Matching Options for Transactions and How to Choose the Right One
Accurately matching your transactions is essential for maintaining clean financial records, ensuring seamless bookkeeping, tax compliance, and providing a clear overview of your business finances. Below, you'll find various matching options available in Companio, each serving specific purposes.
Description: Matches incoming transactions with sales invoices issued to your customers.
- Use to: Match transactions with invoices for digital services or goods delivered by your business to clients. For example, if you've provided web design services to a client, you'd match the payment received with the corresponding sales invoice.
- Don't use for: Expenses or revenue not justified by a document proving a service delivered to your client by your business. Interest received or cashback from your bank.
Description: Matches outgoing transactions with purchase invoices from suppliers.
- Use to: Match transactions with invoices for goods or services delivered to you. For instance, if you've purchased office supplies from a vendor, you'd match the payment made with the purchase invoice received.
- Don't use for: Personal expenses (use non-business-related expenses) such as meals, beverages or clothing.
Description: Identifies personal expenses paid with corporate funds.
- Use to: Identify expenses like food, beverages, meals, or clothing paid with corporate funds. For example, if you've used your company credit card to pay for a coffee or lunch, you'd categorize it as a non-business expense.
- Don't use for: Expenses that are business expenses and have a clear purchase invoice issued by the provider or supplier of goods.
- Please note: These expenses incur tax liability in Estonia (Taxation act, § 51.).
Description: Indicates bank fees or commissions.
- Use to: Identify monthly bank charges for account or card maintenance. For instance, if your bank deducts a monthly fee for maintaining your business account, you'd categorize it as a bank fee.
- Don't use for: Expenses not related to banking fees or commissions.
Description: Indicates fees payable to the Estonian government for activities with the e-Business registry or payment of taxes to the Tax Office.
- Use to: payment of taxes or VAT to the Tax Office (EMTA).
- Also to: Identify government fees for business changes. For example, if you've paid registration fees for updating company information with the authorities, you'd categorize it as a state fee.
- Don't use for: Services paid to governmental institutions, notaries, or lawyers for services that need an invoice.
Description: Denotes reimbursements or refunds issued by the state, tax office, EMTA, e-Business register, or similar entities to the business.
- Use for: Reimbursements of overpaid taxes, refunds for excess fees paid to governmental bodies, or reimbursements from the e-Business register for registration-related payments.
- Also for: Identifying refunds received from the tax office or other government agencies for overpayments or erroneous charges.
- Don't use for: Refunds from private entities, reimbursements for services rendered by notaries, lawyers, or other private professionals.
Description: Indicates daily allowances for approved business trips.
- Use to: Identify reimbursements for daily expenses during business trips. For instance, if you've received a daily allowance for meals during a business trip, you'd categorize it as a daily allowance.
- Don't use for: Accommodation or flight tickets (those are purchases and need an invoice), paying yourself a "salary" using the daily allowance as an excuse.
Description: Indicates transactions between corporate bank accounts.
- Use to: Indicate transfers between business accounts. For example, if you've transferred funds from your business checking account to your business savings account, you'd categorize it as an internal movement of funds.
- Don't use for: Transactions between your Estonian business and another business, even if you own both businesses. Internal means from the same exact company.
Description: Indicates that a member of the company made a personal expense with the corporate funds of the company and later refunded the money back to the company. It will match two transactions. One of them is the expense transaction. The other one (for the exact amount) must come from the personal account of one of the members of the company (the sender of the transaction will be checked).
- Use to: indicate that you made a non-business expense with the company funds but refunded that money back to the company.
- Don't use for: transferring money between two entities or individuals that have nothing to do with the company. These transactions to third parties require sales or purchase invoices.
Description: Indicates payments for share capital contributions.
- Use to: Declare payments for share capital contributions. For example, if a shareholder adds additional funds into the company after increasing the share capital, you'd categorize it as a share capital contribution.
- Don't use for: Dividends.
Description: Indicates dividend payments from the company to shareholders.
- Use to: Distribute profits to shareholders. For example, if the company distributes profits to its shareholders at the end of the fiscal year, you'd categorize it as dividends.
- Don't use for: Paying for the share capital contribution of your company.
Description: Indicates verification charges from merchants.
- Use to: Identify small charges for card verification. For example, if a merchant charges a nominal fee to verify your credit card, you'd categorize it as a card verification.
- Don't use for: Card fees from your bank (use the matching "Banking fees" for that).
Description: Indicates bank cashbacks for interest earned.
