Reconciliations

Reconciliations refer to processes and outcomes that align two or more sources of data, records, or relationships so they are in agreement. The term is used across disciplines, including finance, information systems, and social or political contexts. Reconciliation aims to identify and resolve discrepancies, restore consistency, or repair damaged relationships.

In finance, reconciliations compare internal records with external statements to ensure consistency. Common forms include bank reconciliations, vendor or customer account reconciliations, and intercompany reconciliations. The process typically involves collecting source documents, identifying differences, adjusting entries or data, and documenting the conclusions. Reconciliations help detect errors, fraud, omissions, and timing differences, and support financial reporting, audits, and compliance.

In data management and information systems, data reconciliation ensures that different data sources or systems reflect the same facts. Methods include record matching, data cleansing, and tolerances for minor discrepancies. In the social and political sphere, reconciliation describes efforts to mend relations after conflict, such as truth-telling, restorative justice, or policy reforms. Personal reconciliation refers to repairing relationships between individuals after disputes.

Challenges include data quality, incomplete records, access to information, and cost. Effective reconciliations require clear ownership, documentation, and governance, as well as agreed criteria for when a discrepancy is acceptable. When successful, reconciliations improve accuracy, accountability, trust, and decision-making.