Building a dataflow in 2021 that delivers accurate financial data
How to build your data flow to avoid and erroneous output?
The output of your financial data flow is what your management and board base their decisions on.
So, the importance of the accuracy of your data goes without saying. However, a dataflow is not floating by itself; it requires you to gather, transform, and combine data into a useful output.
In this process be aware of the typical errors and mistakes that can occur which will lead to an erroneous output. It can be a post-entry that has not been considered or data that is incorrect because of something so simple as a typing error.
Either way these mistakes you can avoid with data integration. If you run your dataflow manually you are indirectly accepting that your outcome will never be 100% correct. To make mistakes is human, but it can have severe consequences for your company if you and your team are not able to deliver error-free insights.
Output based on mistakes and errors makes you draw wrong conclusions and present insights that are deficient.
Your management acts based on what you report. They use your financial statements to make decisions for the entire company, which is why it is vital that you, as a part of the finance department, provide truthful insights. When you detect a mistake, you have to settle it and new information has to be announced and presented. To avoid making mistakes and must redo financial statements an automated data flow can be of huge help.
Data integration as a solution to fast and accurate data
A fast and easy way to automating your data flow is via the use of data integration. Instead of manually downloading your data from your ERP system to Excel and uploading your data to other systems such as a
consolidation and/or reporting system use an API (Application Programming Interface) or an RPA (Robotic Process Automation also called a robot) to do this for you.
As just mentioned the 2 most common ways for automating your dataflow are:
1. API (Application Programming Interface)
Is a computing interface that defines interactions between multiple software intermediaries. APIs allow different types of software to communicate with one another. It defines the kinds of requests that can be made, how to make them, the data formats that should be used, the conventions to follow, etc.
2. RPA (robots): Robotic Process Automation or RPA
A program that emulates a user on a computer screen. The robot can be taught to do the same clicks, typing, and reading as a human. In that way, a robot can make the same processes in a system on a computer as you can. The only difference is the robot does the job much faster and without any risk of errors. When using data integration, you will have an API, or a robot combining, processing, and transforming your financial data. This creates a simpler data flow since it is all automated.
Here are some of the biggest advantages of automating your dataflow using API or RPA:
• Your data is untouched by human hands
• You reduce the risk of errors significantly
• You save money and time when not having to involve external consultants.
Do you want to discover more advantages and see how to build a data flow that is efficient and delivers accurate financial reports build on reliable data?
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