The role of reconciliation analyst has existed since ancient Sumerian times, and its primary responsibilities include comparing records from two institutions to identify discrepancies. The institutions in question are usually an accounting firm or division, as well as a bank, in more modern times. Any transaction that appears in one set of records but not the other is labeled “outstanding,” and steps must be taken to account for the money. The approach is simple and can be used with a variety of financial reporting and operational management systems.
Traditional customers of reconciliation analysis are banks, but the method is more commonly referred to as bank reconciliation or account reconciliation. To avoid losing money in one way or another, almost any two sets of records can and should be reconciled. It is up to the reconciliation analyst to figure out why one record shows a transfer from one account to another but the other account’s records do not show it ever received that transfer. Either records must be updated to reflect what actually occurred, or an investigation must be conducted to determine where the funds went. Both of these steps are frequently required to get things back on track.
In addition to managing high-volume and high-value accounts, a reconciliation analyst may develop audit controls and monitor compliance with laws and regulations. It’s possible that an analyst will be asked to prepare financial reports, which will necessitate excellent communication skills and solid quantification abilities. A reconciliation analyst’s responsibilities also include processing payrolls and providing daily reconciliations. Reconciliation analysts’ pay varies greatly depending on experience and specialty, but they are almost always well compensated. In general, the more complicated and detailed the job, the higher the compensation.
In the digital age, commerce moves at a faster pace and with more transactions than ever before. This means that keeping these accounts straight is more difficult, but also more important, than ever before, and that reconciliation analysts who can do so have a number of lucrative career options. Many people who want to work as a reconciliation analyst need a bachelor’s degree and basic computer skills. This includes familiarity with Microsoft Office®, accounting software, and the Internet. Professional services of this type are needed by stockbrokers, loan agencies, and other businesses, as well as many levels of government.