The majority of job postings for positions in finance specify “an ability to deal with numbers” or “like working with numbers” as requirements for candidates. So it makes sense to think that those in the financial and accounting fields would also possess some degree of data literacy—the capacity to read, work with, evaluate, and communicate with data.

Given how much of the finance function involves working with data, it may come as a surprise to hear that data literacy is not as common as it ought to be. Yes, finance teams are skilled at reporting on data, but harnessing the insights data may offer to take informed action is a totally different ability.

Did you know that a lot of finance teams still use spreadsheets to analyze data? They spend most of their time manually extracting and preparing the data, and just 20% of their time actually analyzing it.

This balance has to start shifting from a passive to an active engagement with data as a result of the rising digitization of businesses and, subsequently, finance.

The transition is already beginning. Our most recent research reveals that 75% of finance department employees regularly review and use data to inform decisions about what action to take, and more than two-thirds (69%) believe that having a strong understanding of data literacy will help them remain relevant in their roles as technology continues to advance. However, the training needed to get finance teams ready for a more automated and data-driven workplace is inadequate.

How can organizations bridge the gap between the opportunities that data presents and the expenditures required to ensure that teams have the data literacy abilities to take advantage of them?

From gut feel to data-led insight

Finance is now a team that helps drive efficiency, provides insights into business performance, measures and improves returns on digital investments, and makes business bets, rather than just being reliant on historical data and static quarterly and annual predictions.

Active Intelligence, or the capacity to give current knowledge intended to prompt immediate actions when they matter most, is necessary for this evolving position. With its aid, financial teams can precisely compare forecasts with actuals in real-time for continuing trend research, or they can set up alerts and thresholds for real-time spending monitoring to prevent budget derailment and force action.

Teams from the finance sector ought to be here. Instead, 59% claim that they still frequently base choices on intuition as opposed to data-driven insight. More money needs to be invested in raising data literacy if finance teams are to succeed, and by extension, their employer.

Building a data-literate finance function

It takes time to improve the data literacy of finance staff. To be sure, getting staff on board is one of the most difficult aspects of any significant change, but fortunately, they are. Sixty-nine percent of respondents said they would like to increase their data literacy, and 74% said doing so is essential to doing their current jobs.

The main problem is that only 34% of people have had formal training in data literacy that includes practical exercises, and only 31% have access to self-service e-learning platforms with data literacy modules. Businesses must provide their finance team with the knowledge and abilities to work with data effectively if they are to feel empowered by it to drive decisions and assist their organization in becoming truly data-driven. This will allow businesses to take full advantage of the benefits that an active relationship with data can offer.

In order to get new insights and challenge presumptions about the data, they must also foster an environment where employees may develop non-technical abilities like curiosity, creativity, and teamwork. And provide them with chances to apply what they have learned. This is significant for both the present and the future. As 69% of those working in finance and accounting believe that data literacy will increase their professional chances and help them be more successful in their careers, 70% of them agree that it will.

Going beyond simply numbers

Organizations must equip their finance teams with the abilities to move beyond just numbers and develop a relationship with data that is far more collaborative, innovative, and effective if they want to be one of the success stories.