Handling Unmatched Transactions for Annual Reports
During the annual report period, our team can ask you to match some transactions that weren't matched with the right documents during the previous year. Sometimes it can be confusing to understand how to match these transactions. Don't worry, here’s how to easily handle them:
Advance Payment from a Client: the most common situation, a transaction that was received for which no sales invoice was uploaded (maybe because it was not received from the supplier, you still didn't provide the services, or you forgot to upload the invoice to Companio).
- What to Do: Upload the related sales invoice for the client to the dashboard. If you forgot to issue that invoice, don't worry, you can do it now.
- Alternatives: If you don’t have an invoice, and it would be impossible for you to generate one, consider sending the money back to the client.
Payment from a Board Member of the company: Loans from the owners of the company to the business are not supported in Companio, so income from a member of the company must be justified, usually with a sales invoice for services offered to this member by the business. Think of the board member as a client.
- What to Do: Upload the sales invoice for the board member to the dashboard.
- Alternatives: If you don’t have an invoice, and it would be impossible for you to generate one, consider sending the money back to the board member.
Small Payments (Usually less Than 5€): small incoming payments, no matter the amount, must be justified as sales too.
- What to Do: Depending on the nature of the transaction, there may be different options to match it.
- This could be a small commission or other minor income without an invoice, such as an affiliate payment from your banking provider for referring a new customer. In that case, match it as "Commission Earnings".
- Did you receive some interest from the bank for holding an amount of money in your balances? Match it as a "Bank cashback".
- Was this a small refund from the government due to a positive VAT balance in your favor? Match it as "State refund".
- Alternatives: Contact us to send an explanation to your accountant if none of those options apply.
Advance Payment to a Supplier: This happens when you purchased a deductible expense for your business but didn't get an invoice or uploaded it to Companio.
- What to Do: Upload the purchase invoice to the dashboard.
- Alternatives: If you don’t have an invoice, and cannot obtain it anymore, there are two options.
- A member of the board can refund the money to the company (as if this had been a personal expense that was refunded). Then you can match both transactions (the initial expense and the incoming money from the board member) as "Refund for personal expenses".
- Alternatively, you can match it as a non-business expense, which may incur a 25% tax liability.
Payments to Unknown Destinations (Poor Description in Bank Transaction): These may be valid deductible expenses for your business that are hard to identify as such or link to a specific invoice due to a poor description in the bank transaction.
- What to Do: Upload the purchase invoice.
- Alternatives: Contact our support team to send an explanation to your accountant. Based on your explanation, the accountant will guide you on the next steps.
- Uploading Documents: Make sure to upload all relevant documents quickly (not after the 5th of the following month) to avoid delays in your annual report.
- Available Matchings: If you’re unsure about the available matching options, check out this FAQ.
- Act Fast: Addressing unmatched transactions promptly helps keep your records accurate and ensures compliance with tax regulations.
Incoming Money (Positive Amount in Bank Transactions)
Advance Payment from a Client: the most common situation, a transaction that was received for which no sales invoice was uploaded (maybe because it was not received from the supplier, you still didn't provide the services, or you forgot to upload the invoice to Companio).
- What to Do: Upload the related sales invoice for the client to the dashboard. If you forgot to issue that invoice, don't worry, you can do it now.
- Alternatives: If you don’t have an invoice, and it would be impossible for you to generate one, consider sending the money back to the client.
Payment from a Board Member of the company: Loans from the owners of the company to the business are not supported in Companio, so income from a member of the company must be justified, usually with a sales invoice for services offered to this member by the business. Think of the board member as a client.
- What to Do: Upload the sales invoice for the board member to the dashboard.
- Alternatives: If you don’t have an invoice, and it would be impossible for you to generate one, consider sending the money back to the board member.
Small Payments (Usually less Than 5€): small incoming payments, no matter the amount, must be justified as sales too.
- What to Do: Depending on the nature of the transaction, there may be different options to match it.
- This could be a small commission or other minor income without an invoice, such as an affiliate payment from your banking provider for referring a new customer. In that case, match it as "Commission Earnings".
- Did you receive some interest from the bank for holding an amount of money in your balances? Match it as a "Bank cashback".
- Was this a small refund from the government due to a positive VAT balance in your favor? Match it as "State refund".
- Alternatives: Contact us to send an explanation to your accountant if none of those options apply.
Outgoing Money (Negative Amount in Bank Transactions)
Advance Payment to a Supplier: This happens when you purchased a deductible expense for your business but didn't get an invoice or uploaded it to Companio.
- What to Do: Upload the purchase invoice to the dashboard.
- Alternatives: If you don’t have an invoice, and cannot obtain it anymore, there are two options.
- A member of the board can refund the money to the company (as if this had been a personal expense that was refunded). Then you can match both transactions (the initial expense and the incoming money from the board member) as "Refund for personal expenses".
- Alternatively, you can match it as a non-business expense, which may incur a 25% tax liability.
Payments to Unknown Destinations (Poor Description in Bank Transaction): These may be valid deductible expenses for your business that are hard to identify as such or link to a specific invoice due to a poor description in the bank transaction.
- What to Do: Upload the purchase invoice.
- Alternatives: Contact our support team to send an explanation to your accountant. Based on your explanation, the accountant will guide you on the next steps.
Additional Tips
- Uploading Documents: Make sure to upload all relevant documents quickly (not after the 5th of the following month) to avoid delays in your annual report.
- Available Matchings: If you’re unsure about the available matching options, check out this FAQ.
- Act Fast: Addressing unmatched transactions promptly helps keep your records accurate and ensures compliance with tax regulations.
Updated on: 03/07/2024
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