- Use to: Record cashbacks for interest earned. For example, if your business bank account offers cashback rewards for maintaining a minimum balance, you'd categorize it as a bank cashback.
- Don't use for: Interest income earned on loans or other interest-bearing assets, use "Received interest" for that.
Description: These two matchings cover a very specific scenario in which an amount of money is held as a guarantee from a banking entity, payment processor, or payment gateway.
- There is one bank or payment gateway (i.e: Stripe) that is used to receive money from your clients. After receiving some money, this entity keeps or holds some amount as "Held/Reserved Funds" as a guarantee to make sure you've got funds to pay in case of chargebacks, refunds, etc.
- Then after some time, the bank/payment gateway credits this money back to the account as "Release of funds reserved".
Description: Identifies a small commission or fee earned from a bank or service provider for some kind of affiliate sign up or referral. This commission must be small and occasional. If the main activity of the business is based on affiliate links or referral for products or services, you need to ask for an invoice to the agencies you work with.
- Use to: identify small commissions earned for a referral or affiliate sign up, example, if you refer a new customer to Revolut Business using your affiliate link, you earn a small commission.
- Don't use for: affiliate earnings or referral revenue that is recurrent, high in volumen, or constitutes the main activity of your business. If your business is based on a blog where you recommend products to your audience and you earn affiliate commissions for that, you need to request invoices to your providers.
Description: Identifies an outgoing transaction that adds money to an investment platform (e.g., Mintos, eToro, Kraken, etc.). This transaction represents funds that the customer has transferred from their bank account to the investment platform.
- Use for: outgoing transactions from the customer’s bank account to an investment platform. Example: transferring 1000€ from your bank account to your account on eToro.
- Do not use for: any other type of transfer that is not related to adding funds to an investment platform.
Description: Identifies an incoming transaction from an investment platform back to the customer’s bank account. The withdrawn money can be a combination of the recovered principal and the return on investment. When making this match, we ask customers to specify what portion of the withdrawn amount is principal and what portion is interest received.
- Use for: incoming transactions from an investment platform to the customer’s bank account. Example: withdrawing 1500€ from your account on Kraken to your bank account, where 1000€ is principal and 500€ is interest.
- Do not use for: any other type of incoming transaction that is not related to withdrawing funds from an investment platform.
- Note: this matching previously appeared as "Interest received." The new matching is more comprehensive as it allows specifying how much of the principal and interest is included in the transaction.
Description: Internal Trading refers to transactions that occur within an investment platform where your business has invested (e.g., eToro, Kraken, Peerberry). These transactions are purely internal exchanges within the platform and should not be considered for accounting purposes. They represent internal reallocations of funds rather than external income or expenses.
- Use for: Identifying movements within an investment platform in which you are investing that occur solely within the platform itself as a result of investment operations.
- Do not use for: Movements to external sources, including payments, invoices, commissions, business expenses, or outgoing transactions to personal accounts.
Important: If in doubt, reach out to our support team for assistance with transactions matching to ensure accurate bookkeeping.
- Refund Matching Type: The previous "refund" matching type has been discontinued due to system improvements and regulatory compliance requirements. Moving forward, refunds must be matched with a credit invoice to ensure accurate documentation and accounting. If your business issues a refund to a customer, you'll need to generate a credit invoice to record the transaction properly. Similarly, if you receive a refund from a supplier, ensure that they provide a credit invoice for reconciliation purposes.
- Donations: We regret to inform you that the "donations" matching option is no longer supported in Companio. This decision was made to streamline our platform and focus on core functionalities. If your business engages in charitable giving or donation activities, we recommend you to switch to another provider.
- Personal Loans: Personal loans are no longer supported in Companio. Instead, we encourage you to explore alternative methods for financing your company, such as increasing the share capital. Personal loans can complicate your company's financial records and may lead to challenges during annual reporting, especially if your business experiences financial difficulties or bankruptcy. By increasing the share capital, you can inject additional funds into your company in a transparent and compliant manner.
- Costs of Entertaining Guests: We have discontinued support for expenses related to entertaining guests. These expenses, including meals, beverages, and entertainment, are considered non-business related and may incur tax liabilities in Estonia. It is important to separate personal and business expenses to ensure compliance with tax regulations and maintain accurate financial records. We recommend refraining from using corporate funds for personal entertainment expenses to avoid potential tax implications.
- Decreasing the share capital: decreasing the share capital is not supported by Companio.
Sales Invoice:
Description: Matches incoming transactions with sales invoices issued to your customers.
