When your business plans to migrate the data to a secured and upgraded IT server or platform, it is necessary, for managerial reasons, to verify that target data against the original data, just to make sure that the migration process doesn’t inaptly transfer the data or include duplicate records. This verification phase is known as “data reconciliation,” which is a way to highlight inaccuracies, incorrect data values, or records that bear wrong formats.
Reconciliation of business data helps you extract only specific details, statistics, and data material required by the business, thus ensuring that the data migration process comes out as a success. Online reconciliation manages the opportunities not to miss any data cell or yearly insights related to operational tasks and aid the security of your business management system.
What Are The Benefits Of Data Reconciliation?
Data is one of the essential things for a business and indeed holds much significance when it is required to be migrated over online servers. Therefore, you must apply data reconciliation practices to execute quality and security checks before the migration process. Here are the reasons why data reconciliation is beneficial for the business –
- Accuracy – With proper online reconciliation practices, a business can set the seal on the migrated data that further guarantees no complexities in the managerial tasks for objective accomplishments and revenue-generating operations. Since the management system needs you to record only viable details, online reconciliation helps you secure the data that syncs with the overall migration process requirements.
- Efficiency – Migrating enormous data groups could take a lot of time, irrespective of the business type. And if the data is not filtered from duplicate records, irregular formats, it will result in an ineffective migration process, thus increasing your business’s overall budget and resources. Herein, data reconciliation plays an important role in defining the benchmarks of the data and filtering it to the highest accuracy levels to improve the data extraction steps.
- Action Plans – Having efficiently extracted data figures at your disposal supports the decision-making ability of your business, which expedites the functions of planning and implementation by different departments. It also sets standards for data comparison to access potential business statistics and analyze the market.
Types Of Data Reconciliation
Well, numerous types of data reconciliation help the data migration phase of a business. Let’s find out about a few of them –
- Master Data Reconciliation – As far as the name is concerned, master data incorporates information about the core entities of the business, such as the customers, manufacturing suppliers, client and dealership parties, physical sites of the business, etc. Master data reconciliation is the process that verifies the similarities of master data between the source and target of the migration process. Since the data figures and types included in this phase are extremely important, the business ensures that the reconciliation process is undertaken with utmost sincerity, thus reducing the probability of unauthorized changes.
- Automated/Online Data Reconciliation – Data figures are enormous for every business and especially limitless for multinational firms. Therefore, heading towards technology and embracing automated data reconciliation acts as a prolonged benefit for your business. Since data is automatically reconciled, it is a great way to keep stakeholders in the loop and seek validation of the final reports for the sake of the business.
- Transaction Reconciliation – Data involving sales figures, customer invoices, overall order history, information regarding the payment methods, and inter-business and intra-business transactions is included in transactional data reconciliation, dealing in financial stats of the organization. Such data often form the foundation of the business’ market intelligence structure, which should not be inaccurate to assure the worthiness of the brand image.
Tools That Make Data Reconciliation Possible For Your Business
Data reconciliation requires effective tools that support the verification of source data and target data, and label each to their respective groups.
- OpenRefine – It was renamed as OpenRefinde from Google Refine and allows you to comprehend the unassembled data statistics into one format for better classification. It also features ways to deal with complex information and break it into data chunks to ease the reconciliation process.
- TIBCO Clarity – To remove inaccurate data records, duplicate quantities, cleanse the external raw data, TIBCO fits in for the purpose. It validates the raw data and further helps in a cautious classification of data sets to enhance the effectiveness of management tasks and operational efficiency later on.
- BlackLine – Being a software application, BlackLine supports the business via cloud platforms for finance and computation purposes. It also comprises account automation, thus expanding the horizon of business management while dealing with substantial sets of data.