While there are many factors that determine organizational success, data quality and information flows are arguably two of the most important variables. Unfortunately, too many business decisions are made with incomplete or inaccurate information, or even worse, a lack of timely data thus precluding awareness of lurking risks and potential opportunities. As a result, faulty data and inadequate information flows can quickly throw an organization’s decision-making process into chaos resulting in the destruction of shareholder value.

Increasingly more corporate boards and executives understand the importance of data and information flows in accounting, financial reporting, and ultimately improved business performance. Improving the data quality levels in business has profound impacts on meeting regulations and enhancing performance. Business data that is accessible, accurate, timely, protected, valid, and verifiable is part of Principle 13 of COSO’s Internal Control – Integrated Framework.

Industry leading companies generally exhibit a common trait - continuous improvement in pursuit of the optimal operating, reporting, and compliance model. This is especially important for companies considering going public through an SEC filing. Once the decision for an initial public offering (IPO) has been made, companies should start preparing as soon as possible to have sufficient time to implement changes, test new approaches, and pivot their strategy as needed. To prepare for an IPO, the finance function must determine the team’s readiness to operate efficiently and effectively as a public company.

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