- Use to: Match transactions with invoices for digital services or goods delivered by your business to clients. For example, if you've provided web design services to a client, you'd match the payment received with the corresponding sales invoice.
- Don't use for: Expenses or revenue not justified by a document proving a service delivered to your client by your business. Interest received or cashback from your bank.
Purchase Invoice:
Description: Matches outgoing transactions with purchase invoices from suppliers.
- Use to: Match transactions with invoices for goods or services delivered to you. For instance, if you've purchased office supplies from a vendor, you'd match the payment made with the purchase invoice received.
- Don't use for: Personal expenses (use non-business-related expenses) such as meals, beverages or clothing.
Non-business Expenses:
Description: Identifies personal expenses paid with corporate funds.
- Use to: Identify expenses like food, beverages, meals, or clothing paid with corporate funds. For example, if you've used your company credit card to pay for a coffee or lunch, you'd categorize it as a non-business expense.
- Don't use for: Expenses that are business expenses and have a clear purchase invoice issued by the provider or supplier of goods.
- Please note: These expenses incur tax liability in Estonia (Taxation act, § 51.).
Bank Fee:
Description: Indicates bank fees or commissions.
- Use to: Identify monthly bank charges for account or card maintenance. For instance, if your bank deducts a monthly fee for maintaining your business account, you'd categorize it as a bank fee.
- Don't use for: Expenses not related to banking fees or commissions.
State Fee:
Description: Indicates fees payable to the Estonian government for activities with the e-Business registry or payment of taxes to the Tax Office.
- Use to: payment of taxes or VAT to the Tax Office (EMTA).
- Also to: Identify government fees for business changes. For example, if you've paid registration fees for updating company information with the authorities, you'd categorize it as a state fee.
- Don't use for: Services paid to governmental institutions, notaries, or lawyers for services that need an invoice.
State Refund:
Description: Denotes reimbursements or refunds issued by the state, tax office, EMTA, e-Business register, or similar entities to the business.
- Use for: Reimbursements of overpaid taxes, refunds for excess fees paid to governmental bodies, or reimbursements from the e-Business register for registration-related payments.
- Also for: Identifying refunds received from the tax office or other government agencies for overpayments or erroneous charges.
- Don't use for: Refunds from private entities, reimbursements for services rendered by notaries, lawyers, or other private professionals.
Daily Allowance:
Description: Indicates daily allowances for approved business trips.
- Use to: Identify reimbursements for daily expenses during business trips. For instance, if you've received a daily allowance for meals during a business trip, you'd categorize it as a daily allowance.
- Don't use for: Accommodation or flight tickets (those are purchases and need an invoice), paying yourself a "salary" using the daily allowance as an excuse.
Internal Movement of Funds:
Description: Indicates transactions between corporate bank accounts.
- Use to: Indicate transfers between business accounts. For example, if you've transferred funds from your business checking account to your business savings account, you'd categorize it as an internal movement of funds.
- Don't use for: Transactions between your Estonian business and another business, even if you own both businesses. Internal means from the same exact company.
Refund for personal expenses
Description: Indicates that a member of the company made a personal expense with the corporate funds of the company and later refunded the money back to the company. It will match two transactions. One of them is the expense transaction. The other one (for the exact amount) must come from the personal account of one of the members of the company (the sender of the transaction will be checked).
- Use to: indicate that you made a non-business expense with the company funds but refunded that money back to the company.
- Don't use for: transferring money between two entities or individuals that have nothing to do with the company. These transactions to third parties require sales or purchase invoices.
Share Capital Contribution:
Description: Indicates payments for share capital contributions.
- Use to: Declare payments for share capital contributions. For example, if a shareholder adds additional funds into the company after increasing the share capital, you'd categorize it as a share capital contribution.
- Don't use for: Dividends.
Dividends:
Description: Indicates dividend payments from the company to shareholders.
- Use to: Distribute profits to shareholders. For example, if the company distributes profits to its shareholders at the end of the fiscal year, you'd categorize it as dividends.
- Don't use for: Paying for the share capital contribution of your company.
Card Verification:
Description: Indicates verification charges from merchants.
- Use to: Identify small charges for card verification. For example, if a merchant charges a nominal fee to verify your credit card, you'd categorize it as a card verification.
- Don't use for: Card fees from your bank (use the matching "Banking fees" for that).
Bank Cashback:
Description: Indicates bank cashbacks for interest earned.
- Use to: Record cashbacks for interest earned. For example, if your business bank account offers cashback rewards for maintaining a minimum balance, you'd categorize it as a bank cashback.
