The verdict in three sentences
Reconciliation means matching each mobile-money settlement to the order that produced it, then handling fees, discrepancies and VAT. An SME spends 4 to 10 hours a month on it in 2026, often far more when everything is manual. With a clean merchant-statement export and automated matching, that time drops below 2 hours.
The five-step close method
The close isn't a chore if it always follows the same order. Each step has its document and its classic trap.
| Step | Required document | Trap to avoid |
|---|---|---|
| 1. Export merchant statement | Monthly M-Pesa/Paystack/OM statement | Forgetting the last day's transactions |
| 2. Match orders to settlements | Store's order journal | Confusing gross and net amount |
| 3. Handle fees | Operator commission schedule | Not booking fees as an expense |
| 4. Handle discrepancies | List of unmatched transactions | Rolling a discrepancy month to month |
| 5. VAT on commissions | Operator's commission invoice | Forgetting deductible VAT on fees |
The core issue is the distinction between the gross amount paid by the customer and the net amount credited after commission. Booking the net as revenue is an error: revenue is the gross, the commission is a deductible expense.
Fees, VAT and discrepancies: the figures to know
Commissions vary by operator and account type. Here are 2026 orders of magnitude to frame your close.
| Item | 2026 order of magnitude | Accounting treatment |
|---|---|---|
| Merchant collection commission | ~1% to 2% of amount | Deductible operating expense |
| VAT on commission (UEMOA) | 18% on the commission | Deductible VAT if invoice compliant |
| Tolerated reconciliation gap | < 0.5% of volume | Investigate beyond that |
| Settlement delay | Instant to T+2 by operator | Attach to the right accounting month |
| Manual close time | 4 to 10 h/month | Target < 2 h with a tool |
A sensitive point: settlements straddling two months. An order paid on the 31st but settled on the 1st must be attached to the correct period so it doesn't distort the result.
Mini case study
Fatou runs an online grocery in Nairobi with 6,000,000 FCFA of monthly settlements via M-Pesa and Paystack. At an average 1.5% commission she pays 90,000 FCFA in fees, on which 18% VAT applies, i.e. 16,200 FCFA of deductible VAT she kept forgetting to reclaim. By adding that VAT to her return and booking the gross, she cleaned up her books and recovered nearly 194,000 FCFA of VAT over the year, while cutting her close from 8 h to 90 minutes.
Need a professional website?
Kolonell builds websites that attract clients, optimized for the Sénégalese market. Free quote in 2 minutes.
FAQ
Should I book the gross or the net amount?
Always the gross as revenue, then the operator commission as a separate expense. Booking the net directly understates your revenue and distorts your ratios and collected VAT.
Is VAT on mobile-money commissions recoverable?
Yes, if the operator gives you a compliant commission invoice showing VAT. In the UEMOA zone it's 18% on the commission, deductible like any VAT on a business expense.
What do I do with an unmatched transaction?
Isolate it in a dedicated list and investigate within 48 h: double payment, cancelled order, or fraud. Never roll it month to month without explanation, or you'll build up unmanageable gaps.
How long does a well-tooled close take?
With a clean export and semi-automated matching, under 2 hours a month for an SME. The tool absorbs most of the time; humans only handle exceptions.
How do I handle payments straddling two months?
Attach the transaction to the settlement date, not just the order date, to respect the period-matching principle. Document the rule to stay consistent every month.
Let's talk about your project. We automate your mobile-money reconciliation and wire your exports into your accounting. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
