When is the best time to perform reconciliation on a Government Purchase Card (GPC)?

Performing reconciliation on a Government Purchase Card (GPC) at the end of each month is optimal because it aligns with standard accounting practices and allows for a thorough review of all transactions over a complete billing cycle. Monthly reconciliation ensures that all purchases are accounted for, discrepancies can be identified in a timely manner, and any necessary corrections can be made before the next billing cycle begins.

This timing also helps to maintain accurate records for budgeting and financial reporting purposes, ensuring that any issues are addressed promptly. The end-of-month review typically includes verifying receipts against transactions, confirming that purchases were made in compliance with regulations, and assessing whether the expenditures align with planned budgets.

Performing reconciliation immediately after each purchase can lead to an overwhelming amount of work and is impractical when considering the volume of transactions that may occur. Reconciling at the beginning of each quarter does not allow for timely correction of issues that may have arisen in the previous month. Likewise, reconciling after major transactions could overlook smaller, yet significant, purchases that also need attention.

Therefore, reconciling at the end of each month provides a comprehensive approach that balances thoroughness and efficiency, making it the best time for this critical financial process.