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Data Silos Are Slowing Down Your Finance Team—Here’s How to Break Them

best practices board finance reporting May 08, 2025
 

Ever feel like you’re piecing together a financial puzzle at the end of the month? Here’s how to break up those data silos and speed up your month-end close.

     If your nonprofits month-end close process feels like a scavenger hunt, youre not imagining it. One of the biggest reasons financial reporting takes so long is because essential data is stuck in different systems, spreadsheets, or even inboxes. These data silos slow everything down—and theyre more common in nonprofits than you might think.

Lets break down how silos happen, why theyre a problem, and what you can do to fix them.

What Are Data Silos?

A data silo happens when information is stored in one department or system and isnt easily shared with others. In nonprofits, this often looks like:

  • Development- tracking donations in a CRM/ donor database
  • Spending- both Credit card and Accounts Payable processes are not automated.  Transaction coding and chasing receipts are difficult, siloed, and separated.
  • HR- running payroll in an isolated system
  • Finance- trying to stitch everything together manually at month-end

Each department is doing what works best for them—but the finance team is left trying to pull it all together at the last minute.

 

Why Data Silos Slow Down Month-End

When financial data lives in silos, the month-end close becomes a game of chasing people down for information. It takes time to:

  • Request updated donation or grant data from development
  • Track down all spending and manually code and enter spending transactions
  • Manually consolidate reports from multiple systems
  • Follow up repeatedly to get missing details

This not only drains your teams time and energy—it also increases the risk of errors and delays.

Real-World Nonprofit Example

     Let’s say your credit cardd purchases each month are managed by waiting for the credit card statement to arrive and then each card holder gets a copy of their statement and has to find their receipts and fill out manual forms or spreadsheets to capture the purpose and information on where to code the expense in the accounting records. 

     Multiply that by a dozen transactions across multiple departments, and suddenly youre looking at a week-long delay or more! It’s actually not uncommon to see organizations chasing this process for a month- not to mention the friction and frustration between staff – causing the finance or business office to become the enemy in the minds of most staff members!

How to Break Down Data Silos in Your Organization

Fixing silos takes both technology and teamwork. Heres how to start:

1. Adopt a Centralized Financial System

Move away from disconnected spreadsheets and software. Look for cloud-based platforms that can integrate with your CRM, payroll, and other systems. This creates a single source of truth for your financial data.

2. Automate Data Collection

Use tools that automatically sync data between departments. For example,, implementing RAMP as an expense management solution can reduce the friction in your staff and increase accountability!  Who can remember what they spent 3 weeks ago.  Automation can close the gap on time between a purchase and it’s receipting/coding and integration into the accounting records!  To learn more about RAMP, click here.

3. Foster Cross-Department Collaboration

Make the close process a shared responsibility. Encourage regular check-ins between finance, development, and program leads so everyone knows whats needed—and when.

4. Establish Clear Ownership

Assign clear responsibilities for data accuracy. Who enters what, when, and where? Having a consistent process reduces last-minute surprises.

The Bottom Line for Nonprofits

     Data silos dont just make month-end more stressful—they make it less accurate, less efficient, and more vulnerable to compliance issues. When your systems and people work in sync, the close becomes faster, cleaner, and more reliable.

Make sure you’re subscribed to be notified of next week’s blog/video by clicking "Sign Me Up" on the right sidebar of this page.  Next week, well explore another major roadblock in the month-end close process: manual processes.

I’ll see you next week for Part 3: Automate to Accelerate: How to Remove the Manual Work from Month-End Close in Your Nonprofit”

Remember, I’m here for you any time you need help with a specific financial question in your nonprofit. You can always book a spot on my calendar at terisaclark.com. I look forward to serving you!

 

 

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