Solving the "Early Payout" Reconciliation Nightmare
How we forensically reconciled mismatched Stripe transactions for Action Circle, bridging the gap between banking data and Kick.co software.
The Client Profile
Action Circle is a premium social impact design studio dedicated to supporting nonprofits. As a design-forward agency, they utilize specialized tools like Kick.co to manage their projects and finances, alongside the industry-standard payment processor, Stripe.
While their design work is seamless, their financial data flow was hitting a major snag: the timing disconnect between payment processing and bank deposits.
The Operational Challenge
The client faced a persistent issue with "Mismatched Transactions." The balances in their accounting software (Kick.co) did not match their bank statements. The culprit was Early Payouts.
1. The "Early Payout" Trap
Stripe often initiates a payout before the accounting system "closes" the batch or recognizes the revenue. This creates a timing difference where the bank shows cash received, but the accounting software shows the transaction as pending or grouped differently.
2. Data Grouping Discrepancies
Stripe aggregates multiple client payments into a single daily deposit ("Batch Deposit"). If Kick.co records these as individual invoices, there is no clean 1-to-1 match in the bank feed. The client needed a forensic accounting approach to untangle these batched deposits.
The NO-BS Intervention
We didn't just guess. We triangulated the data. By cross-referencing the Stripe Dashboard, Bank Statements, and Kick.co ledgers, we built a reconciliation bridge to ensure every cent was accounted for.
Technical Execution & Strategy
Triangulation & Verification
We pulled the raw data from all three sources to identify the gaps.
- Compared Stripe Payout IDs against Bank Deposit amounts.
- Verified how transactions were grouped (Gross vs. Net of fees).
- Identified specific instances where "Early Payouts" caused the mismatch.
Manual Journal Adjustments
Automation tools often fail when timing is off. We intervened manually to correct the ledger.
- Created General Journal Entries in Kick.co to recognize revenue in the correct period.
- Adjusted for Stripe Fees that were not automatically deducted in the software.
- Cleared "Undeposited Funds" accounts to balance the books.
Process Documentation
Fixing it once isn't enough. We ensured the client understood why it happened.
We provided detailed documentation of the reconciliation steps, creating an audit trail that explains exactly how the Stripe batches were unpacked and recorded. This serves as a roadmap for future bookkeeping accuracy.
The Results
Action Circle now has financial records that accurately reflect their cash flow. The mystery of the "Early Payouts" has been solved, and their books are balanced to the penny.
"Bookkeepers experienced with stripe"