7 Steps to Improving the Data Health of Your Organization

Accurate, adaptable, and agile data can make the difference between a thriving organization and one struggling to keep up with its financial responsibilities. Good data health ensures that information is timely and precise, fostering informed decision-making and strategic planning.

In his webinar, Spring Cleaning Your Financial Data: What to Do Now for Financial Success, Andrew Horrow provided these seven tips to help your organization improve its data health.

1. Evaluate Your Current Systems for Effectiveness

Begin by assessing what’s working and what isn’t in your organization’s existing systems. Pinpoint inefficiencies like bottlenecks, manual processes, or unclear workflows that eat up your team’s time. Take a balanced approach—highlight strengths that support your operations while identifying areas that need improvement. Bring in fresh perspectives, such as a consultant or peer from another organization, to uncover solutions you may overlook. Keep in mind that every organization is unique, and while best practices can be helpful, they should be adapted to your culture, size, and specific needs.

2. Close Data Gaps and Address Silos

Data silos can impede collaboration and limit decision-making. Examine areas where manual data entry is prevalent or where you rely heavily on spreadsheets. Not only does this process waste time, but it also increases the risk of errors. Ensure your team has access to the data they need and understands its purpose—while maintaining security controls. Breaking down barriers between departments allows for greater transparency, faster workflows, and stronger buy-in for system improvements.

Want to learn more? Check out our on-demand webinar, How to Eliminate the Divide Between Finance and Development.

3. Leverage Your Technology to Improve Financial Management

Incorporate integrated systems and automation tools to cut down on manual data entry and
improve accuracy. For example, updating financial records in real-time and using dashboards can give stakeholders a clearer view of current operations. Automation also reduces repetitive tasks, freeing your finance staff to focus on strategic initiatives. Prioritize technologies that align with your goals and simplify reporting processes to save time and resources.

4. Make Strategic Decisions About System Upgrades

When considering upgrades to your accounting system, use findings from your evaluation to
inform your decisions. Demonstrate how changes will lead to better reporting and faster access to information. Focus on long-term benefits such as improved data accessibility and reduced manual intervention. This will help your team see the value in the investment and encourage leadership to prioritize updates. This is also a great opportunity to review potential integrations to enhance the functionality of your system—like your fundraising CRM with your fund accounting system—and potentially reduce the number of logins your staff has to manage.

5. Build a Culture of Data-Driven Decision-Making

Promote collaboration across teams by empowering staff to contribute to data-related conversations. Your accounts payable clerk, for instance, interacts with many departments and can offer insights into inefficiencies. Foster a culture where data is central to strategic planning, emphasizing its role in identifying opportunities and optimizing resources. Recognize that this is a gradual process—it’s about creating habits and systems that make your finance team more collaborative and effective over time.

6. Create Consistent Processes

Standardize data entry and reporting protocols across departments to avoid inconsistencies.
When different staff members use varied processes, errors are more likely to occur, and reports become unreliable. Work with leadership to secure buy-in and explain why standardization supports accuracy and better decision-making. Regularly train your team to keep them informed about functionality updates or process improvements.

7. Establish Checks and Balances for Accuracy

Know where errors tend to happen and implement safeguards to catch them early. Review your adjustments and verify your data is accurate before sharing it with stakeholders. Whether through automated validations or manual checks, instituting quality control measures helps maintain trust in your data and reduces the time spent correcting recurring issues.