7 Ways to Improve Financial Data Quality Management

Accurate and reliable financial data is the backbone of any successful organization. It ensures that decision-makers have the information they need to make informed choices, maintain regulatory compliance, and drive strategic initiatives. However, many financial leaders face the challenges of data silos, manual errors, and delayed insights due to poor financial data quality. These issues can significantly impact decision-making and organizational growth.

Microsoft Dynamics 365 Finance offers a robust suite of tools for financial management, including integrated solutions for accounting, budgeting, forecasting, and reporting. It allows real-time tracking of receivables, assets, payables, and liabilities, simplifying balance sheets and cash flow statements. The platform also enhances compliance, risk management, and financial reporting. In this blog we will analyze seven ways you can improve your financial data quality management.

1. Understand Financial Data Quality Challenges

Improving data quality begins with understanding the challenges your organization faces. Let’s explore some of the key obstacles CFOs encounter today:

Data Silos: When financial data is scattered across disparate systems or multiple Excel spreadsheets, decision-makers lack a unified view. This fragmentation stifles clarity and strategic agility.
Manual Entry Errors: Human mistakes introduce inaccuracies. Automating manual processes is essential for ensuring reliable data.
Lack of Real-Time Data: Delays in updates hinder agility and decision-making, limiting your potential for growth and expansion.
Inconsistent Processes: Non-standardized workflows compromise data reliability, leading to poor decisions.

Real-world example of these challenges in finance teams

Since 1947, Werk-Brau has manufactured high quality and innovative specialty equipment for the heavy equipment industry. For several years, Werk-Brau utilized a manufacturing-based solution for Enterprise Resource Planning (ERP). The intent was to develop the solution to encompass a full-scale ERP platform with functionality in the cloud. “Our former solution was a good product, but we exceeded its capabilities,” says Nate Heintzelman, director of operations for Werk-Brau. “The main driver to necessitate a change was the speed of the database. We needed a solution which moved more quickly to add efficiencies to our business. Additionally, we were having issues with the database daily, and it was a ticking time bomb for us. “We needed to move to a more reliable system,” adds Heintzelman.

Werk-Brau’s engineering team, consisting of 10 members, spent 85% of their time managing bill of materials (BOM) and item management using inefficient, manual processes. After implementing Microsoft Dynamics 365 Business Central, the team now dedicates less than 10% of their time to BOM and item management. This transformation allowed the organization to reallocate resources effectively redeploying one team member and transitioning another into a more proactive role.

Furthermore, Werk-Brau experienced additional operational improvements:

Streamlined intercompany transactions and accounts payable
Improved planning and procurement processes
Robust material requirements planning (MRP) to manage inventory demand
Improved collaboration between customer service and operations for smoother workflows.
75% increase in productivity by reducing the manual handling of project packets and CAD drawings
Simplified bill-to/sell-to/ship-to processes
Optimized inventory management of over 60,000 items
Enhanced data access leading to better inventory valuation and costing

Werk-Brau’s story highlights how addressing data quality challenges with Dynamics 365 drives operational efficiency and supports business growth.

2. Why Data Quality Management Matters

Outdated or unreliable data can lead to costly mistakes and missteps. On the other hand, strong data quality management lays a foundation for success. It enables organizations to:

Build a Comprehensive Information Foundation: Data quality management creates a reliable base that allows organizations to fully understand their operations and expenses by ensuring data is accurate, consistent, and complete.
Identify and Track KPIs Accurately: High-quality data ensures that performance indicators provide a true reflection of business operations, enabling teams to measure and improve their programs effectively.
Enhance Forecasting, Budgeting, and Compliance: Reliable data underpins critical financial processes, allowing organizations to forecast and budget with confidence while maintaining regulatory compliance.
Pinpoint Workflow Inefficiencies: Improved data quality helps teams identify breakdowns or inefficiencies in operational workflows, streamlining processes and enhancing productivity.
Foster Data-Driven Decision-Making: With clean, reliable data, leaders can make proactive, intelligent decisions that align with strategic goals and drive growth.

Reliable data enhances reporting, stakeholder confidence, and operational efficiency. Companies that invest in data quality management position themselves for sustainable growth and competitive advantage.

