FedNow Bookkeeping

How Free FedNow® Bank Reconciliation Works

Each real-time payment received through FedNow® or RTP® is instantly logged into your reconciliation dashboard.

This dashboard includes:

• Date and time of credit settlement
• Payer alias (mobile number, email, SMS)
• Amount paid and RfP invoice number
• Payment status: paid, pending, expired, rejected
• Downloadable Excel spreadsheet reports for AR and GL
• Return/reject code mapping with suggested corrections
• Integration with QuickBooks®, ERP, or treasury systems

Funds received via RfP are irrevocably credited to the Payee’s account, meaning no chargebacks or returns. These are "Good Funds", confirmed by both the sending and receiving institutions in real time.

Create and Upload RfP Files for Full Transaction Control

Users can create RfP files in several structured formats and upload them directly to a FedNow®-connected financial dashboard.

Supported file formats include:

• ISO 20022 pain.001, pain.013 for structured financial data
• .XML files for automated RfP creation and API-based systems
• .XLS / .CSV files for manual upload from spreadsheets
• Hosted Payment Page RfPs linked by SMS, email, or QR code

Once uploaded, these RfPs are tracked by due date, status, and alias. The aging module sorts transactions by 1–30, 31–60, and 60+ days for simple AR oversight. All this happens in real time, with updates automatically pushed to your dashboard.

Recurring billing is supported using “debit-style” RfPs. Though technically a credit, these recurring payments are initiated by the payee and approved by the payer on a regular cadence—functioning like a real-time debit without manual re-entry or paper forms.

FedNow bookkeeping related to real-time instant payments, including documents such as Bank Reconciliation, SASF worksheets, and RfP (Request for Payments) via ISO 20022. While I can provide some general information, keep in mind that specific details may vary based on your organization, jurisdiction, and the evolving landscape of financial technologies.

FedNow and Real-Time Payments:

1. FedNow:

• Overview: The Federal Reserve's FedNow Service is designed to enable financial institutions of all sizes to offer real-time payments to their customers.
• Key Features: Immediate funds availability, 24/7/365 operation, and interoperability with other instant payment services.

2. Bookkeeping and Documents:

• Bank Reconciliation:

• Real-time payments may require adjustments to traditional bank reconciliation processes.
• Consider implementing automated reconciliation tools to match transaction records instantly.

• SASF Worksheets (Statement of Account and Settlement Files):

• These worksheets could include details of transactions, settlement amounts, and reconciliation data.
• SASF worksheets are crucial for tracking and verifying the accuracy of transactions.

• RfP Request for Payments via ISO 20022:

• ISO 20022 is a standard for financial messaging, including payment instructions.
• RfP documents using ISO 20022 would specify payment details, beneficiary information, and other relevant data.

Steps for Bookkeeping:

1. Integration:

• Ensure seamless integration between your systems and FedNow to capture transaction data in real-time.

2. Automated Reconciliation:

• Implement automated reconciliation tools to match FedNow transaction data with internal records.

3. Documentation:

• Maintain detailed documentation of transactions, including SASF worksheets and RfP documents.

4. Compliance:

• Ensure compliance with ISO 20022 standards for payment messaging.

5. Audit Trail:

• Establish a robust audit trail to track the flow of funds and ensure transparency.

Considerations:

1. Regulatory Compliance:

• Stay updated on regulatory requirements related to real-time payments and ensure adherence.

2. Security Measures:

• Implement strong security measures to protect sensitive payment data.

3. Staff Training:

• Train staff on the new processes and tools associated with real-time payments.

4. Communication:

• Maintain clear communication channels with your financial institution and relevant stakeholders.

Always consult with financial professionals and regulatory authorities for the most accurate and up-to-date information regarding FedNow, real-time payments, and associated bookkeeping practices in your jurisdiction.

Simplify Your Real-Time AR With TodayPayments.com

Struggling with outdated ACH tracking or manual reconciliation?

✅ Get free FedNow® reconciliation tools and AR aging dashboards
✅ Upload RfPs in ISO 20022, XML, XLS, or CSV formats
✅ Track one-time and recurring payments from mobile/email aliases
✅ Reconcile “Good Funds” instantly with real-time payment logs
✅ Eliminate guesswork, chargebacks, and paper trails

Start using FedNow® Bookkeeping at https://www.TodayPayments.com
Bookkeeping Just Got Instant – Free, Accurate, and Real-Time.