Controllers are the guardians of financial truth (even if unofficially) by owning data quality, structure, and flow across systems.
In today’s risk-heavy business climate, Controllers are expected to do more than close the books. They must ensure data accuracy across the systems that drive billing, collections, compliance, and reporting. One area that’s often overlooked but critically important? Customer master data.
The Cost of Dirty Customer Files for Finance
A survey and study by McKinsey reported that “82% of respondents spent one or more days per week resolving master data quality issues, and 66% used manual review to assess, monitor, and manage the quality of their master data. Consequently, large, multidivisional organizations may be unable to efficiently generate KPIs or other metrics…”
Small and mid-sized business (SBMs) also suffer from poor-quality customer data and the impact on a company’s financial operations. The consequences are real: late invoices, missed payments, tax errors, and even fraud. Yet many finance teams still rely on inconsistent, decentralized processes to manage customer data.
The underlying cause is often the same: a lack of master data management and governance. Here are some of the most common issues that finance teams at SMBs encounter:
- Inaccurate or outdated contact information: Invoices go unpaid when they’re sent to the wrong place. Collections slow down. Bad addresses lead to returns and wasted postage. Up to 20% of customer data changes annually—without updates, AR suffers.
- Duplicate entries: Different users create slightly different customer records. This leads to credit limit blind spots, reporting inconsistencies, and operational confusion.
- Inconsistent data entry: Formatting mismatches (e.g., “St” vs. “Street”) can disrupt reporting, segmentation, and syncs with billing or CRM tools.
- Missing firmographic data: Without standardized legal names, D-U-N-S numbers, industry codes, or parent/child relationships, it’s hard to manage credit exposure or report by customer segment.
- Fraud risk: Lack of verification opens the door to fraud. Fake customers, redirected shipments, and phantom invoices can all slip through weak data controls, especially in businesses without strict oversight.
Small businesses have annual median losses to fraud of around $200,000 – and AR fraud is more common than you know.
The Payoff: Why Clean Customer Data Matters to Finance
When Controllers enforce customer master data governance, the whole company benefits and finance wins first:
- Faster, more accurate invoicing: No rework. No bounced emails. Just clean transactions from day 1.
- Improved collections and credit management: Correct contact data and credit limits mean better follow-ups, fewer write-offs, and improved DSO.
- Reliable financial reporting: Accurate customer master files support segmentation analysis, margin analysis, budgeting, and revenue forecasting.
- Audit and tax readiness: Having tax-exempt certificates, legal names, and transaction records tied to the right entity keeps the business in compliance and reduces audit prep work.
Steps Controllers Can Take Today
While IT and sales may have access to customer systems, the Controller is the natural steward of master data, especially when it comes to customer records that impact receivables, revenue recognition, audit compliance, and cash flow forecasts.
Customer master data governance isn’t a one-time cleanup, it’s a continuous responsibility. With nearly 20% of customer data changing every year, and new customers being added all the time, Controllers need processes and tools that keep the customer file clean, complete, and audit-ready.
Here’s how Controllers can lead the charge:
1. Treat Your ERP or Accounting System as the Single Source of Truth
Ensure your accounting system (whether QuickBooks, Microsoft Business Central, or NetSuite) is treated as the core repository for the “golden records” in your customer master file. All critical data used for invoicing, reporting, and collections should be accurate and complete here first, not just in the CRM or spreadsheets.
2. Implement Automated Validation Tools
Use technology that continuously checks and corrects key fields:
- Validate names and addresses using authoritative sources (e.g., USPS, Google Maps)
- Detect and merge duplicate customer records
- Confirm entity status, tax exemption eligibility, and legal name accuracy
3. Enrich Customer Records for Better Risk and Reporting Insight
High-quality external data can supplement your own information with new information, but only if you have a system flexible enough to accept it. Enable seamless integration with third-party business data providers to enrich customer profiles with:
- D-U-N-S numbers, NACM IDs, etc.
- Industry classifications (NAICS, SIC)
- Parent/subsidiary relationships
- Credit limit and risk indicators
4. Set a Cadence for Ongoing Data Hygiene
Establish a lightweight routine to:
- Review recent customer additions
- Check for duplicates and outdated records
- Reconfirm contact info for key accounts
- Refresh enrichment data from third-party sources
You don’t need a data team to stay ahead, just the right tools and ownership mindset.
How Truverto Helps Controllers Govern Customer Data
Truverto gives Controllers the tools they need to clean, validate, and enrich customer records—without manual spreadsheets or risky workarounds. Our platform:
- Validates customer names and addresses via integrations with USPS and Google Maps
- Flags and merges duplicates across accounting systems like QuickBooks, Microsoft Dynamics 365 Business Central, and NetSuite
- Enriches customer records with D-U-N-S numbers, NACM IDs, industry classifications, and credit insights
- Connects to credit data exchanges like Dun & Bradstreet, Creditsafe, and NACM to automate data sharing and credit validation
The result? Finance-grade customer data that supports faster close cycles, better forecasting, and fewer audit headaches.
Final Thought
Customer master data governance isn’t just an IT problem or a CRM issue. For Controllers, it’s a strategic financial imperative. Take ownership, tighten controls, streamline processes, and give your team the clean data it needs to deliver results.
