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What You Need to Know About Data Reconciliation


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August 16, 2023

Accuracy and completeness of information are important for making informed decisions and increasing business success. Data reconciliation is a practice that involves comparing data from multiple sources to identify and resolve discrepancies.

Data reconciliation finds its use in diverse areas including accounting and financial reporting, production processes, IT, and energy management programs. In this article, let's explore data reconciliation and its importance.

How Does Data Reconciliation Work?

Data reconciliation includes comparing two or more datasets with a reference or accepted value. The process begins by identifying and understanding the changes between the datasets. To explain these disparities, external sources, such as recommendations or industry standards, may be consulted.

Once the differences are identified, the datasets are either corrected or merged into a single source to address the discrepancies. The final step involves validation to ensure the completeness and accuracy of the reconciled data.

Why Is Data Reconciliation Vital?

Data migration procedures can be prone to errors, leading to inaccuracies and data corruption.Run-time errors, network outages, and broken transactions are some of the culprits behind data discrepancies. The consequences of such mistakes can be far-reaching, causing missing or inaccurate data, redundant records, and broken connections between systems. As a result, data reconciliation helps businesses by:

Ensuring data accuracy: Data reconciliation enables organizations to derive precise and trustworthy information about the state of their industrial processes from raw measurement data. It ensures that data is consistent and accurately reflects the actual process operations.

Single source of information: By reconciling data from multiple sources, a single, consistent dataset is created, providing a reliable and unified view of the information. This eliminates confusion and prevents erroneous insights.

Improved decision-making: Data reconciliation contributes to better decision-making by offering a clear and accurate picture of the data. This is particularly crucial for organizations integrating enterprise-control systems.

Improved customer service: Accurate data leads to improved customer service. Plus, when businesses have the right data, they can make well-informed decisions that directly impact customer satisfaction.

Data Reconciliation Types

Data reconciliation is categorized into two types:

System-level data reconciliation: This involves comparing data between two systems to find differences in records or values.

Transaction-level data reconciliation: This involves transactions between systems that are compared to verify completeness and accuracy.

Choosing the Right Data Reconciliation Approach

Data reconciliation can be performed using automated technologies, manual processes, or a combination of both. Automated methods rely on reconciliation software to compare datasets and detect discrepancies, while manual processes involve human examination of the data. You can choose a method based on your business size, complexity, and resource constraints of your company datasets.

Data Conversion Techniques

The data reconciliation process involves a number of different techniques. These consist of computational models, trend analysis, statistical analysis, and manual comparison. The most popular and straightforward way for data reconciliation is manual comparison, although it can be labor and time intensive.

Statistical analysis can also be used to swiftly examine enormous datasets and uses mathematical methods to find discrepancies. Analyzing trends searches for data patterns that could point to inaccuracies or omissions. Another technique is computational models which generate a collection of computations that can be utilized to spot disparities using mathematical formulas.


Data reconciliation is an important process that guarantees data accuracy, and reliability. By identifying and resolving discrepancies, businesses can make informed decisions, enhance customer service, and drive success across various industries. Whether through manual comparisons, statistical analysis, or computational models, data reconciliation helps organizations harness the full potential of their data and stay ahead in the ever-evolving landscape of data-driven business.


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