Big data become a need for every business. Therefore, it becomes essential for every business accountant to understand and use AI automation in accounting for business growth.
According to the World Economic Forum report, each day 44 zettabytes of data production will be reached at the end of 2020. And by 2025 data will reach 462 exabytes. This figure represents you will need 212,766,947 DVDs per day to fulfill volume, velocity, and variety demand.
In accounting, big data is beyond the need for collecting information. The role of bog data only ends when you utilize the information for analyzing insights and to lead a better decision making like Accountants Southport Gold Coast do for clients. With the help of AI and machine learning, companies can understand every aspect of auditing, taxation, accounts creating and advisory services.
TABLE OF CONTENT
Big data and Financial Accounting
Business Performance Analysis
Better Clients Experience
1. Data-Based Auditing
Accounts books and reports auditing is an important part of every business. It helps in analyzing assets and financial position. But with the change in technology, the need and demand for accounting also changed. Big data gave more valuable insight into business diversification and expansion.
Initially, you can start with sample-based testing from the given information. Later on, check all key areas of business. Big data analytics will provide you structured information to meet your real-time needs. Hence, new-age accounting provides accountants and management relevant information to focus on key business areas.
2. Big data and Financial Accounting
Big data also has a leading role in financial accounting. Calculating a fair asset value is the most troubling task of accountants. It consumes lots of efforts and time. Therefore, big data becomes a big surprise for them. The automated accounting process can easily calculate the fair market value of assets and change the figures in the balance sheet rather than making estimates. As a result, the accountant can spend more time on other productive activities.
3. Business Performance Analysis
Using real-time technology is the best technique to find the company’s reasons for reducing sales figures and performance. With the help of RTT, accountants collect market and industry data regarding clients. As a result, rather than discussing the lifeless ratio of market conditions, they get higher-value services to plan budgets. Plus, big data also assists them to create and make cash flow management. Analyzing the companies finances help to take long term major investment decisions.
Not only to external factors, but business performance is also based on internal parameters. Among the employees are the most important. In big organizations, it is hard to find the best employee based on monthly or annual performance. On the other side, the staff needs time to time evaluation for better increments and promotion as a motivation. With the help of automated accounting process companies can easily find and compare the performance of employees. This will help you to hire and retain employees.
4. Risk identification
The company’s position cannot be stable all the time. These need to handle external and internal changes in environmental conditions. Internal changes mean when a company needs to be aware of fraudulent clients, theft or other issues. External parameters involve a risk of supply-chain risks or mergers, acquisitions and regulatory changes to fraud.
Here the big data analysis helps to present a bigger picture of changing conditions and their effect on industry and consumers. Accounting automation explains the changing norms and identifies the red flag for fraudulent activities. As a result, there will be company growth and it will be easy to mitigate the client’s expectation.
5. Better Clients Experience
Cloud technology makes easy to converse with the clients. These days, the job of accountant or auditor is not only limited to adding transactions in the concerned ledger of books of accounts. And maintain records monthly, quarterly or annually. But cloud technology in accounting makes it easier for the accountant to receive timely insights. As a result, when data transformed into meaningful information. It serves better customer experience with fruitful business growth.
The availability and use of big data and technology can help businesses to stand out from the crowd. But, to date, there are only a few companies that have access to new technology. For this, companies need to change their mindsets or hire the best accountant gold coast. Experts in this field determine the way and opportunities to use big data analysis for the best of clients and industry.
Big data also help the user to predict t future risk, recognize the market pattern and boost the management risk.