Reconciliation Platform

A reconciliation platform is a system that verifies all financial transactions are accurate and balanced by comparing records from multiple sources. It matches incoming transaction data from banks against internal records to ensure every dollar moving in and out of accounts is properly tracked and accounted for. This automated process helps catch discrepancies quickly and maintains accurate financial records.

How Reconciliation Works

Automated Matching Process:

• Import Bank Data - Pull transaction records from all bank accounts
• Compare to Internal Records - Match against expected transactions in accounting system
• Identify Discrepancies - Flag transactions that don't match
• Investigate & Resolve - Research and correct mismatches
• Confirm Balance - Verify account balances match across all systems

Example: A private equity firm managing a $450 million fund processes capital calls from 85 limited partners, distributions to investors, management fees, and portfolio company investments across seven different bank accounts. Their reconciliation platform automatically imports daily transaction data from all banks, matches each capital call to the corresponding LP commitment, verifies management fee calculations, tracks portfolio company fund transfers, flags 12 discrepancies (wire amount mismatches, timing differences, missing fee payments), and generates executive reports showing fund cash positions.

Key Benefits

• Error Detection - Catch mistakes before they become major problems
• Fraud Prevention - Identify unauthorized transactions quickly
• Audit Readiness - Maintain complete, accurate records
• Time Savings - Reduce manual reconciliation from days to hours
• Cash Flow Accuracy - Know true available balances in real-time

Modern reconciliation platforms are essential for any business handling high transaction volumes or managing funds across multiple bank accounts.