How it runs for restaurants and hospitality businesses
Our ReconBot workflow pulls each processor's and platform's payout report, ties every payout to a bank deposit and to the POS sales or orders it settles, posts fees, commissions, refunds and chargebacks separately, and reconciles every clearing balance at each close.
What is payment processor reconciliation?
Payment processor reconciliation is the work of proving that the money a processor or marketplace deposits equals your gross sales less its fees, refunds, chargebacks, reserves and adjustments for the same settlement period. Each payout is broken into its parts and posted so revenue, fees and sales tax are correct and the bank deposit matches to the cent.
What we handle for restaurants and hospitality businesses
- Match each processor and marketplace payout to a bank deposit and the sales it settles
- Reconcile Toast or Square batches to Z-reports and online-ordering payouts to order reports
- Post processing fees, marketplace commissions, promotions, refunds and chargebacks separately
- Flag held, delayed or reversed payouts before they distort sales or cash
- Reconcile every processor and platform clearing balance at each close
The KPI that matters here
All processor and marketplace payouts matched to deposits and POS sales within two business days, with fees and commissions posted separately.
Restaurants compliance notes
Tip reporting and tip credits
Employees must report cash and card tips to the employer, the employer withholds payroll taxes on reported tips, and large food and beverage establishments file Form 8027 annually. Where the restaurant takes a tip credit against minimum wage under the FLSA, the wage records must show that tips brought each employee to the full minimum. We reconcile POS tips to payroll and keep the workpapers; your payroll provider and CPA handle filings.
Sales tax and local meal taxes
Restaurant sales are taxable in most US states, many cities and counties add a meal or hospitality tax, and rules differ for catering, delivery, alcohol and service charges. We reconcile tax collected in the POS to the ledger by jurisdiction each month, prepare the workings for your filing, and flag rate changes or new locations so nothing is missed.
Daily cash and deposit controls
Cash-heavy service creates the need for a daily cash count, a deposit log and a documented over-and-short account. We reconcile the counted cash per shift to the POS cash tender, match deposits to the log, and report over-and-short by location and manager so problems surface within days rather than at year-end.
Alcohol, franchise and lease reporting
Liquor license reporting, franchisor royalty and marketing-fund reports based on gross sales, and percentage-rent clauses in leases all depend on POS sales figures that tie to the ledger. We prepare the sales schedules these reports need from reconciled numbers and keep the supporting Z-reports on file.
Restaurants software we work in
- Square
- QuickBooks Online
- Xero
- Gusto
- Bill.com
- Toast
- Restaurant365
- MarginEdge
- 7shifts
- All 50 platforms
More for restaurants and hospitality businesses
Other services for restaurants
Payment processor reconciliation in other industries
Frequently asked questions
Why do we have so many deposits that do not match any sales day?
Each processor and marketplace settles on its own cycle and combines several days or a whole week into one net deposit after fees, commissions and refunds. Five streams can produce a dozen deposits a week that never equal a Z-report. Reconciling from payout reports rather than the bank feed makes each deposit traceable to specific days and orders.
How do you handle a customer chargeback on a card sale?
The disputed amount is recorded against the day's sales, the dispute fee is posted, and we assemble the POS receipt, signature or order detail you would need to respond. Responding is your decision. If the dispute is lost the amount stays as a loss with a note; if won, the reversal is matched when the processor returns the funds.
Can you reconcile first-party online ordering as well as marketplaces?
Yes. First-party ordering through Toast, Square Online or a Stripe-based site settles like a card processor, net of a processing fee and sometimes a per-order platform fee. We reconcile its payout report to the online order report and the bank, and report first-party channel cost alongside marketplace commission so the owner can compare what each ordering channel costs.
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