How does Plooto's Automatic Reconciliation work?

To help you streamline your bookkeeping, Plooto will automatically reconcile your bills and invoices with your accounting software as they are paid
 
Connecting to Your Software
In order to automatically reconcile your bills and invoices you will first need to connect Plooto to your accounting software. To do so follow the simple process for your accounting software:
QuickBooks Online
QuickBooks Desktop
Xero
 
Processing Payments
Once you are connected, all of your outstanding bills and invoices will show up in Plooto and are ready to be paid. Simply follow these steps to make payments:
  • Select “Dashboard”
  • Choose one of “Outstanding Invoices” or “Outstanding Bills”
  • Click “Sync with Accounting Software”
  • Select the payments you wish to process with the checkboxes on the right
  • Click “Pay”
With QuickBooks Online and Xero your bills/invoices will be marked as paid WITHIN 15 MINUTES of processing the payments. For QuickBooks Desktop users, bills/invoices can be updated on demand 
 
Reconciliation Process With Your Accounting Software
The reconciliation with your account software follows these 4 steps:
  1. Upon your first bill/invoice payment, Plooto automatically creates a "Plooto Clearing" bank account. This account will be used to disperse the funds for bill payments and fees. Where USD is the currency of your bills/invoices, the account will be named “Plooto Clearing (USD)”. 
  2. At this point, Plooto will mark the bill/invoice as paid from "Plooto Clearing/ Plooto Clearing (USD)" and your Plooto Clearing account will have a negative balance.
  3. After Plooto debits the funds from the source account, a "bank transfer" will be created in your accounting software. The bank name will match the name of your bank account in Plooto. If your bank account name in Plooto is "Checking Account" and this account does not exist in your accounting software, a new "Checking Account" will be created.
  4. Fees are then transferred from "Plooto Clearing (USD)" to the "Transaction Fee (USD)" account. A new vendor named "Plooto Inc. (USD)" will be created for the all fees to be paid to.  
* Plooto Instant accounts:
For accurate reconciliation, transfer your pre-funded amount from your bank account to Plooto Instant account in your accounting software.

Example Transaction
Transfer of $100.00 USD being paid from your "Checking Account" to "Acme Inc."
 
This payment was created on a holiday 01/01/2017 and was not debited until 01/02/2017.
 
This payment was created with a $0.50 transaction fee.
 
The Process
  • Plooto creates a bill payment for $ 100.00 USD from "Plooto Clearing (USD)" with payment date of 01/01/2017 to "Acme Inc." (Note this is not the debit date, instead it is when the payment is created)
*"Plooto Clearing (USD)" balance will remain negative until the debit date.
  • On 02/01/2017 a new bank transfer is created from "Checking Account" to "Plooto Clearing (USD)" for $100.50 dated 01/02/2017.
*Notice that this amount INCLUDES the fee charged.
  • On 02/01/2017 a new bank transfer is created from "Plooto Clearing (USD)" to "Transaction Fee (USD)" for $0.50 dated 01/02/2017. New vendor is created for this transaction "Plooto Inc. (USD)"
 
At this point your "Plooto Clearing (USD)" will be back to $0.00. If your Plooto Clearing is not at $0.00 after reconciliation then you have created manual entries and will need to contact Plooto Support to assist you further.
 
 
Frequently Asked Questions:

Do I need to create any accounts manually?
  • No, all of the accounts are automatically created by Plooto during reconciliation

Why is my Plooto Clearing balance negative?
  • Your Plooto Clearing will be negative until the payment is complete. If your balance is still negative after all of the payments are completed contact support and Plooto will assist you with any reconciliation issues

What happens if I delete my payment after reconciliation?
  • If you delete or reject a pending payment, Plooto will automatically void the associated transactions. There are no actions required on your end

Why is my bill marked as paid even though it was not debited from my account? 
  • To avoid any confusion and duplicate payments Plooto will instantly mark your bill payments as Paid. Think of it like printing cheques. If a payment is deleted or rejected after creation it will be automatically un-reconciled

Do you support multiple currencies?
  • At the moment Plooto will support USD and CAD bill payments. Plooto also support multiple currency reconciliation in the same company

Why is my bill still not marked as paid in my accounting software?
  • It might take up to 15 minutes for Plooto to create all of the transactions

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