What is Data Reconciliation?

Data reconciliation checks that data moved, copied, or transformed between systems still agrees with its source. Teams compare record counts, totals, key values, or individual records between a source and a target, flag the differences, and investigate their cause. Common checks include matching row counts after a migration, comparing daily revenue totals between an ERP system and a data warehouse, and confirming that every order in one system appears in the other.

Reconciliation is a core part of data integrity work in finance, migrations, and data pipelines. For example, if a warehouse shows 10,212 orders for a day and the source shows 10,215, reconciliation finds the three missing records and why they failed to load. The same discipline applies when data is prepared for AI. Comparing the data before and after each preparation step shows what changed and helps explain a change in model results.

Frequently asked questions

What is financial data reconciliation?

In finance, data reconciliation compares records such as bank statements, ledgers, and payment data to confirm that balances and transactions agree, and explains any differences.

What is the difference between data reconciliation and data validation?

Data validation checks whether data meets rules such as formats and allowed ranges. Data reconciliation checks whether data agrees between two sources.

Can data reconciliation be automated?

Yes. Pipelines can run reconciliation checks after each load, compare counts and totals automatically, and alert teams when differences exceed a threshold.