It takes a lot of different tools to measure the financial health of your business. Whether you have a trusted accountant on your team or you are juggling bookkeeping matters alone, it is imperative to keep a good watch over your company’s vital signs without interruption. This often goes beyond the everyday charge of data entry and transaction recording, though falling behind on those tasks can be quite devastating in the long run.
Why Data Analytics Matters to Accountants
What can really give accountants a better insight into the health of your company is a strong sense of data analytics. By gathering raw data from a multitude of sources, accounting pros can use this information to determine the best next steps for your company in order to help it grow.
Today, Indevia experts will explain why data analytics matters to accountants so much and why it’s a good idea to hire automated financial dashboards for data insights.
What Exactly Is Data Analytics?
Everything can be broken down into raw formats of data. In the accounting and bookkeeping world, collecting raw data could mean anything from comparing spending habits to making big decisions about budgets. Once this information is collected, it is then analyzed using a wide variety of processes and techniques to determine where your organization should go next.
Based on what you have spent and what you have earned, should you continue charging the same prices for your inventory? Should you lower your budget? Do you need to source another vendor? All of these questions can be more clearly answered once they have gone through a data analytics process. Simply put, data analytics will analyze raw data and make conclusions about it based on the information presented.
Why You Need Data Analytics for Your Business
As an umbrella term, data analytics can mean something different to each company that uses it. By using different processes for measuring, recording, and tracking your financial activities, you can discover valuable pieces of information that will help you make better financial decisions moving forward. It will also be easier for your accountants to organize financial tasks in a way that increases efficiency while boosting productivity around the board. Lastly, data analytics is a critical factor in mitigating undue financial risk. You can keep your company and your assets safe with accurate financial tracking and data analytics.
Data Analytics Strategies for Accountants
What is most important to know is that without it, it is very difficult to understand the whys, hows, and whats that make up your financial resources. Knowing this can keep your company going strong well into the future instead of facing the risks of running into a financial pitfall.
Fortunately, there are different types of data analytics styles available to help you dig deeper into these questions:
Diagnostic Analytics – The “Why”
Just as a doctor analyzes the symptoms in your body to make an accurate diagnosis, an expert accounting team can scrutinize the state of your company’s financial health to figure out what needs to happen next. Those using diagnostic analytics will often look for interesting changes in your company’s financial data and calculate what this could mean for your financial health if you continue going in the same direction.
Descriptive Analytics – The “How”
Descriptive analytics is the process of finding, categorizing, and organizing different types of financial information. The easier it is to locate, track, and label a certain type of financial activity, the more streamlined the analysis process will be. Highly descriptive accountants are often organized and utilizing descriptive analysis is a great way to keep the entire department from falling behind.
Predictive Analytics – The “What”
Predictive analysis is the important final step in the process of using data to predict future results. By implementing a highly accurate and organized system, accountants can track your company’s financial life in order to inform future trends. A good bookkeeper will be paid highly for their predictive analytics services, meaning that having a solid team member on your side is an invaluable thing for your growing business.
How to Find the Most Data-Savvy Accountant for Your Business
Growing your own company from scratch is no easy feat. It often takes a village to help a new business hit the ground running, but that is not always an affordable solution. If you are looking for expert help from a bookkeeper that can implement countless data analytics strategies at once, then you’ve come to the right place. Indevia’s accounting and automation experts work around the clock to build a custom space for your company to process all of its accounting needs.
With automation, you can prioritize advanced techniques like data analytics to better inform your franchise’s financial future without having to push more than a single button. Get the right kind of insights delivered to your dashboard, helping you make much wiser and more succinct decisions about the financial health of your business. Learn more about outsourcing online accounting solutions with Indevia by reaching out to our experts at your earliest convenience.