Financial professionals are tasked with handling some of the most sensitive data globally, encompassing personal and financial identity information. For these companies, implementing the Single Source of Truth (SSOT) methodology is crucial because of their critical data. The digitization of the economy and evolving operational demands have given rise to the Enterprise Resource Planning system (ERP). ERP is designed to integrate fragmented information into a unified data source, making it an optimal solution. This integration significantly streamlines decision-making and strategic planning for managers within ERP software.

Now, let's delve into what SSOT entails and explore the advantages of incorporating SSOT principles into your data collection and storage practices.

What Is the Single Source of Truth (SSOT)?

SSOT represents a philosophy governing the collection, storage, and analysis of data within an organization, consolidating this information into central repositories. Centralizing data from a single source enhances the precision of financial statements, budget projections, and various other FP&A reports. The SSOT methodology finds widespread application in search engines, and it is also evident in software programs, databases, platforms, and websites. An exemplary case of SSOT is a digital experience platform (DXP).

Top 4 Benefits of Single Source of Truth (SSOT)

When your organization embraces the SSOT methodology, it reaps the following four key advantages:

Access the Right Information at the Right Time

Bid farewell to the data scavenger hunt. Information stands as the lifeblood of any organization, second only to revenue. The proliferation of information across multiple databases results in data silos, a nightmare for those responsible for data collection and reporting. Adopting SSOT principles guarantees that your company possesses the necessary information for making informed business decisions. It instills the confidence to take action with clients or accounts, knowing that all required and accurate information is readily available when needed.

Reduce Time Spent on Data Verification

Poor data quality incurs an annual cost of $15 million for companies, with approximately 20% of lost business attributed to inaccurate data. SSOT diminishes the presence of erroneous data because data accuracy is a fundamental tenet of this methodology. When all your organization's data resides in one centralized location, you have immediate access to error-free data. Instead of spending time ensuring the accuracy of your information, focus on your billable hours with the assurance that the necessary, accurate data is just a few clicks away.

Boost Your Team's Productivity

When information is readily accessible, easy to retrieve, and straightforward to analyze, your teams become more productive. A central database ensures that you can obtain the most current information whenever necessary without wasting time on exhaustive searches.

Ensure Data Security

Data repositories serve not only to guarantee data accuracy and availability but also to safeguard data. Given the frequency of cybercrime (occurring approximately every 39 seconds), maintaining a central database fortified with cutting-edge security technology is vital. This ensures that you, your organization, and your clients remain shielded from cyberattacks stemming from your data storage practices. Furthermore, SSOT enforces data compliance with the rigorous regulations governing data collection, management, and storage within an organization.

Principles of SSOT Software

The SSOT methodology rests on three fundamental principles:

Reliability and Consistency

Organizations adopting the SSOT methodology aim to centralize their data. In this process, it's vital to ensure data reliability and consistency. For instance, when multiple users input client information, the system should flag the duplicate entries. Without these safeguards, data accuracy becomes uncertain. Past client interactions may be scattered in the database. As a result, it might be incomplete when generating reports or filtering for insights.

Accessibility

Data accuracy is as vital as providing access to those who require it. Consider the earlier example. Suppose you have two clerks responsible for inputting data into your system, but neither has access to uploaded documents due to the sensitive nature of the information. Now, one of the clerks receives a promotion and needs access to client files to fulfill their new role. However, the administrator neglected to upgrade the clerk's permissions, resulting in a situation where they are unable to perform their job due to a lack of access. This leads to unfiled reports, missed deadlines, and disgruntled clients. Inadequate access can be just as damaging as inconsistent data.

Timeliness

The third and crucial principle, particularly in the realm of finance, pertains to keeping data up to date. Financial information is exceptionally dynamic and can change at any moment. If you delay data updates, the information can become outdated. This happens by the time it's there in a budget, report, or statement. Ensuring the timeliness of data is paramount for sound financial management.

Where Finance Discovers Its Single Source of Truth

Accountants, CPAs, and other finance professionals dedicate around 2.5 hours of their daily work to billable tasks. This underscores the importance of effective time management during non-billable hours. The presence of a dependable Single Source of Truth (SSOT) streamlines the process of accessing necessary data.

With Elate ERP software, you can efficiently gather, store, and analyze your data. Also, you can make well-informed decision-making for both your organization and your clients. By harnessing the capabilities of Excel and consolidating information within a single central location, you seamlessly access to the information you require.

In today's digital economy, companies are immersed in the "Internet of things" and use vast amounts of data for operational improvements. This makes Enterprise Resource Planning (ERP) indispensable. It's crucial for managing data related to customers, competitors, and suppliers. In a modern business landscape, software-driven configurations underpin all activities, allowing for automated decision-making processes. ERP software serves as a foundational database on which companies can construct complementary data-driven procedures. Rather than being an innovation, ERP software has transitioned into a "must-have" fundamental business software.

The bottom line

Successful businesses thrive by drawing data from a single authorized source. Between 2000 and 2005, ERP software adoption was driven by individual branches of companies showing profitability even when the company as a whole was at a loss. The use of various management and accounting systems made it difficult to track cost allocations and find process bottlenecks.

Particularly in the planning process, having a "pre-agreed" set of uniform numbers proves vital, providing essential context for decision-making. The decentralization of acquiring disparate "raw data" from various sources for subsequent analysis and decision-making incurs a prohibitively high cost.

Successful companies show that ERP software, along with extensive employee training and a data-driven corporate culture, reduces the number of routine reports significantly. This transformation of business thinking shifts the focus from "how much was sold" to "how to sell more effectively." ERP software simplifies the accessibility and synthesis of corporate data, allowing managers to concentrate on proactive decision-making.

Having a Single Source of Truth for accounting and management information leads to cost savings and time efficiencies. Additionally, it allows management to focus on strategic objectives for profit growth and shareholder value enhancement. Get in contact with Emerald Softwares to book a free demo for a robust ERP system.