What is a Virtual Account and how does it help in reconciliation?
Modified on: Thu, 24 Jun, 2021 at 7:14 PM
It’s quite simple. Whenever you create a contact, we automatically create a ‘Virtual Account’ and assign it to that contact.
Now, when you send an invoice to this contact (who is ideally your customer) via a payment link, this link contains payment modes like NEFT/RTGS/IMPS, Net Banking with an exclusive account number and IFSC code. This is basically the virtual account that’s been assigned to your contact.
Once the contact pays the amount on the invoice, your accounting book gets automatically updated with the received amount.
This helps in reconciliation. You don’t need to worry about finding the UTR number and matching it to the right contact. It’s done automatically.