How automation and data analytics for a paradigm shift in accounting jobs
We know that accounting technologies are being automated and now the shift in the role of the accountant. And they have now assumed a challenging task of a business advisor with all the data worked out by the computer.
Big Data is used to drive decision-making processes, accounting technology isn’t far behind. Hence the new age accountants will have to work on their analytical skills if they want to still be relevant in the job market and one such skill is Data Analytics for Finance Professionals.
Why the change to data analytics?
It is now a data-driven world and needs to up your ante because of technological disruptions is the need of the hour. The business performance will now be gauged with the analytic data outputs that the accountants work on that are by the accounting principles and methods. It helps the accountant to identify the trends and can further do the needed investigation.
The responsibility gets elevated as they would now have to
- Understand the process
- Be able to interpret it
- Provide insights into the given data
How data analytics processes work
Four kinds of data analytics are usually made use of by finance professionals
1. Descriptive analytics
The descriptive analytics provides insights about the information that would have occurred in the past, which gets used in the making of the stand report generation and then the essential spreadsheet functions and the making of financial statements.
2. Diagnostic analytics
The diagnostic analytics will be the tool to conclude when they study the past results and why individual decisions were taken and used in variance analyses along with interactive dashboards to give a perspective of how the previous outcomes can be scrutinized.
3. Predictive analytics
Predictive analytics is about studying historical data and identifying the patterns that you get. Technology helps to build the models with indicators placed for us to prevent any failures.
4. Prescriptive analytics
Prescriptive analytics is excellent for identifying the host of options that will help you get to the desired outcomes through optimization techniques and machine learning.
Data analytics for finance professionals
The new accountants can now stay-put in their jobs if they adapt to the technological drive by having good technical skills, to begin with, this will help them manipulate the data and understand it better. A better understanding of the business context, which helps in making better decisions.
Developing new skills will be the key that will enable them to draw conclusions and produce relevant insights with the help of data analytics.
How the Finance Professionals can break ground in the tech-driven world
Data analytics is the next frontier as it helps businesses to have higher profit margins and have a better position in this competitive advantage. It would be an added skill set to have business intelligence and data mining. Not many organizations come with inhouse training, and the finance professionals have to possess them already while applying for the job or to get growth in current organizations.
The process to become a Data Analytics expert
- Learning to use Data Analytics tool (Python, Pandas, Visualisation, Machine Learning Algorithms, etc) - Video / Instructor Lead
- Drawing inference using Statistics - Video / Instructor Lead
- Applying 1&2 to do Data Analytics - Instructor Lead
- Self Practice -Using datasets available on various websites - Independent to be done individually
- Independently do Data Analytics and find valuable insights- Expert level
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