Question

Big Data is increasingly important to companies and accountants. Using a web search on Google or other search sites, find an article within the last 12 months on “Big Data” and accounting. Summarize how the article describes the use of Big Data in an accounting context.

Answer 1

Link of the article I have chosen: https://www.acuitymag.com/finance/big-data-accounting-the-predictive-accountant

For future reference, please give a word limit you want for better framing of answer by expert.

Before proceeding to understand the effects of big data, first lets understand what is Big Data? Is it the large data with files going into giga bytes to analyze? The answer is no, it is infact the data which supersedes the business transactions and focus over non quantifiable items in the books of accounts which can have huge impact over the financial statements. In this world of technolgy where products to chose from are immense due to platforms like Amazon, it is important to track what our customers are inclined to now a days. Consider a garment retail brand like Levi's who have been known to make jeans which defines fashion. However, in the recent past, it is seen that company's like Levi's have moved to the techniques where they trace their customers preferences via online reports generated based upon the google searches.

Use og Big Data in accounting can have many positive effects, with this we can predict how are sales going on the basis of the number of clicks on website, what customers are prefering, what are the slow moving items, what price can be set up for the product etc. Though one may argue that these information were available earlier also but with the current sizes of business it becomes impossible to trace such informations manually. Big Data analysis can proove to be determental here. It can also be used in automating the receivables report, our sales pattern to the finest of the detail, what kind of purchasing we can make to make quality of the products better and to improve the productivity of the employees.