There are two ways to sync your approved reimbursable expenses directly to your accounting platform:
Cash Method
All transactions are synced based on the date of the reimbursement.
For reimbursable expenses, SVB T&E will create a Bill and corresponding Bill Payment each time we debit your bank account for a reimbursement. On a nightly basis, SVB T&E will make one batch debit on your bank account for the sum of all expenses approved that day. Each expense in that batch will be represented as a line item in that Bill. The Bill Payment amount will match the debit you see on your bank account for easy reconciliation.
To enable this feature, toggle Cash accounting to "on" in your Accounting Sync page in your 'Account & Settings' tab.
Accrual Method
All transactions are synced based on the date of the expense.
Some companies prefer to record expenses on the date the expense was incurred. An additional benefit of the accrual method is that expenses will be tracked by vendor rather than grouped under the ‘SVB T&E’ vendor.
With the accrual sync, we will create a new purchase transaction for each expense against an Abacus* Clearing Account, and each transaction is dated based on the date of the expense. We will also create a bank transfer in the amount of the associated debit from your bank register to the Abacus Clearing account.
* While we call it, Abacus, this is the integration package for SVB T&E.
Each time we debit the company bank account, we will also create a bank transfer from the Abacus Clearing account to your Operating Bank Register (where debits come out of). You will need to reconcile the bank transfer with the debit in your Bank Register.
To enable this feature, toggle Accrual accounting to "on" in your Accounting Sync page in your 'Account & Settings' tab. The first time you approve a batch of expenses, the Abacus Clearing Account will be automatically created.
Reconciled vs. Unreconciled status in the Clearing Account
The purchase transactions (i.e. expenses) will come into the clearing account as 'reconciled.' The bank transfers will be 'unreconciled.'
For QuickBooks Online, reconciling the bank transfers is a one-step process:
1) In your Operating Bank Register, match the bank transfer to the corresponding bank debit. This will automatically change the status of the transaction to 'reconciled' in the Abacus Clearing account.
For Xero, reconciling the bank transfers is a two-step process:
1) In your Operating Bank Register, match the bank transfer to the corresponding bank debit.
2) In the Abacus Clearing Account, mark the bank register, and manually reconcile the transaction (this can be done in bulk).
For NetSuite, no reconciliation is needed!
The cash account, which includes the SVB T&E transfers from the sync, should be reconciled at the end of each month.
FAQ on accrual accounting in SVB T&E
Q: Do I need to create a clearing account to accommodate accrual accounting?
A: Once the accrual setting is enabled, and a batch of expenses is approved, we will automatically create a Clearing Account in your accounting software. Each transaction is dated according to the date that is listed on the expense. We do not recommend changing the account name or type as it will result in a replacement version created on the next export.
Q: If I previously had the cash method in place, will changing to the accrual method affect expenses that were previously approved?
A: No. Once you enable the accrual feature, only transactions moving forward will be recorded in this way. The expense data for anything that's already been approved will remain unchanged.
Q: Why are my bank transfers 'unreconciled' in the Abacus Clearing Account?
A: When a batch of expenses is approved, we will push each individual expense and the bank transfer that corresponds to the debit we make on your company bank account. The bank transfer will come in as 'unreconciled' and you will need to reconcile the bank transfer with the debit in your Operating Bank Register.
Q: What type of account is the Clearing Account?
A: A Bank Account.