Manager visibility
• Follow up on missed days

Review Weekly

Manager reviews once per week:

• Were all days reconciled?
• Any open items?
• Any patterns to address?

Technology That Helps

Automated Matching

Good integration means:

• Transactions post automatically
• Matching happens in system
• You review exceptions, not everything

Exception Reporting

Better than comparing full lists:

• Show me what doesn't match
• Flag missing transactions
• Highlight amount variances

Audit Trails

When you need to investigate:

• Clear transaction history
• Who did what, when
• Easy to trace problems

Signs of a Healthy Process

Green Flags

• Daily reconciliation completes in under 20 minutes
• Discrepancies are rare (less than 1%)
• Unresolved items never linger beyond a week
• Month-end is stress-free

Red Flags

• Reconciliation regularly takes over an hour
• Discrepancies are common
• Items stay unresolved for weeks
• Month-end requires overtime

If you're seeing red flags, fix the process.

The Payoff

Time Saved

• Daily: 15-30 minutes invested
• Month-end: Hours saved
• Net: Significant time reduction

Problems Caught

• Missing payments found quickly
• Errors corrected promptly
• Customer issues resolved fast

Financial Accuracy

• Books are correct
• Cash matches records
• Audits are easy

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Simplify Your Reconciliation →

Anchorbase provides reconciliation tools that show you exactly what needs attention. Spend time on exceptions, not on comparing reports line by line.