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What is a data dictionary and do small businesses need one?
A data dictionary is a document listing each field or metric in your data with its meaning, source, format and calculation. Small businesses benefit because it prevents misunderstandings, speeds up onboarding and keeps definitions such as active customer or net revenue consistent over time.
It can be as simple as a shared sheet with columns for name, definition, source system, owner and notes.
Useful entries to start with:
- Revenue, margin and cost measures
- Customer and order status definitions
- Date conventions, such as order date versus ship date
- Known exceptions or data quirks
Keep it near the work, update it when definitions change, and make it readable by non-technical staff.
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