Data is a term that is often related to the technical world and less prevalent in the accountancy world. However, for an accountancy firm to be successful, data is a vital component. It not only helps to collect statistics, but it is also useful in predicting and analyzing future trends. In this article, learn about the major factors preventing accountancy firms from utilizing data. Take a look!
Factors Preventing Accountancy Firms from Utilizing Data
1. Unskilled Personnel to Handle Data
Accountants may lack trained and well-experienced personnel to handle their collected data. Because of this, they can neither streamline their processes nor increase their donor retention. If a company has a skilled data person(s), it can easily track its data and give a better insight into the donor and fundraising processes.
2. When Data is Not Kept in one Place
Failure to have a central location of storing data makes it difficult for a company to utilize its data. Accountants are, therefore, advised to find software that permits the tracking of multiple aspects in its data. The software should keep various datasets in one place.
3. Lack of Data Analytics Tools
Data analytics software is a must, irrespective of how large or small a business is. In today’s technology, there have been inventions of various data analytics platforms that accountants can choose from.
4. Accountants are not Collecting Sufficient Data
Data helps to achieve the mission of an organization. Generally, there are various types of data that accountants can collect. Sufficient data is more profitable since it helps organizations to have a good overview of the project they are dealing with.
GDPR for Accountants
The General Data Protection Regulation (GDPR) was enacted on May 25, 2018. It is a legal framework that lays down the guidelines for collecting and processing personal information from persons in the European Union. GDPR urges accountants to appoint Data Protection Officers who will manage data. It also encourages these companies to comply with the regulations to avoid paying penalties.
When accountants comply with the laws and regulations that pertain to their data information, they reap multiple benefits and avoid unnecessary penalties. Also, GDPR compliance by such companies guarantees them of the “rights of erasure” or the “rights to be forgotten.” This way, they can securely collect, use, and destroy their company data. Therefore, companies are recommended to follow all these rules and policies, even when carrying out their internal operations.
About the Author:
This article was written by John Russell of Russell and Co Accountants. John has collected and utilised data to grow his Company Liquidation business.
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