Reconciliation analysts compare records between two institutions to find discrepancies, typically in accounting firms or banks. They develop audit controls, monitor compliance, manage high volume accounts, and provide financial reports. The role requires a degree and computer skills, and is in high demand in the digital age.
The position of reconciliation analyst has been around since ancient Sumerian times, and the role’s basic functions involve comparing records between two institutions to find discrepancies. In more modern times, the institutions in question are typically an accounting firm or division and bank. Any transaction that appears in one set of records but not the other is described as “pending” and steps must be taken to account for the amount. The basic approach is straightforward and can be applied to a wide range of financial reporting and operational management systems.
Banks are traditional consumers of the services offered by reconciliation analysis, but the method is most often described as bank reconciliation or account reconciliation. Almost two sets of records can and should be reconciled to avoid losing money one way or another. If a record shows a transfer from one account to another and the other account’s records never show that it ever received that transfer, it’s up to the reconciliation analyst to find out why. Records need to be updated to reflect what really happened or an investigation needs to find out where the funds actually went. Often these two steps are necessary to clear things up.
A reconciliation analyst can also develop audit controls and monitor compliance with laws and regulations, as well as manage high volume and high value accounts. It is possible that an analyst will be called upon to provide financial reports that require excellent communication skills and solid quantification capabilities. Processing payrolls and providing daily reconciliations are also common challenges for a reconciliation analyst. Salary for reconciliation analysts can vary greatly depending on time in the field and specialty, but an analyst is almost always paid very well. As a general rule, the more complex and detailed the work, the higher the reimbursement.
Commerce in the digital age tends to move faster and involves more transactions than ever before. This means that keeping these accounts straight is more complicated but also more vital than ever, and a number of potentially lucrative careers have opened up for reconciliation analysts who can do just that. Many who seek a career as a reconciliation analyst need a degree and a mastery of basic computer skills. This includes knowledge of Microsoft Office, various accounting programs and the Internet. Brokers, lending agencies and other businesses, as well as many levels of government, need professional services of this type.
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