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The Data-Driven Accountant: Embrace Analytics for a Thriving Career

data analytics excel power bi tableau Apr 23, 2023

 

The rise of data analytics is transforming the accounting profession, enabling trusted advisors to support more informed decision making and provide strategic advice to clients.

The benefits of building knowledge and skills in analytics can help an accountant’s clients and firm, thereby also improving an individual’s career prospects.

What Are Data Analytics?

Data analytics are processes for using data to make decisions. Analytics involve the use of tools and techniques to analyze, interpret, and visualize large datasets, uncovering valuable insights and trends for decision makers.

Adopting an analytic mindset means relying on evidence, as demonstrated by data, to inform decisions. This data-driven type of approach can be powerful when applied to accounting information.

In the accounting profession, data analytics have become increasingly important as businesses and organizations produce and acquire vast amounts of financial and other data.

By embracing analytics, accountants can enhance their value as trusted advisors and stay ahead in an ever-evolving profession.

Benefits of Data Analytics in Accounting

Analytics have many applications across accounting disciplines because accounting disciplines generally involve large amounts of financial and other data.

  1. Enhanced Forecasting and Budgeting: Managerial accountants can create more accurate financial forecasts and budgets, enabling businesses to allocate resources effectively.

  2. Alignment of Business Units: Accountants can support business leaders in organizations by providing them operational metrics and real-time monitoring on dashboards for tracking progress towards goals when they unlock the power of data for their firm.

  3. Efficient Audits: Analytical procedures are required in the planning and review of financial statement audits by generally accepted auditing standards of the AICPA. They help accountants perform more efficient and effective audits by identifying anomalies, potential fraud, and areas of risk.

  4. Increased Investor Value: Accountants and analysts can provide clients with valuable insights in the performance of companies and projects, enabling them to manage risk and seek better return on investments.

  5. Advantageous Tax Positions: Embracing data analytics can give tax accountants a competitive edge when analyzing differing scenarios, positioning them as forward-thinking and innovative practitioners and reducing tax obligations.

Developing Data Analytics Skills for Accountants

To harness the full potential of data analytics, accountants should develop and pursue a plan to gain the necessary skills and knowledge:

  1. Learn the Basics: Familiarize yourself with key data analytics concepts, terms, and tools used by accountants.

  2. Identify Common Use Cases: Start with the most common scenarios already used by most accountants and learn the best practices for those use cases.

  3. Improve Your Skillset: Practice using popular data analytics tools, such as Excel, Power BI, or Tableau, to analyze and visualize financial data.

  4. Deepen Your Knowledge: Learn the important statistics and science concepts that underly empirical thinking and evidence-based decisions.

  5. Cultivate Experience: Practice applying your knowledge and skills and learn how to overcome the challenges with creating value through data analytics.

  6. Share Insights: Connect with other professionals who are currently using data analytics in their work, and those who are interested in learning. Share your experiences and insights, and learn from theirs.

Conclusion

The potential of data analytics for your accounting career is immense, as it enables you to make better-informed decisions, improve efficiency, and provide greater value to organizations and clients.

By embracing analytics and developing the necessary skills, knowledge, and experience, you can position yourself as a forward-thinking practitioner, poised for long-term success in the evolving accounting profession.

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