What is Data Reconciliation and why is it so important for companies today?
If your company performs reconciliation processes of inventories, payroll, taxes, sales, payments, banks, contracts, claims, customers, invoices, or any other type, you must have a technology that simplifies actions, reduces time and eliminates errors. Read on to find out what we are talking about when we talk about Data Recon.
Table of Contents
- What is Data Reconciliation?
- Which companies can implement Data Reconciliation?
- How does Data Recon work in Conciliac?
Nowadays, companies around the world are generating millions of data per second, many of these data are not managed properly due to lack of knowledge or resources.
A large portion of the resources that are managed require the comparison of data to arrive at an analytical approach to support decision making. This is, in particular, data reconciliation.
The point is that, still today, many companies do these reconciliations almost entirely or partially manually, wasting time, money, resources and opportunities.
Data Recon is the technology provided as a solution. Join us to learn more.
What is Data Reconciliation?
In this blog we have addressed this technology on several occasions, in principle, because it is part of the Conciliac EDM platform, and also because we encourage more and more companies to manage their data and analytics properly.
For this reason, let’s start by conceptualizing this technology accordingly:
Data Reconciliation, Data Recon, or also known as data reconciliation, is a fundamental process in the field of data management that refers to the act of comparing and adjusting data sets from different sources to ensure their consistency, accuracy and reliability.
As organizations and companies handle massive amounts of information from various sources, this technology ensures data integrity and facilitates decision making based on accurate information.
If we have to mention why it is important for companies, we find at least seven reasons that we mention below:
1. Data reconciliation helps ensure that records and stored information are consistent and reliable. By detecting discrepancies and errors in data, they can be corrected before they affect business decisions.
2. When data is reconciled correctly, decision makers can rely on the information presented to get an accurate picture of the state of the business. This is especially crucial in competitive business environments, where quick and accurate decisions can make the difference between success and failure.
3. In many industries, there are regulations and standards that require companies to maintain accurate and up-to-date records. Data Recon helps ensure that these requirements are met and potential penalties or fines are avoided.
4. Data reconciliation can help uncover anomalies or discrepancies that could be indicative of internal fraud or unintentional errors. This allows timely corrective action to be taken and significant losses to be avoided.
5. By having reconciled data, an organization’s internal processes can run more efficiently. Time spent searching for errors is reduced and overall productivity is improved.
6. When data is aligned and reconciled, management and analytical teams can trust the information presented, resulting in greater confidence in strategic decision making.
7. Ongoing reconciliation helps identify and correct errors in data capture and processing. As data quality improves, more accurate and meaningful results are obtained in the analysis.
Which companies can implement Data Reconciliation?
All companies in different industries have to implement reconciliation technologies such as Data Recon. This process is relevant as they handle large volumes of data or need to ensure consistency between different systems or sources of information.
For this reason, we found that some of the companies that have to implement Data Recon are:
- I Financial institutions, such as banks, insurance companies, investment firms and other financial institutions that need to reconcile data between accounting systems, transaction records and balance sheets to ensure accuracy in their financial reporting.
- Payment service companies, such as credit card processors, online payment platforms and money transfer companies that must reconcile transactions between merchants and customers, ensuring that records match transfers and payments made.
- E-commerce companies, such as online stores and e-commerce platforms that must reconcile inventory, order, shipping and billing data to ensure a smooth and accurate experience for customers.
- Logistics and transportation companies, such as shipping companies, freight forwarders and logistics operators that need to reconcile shipment tracking, routing, inventory and billing data to ensure timely and accurate delivery of goods.
- Travel agencies, ticketing companies, hotel reservations and all types of companies in the travel and tourism segment that have thousands of monthly transactions in different systems and with multiple means of payment.
- Telecommunications companies, such as mobile, internet and television service providers that must reconcile customer usage, billing and payment data.
- Asset management companies, such as those that manage investment portfolios and need to reconcile asset, operational and performance data for accurate reporting to investors.
- Health companies, such as hospitals, clinics and health insurance companies must reconcile patient data, medical billing and claims for an efficient and accurate workflow.
- Energy and utility companies, which may be companies that manage electricity, gas and water services, and must reconcile meter, billing and consumption data.
These are just a few mentions, but in reality and as we warned, any organization that handles complex data, multiple systems or interconnected data streams can benefit from implementing Data Reconciliation to ensure the integrity of their data and improve informed decision making.
How does Data Recon work in Conciliac?
Conciliac EDM is a platform that aims to streamline the processes and data management of companies through the appropriate use of technologies such as artificial intelligence and machine learning.
For this reason, the platform provides all kinds of solutions for this purpose. One of these is provided through the Data Recon module with exceptional flexibility in handling a wide variety of financial reconciliation scenarios.
From banking and credit card scenarios to taxes, payroll, sales, payments, contracts, claims, customers, invoices and a wide range of other cases, this system has the ability to handle an unlimited number of reconciliations.
The Conciliac EDM platform also features the Data Match module, which allows users to accurately and efficiently match broader parameters.
Thanks to this combination, companies can ensure the accuracy and consistency of their data in multiple areas, optimizing their operations and decision making. With this versatile solution, organizations can maintain the integrity of their data and improve their workflow in various financial areas.
Does your company have to manage large volumes of data? Don’t wait for this to be a problem and turn it into an opportunity to make powerful business decisions. Request a demo now.