How to harness the power of your organization’s data

by Tom Olinger, CPA

Thinking about your organization’s data can easily lead to overwhelm. There are so many numbers, metrics, dollar amounts, and counts; trying to make sense of it all can leave your head spinning. But paying attention to the data—and the trends it shows—is critical to keeping your local government running smoothly.

Of course, this is easier said than done. Here’s a quick look at a few common challenges you may face when dealing with your organization’s data.

Challenge #1: Obtaining timely data from your accounting software

Most accounting software platforms are great for recording and organizing transactions; however, they aren’t so great at providing meaningful reports. Most platforms’ report-generating features are simply inefficient and require staff members to do additional work to obtain any meaningful information. By the time staff members create and present reports, the data is already outdated.

Challenge #2: Finding meaning in the data

One way to reduce the overwhelm you may feel is to ask this question: What information is critical to determining if your organization is on or off track of making progress toward its goals?

It’s also important to identify the data metrics that are critical to your organization’s management, so you can demonstrate progress. For example, this could be cash balance trends, budget variances, or cash collections.

Once these metrics are established, it’s important to create a dashboard or report that can allow you to clearly assess them (each metric should be presented in a consistent format). Doing so can help you recognize trends and measure progress. With these insights, you can plan your next steps: Do you need to correct course, or are you accomplishing your goals?

Challenge #3: Making the data easy to understand (for everyone)

Most city councils are comprised of individuals with a wide range of backgrounds and experiences; it’s important to make sure everyone can be on the same page when it comes to data.

As I mentioned, data can easily be overwhelming. Raw numbers are hard to interpret and don’t provide much insight into trends. Using visuals to present data, such as graphs and charts, can be helpful for allowing non-accountants to better understand the story behind the numbers.

You may also want to consider keeping any data presentation to council focused on “high-level” information. When you have solid data to reference, you can quickly drill down into the details if needed.

Take advantage of technology

Technology, especially AI, is an invaluable tool when harnessing the power of data. Here are some helpful tools to consider.

• Microsoft Copilot is an AI-powered productivity tool that gives users a conversational chat interface. In other words, it allows you to simply type in what you want to accomplish, such as a visual to present data, and it will create it for you. We’ve found it helpful for creating formulas in Excel, producing charts and graphs, and compiling meeting minutes and narratives.
• ChatGPT is a powerful AI chatbot that can be used like a search engine to answer questions. The response it provides can be a great starting point for any question; it saves time by leading you in the right direction. It can also help you summarize data and assist in writing narratives.
• While ChatGPT can be a starting point for statute and authoritative guidance, you should always confirm the information it provides with the actual statutes and other authoritative agencies.
• Also, ChatGPT uses a search engine that is open source to the public. Be sure to keep this in mind if you are using public information, and avoid using personal information in your queries.

Compass for cities is a cloud-based platform that harnesses data from other platforms using Microsoft BI to identify performance indicators that matter most to your organization’s day-to-day operations.

In addition to providing timely data (it connects directly to your accounting software), Compass automatically generates reports that include easy-to-understand charts and graphs. It also gives you dashboards that highlight your organization’s most important metrics. These dashboards—and the data they showcase—remain the same throughout the year, giving you consistency month after month. (You can easily show data for any given period and references its history.)

Learn more about Compass

Harness the power of data for your organization

The good news is, data doesn’t have to be complicated. Leveraging available tools—and taking steps to proactively address the challenges I mentioned—can help you harness its power for your organization.

That said, if you’re having a hard time managing your organization’s data or if you aren’t sure where to start, we can help. Our local government advisors can guide you in identifying the data that matters and how to best track, measure, and present it.

If you’d like to learn more about how we can help you get your organization’s data under control, contact us today.