3. Dynamics 365 Can Improve Financial Data Quality

Microsoft Dynamics 365 provides a centralized business management platform designed to address the complexities of financial data management. By consolidating siloed data into a single system, it fosters collaboration and ensures consistency across departments. The platform’s seamless integration with existing tools enables organizations to maintain smooth data flows while enhancing operational efficiency.

Dynamics 365 also automates repetitive processes, reducing the likelihood of human errors and freeing up teams to focus on strategic, high-value activities. With real-time updates and actionable insights, it empowers finance teams to make confident, data-driven decisions. Additionally, its suite of advanced features—including financial reporting, budgeting, and forecasting—ensures that organizations are equipped to meet the unique demands of modern financial management.

Key features include:

Data Validation: Ensures data meets predefined criteria, reducing errors and inconsistencies.
Automated Workflows: Streamlines repetitive tasks and processes, minimizing manual data entry and the potential for human error.
Real-Time Analytics: Delivers actionable insights instantly, allowing for immediate identification and correction of data issues.
Seamless Integration: Synchronizes data across systems, ensuring consistency across the organization.
Audit Trails: Provides transparency and accountability by tracking all data changes.
Data Governance: Enforces robust data governance policies and procedures, ensuring that data is managed and used in compliance with regulatory requirements.

By leveraging these features, Dynamics 365 helps organizations maintain high-quality financial data, leading to better decision-making and improved business outcomes.

4. Best Practices for Financial Data Governance

Implementing best practices in data governance is critical for maintaining high-quality financial data. A structured approach ensures that financial data remains accurate, consistent, and accessible, laying the groundwork for better decision-making and compliance. Key steps include:

Establish a Governance Framework: Define clear standards for data accuracy and completeness.
Assign Ownership: Designate roles and responsibilities to ensure accountability.
Monitor KPIs: Regularly audit and validate data governance metrics.

Dynamics 365 Tools for Governance:

Dynamics 365 supports financial data governance through a variety of tools, including:

Data Management: Dynamics 365 provides comprehensive data management capabilities, ensuring your data is accessible, accurate, and relevant. This includes establishing robust frameworks for data governance, architecture, and modeling, while also simplifying migration, integration, and storage processes. These capabilities ensure that financial data maintains integrity and consistency across the organization.
Financial Planning and Analysis: Enhance business agility with advanced financial planning, budgeting, and forecasting tools. Powered by AI-driven insights through Copilot, Dynamics 365 allows finance teams to make informed decisions faster, identify trends, and refine strategies based on real-time performance metrics.
Accounting and Financial Close: Streamline accounting operations and expedite financial close processes with automation and self-service analytics. These tools reduce time-intensive tasks, enhance accuracy, and provide comprehensive financial reporting tailored to organizational needs.
Tax Management: Simplify complex tax operations by managing multiple tax jurisdictions, rates, and deductibility factors through a unified tax data model.
Quote to Cash: Optimize monetization with AI-powered tools for billing, accounts receivable (AR), collections, and more. Dynamics 365 also provides detailed insights into customer payment behaviors, enabling businesses to improve cash flow management and enhance customer satisfaction.
Cash Management: Proactively manage liquidity with predictive analytics and cash-flow forecasting tools. These features allow businesses to maintain financial stability and prepare for future opportunities or challenges.

These tools help ensure that your financial data is governed effectively, providing a solid foundation for informed decision-making and regulatory compliance.

5. Train Your Team in Data Management

Fostering a data-driven culture within your finance team is key to streamlining processes, boosting productivity, and enabling smarter decision-making based on accurate data insights. A well-trained team is better equipped to utilize tools effectively, reduce manual errors, and maximize the potential of modern financial management systems. By leveraging targeted training programs and investing in user-friendly solutions like Dynamics 365, organizations can build a foundation of data proficiency that supports long-term success.

