Financial data

Financial data is formal information of an organization’s financial position and performance. Financial data includes such items as profit, loss, assets, liabilities, and income. Financial data provides the foundation for any evaluation of business strategies, management decision-making, and performance management. It also provides the basis for planning, financing, allocation of
resources and risks, and development of investment plans. The financial data provided by the organization can help in decision-making of projects; help in decision-making related to mergers,
acquisitions, and dispositions; and may provide essential information for policy development. Financial data is considered as a necessary element in every financial institution. It helps in
making sound investment decisions and managing business finance. However, accurate financial data is only one factor involved in making sound financial decisions. There is another
factor that is equally important, and that is the decision-making process. The decision-making process depends on accurate financial data that the organization receives. Financial data that is
accurate only enhances the decision-making process. A key factor in decision-making is the identification of key risk factors.
The role of financial data is enhanced through the formulation of appropriate risk policies. The decision-making process relies on accurate financial data to make an analysis of risks and
assign appropriate policies. Financial data is therefore an integral component of any financial organization’s business processes. However, this is not enough to assure decision-making
accuracy. In fact, it requires additional inputs from professionals such as accountants, attorneys,and other experts.