# Why finance teams need to go beyond numbers to an active relationship with data  Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-09-07 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Transforming Finance: The Need for Data Literacy Meta Description: Discover why finance professionals must transition from relying on gut feelings to data-led insights and the importance of investing in data literacy skills. URL: https://financedigest.com/why-finance-teams-need-to-go-beyond-numbers-to-an-active-relationship-with-datahtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-865226698-2-1736815273023-compressed.jpg) ![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/joe-dossantos-450x449-1736815272985-compressed.jpg) _By_ **_Joe DosSantos,_** _Chief Data Officer, Qlik_ If you look at adverts for jobs in finance, the majority state “an ability to work with numbers” or “enjoy working with numbers” as a prerequisite for applicants. It’s understandable, therefore, to assume that people working in [finance and accounting would also have a certain level of data](https://www.financedigest.com/navigating-consumer-data-in-the-finance-industry.html "NAVIGATING CONSUMER DATA IN THE FINANCE INDUSTRY") literacy – the ability to read, work with, analyze and communicate with data. So, you [might be surprised to learn that data](https://www.financedigest.com/your-money-is-safe-but-your-data-might-not-be.html "YOUR MONEY IS SAFE, BUT YOUR DATA MIGHT NOT BE") literacy amongst the finance function is not as widespread as it should be, particularly when you consider how much of the role interacts with data. Yes, finance teams are adept at reporting on data but taking [informed](https://www.financedigest.com/what-is-a-virtual-data-room-unveil-the-essential-information-here.html "What is a Virtual Data Room? Unveil the Essential Information Here!") action using the insights data can provide is a very different skill. Did you [know that many finance](https://www.financedigest.com/7-finance-career-options-to-consider-and-what-you-need-to-know-about-each.html "7 Finance Career Options to Consider and What You Need to Know About Each") teams still rely on spreadsheets to analyse data, spending about 80% of their time manually extracting and prepping data and only 20% analysing it? With the increased digitisation of businesses and consequently finance, this [balance needs](https://www.financedigest.com/regulators-need-to-strike-the-balance-between-protection-and-strangulation.html "REGULATORS NEED TO STRIKE THE BALANCE BETWEEN PROTECTION AND STRANGULATION") to start tipping the other way from a passive to an active relationship with data. The shift is already starting to take place. Our latest research shows that three quarters of those working in the finance department regularly review and use [data to inform decisions](https://www.financedigest.com/wage-data-dents-dollar-recovery-before-fed-rate-decision.html "Wage data dents dollar recovery before Fed rate decision") about what action to take, and over two thirds (69%) believe data literacy will help them stay relevant in their role with the growing use of technology. [But finance teams are lacking the training to prepare](https://www.financedigest.com/from-fragmented-systems-to-unified-cpm-unicredit-prepares-for-todays-finance-challenges.html "FROM FRAGMENTED SYSTEMS TO UNIFIED CPM – UNICREDIT PREPARES FOR TODAY’S FINANCE CHALLENGES") them for a more data-oriented and automated workplace. How can [organisations close the gap between the disparity that data](https://www.financedigest.com/auditing-in-cyber-how-organisations-can-keep-track-of-their-data.html "AUDITING IN CYBER: HOW ORGANISATIONS CAN KEEP TRACK OF THEIR DATA") offers, and the investment needed to make sure teams have the data literacy skills to fulfil it? **From [gut feel](https://www.financedigest.com/decision-making-in-times-of-crisis-should-they-be-based-on-gut-feeling-or-data.html "Decision-making in times of crisis: should they be based on gut feeling or data?") to data-led insight** The role that [finance plays within a business](https://www.financedigest.com/1-in-3-uk-businesses-looking-for-finance-are-finding-it-harder-to-get-a-loan.html "1 in 3 UK businesses looking for finance are finding it harder to get a loan") has evolved beyond dependence on historical data and static quarterly and yearly forecasts to become a team that helps drive efficiencies and insights into business performance, and measures and improves returns on digital investments and business bets. This evolved role requires [Active Intelligence](https://www.financedigest.com/financial-services-firms-turn-to-big-data-intelligence-to-fight-fraudulent-activity-according-to-xerox-study.html "FINANCIAL SERVICES FIRMS TURN TO BIG DATA INTELLIGENCE TO FIGHT FRAUDULENT ACTIVITY ACCORDING TO XEROX STUDY") – the ability to deliver up-to-date information designed to trigger immediate actions when they matter most. With it finance teams can accurately compare [forecasting with actuals in real-time for ongoing trend analysis or set up thresholds and alerts for in-the-moment monitoring of spend](https://www.financedigest.com/paypals-spending-warning-casts-pall-over-upbeat-forecast.html "PayPal’s spending warning casts pall over upbeat forecast") to avoid budget derail and compel action. This is where [finance teams](https://www.financedigest.com/what-skills-and-areas-of-knowledge-should-finance-teams-develop-during-2023.html "What Skills and Areas of Knowledge Should Finance Teams Develop During 2023? ") should be. Instead, 59% [say that they still frequently make decisions](https://www.financedigest.com/survey-data-28-brits-say-brexit-sped-decision-buy-uk-holiday-home-year.html "Survey Data: 28% of Brits Say Brexit Has Sped Up Their Decision to Buy a UK Holiday Home This Year") based on gut feel, rather than data-led insight. For finance teams and consequently their employer to thrive, more [investment needs to be made in increasing data](https://www.financedigest.com/how-green-are-your-investments-why-esg-data-integration-is-key-for-financial-services-firms.html "“How green are your investments?” – Why ESG data integration is key for financial services firms") literacy. **Building a data-literate** [finance function Increasing the [data literacy of finance teams is not an overnight job](https://www.financedigest.com/stocks-mixed-dollar-gains-after-robust-inflation-jobs-data.html "Stocks mixed, dollar gains after robust inflation, jobs data"). That said, one of the hardest parts of any [big change](https://www.financedigest.com/from-boom-to-bottom-and-now-big-change-renault-and-nissan-reshape-alliance.html "From boom to bottom and now big change: Renault and Nissan reshape alliance") is buy in from employees and thankfully they’re on-board. Sixty-nine percent would like to become more data literate, with 74% [saying it is necessary to fulfil their current job role](https://www.financedigest.com/amazon-ceo-says-job-cuts-to-exceed-18000-roles.html "Amazon CEO says job cuts to exceed 18,000 roles"). The [big issue is that only 34% have had formal data](https://www.financedigest.com/the-benefits-of-big-data-how-to-convince-your-cfo.html "THE BENEFITS OF BIG DATA – HOW TO CONVINCE YOUR CFO") literacy training with hands-on exercises and only 31% have had access to self-service e-learning platforms with data literacy modules. To make the most of the advantages that an active relationship with data can offer, [businesses need](https://www.financedigest.com/4-kinds-of-software-your-new-business-needs.html "4 Kinds of Software Your New Business Needs") to equip their finance team with the knowledge and skills to work with data effectively – to feel empowered by data to drive decisions and help their organisation become truly data driven. They also need to create a culture that supports employees to develop non-technical skills like curiosity, creativity and collaboration to gain different perspectives and [challenge assumptions about the data](https://www.financedigest.com/the-challenge-of-keeping-data-secure-why-in-house-security-isnt-enough.html "The challenge of keeping data secure: why in-house security isn’t enough"). And give them opportunities to put what they’ve learnt into practice. This is [important not just for now but also for the future](https://www.financedigest.com/tissue-cultured-date-palm-market-pegged-at-us-4-5-bn-value-pool-in-2027-import-export-activities-take-a-downturn-amid-coronavirus-outbreak-future-market-insights.html "Tissue Cultured Date Palm Market Pegged at US$ 4.5 Bn Value Pool in 2027; Import & Export Activities Take a Downturn Amid Coronavirus Outbreak: Future Market Insights"). As seventy percent of those [working in the finance and accounting believe](https://www.financedigest.com/1-in-5-uk-workers-believe-there-is-a-gender-divide-with-work-uniforms.html " 1 in 5 UK workers believe there is a gender divide with work uniforms") that data literacy will help them be more successful in their career and open up more professional opportunities (69%). **Going beyond simply numbers** To be one of the success stories, organizations [need to prepare](https://www.financedigest.com/why-preparation-for-new-swift-cyber-security-standards-needs-to-start-now.html "‘Why preparation for new SWIFT cyber security standards needs to start now’") their finance teams now by giving them the skills to go beyond just numbers to a relationship with data that is far more collaborative, creative, and impactful. As Faith Vakil, director of research, Gartner [Finance highlighted recently – “the pandemic exposed](https://www.financedigest.com/student-finances-exposed-how-do-they-really-spend-their-money.html "Student finances exposed: How do they really spend their money?") budgeting and forecasting processes that were not able to handle rapid and unpredictable changes in operating conditions”. Leaders that recognize the potential of [data literacy both from a business perspective and in retaining increasingly hard-to-come-by talent](https://www.financedigest.com/why-data-is-the-best-weapon-in-the-war-for-digital-talent.html "Why data is the best weapon in the war for digital talent") will find themselves in a far better position to thrive in whatever challenges they meet in today’s uncertain economy. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---