Question

Big data has become a buzzword in the accounting profession, but like other trending topics such as blockchain, AI and machine learning, it’s one that CPAs really need to understand. Agree or Disagree?

How has big data affected the accounting profession? What are the professionals doing about this impact?

Answer 1

Answer:

Agree with the statement, "Big data has  become a buzzword in the accounting profession, but like other trending topics such as blockchain, AI and machine learning, it’s one that CPAs really need to understand ".

The definition of big data goes beyond the quantity of information. most big data experts think of it in terms of three Vs. ( Volume, velocity and variety). Big data is combination of structured, semistructured and unstructured data collected by organization that can be mined for information and used in machine learning projects, predictive modeling and other advanced analytics applications.

How has big data affected the accounting profession?

The important things is to really understand about big data is not its enormity. As SAS points out , " Its what organisation do with the data that matters. It can be analyzed for insights that lead to better decisions and staretigc business moves." This is what makes big data relevant to the ACCOUNTING PROFESSION. BIG DATA impacts nearly every aspect of auditing, tax, accouting and advisory services.Accouting firms have access to a goldmine of data. The question is how firms can tap into that unexplored value and revenue that's right under thier nose.

How Accounting Professionals doing about this impact:

1) Monitor and improve business performances: with real time reporting technology, accountants are increasingly able to aggregate data across all the clients within the industry or market to come up with meaningful performance benchmarks. Rather than discussing lifeless ratios, accountants acan show their clients how and why the competition is outperforming them. This level of real time analysis can help you sell higher value services such as budget forecasting and acsh flow management.

2) Risk identification and management : Big data can help accounting professionals see the bigger picture by predicting shifts in customer behaviour, idetifying red flags for frauds and anticipate economic trend. The accountants can identify the risk very soon,they can have a better chance of helping clients in mitigating the risk and protect performance.

3) Improve the client experience :   the convergence of cloud technology and big data means accountants and auditors are limited to analyzing a client's financial records on monthly, quaraterly or anuual basis. Data is available in real time , so client can have more regular conversation witheir accountants and recive intelligent, timely insights. it will the improve the client's experience as well.