As stated earlier, the main motivation for financial information is to make the best decision possible with the best information possible. Financial information that is timely and accurate is crucial to make the best decision possible. Another valuable use of accurate and timely financial information is feedback.
When developing a system to collect financial information an effort should be made to create procedures allowing the success of the decision made to be tracked and measured. The ability to monitor the success of a decision is important if aspects of the decision can be ‘tweaked’ for better performance. The ability to do this requires timely feedback.
In addition to adjusting prior decisions, feedback can provide new information for future decisions. Feedback can also identify information that isn’t yet being tracked by you financial system but would be useful in the future.
