financial data management

Contributor(s): Stan Gibilisco
This definition is part of our Essential Guide: A guide to using Excel as financial accounting software

Financial data management (FDM) is a process and policy, usually assisted by specialized software, that allows an enterprise or institution to consolidate its financial information, maintain compliance with accounting rules and laws, and produce detailed financial reports.

For a corporation or other large entity, the term "financial data" refers to information on performance in terms of income, expenses, and profits, usually over the course of a full fiscal year. For an individual or small business, the term "financial data" refers to bank account information, debts, assets, and credit ratings.

A well-designed FDM program can help an organization to develop and maintain its own set of accounting procedures, streamline its internal workflow processes to minimize overhead and expense while maximizing efficiency and profit, consolidate data from among various departments, and generate custom financial reports and documents for a diverse set of suppliers and clients.

This was last updated in March 2012

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