Financial Data Management
What is Financial data management?
Financial data management refers to the set of tools and processes companies and organizations use to keep track of all their financial information and reporting needs. This usually involves the use of specialized software and algorithms, including analytics, reporting, and data visualization tools. Most commonly, financial data management is used to help ensure organizations can meet compliance regulations and legal requirements.
Additionally, financial data management software also offers predictive modeling and other business intelligence utilities that help organizations. These include the ability for companies of all sizes to measure metrics like income, expenses, profits/losses, and other advanced financial data more accurately. The data these financial analytics tools explore will differ based on company size, although there is some significant overlap.
Small businesses will focus more on aspects such as income and losses, bank accounts, assets, debts, and credit information. Larger enterprise-level companies and corporations must also focus on broader data such as their equity price, different financial ratios, assets, portfolio holdings, and more.
See an investment portfolio dashboard for example:
Most importantly, financial data management allows companies to provide access to all stakeholders in the organization to perform the financial analyses they need, on demand. Allowing users the ability to create their own models results in better insights, faster results, and more actionable outcomes.
How can I use Financial data management?
There are several ways to deploy financial data management as well as several reasons why. One of the most widespread uses of these systems is to keep a compliant record of financial information. Most countries have stringent policies regarding the financial records companies must keep, and using financial data management systems helps companies easily ensure they can meet them. More importantly, it allows organizations to quickly print and prepare the right reports on demand.
On a more analytical level, using financial data management systems helps expedite the discovery and data preparation process. This in turn helps generate faster results and simplify the querying process for users. More importantly, it can help generate better BI insights for organizations. For example, a business could analyze financial data for its supply chain to find inefficiencies and high costs that can be trimmed to improve overall operations.
Similarly, businesses could find unnecessary expenses and areas where savings could be increased to reduce costs. Finally, strong financial data management can help companies create more accurate and efficient predictive models.
