“So, what’s the catch?”
“Are we falling short on numbers?”
“Can we analyze this based on real-time statistics?”
You may have heard these terminologies around the office. Data. Data Science. Big Data. Data analytics – all the main stuff!
But hold that thought; why is everything linked with accounting? Here’s why: Accountants use data analytics to help organizations discover insights within their financials, verify process improvements that can optimize efficiency, and eliminate the chances of “risk.”
However, the competition is growing. Today’s accounting enterprises face a business environment that is both fluctuating and demanding due to increased productivity through newer technologies. And thus, a new accountant’s role is slowly converging into a business consultant, which requires additional skill-sets. That includes expert judgment, critical thinking skills, and skepticism.
Among the chaos, there has been a confusing debate of new accountant vs. business analytic. For now, we can tell you this much; both of these terms deal with accounts but have unique roles in an organization.
So what are these roles? Read below to find out!
1. The Role of New Accountants
An accountant takes care of all financial functions related to the recording, presentation, analysis, accuracy, and collection of a company. Generally, new accountants can also deal with third parties, such as financial institutions, customers, and vendors. So without further ado, let’s dive into the top five roles of new accountants:
One critical role of the accountant is to plan and manage the tax liabilities of a unit. Other than that, accountants can manage file returns, the tax concerns of an entity under laws, and make depictions before tax authorities.
Furthermore, one can opt for an LLM taxation online degree to become a legal professional who knows tax laws. With such vivid knowledge, one can become more than just an accountant.
II. Statutory Audit
Typically, an accountant audits the books of the units like Limited firms, companies, etc., based on the law. He makes sure that entities gather the financial statements following supremely accepted accounting standards, legal considerations, and principles. He also ensures that the financial statements portray a fair and accurate view of an entity’s financial condition.
Budgeting refers to the management of various business activities and transactions before their occurrence. Management and accountants prepare numerous plans to maintain an equilibrium of their business expenses and incomes.
By the end, results are compared with the budget to filter out variations (if any). Moreover, the role of an accountant is very critical when it comes to budgeting.
IV. Management Advisory
Reporting the in-house controls to management, advisory regarding the business procedures of an entity, long-term plans are the primary responsibilities of an accountant.
An accountant also delivers the management consultancy facilities in information systems, evaluation of appraisal techniques, and expenditure control.
V. Internal Audit
Accountants are engaged in internal audits by substantial entities, such as listed companies and those required to host an internal audit under any commandment. They make sure all accounting transactions related to the fiscal year are classified, recorded, and abridged according to the entity’s accounting policies.
2. The Role of a Business Analytic
By now, we’re sure you might have some idea of what business analytics is (based on the above information). Now let’s move to the essential roles of a business analytic.
I. Making Informed Decisions
Most businesses outsource some of their processes to improve their efficiency. But when it comes to finding vendors for such purposes, they must determine which one will bring more benefits – that’s when a business analytic comes in! An analysis can help them evaluate supplier performances based on order fulfillment speed, customer ratings, quality, and more. This information will help them decide which system works best for their business. And this analysis is called supplier performance management.
II. Identify Frauds
Finance organizations have started using analytics to minimize fraud. It is complete by using data to locate potentially fraudulent purchases, according to previous customer transactions. Moreover, these companies use predictive analytics to search customer profiles and discover the level of risk. Business analytics rate the chance that a particular purchase presents and uses the data to build stronger and better customer relationships.
III. Enhanced Customer Service
The availability of numerous choices often spoils customers. Therefore, to ensure the stability of the customer base, analytics is preferred. For instance, organizations can analyze customer-interface on their website. Based on this information, they can make improvements and decide patterns to their website’s performance. It’s as simple as sending a notification to a potential customer to prompt the company’s products.
Moreover, a mban degree can impact several industry areas, such as finance, healthcare, hospitality, defense, aerospace, to name a few!
IV. Cut Manufacturing Costs
When it comes to utilizing analytics properly to reduce manufacturing costs, one company has outranked every other – Intel. As a first step of the process, this tech giant would perform 19,000 tests on every chip manufactured. With the release of predictive analysis, Intel was able to identify the chips that required testing before launch. Intel has saved about $3 million every year with such data collection, thanks to business analytics.
V. Enhanced Advertising
Advertisement is tricky. Therefore, marketers must learn how to get the best ROIs. And this is where analytical methods, including A/B and C testing, come in!
When it comes to advertising online, all pop-ups, product descriptions, and landing pages are tweaked and evaluated to ensure substantial results. Even the website’s products’ arrangement determines the best location to drive more sales and engagement. So it goes without saying, any company/organization’s success is deeply reliant on business analytics.
The Verdict – Is It Possible for a Business to Survive Without Any One of These Terms?
Accounting is a vast field with multiple opportunities, and it’s vital for every thriving business. Additionally, the advent of new accountants and business analytics offers both opportunities and challenges for organizations. The challenges include undertaking authentic training to develop the expertise needed to support and initiate data analytics activities and handling auditing tasks.
So the answer is pretty straightforward; an organization can’t keep track of data and manage finances without analytics and accountants. Even considering one of them for a change isn’t going to do any good. Therefore, all hail analytics and new accountants!