September 3, 2013
Managers have never had so much access to data to ensure that they make the right decisions for the company. Today companies collect data and report on business performance so that managers can better understand how well the business is doing and to help monitor the delivery of strategic priorities and goals. Many managers are drowning in the data rather than benefiting from it because they lack the insight needed to use the data properly. Managers are also collecting the wrong data or have data quality issues so the data in their performance reports and dash boards look great but fail to generate useful insights.
Managers first need to acknowledge the importance of creating reports to help monitor priorities and goals. If managers are unwilling to spend the time and resources to produce the proper reports, then they will continue to make the wrong strategic decisions. Accountants need to show the benefits of these reports to managers before they are able to rationalize the costs to create the reports. This is where your accountant’s insight of your company and your industry to help you set up your bookkeeping reports that will benefit you the most.
Another factor that is becoming a differentiator is the level of integration between traditional measurement and analytics. Integration for performance measurement is extremely important because if you can’t understand the reports then you will not identify how to set priorities and goals. Companies that collect, analyze and report strategic performance data such as high level performance reports are able to gain insights from the data that allows them to make better decisions.
Another critical success factor for more mature and more successful business performance management implementation is ensuring data quality. A famous saying “garbage in, garbage out” explains the problem with inaccurate data. Managers need to be able to trust their data if they want good insights that lead to improved decision making. Managers need to stress to others how important quality data is being imputed into their system to insure accurate reports of their financial reports.
It is crucial to have interaction with your accountant to make sure this whole process is set up to allow for the most insight to business performance management. Once you and your accountant have selected your relevant performance data to make operational and strategic decisions and to develop strategic foresight you will see the benefits of these reports in the near future.
Our firm has been exploring different ways to provide the most accurate services in these areas with the newest technology in the industry. If you have any questions or would like to check out more about our blogs please go to www.Morganscpas.com.
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