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Data

Article 09.21.2022 Dean Dorton

For most of the history of bread, it was eaten by either tearing off chunks or, eventually, slicing each piece one at a time. As store bought bread became more popular, manufacturers made it softer and softer to entice the buyer with its “fresh” appearance – rendering it extremely difficult to cut.  Along came an intrepid inventor named Otto Frederick Rohwedder who invented the machine that could cut a full loaf of bread into consistently sized slices and enable it to be packaged for sale, out on the market in 1928.  Not only did this make producing, selling, and eating bread much easier, but it also generated an increase in sales for toasters and delicious spreads. (When Was Sliced Bread Invented? | History of Sliced Bread (goldmedalbakery.com)

Can you imagine the pushback poor Otto must have received when he first started trying to sell his idea?  “Who needs a bread slicer? We’ve always done it this way! The loaf will be stale! No one will buy it! So, you waste a few pieces trying to cut the bread, that just means we sell more!” Yet, for the average consumer today sliced bread is such a standard that it would be hard to imagine our food life without it.

I often wonder how many of those same changes – world changing or even just life improving – are passed up every day? Do we continue with the same repetitive tasks, manual processes, and unorganized useless data in spreadsheets just because we haven’t thought of trying something new? What if you were open to exploring new ideas and ways of working that might significantly change the way you do business?

Perhaps, starting down this path would be easier if you thought about it in simpler terms. After all, Otto probably didn’t set out to become the recognized standard for “The Greatest Thing” of modern times.  Make a list of all the repetitive and/or manual tasks you (or your team) perform every week and the amount of time required to complete them. Further identifying if they occur on a daily or weekly basis might help. It is quite possible that you will be shocked at the length of the list, particularly if you add up the amount of time chained to these items. Even the smallest of tasks can add up across time and repetition.

After reviewing the list, the next step is to begin the process of envisioning how the underlying business needs for these tasks could be accomplished via other, more efficient, means. As an example, you might consider putting in place an approach that provides any of these options – and crosses key items off your list!

  • Automating routine processes
  • Capturing data once, and pushing it to the right locations
  • Identifying and resolving discrepancies in information
  • Validating contract terms for compliance
  • Managing approval processes

As our team continues to work with customers to automate and improve their business processes, along with increasing data visualization and analytics, we’ve focused heavily on using Microsoft’s Power Platform. The toolset within this platform provides an extensive amount of functionality to easily accomplish all the items on the list above – plus so much more!

In fact, we’ve put together an approach to process transformation that organizations to work at a speed and budget that fits their internal needs – and we are right there with them on the journey every step of the way. Each quarter we walk through the list of items that are keeping team members from focusing on the accomplishing the work they need to be doing and identify the top priorities to retool and transform. This ongoing process allows the impact of the changes to be felt quickly – and measurably – so that the real work of the organization can flow through.

How much time would you like to regain in your work week? Perhaps enough to squeeze in a lunch with some really good bread?  Let’s talk soon.

Filed Under: Data Analytics & AI Tagged With: automation, collaboration, Data, Technology

Article 04.28.2022 Dean Dorton

There are two ways to think about the digital data pouring into today’s organizations.

First, as an opportunity. The quantity and quality of data now available, along with powerful analytics capabilities, allows us to answer questions that have always been a mystery and forecast the future with remarkable accuracy. With data, organizations can know and do things that seemed utterly impossible just a few decades ago.

Second, as an obligation. As more and more organizations start using data to their advantage, the ones that don’t will become less competitive as a result. They will miss out on opportunities to grow more productive, efficient, innovative, and effective overall, which will make it harder and eventually impossible to remain relevant, even in industries not typically associated with “tech.”

Both these ways of thinking about data make one thing clear: priority number one for all organizations needs to be turning the information they have into the informed decisions they need. The burning question is how?

Say Goodbye to Spreadsheets for Housing Data

The core concept of spreadsheets (a grid of information) is centuries old, and the digital equivalent (Excel or otherwise) has been around for over 50 years. Spreadsheets have been one of the most important business tools of all time, and they remain as ubiquitous as ever…for now.

The era of spreadsheets is coming to a close as companies develop new expectations for data. Why? Because working with spreadsheets requires copious amounts of manual data entry. In most cases, numbers must be entered, organized, and analyzed all by hand. Various spreadsheet tools can automate parts of these processes, but not everything, and not at high speed or large scale. Consequently, people have to spend hours or days working inside of spreadsheets just to turn modest amounts of data into limited insights. And if the data is wrong due to typos or the sheets break as they grow larger, the insights may not be trustworthy or even accessible.

In that way, spreadsheets are an obstacle to data-driven decision making. Instead of relying on the wrong tool any longer, organizations need to switch to something better. The future depends on it.

Sage Intacct – More than Just Accounting Software

Sage Intacct is a comprehensive financial management platform with many powerful and industry-specific features. More than just an accounting tool, however, it’s the engine of organizations that run on data.

Across the platform, Sage Intacct uses automation to collect, store, organize, analyze, and distribute data to stakeholders inside and outside the accounting department. The weaknesses of spreadsheets are the strengths of Sage Intacct. So not only can decision makers find the insights they need faster, more reliably, and with less input; they can also probe deeper into information to know the unknowable.

If priority number one is turning data into informed decisions, the first step is to take a closer look at Sage Intacct. Contact Dean Dorton about a demonstration or consultation.

Philip Massey,
Software Services Director
pmassey@ddaftech.com • 919.796.5408

Filed Under: Accounting Software, Data Analytics & AI, Industries, SaaS, Services Tagged With: Accounting, accounting function, cloud, Data, Finance, migrate, Software

Article 10.26.2021 Dean Dorton

No one wants their data to be hacked and used for nefarious gain. Employees, customers, clients, patients, students, and vendors are depending on your organization to protect their data. You have been entrusted with it and they have a reasonable expectation you are going to take steps necessary to keep it out of the wrong hands.

We all understand there is no such thing as 100% secure, therefore “reasonable” is a much more practical goal. Ideally, every organization would prioritize investing time and resources into having an adequately mature cyber security program. However, there are myriad pressures and objectives facing every organization. Sometimes cyber security does not get the attention it needs.

Numerous regulatory bodies have established requirements with the intent of attempting to ensure organizations are adhering to common measures of cyber standards. These requirements vary based on elements such as industry, type of data and geographic location. Once an organization finds themselves falling under data protection regulations, it is common to have multiple, applicable regulatory requirements. Compliance can get complex and seemingly overwhelming quickly. Below are examples of data protections requirements:

Japan – APPI
Brazil – LGPD
Canada – PIPEDA
China – PIPL
European Union – GDPR

CMMC
GLBA
FFIEC
HIPAA
PCI
SOX

Data Break Notification Laws
Data Privacy Laws
State Grants & Contracts

For organizations that want to comply, there are two paths typically taken when faced with this complexity. The first path involves a process that looks good on paper. All the boxes are checked but no value has been provided to the organization other than dodging the penalty and fine bullet for another year. This approach has been common with credit card compliance requirements.

The second path involves a process not only addressing compliance requirements, but also recognizes there are many other objectives that can be accomplished that bring value to the organization. For example, most data regulatory standards require a risk assessment be performed. However, each standard typically narrows the scope to just the applicable processes, systems and data being regulated. If you are performing a risk assessment, why not make it enterprise-wide? The resulting information not only assists with compliance but helps identify other initiatives that are needed.

As previously mentioned, the phrase adequately mature is intended to recognize that each organization has different cyber security needs. Even though this is the case, there are fundamental steps applicable to all organizations that are beneficial to data protection. These steps will help deal with the complexities and provide a clear path forward. See the demonstration below:

https://deandorton.com/wp-content/uploads/2021/10/Cyber-Pyramid-e1635186352566.jpg

Data Inventory
Determine what data you have, where it resides, and who is interested in the data. The “who” element can include internal stakeholders, but for the purposes of compliance make sure to identify external stakeholders. I.E., regulatory bodies. Relevant information to include in your data inventory:

Application/System Name
Version #
Vendor
System Owner
Data Owner
Function/Purpose
Users of System
Primary/Secondary Locations
Sensitive Data Elements*

Alumni/Students
Applicants/Employees
CUI
DOB/SSN/Passport/Visa
Name/Address/Telephone/ID
Patients/Customers/Vendors

Based on the sensitive data elements, identify the applicable regulatory bodies governing data protection.

Cybersecurity Control Framework
Many regulatory bodies recommend or require specific control frameworks. A control framework helps create a vision of what your organizational security program should look like. It provides a path and eliminates the need to create everything from scratch due to the many resources available. Your data inventory will drive selecting the right framework.

See example of cyber security control frameworks:

https://deandorton.com/wp-content/uploads/2021/10/Screenshot-2021-10-20-151610.png

To summarize, one path does take more work and effort, but the results speak for themselves. Subscribe to Dean Dorton Insights to stay up-to-date with the latest regulatory changes.

Explore IT Audit and Compliance Services

Kevin W. Cornwell | IT Audit Associate Director
kcornwell@ddaftech.com
502.566.1011

Filed Under: Accounting and Financial Outsourcing, Healthcare, Industries, Services, Technology Tagged With: Compliance, Data, data protection, IT Audit, law, regulations

Article 10.14.2021 Dean Dorton

The line between finance and IT gets blurrier by the day. What’s crystal clear, however, is that accounting and finance departments require tech like never before. Everything from routine accounting to strategic finance runs better with technology – and runs worse without it.

Which puts a lot of pressure on the tech stack to perform. No single solution is a panacea. The combination of tools and capabilities encompassed by the tech stack determines, to a large extent, the effectiveness of the professionals who depend on it. It can be an asset that generates insights, sparks innovation, and multiplies productivity. Or it can be an obstacle that causes errors, uncertainty, and inefficiency.

For CFOs and the teams they lead, fine-tuning the tech stack is perhaps the single biggest priority right now. No two tech stacks will look exactly alike because it’s crucial to customize the contents based on the needs of users. That said, there are best practices everyone should follow:

  • Digitize everything – A tech stack is meant to address all the work done by accounting and finance departments, all under one umbrella. Any process or paperwork that hasn’t been digitized yet is overdue for an upgrade.
  • Automate extensively – The speed and scale of modern finance makes it imperative to remove manual-processes from the equation. Look for ways to automate how data gets recorded, integrated, and analyzed. The tech stack should do the heavy lifting of data management.
  • Minimize Excel – Spreadsheets will always be a part of accounting, but Excel should never be the centerpiece of the tech stack. Work to move anything that relies entirely or partially on Excel into a system that’s both technologically superior and equipped for high-level accounting and finance.
  • Expand capabilities – The tech stack shouldn’t replicate the status quo in digital form. Rather, it should improve and expand upon existing capabilities, empowering accountants to do things they couldn’t do before.
  • Think strategically – A tech stack should reflect the strategic priorities of the accounting and finance department, and, by extension, the company as a whole. Select pieces to add or subtract based on how they contribute to strategic objectives.
  • Pick a platform – The term tech stack implies verticality, but it’s better to think horizontally. Instead of stacking tools on top of one another, look for solutions that integrate the widest number of capabilities onto a single platform, becoming the “hub” for all things accounting and finance.
  • Choose confidently – Fine-tuning the tech stack isn’t the same as tinkering. There can be real consequences for adding the wrong tools to the mix. Therefore, it’s vital to feel confident that any addition will make an impact that’s immediate, lasting, significant, and quantifiable.

One final best practice: Partner up. Even when following best practices, perfecting a tech stack isn’t easy without abundant experience and expertise – exactly what the team at Dean Dorton is here to provide. Contact us to get your tech stack right.

Justin Hubbard, CPA, CGMA | Accounting and Financial Outsourcing Director
jhubbard@deandorton.com
859.425.7604

Filed Under: Accounting and Financial Outsourcing, Services, Technology Tagged With: Accounting, cloud, Data, family office, high net worth, Outsourcing

Article 10.13.2021 Dean Dorton

Construction projects are complex. The groups of stakeholders and specialty skills involved in a project from start to finish can be overwhelming. Trying to keep supporting information and processes organized, secured, and accessible by the right players during the lifecycle of a construction project is critical to reaching success.

Content, processes, and analytics work together to support success. 

Content
The information needed to start, deliver, and complete a construction project varies depending on the type of work. A common theme across all types of projects is a need to provide the correct information to the correct team, in an efficient manner. This is especially true with construction projects. Contractors need access to the bid requirements, engineers and architects need details of the property layout, a project manager needs to know what tasks are scheduled for the day, finance needs to know which payments are due next week, and the list keeps going. Delays in finding or having access to this type of information will cause frustration and increase costs. A plan for organizing information and ensuring the correct stakeholders have access is important for ongoing success. 

Process
Physical construction processes executed correctly are paramount to the success of a project. A poorly installed building foundation can have catastrophic implications; an improperly sloped drainage zone can lead to damage and possible liability; poor materials can lead to shortened lifespan of constructed features. The same is true of the business processes: slow or erroneous business processes cause issues and can delay progress or increase costs. Processes that involve duplicate data entry, printing of materials, or tabulation/collation of data may all be areas prone to error and delays.  

Business processes can be large or small. For example, the management of the lien waiver process with contractors is a simple, yet cumbersome process. If done incorrectly, it can leave a property at risk. An additional example is the sign-off on building plans, floor plans, and estimates. Delays on these approvals can slow the project progress until agreement is reached. 

Analytics 
Business processes and various tools generate a lot of data. Taking this data and molding it into something useful is the job of analytics. Good analytics will help you answer the questions that are most important to your construction project. Analytics sourced from a single data source, a construction project management tool for example, can be manageable. However, when that data needs to be combined with the financial accounting for the project to determine current and forecasted profitability of the project, it can become more complicated.

Good analytics allows for decisions to be made with facts instead of perception. 

Depending on an organization’s size and maturity, analytics may be used in any of these 4 areas: 

  • Descriptive (simple) – this is a view into what has happened or is currently happening (how many labor hours have been used this week?) 
  • Diagnostic (moderate) – providing insights into why a particular thing is happening (why is my flooring expense exceeding estimates)? 
  • Predictive (complex) – what is likely to happen in the future (based on the current burn rate, when will my labor budget be exceeded?)  
  • Prescriptive (more complex) – what should be done to reach an outcome (how can I deliver in a shorter timeframe?) 

Dean Dorton’s Collaboration and Data Analytics practices can build a strategy and roadmap to help your organization get the most out of its processes and data. If you would like to meet for a free initial consultation, please contact us here: Lets Connect

Filed Under: Construction, Data Analytics & AI, Industries Tagged With: Analytics, collaboration, Construction, Data

Article 10.7.2021 Dean Dorton

The Covid-19 pandemic challenged every assumption in healthcare. Systems that were supposed to be redundant and resilient were pushed to the breaking point and beyond. Problems that seem unthinkable became realities, one after another after another. No matter how the pandemic affected a healthcare provider, all of them think differently in the wake of it.

We can expect swift and sweeping changes as a result. Preventing a repeat of recent events will be the industry’s top priority. Every facet of healthcare will respond to this mandate in their own way, but none will ignore it. Continuing with the status quo represents too great a risk.

What will the new normal look like? Expect outsourcing to play a much greater role, especially in healthcare accounting and finance.

Why Outsourcing Make the Most Sense
Without receiving much notice, healthcare accounting teams were some of the hardest hit during the pandemic. They had to deal with a financial crisis that appeared out of nowhere while adapting to sudden remote work requirements and unpredictable staff shortages. Arguably, everything that could go wrong did go wrong.

Most teams adapted admirably and kept their organizations afloat through unprecedented difficulties. Nonetheless, it’s clear that most teams aren’t equipped for the next pandemic in terms of staff, technology, visibility, or expertise. Complicating matters even more, adding these missing pieces requires time, money, and other resources that are in short supply right now.

Outsourcing offers a shortcut between what healthcare accounting teams have and what they need. Outsourcing partners can introduce cloud-based accounting systems that facilitate remote work. They can step up to handle routine accounting obligations whenever necessary or deliver specialized financial insights on demand. They can also free up the in-house accounting team to focus on urgent objectives or long-term initiatives.

The new normal calls for healthcare accounting teams to be agile, informed, and robust. Building out those capabilities in-house involves a huge cost and a complicated, time-intensive effort. But not with outsourcing. Any healthcare accounting team plus the right outsourcing partner equals an elite unit prepared for whatever the future holds, good, bad, or unexpected.

Healthcare Accounting After Outsourcing
The greatest argument for outsourcing, especially under the present circumstances, is that it insulates accounting teams from uncertainty. Teams have whatever resources they need to keep the financial situation stable in the midst of chaos. They run on technology that makes powerful capabilities and the entirety of financial data available from anywhere. And they have a partner to consult with on the most complicated and critical financial questions of the day.

A tidal wave of change was already headed towards the healthcare industry before the pandemic started. Outsourcing increasingly looks like the best – even only – way to say ahead of this transformation. Prepare for the new normal sooner rather than later by contacting Dean Dorton.

Justin Hubbard, CPA, CGMA | Accounting and Financial Outsourcing Director
jhubbard@deandorton.com
859.425.7604

Filed Under: Accounting and Financial Outsourcing, Healthcare, Industries, Services Tagged With: Accounting, cloud, dashboards, Data, Healthcare, new normal, optimization, Outsourcing

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