- Don't use for: Interest income earned on loans or other interest-bearing assets, use "Received interest" for that.
Held Fund Reserve & Released Fund Reserve
Description: These two matchings cover a very specific scenario in which an amount of money is held as a guarantee from a banking entity, payment processor, or payment gateway.
- There is one bank or payment gateway (i.e: Stripe) that is used to receive money from your clients. After receiving some money, this entity keeps or holds some amount as "Held/Reserved Funds" as a guarantee to make sure you've got funds to pay in case of chargebacks, refunds, etc.
- Then after some time, the bank/payment gateway credits this money back to the account as "Release of funds reserved".
Commission Earnings:
Description: Identifies a small commission or fee earned from a bank or service provider for some kind of affiliate sign up or referral. This commission must be small and occasional. If the main activity of the business is based on affiliate links or referral for products or services, you need to ask for an invoice to the agencies you work with.
- Use to: identify small commissions earned for a referral or affiliate sign up, example, if you refer a new customer to Revolut Business using your affiliate link, you earn a small commission.
- Don't use for: affiliate earnings or referral revenue that is recurrent, high in volumen, or constitutes the main activity of your business. If your business is based on a blog where you recommend products to your audience and you earn affiliate commissions for that, you need to request invoices to your providers.
Investment - Added Funds:
Description: Identifies an outgoing transaction that adds money to an investment platform (e.g., Mintos, eToro, Kraken, etc.). This transaction represents funds that the customer has transferred from their bank account to the investment platform.
- Use for: outgoing transactions from the customer’s bank account to an investment platform. Example: transferring 1000€ from your bank account to your account on eToro.
- Do not use for: any other type of transfer that is not related to adding funds to an investment platform.
Investment - Withdrawn Funds:
Description: Identifies an incoming transaction from an investment platform back to the customer’s bank account. The withdrawn money can be a combination of the recovered principal and the return on investment. When making this match, we ask customers to specify what portion of the withdrawn amount is principal and what portion is interest received.
- Use for: incoming transactions from an investment platform to the customer’s bank account. Example: withdrawing 1500€ from your account on Kraken to your bank account, where 1000€ is principal and 500€ is interest.
- Do not use for: any other type of incoming transaction that is not related to withdrawing funds from an investment platform.
- Note: this matching previously appeared as "Interest received." The new matching is more comprehensive as it allows specifying how much of the principal and interest is included in the transaction.
Internal Trading
Description: Internal Trading refers to transactions that occur within an investment platform where your business has invested (e.g., eToro, Kraken, Peerberry). These transactions are purely internal exchanges within the platform and should not be considered for accounting purposes. They represent internal reallocations of funds rather than external income or expenses.
- Use for: Identifying movements within an investment platform in which you are investing that occur solely within the platform itself as a result of investment operations.
- Do not use for: Movements to external sources, including payments, invoices, commissions, business expenses, or outgoing transactions to personal accounts.
Important: If in doubt, reach out to our support team for assistance with transactions matching to ensure accurate bookkeeping.
Discontinued and Non-supported Matching Options
- Refund Matching Type: The previous "refund" matching type has been discontinued due to system improvements and regulatory compliance requirements. Moving forward, refunds must be matched with a credit invoice to ensure accurate documentation and accounting. If your business issues a refund to a customer, you'll need to generate a credit invoice to record the transaction properly. Similarly, if you receive a refund from a supplier, ensure that they provide a credit invoice for reconciliation purposes.
- Donations: We regret to inform you that the "donations" matching option is no longer supported in Companio. This decision was made to streamline our platform and focus on core functionalities. If your business engages in charitable giving or donation activities, we recommend you to switch to another provider.
- Personal Loans: Personal loans are no longer supported in Companio. Instead, we encourage you to explore alternative methods for financing your company, such as increasing the share capital. Personal loans can complicate your company's financial records and may lead to challenges during annual reporting, especially if your business experiences financial difficulties or bankruptcy. By increasing the share capital, you can inject additional funds into your company in a transparent and compliant manner.
- Costs of Entertaining Guests: We have discontinued support for expenses related to entertaining guests. These expenses, including meals, beverages, and entertainment, are considered non-business related and may incur tax liabilities in Estonia. It is important to separate personal and business expenses to ensure compliance with tax regulations and maintain accurate financial records. We recommend refraining from using corporate funds for personal entertainment expenses to avoid potential tax implications.
- Decreasing the share capital: decreasing the share capital is not supported by Companio.
Updated on: 28/06/2024
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