Finance Costs: Data Integration and Curation

  Two weeks ago we talked about how Reconciliation drives financial system costs. Last week we discussed Data Fragmentation‘s impact. This week we consider that in response to both of these, we spend a great deal of effort in Data Integration and Data Curation functions, another major cost driver for the finance department. At times I describe much of finance work to get to transparency–answering … Continue reading Finance Costs: Data Integration and Curation

Finance Costs: Data Fragmentation

  Today we’ll consider how our finance data has ended up so fragmented. Blaise Pascal noted it takes more time to write a shorter letter than a longer one. It is very challenging to summarize huge amounts of financial data in one report, and yet that is our objective in financial reporting. Historically doing that (before the days of automation) we used the concept of … Continue reading Finance Costs: Data Fragmentation

A Major Driver of Finance Costs: Reconciliation

Today’s episode discusses a major cost driver for finance departments, reconciliation, and how to eliminate it.¬†Reconciliation is the process of agreeing that two sets of books or reports contain the same data. It is performed a great deal in our efforts to be accurate in finance. When one reconciles a statement from a company to one’s personal records, both sets of data should contain the … Continue reading A Major Driver of Finance Costs: Reconciliation

Finance Department Costs Overview

In this episode of Conversations with Kip, I highlight that the costs of the financial systems far exceeds the ongoing cost of the finance department. As I have explained this in talking about finance system replacement, I note that the finance system touches all automated transactions in the organization; every transaction that hits the financial record of the business in an automated way goes through … Continue reading Finance Department Costs Overview

Historical Accounting’s View of Blockchain Ledgers

In the final segment of the Historical Accounting Series, today’s episode comments on what really is a ledger, and how they benefit us. All the major books of historically bookkeeping are still with us in our financial systems today, including the Day Book, the Journal and the Ledger. Blockchain does not perform all of these functions. It does not fully qualify and create positions like … Continue reading Historical Accounting’s View of Blockchain Ledgers