Here’s how Dynamics 365 supports adoption:

Intuitive Interface: User-friendly interface simplifies navigation and reduces the learning curve for new users. This encourages quicker adoption and minimizes resistance to change.
Integration Capabilities: Seamlessly integrates with other Microsoft products like Excel, Outlook, and Teams, making it easier for users to manage data within familiar environments.
Automation and AI: By leveraging AI and automation, Dynamics 365 streamlines data management tasks, reduces manual effort, and increases efficiency. This helps users focus on more strategic initiatives.
Customization: Dynamics 365 offers extensive customization options, enabling businesses to tailor workflows and processes to meet unique operational needs. This flexibility ensures that the system adapts to specific business models rather than requiring the business to adjust to the system.
Training and Support: Microsoft partners like Velosio provide comprehensive training resources and expert support. This ensures that teams not only learn how to use Dynamics 365 effectively but also remain proficient as the system evolves or new features are implemented.
Scalability: Designed with growth in mind, Dynamics 365 allows businesses to start with essential features and scale up as their requirements expand. This adaptability supports long-term adoption and helps organizations future-proof their operations.

Velosio encourages its clients to embrace a culture of continuous learning and upskilling to drive user adoption and maximize system potential. By fostering a mindset of continuous transformation, businesses cultivate an environment that prioritizes innovation, improvement, and adaptability. This requires openness to change, a commitment to ongoing professional development, and a collaborative approach to exploring innovative ideas and strategies.

6. Enhance Workflows for Consistency

Efficient workflows are critical for maintaining consistency and accuracy in financial operations. Dynamics 365 provides a powerful platform for automating repetitive tasks, enabling organizations to standardize processes and reduce operational inefficiencies. By implementing streamlined workflows, businesses can achieve greater alignment across departments, improve compliance, and mitigate risks.

The Right Microsoft Partner Can Drive Business Success

Features of Dynamics 365 workflows include:

Approval Process Automation: Automate and standardize approval workflows for faster decision-making and reduced bottlenecks in critical processes.
Real-Time Notifications: Set up automated email notifications to keep teams updated on task statuses and deadlines, ensuring timely follow-ups.
Task Assignments: Assign tasks dynamically based on predefined rules, eliminating manual interventions, and enhancing accountability.
Data Updates: Automate data updates across systems to ensure consistency and minimize errors caused by manual entries.
Compliance and Risk Management: Dynamics 365 simplifies regulatory compliance by embedding standardized processes, making it easier to adhere to legal and operational requirements.
Collaboration Across Departments: Enable real-time collaboration through unified workflows that improve accuracy and foster seamless communication between teams.

7. Achieving Better Visibility into KPIs

Having real-time visibility into KPIs is critical for monitoring the financial health of your organization and achieving strategic goals. Dynamics 365 provides robust tools that allow businesses to identify, track, and analyze KPIs effectively. Through customizable dashboards, CFOs, controllers, and decision-makers gain actionable insights that drive informed decisions and improve overall performance. With the ability to track metrics such as cash flow, profitability, and variance analysis in real time, organizations can proactively address challenges and seize opportunities.

Customizable Dashboards: Tailor dashboards to meet the specific needs of finance teams, providing a clear and concise view of performance metrics.
Real-Time Data Analytics: Access up-to-date insights that reflect the current state of financial health and operations.
Drill-Down Capabilities: Explore granular details behind high-level KPIs to identify trends, anomalies, or root causes.
Automated Reporting: Generate accurate and timely reports with minimal manual effort, ensuring consistent communication of key metrics.
Integration Across Systems: Combine data from multiple sources to provide a comprehensive view of performance across departments.

Velosio Insights for Finance & Sales – Demo

Better visualize and utilize your Business Central data with Power BI and our prebuilt report packs.

Conclusion

Improving financial data quality management is essential for organizational success. By understanding challenges, prioritizing data quality, leveraging Dynamics 365, and adopting best practices, organizations can drive better decisions and outcomes. Each step, from identifying challenges to training teams and optimizing workflows, contributes to building a solid foundation for financial management.

Microsoft Dynamics 365 is a game-changer for financial management, offering tools that enhance accuracy, streamline processes, and improve decision-making. These advanced features enable businesses to stay ahead of the competition by fostering agility and resilience in an ever-changing economic landscape. We encourage you to take steps towards improving data quality today—you won’t regret it!

Ready to discover how to align your financial strategies with modern data practices? Download the guide, Boosting Profitability and Growth with Data-Driven Insights.

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