Five Key Reasons Enterprise Data Governance Matters to Finance … and Seven Best Practices to Get You There

Published date01 January 2016
DOIhttp://doi.org/10.1002/jcaf.22121
Date01 January 2016
47
© 2016 Wiley Periodicals, Inc.
Published online in Wiley Online Library (wileyonlinelibrary.com).
DOI 10.1002/jcaf.22121
f
e
a
t
u
r
e
a
r
t
i
c
l
e
Five Key Reasons Enterprise
DataGovernance Matters
to Finance … and Seven Best
PracticestoGetYouThere
Gilles Demarquet
Are you able
to close your
books and
report faster than
your competitors,
or are you spending
too much time fix-
ing issues related to
a misaligned chart
of accounts slowing
down your close and
reporting?
A study on the
financial close process
uncovered that 88%
of surveyed organi-
zations were facing
issues when closing
the books due to a
misaligned chart of
accounts, which had
a direct impact on the
time to create corporate report-
ing (Dynamic Markets for
Oracle and Accenture, 2012).
It was reported that up to 20
man-days are being spent to fix
these issues in order to produce
accurate financial reports. This
is a large amount of lost time,
showing the direct impact of
bad data quality on reporting.
Often, the chart-
of-accounts change
process is to blame
(inadequate), and
better handling of
the chart-of-accounts
change process will
simplify the report-
ing flow and help
speed up the close
and reporting process
dramatically.
Enterprise data
governance becomes
the critical tool for
finance to help main-
tain alignment of the
chart of accounts
through the change
process and to drive
consistency between
all business applica-
tions (Exhibit 1). Enterprise
data governance is defined
as encompassing the people,
processes, and information
technology required to create
Trends from a recent survey show that enterprise
data governance initiatives are more predominant
in 2015 than they were in the past. This change
is due to CFOs realizing that strong governance
around hierarchies and dimensions are critical
for enterprise success. Many organizations are
planning to reduce by half their use of spread-
sheets and e-mail for enterprise data governance
in 2015, and this reduction is matched by an
increase in the planned use of packaged enter-
prise data governance solutions. There are seven
best practices to work on to attain strong data
governance in your organization. Some may be
facilitated through the use of software, but many
are just good practices that must be adopted and
adhered to by your company. © 2016 Wiley Periodicals, Inc.
Commissioned

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT