ROME WASN'T BUILT IN A DAY

by Anthony Wells, Commercial Director, EMEA at Legal RM

Accountancy practice management software has come a long way. Today, features like automated billing and reconciliations are easily integrated into the day-to-day practice workflow of Wolters Kluwer Tax & Accounting UK customers.

Our employees work side by side with our customers to create and manage these solutions – driven by a deep understanding of their needs and addressing the rapid changes in their environment.

However, it’s often hard to look beyond improving performance in day-to-day operations. Amid Brexit, the COVID-19 pandemic and other disruptions, accountancy practices and their clients are dealing with an unpredictable economic landscape. Future business planning can appear daunting.

However, technology can support accountancy practices (and their clients) in making informed business decisions, and planning for the future. In the first part of our Accountancy Practice Management for Future-Fit Growth series, we’ll explore how they can use technology to define and easily track Key Performance Indicators (KPIs). Doing so gives practices closer control of performance tracking, and deeper insights that will inform strategic growth plans.

Saving Time

For several decades, business technology platforms have enabled practices to track performance metrics that they have customised. This highlights areas that qualify for improvement and underpins strategic planning.

Contemporary technology, such as CCH KPI Monitoring, makes setting up KPIs faster and easier for accountancy practices than ever before. This is vital today. The current business landscape demands that firms assess and amend KPIs more frequently, based on fresh market variables. KPIs such as client retention rate and business time-to-recovery have become increasingly prominent performance indicators in the past year. If clunky technology makes KPI management difficult, practices have less time and insight to plan future growth.

Reducing Risk
CCH KPI Monitoring makes it far easier to track KPIs and report on them. This is fundamental in minimising risk. For example, if a KPI is set to track and escalate debt filtered by overdue dates, the ability to easily set alerts and automatically generate reports is critical to practice performance management.

Some practices are manually running monthly reports to measure KPIs. Others are running real-time reporting engines, a key feature of CCH KPI Monitoring. This latter solution allows practices to review essential data at any time – covering both performance management and compliance requirements. They can do so remotely or on-premise.

This means that firms can assess issues before they become problems, and thus act proactively. Real-time reporting is a true asset in building a future-fit practice.

The Proof is in the Practice
A number of Wolters Kluwer customers have been using CCH KPI Monitoring for several years now. Our customers look to us when they need to be right. Ryecroft Glenton has successfully integrated CCH KPI Monitoring with its own system. This consolidates information from several sources, including CCH Central and CCH Practice Management.

“We can use the year end date to trigger a sequence of reminders. Have we asked for the books? Have they been received? If a request to a client has been outstanding for a certain period, the partner will receive an alert via email. For limited companies, we can monitor the corporation tax and Companies House filing deadlines – as well as the different deadlines for pension schemes”

– Ian Smith, partner at Ryecroft Glenton

Corporate events agency who benefited from greener graphics initiative

“Apogee are not just aprinting company, theyconsult with us and go onto deliver a full end to endservice from concept toinstallation. They go aboveand beyond and we lookforward to continuing ourjourney with them”

Corporate events agency who benefited from greener graphics initiative

“Apogee are not just aprinting company, theyconsult with us and go onto deliver a full end to endservice from concept toinstallation. They go aboveand beyond and we lookforward to continuing ourjourney with them”

Corporate events agency who benefited from greener graphics initiative

“Apogee are not just aprinting company, theyconsult with us and go onto deliver a full end to endservice from concept toinstallation. They go aboveand beyond and we lookforward to continuing ourjourney with them”

Corporate events agency who benefited from greener graphics initiative

“Apogee are not just aprinting company, theyconsult with us and go onto deliver a full end to endservice from concept toinstallation. They go aboveand beyond and we lookforward to continuing ourjourney with them”

Accountancy firms in the UK are increasingly recognising that unchecked data proliferation is becoming too risky and costly to ignore. Yet, many are overwhelmed by the scale of the challenge in identifying, classifying, and minimising vast amounts of data. In this article, we explore key considerations and outline a five-step approach to help firms implement effective data retention and disposal strategies.

The growing data challenge

Data is at the heart of accountancy firms. Some of it is outdated, some highly sensitive and much of it is stored in legacy systems that are difficult to access. While there is an instinctive desire to "clean house," the challenge lies in knowing where to start. Many firms put off tackling the issue, allowing their data burden to grow, making it more complex to manage.

Historically, records retention and disposal have been secondary priorities with data security and revenue-related processes taking precedence. However, this needs to change. There are four compelling reasons why information retention and disposal should be a top priority:

1. Reducing risk exposure
Large volumes of unmanaged data increase exposure to cyber threats. Accountancy firms handle sensitive financial and client information, making them prime targets for cybercriminals. Without proper data management, firms risk financial loss, reputational damage and regulatory penalties.

2. Controlling storage costs
Data storage costs are rising, particularly as firms migrate to cloud-based systems like Microsoft 365, SharePoint and other document management platforms. Accumulating excessive data increases operational expenses and affects system performance.

3. Enhancing efficiency
Excess data clogs systems and slows down workflows. By proactively managing data, firms can improve operational efficiency, ensuring that only relevant and necessary information is readily accessible.

4. Meeting regulatory compliance
UK regulations, including GDPR and professional standards set by bodies like the ICAEW, require firms to manage data responsibly. Retaining unnecessary client information beyond required periods can lead to compliance breaches and financial penalties.

Cautionary tales

The risks of poor data management are not just theoretical. UK regulators have imposed significant fines on firms that failed to secure client data properly. For example, a UK accountancy firm was penalised for failing to encrypt sensitive client information stored on an outdated system, resulting in a data breach and regulatory action.

Firms operating internationally must also consider the impact of data protection laws in multiple jurisdictions. Many corporate clients impose stringent internal data management standards, often exceeding regulatory requirements. Failing to comply with these standards can result in lost business opportunities and damaged client relationships.

A five-step approach to data retention and disposal

Addressing data retention and disposal may seem daunting, but firms can follow a structured approach to make the process manageable.

1. Establish a data management committee

The first step is to form a cross-functional team to oversee data retention and disposal efforts. This committee should include senior representatives from compliance,
IT, risk management and operational teams. Their role is to drive policy implementation, ensure alignment with regulatory requirements and communicate changes across the firm.

2. Audit and map existing data

A thorough data audit is essential to understand what information is stored, where it resides and who has access. This includes:

Identifying all digital and physical repositories.
Classifying data by type, age, and sensitivity.
Assessing legacy systems for obsolete or redundant information.
Reviewing shadow IT practices where staff may have stored data outside sanctioned systems.

3. Develop and implement a retention policy

A clear data retention and disposal policy should outline:

Retention periods based on legal and regulatory requirements.
Specific rules for client financial records, HR files and internal documents.
Secure disposal methods for outdated records (e.g., shredding paper documents and ensuring permanent digital deletion).

The policy should be agreed upon at senior levels and communicated to all staff to ensure compliance.

4. Execute the policy

Once the policy is in place, firms must follow through with its implementation. This involves:

Automating retention and deletion processes where possible.
Ensuring secure destruction of outdated physical and digital records.
Training staff on data management best practices.
Regularly reviewing compliance with the policy.

5. Enforce and monitor compliance

A policy is only effective if it is enforced. Firms should:

Conduct periodic audits to ensure adherence to the retention schedule.
Review systems for unauthorised data storage practices.
Provide regular training and awareness programmes to staff.
Use software tools to monitor data retention and enforce deletion processes.

Achieving lasting change

To successfully implement a data retention and disposal framework, firms need engagement from all stakeholders. Senior leaders must champion the initiative, ensuring that data governance becomes an integral part of firm culture.

Technology can play a crucial role in simplifying data management. Commercial software tools can automate retention and deletion, reducing manual effort and improving compliance. Firms should explore these solutions early to streamline their processes.

Proceeding Iteratively

Firms do not need to address all data issues at once. A phased approach, starting with high-risk areas, can make the task more manageable. Prioritising sensitive financial records and outdated client files can deliver quick wins while laying the groundwork for broader implementation.

Data retention and disposal is a critical but achievable task for UK accountancy firms. By following a structured approach, firms can enhance compliance, improve efficiency and reduce risk, ultimately strengthening their operations and client trust.

While Rome wasn't built in a day, taking the first steps towards better data management today will pay dividends in the future.

About the author:
Antony Wells is a seasoned professional committed to helping organisations optimise their information management responsibilities. In his role as Commercial Director, EMEA at LegalRM, Antony leads initiatives aimed at enhancing firms' information governance strategies, with a keen focus on compliance, risk mitigation, and cost reduction.  

Before joining LegalRM, Antony amassed invaluable experience guiding firms in selecting and implementing document management solutions, throughout the legal and professional services market.

If you would like to speak to Antony about how the LegalRM team can help you build your information governance strategy, then get in
touch.

Aug 2025

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