Criteria for collecting useful financial management information
For financial management information to serve its purpose, it must be accurate, relevant, timely and consistent.
Data that is not accurate is immediately useless, no matter what type of data it is, and inaccurate data could lead to significant business challenges further down the line.
It’s also fundamental that financial management information is relevant – it should always align with the business objectives.
Financial management information should also be timely – with the data being reviewed and analysed within the relevant time frame to be useful for the business objectives.
Finally, management information should be consistent in it’s collection and presentation. This makes it possible to review in years to come, analyse trends and make actionable changes. If data is different upon each collection, it makes evaluation much harder.