Using Big Data To Develop An Advanced Bookkeeping Practice

Wednesday, 27 Feb 2019

The modern world has broadened its horizons magnificently through globalisation and technological advancements which have revolutionised all business functions. Consequently, bookkeeping in Melbourne has also been affected by the wealth of financial information being generated by an organisation as well as its storage, security, reporting, and compliance with regulations.

The amount of calculations, deductions, analysis, and reporting requirements have amplified through the years, which have stressed on the utilisation of the digital medium to stay competitive in the metropolis of Melbourne. Informed decision making is being increasingly viewed as the way forward which can become a reality with the capitalisation of data.

Naturally, big data has become a necessity in today’s world as it allows analysing large volumes of structured and unstructured information to make strategic business decisions. As a result, bookkeepers in Melbourne are now utilising big data to develop an advanced bookkeeping practice as they can apply their knowledge and core skills to non-financial information.

Big data provides inputs about changes in consumer behaviour and downfall or increase in demand for a particular product or service which can be utilised by bookkeepers in Melbourne to enhance the business growth possibilities. Let us take a look at how it is being done.

Data-Driven Decision Making In Real Time

The huge volume of information produced by the accounting department of an organisation has made data analytics an essential part of bookkeeping in Melbourne. Professional accountants must possess the knowledge of technical data analytics and be able to garner insights from this data which can be effectively shared with the management.

Finance and bookkeeping are now taking up the role of advisory services in organisations as the financial data has a significant impact on the audits, taxes, and accounting as well as operations of the business. With cloud accounting and real-time reporting coming into the picture, the bookkeepers in Melbourne can now consolidate the data from all the clients into one platform and gather significant performance standards.

It helps in the assessment of various client accounts and realising the weak links as well as the important partners. The real-time analysis allows the business owners to offer products and services of higher value to their customers.

Plus, the information comes handy in forecasting the budget and managing the incomings and outgoings under the supervision of bookkeepers in Melbourne. In short, big data helps in making strategic decisions without spending a lot of time and effort on research and compilation.

Mitigation Of Risks Across Functions

Traditionally, bookkeepers in Melbourne were involved in the assessment of risks related to compliance, taxation, and reporting obligations. However, the scope of work of the accountants has now widened as risk analysis encompasses diverse business functions including supply-chain, operations, strategy, inventory management, fraud etc.

Big data proves beneficial in providing meaningful insights about these domains which aim at identifying the threats and creating a safer path to success. It helps to have an all-encompassing view of the business and the impending risk factors. For example, change in consumer behaviour can be gauged from the decreased activity of users on the social media pages of the business.

This way, the bookkeepers in Melbourne can keep a watchful eye on the problem areas, forecast the challenges, and alleviate the risks. Also with the help of big data, the bookkeepers can provide facts to support their intuition about the changing market factors.

For example, if the number of visitors to the business website has reduced recently, the bookkeeper in Melbourne can utilise Google Analytics to predict a drop in the sales in future and allow the business owner to take advance steps to curb this problem.

Data Governance

The bookkeepers in Melbourne have access to all the data and are responsible for its governance, which includes overseeing that all the information is organised and stored in proper data sets to become useful for the organisation. Also, big data extends the advantage of ensuring that the financial information is being recorded in accordance with the regulatory standards.

They need to ascertain that they match the performance estimates and predictions made in the business plan. The bookkeeper in Melbourne also keeps a check on whether the customer data being scanned has their consent or not as using information without their permission can lead to legal repercussions.

The bookkeepers in Melbourne take note of fraudulent activity by checking the books frequently with the help of the digital tools. Big data allows the bookkeepers to quickly sift through the massive load of information and detect any loopholes. Additionally, it aids in making audits cost-effective and makes accounting more profitable.

The bookkeepers in Melbourne create comprehensive and concise reports which are provided to the stakeholders and shareholders and define all the financial and non-financial datasets associated with the performance of the business.

Aligning Resources With Strategies

Many organisations face obstacles in their journey as they fail to align the available resources with the defined business plans or tap their true potential for the success of the business. This gap can be aptly filled by a professional bookkeeper in Melbourne as they are skilled in making accurate forecasts and financial projections.

The strategies envisaged by the bookkeepers in Melbourne enable the organisation to anticipate market trends and create products and services which meet the customer requirements with ease. These predictions help in gaining a competitive advantage over other entities in the market.

The bookkeepers in Melbourne leverage big data to create integrated reports which further assist in precise messaging being sent to the management about the planning, controlling, performance, and prospects of the business. Thus the bookkeepers in Melbourne basically act as a decision making support system which endeavours to reduce wastage and maximise efficiency through full utilisation of the current resources in various functions.

Conclusion

In a nutshell, data analytics helps in making strategy-based profitable business solutions with the help of valuable contributions made by bookkeepers in Melbourne. These professionals visualise the data to make decision models which are controlled for quality and are result-oriented.

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