To manage unapproved Expensify Card expenses after closing your books for the month, you can set up Continuous Reconciliation with an accounting integration or manually reconcile the expenses.

Set Up Continuous Reconciliation

Continuous Reconciliation deducts Expensify Card purchases from your company’s settlement account on a daily or monthly basis.

Note: A business bank account must be linked as your settlement account to complete this process.

Steps to set up Continuous Reconciliation:

1. Go to Settings > Domains.
2. Click your desired domain name.
3. Under the Company Cards tab, find the Imported Cards section and select the desired Expensify Card from the dropdown.
4. To the right of the dropdown, click Settings.
5. Use the Settlement Account dropdown to select your settlement business bank account.
   • To verify your settlement account, go to Settings > Account > Payments and check the listed settlement account.
   • If the accounts do not match, repeat the steps above to update the account.
6. Click Save.

If your workspace is integrated with QuickBooks Online, Xero, NetSuite, or Sage Intacct, complete these additional steps:

1. From the Reconciliation Account dropdown, select the GL account associated with your settlement account and click Save.
2. (Optional) For Sage Intacct users:
   • Specify cash-only or accrual-only journals.
   • Choose No Selection for journals that do not apply.
3. Navigate to the Advanced tab and enable Auto-Sync. Click Save.
4. Go to Settings > Workspaces.
5. Open the workspace linked to the integration.
6. Click the Connections tab.
7. Next to the desired integration, click Configure.
8. Under the Export tab:
   • Ensure the Preferred Exporter is a Workspace Admin.
   • Verify their email matches the domain of the Expensify Cards (e.g., name@company.com).

Manually Reconcile Expenses

Follow these steps to reconcile Expensify Card expenses manually:

1. Navigate to Settings > Domains.
2. Click your desired domain name.
3. Under the Company Cards tab, select the desired Expensify Card from the Imported Cards dropdown.
4. Click the Reconciliation tab on the right.
5. Ensure the Expenses toggle is selected for reconciliation.
6. Set the start and end dates, then click Run.
7. Use the Imported, Approved, and Unapproved totals to reconcile your clearing account in your accounting system:
   • The Unapproved total should match the clearing account balance.
   • Depending on your policies, book an accrual entry by debiting the appropriate expense and crediting the clearing account.

Troubleshooting Reconciliation Issues

When to Troubleshoot:

• Amounts vary significantly.
• Reconciliation was not run when accounts payable (AP) closed.
• Multiple subsidiaries closed on different dates.
• Foreign currency complications arise.

Steps for In-Depth Reconciliation:

1. Lock your AP in your accounting system.

   Tip: Perform this step at the beginning or end of the day to avoid overlapping entries.

2. In Expensify, go to the Reports tab.
3. Filter by date:
   • From: First day of the month (or date of the first applicable expense).
   • To: Today’s date.
4. Set other filters to All.
5. Select all expense reports by checking the top-left checkbox. For more than 50 reports, click Select All.
6. Click Export To > All Data - Expense Level Export. This sends a CSV report to your email.
7. Open the report and apply filters (or create a pivot table):
   • Daily Settlements:
     • Filter by Date = Month being reconciled.
     • Bank = Expensify Card.
     • Posted Date = Month being reconciled.
     • Export Non-Reimb = Blank or after AP lock date.
   • Monthly Settlements:
     • Filter by Date = Month being reconciled.
     • Bank = Expensify Card.
     • Posted Date = First date after last settlement until month-end.
     • Export Non-Reimb = Current and new month until AP lock date.

The filtered list will show expenses with settlement entries but no corresponding approved entries in Expensify. The total at the bottom should equal the balance in your Clearing or Liability Account.

Tips for Efficient Reconciliation

• Enable Scheduled Submit to ensure timely expense submissions.
• Communicate with employees about unapproved expenses via the #announce room on new.expensify.com.
• Be aware that Expensify Card payments are posted to your general ledger immediately but may not be withdrawn from your bank until the next business day.
• Consider accruing for Expensify Cards based on your internal policies.

FAQ

Why is the Expensify report amount different from my accounting system?

• Verify that expenses were posted to the correct GL month.
• Export all transactions from your Clearing (Daily Settlement) or Liability (Monthly Settlement) account and group them into expenses and settlements via pivot tables:
  • Run the settlements report in the Reconciliation Dashboard.
  • Compare Approved activity to posted activity in your accounting system.

What if Continuous Reconciliation is disabled for Expensify Cards?

A Domain Admin can set export accounts for individual cards via: Settings > Domains > [Domain Name] > Company Cards > Edit Exports.

How can I use Expensify’s Continuous Reconciliation with Sage Intacct Smart Rules, and why are there issues?

Due to the highly customizable nature of Sage Intacct Smart Rules, Continuous Reconciliation may encounter conflicts, especially when Expensify attempts to create vendor accounts during the reconciliation process. To resolve this, you can temporarily disable all Smart Rules in Sage Intacct, allow Expensify to create the necessary vendor accounts, and then re-enable the Smart Rules. However, if some Smart Rules are implemented via a Sage Intacct Package and cannot be easily disabled, you may need to manually adjust the rules after account creation. This process might need to be repeated if new employees submit reports in the future. Expensify creates vendor accounts to associate reports with the email addresses that submitted them, and the “vendor” field is included in the journal entries posted via Continuous Reconciliation.