The modern accountant’s role is changing because of the evolution of technology. The days of accountants mostly processing data are long gone; today, accountants are offering data-driven insights that impact important company decisions. Data-driven accountants must learn critical data analytics skills to succeed in today’s data-driven environment.
In this post, based on experiences within SCG, I discuss the fundamental data analytics skills any modern accounting practitioner must have to succeed in today’s landscape.
Adapting to Industry Changes
In the past, accountants spent so much time booking transactions, reconciling and generating reports. They had little time for analysis and producing information for decision-making. Today, automation of accounting allows accountants to spend less time on the mechanical aspects of accounting.
With tools such as artificial intelligence (AI), big data, and cloud computing, accountants can analyze large volumes of data to offer useful insights. They can be more involved in and supporting management decision-making.
Accountants must be adept in problem-solving, communication, critical thinking, and data analytics. These capabilities offer opportunities beyond audit and financial reporting.
Essential skills for data-driven accountants
- Digital skills—ability to use technologies such as accounting systems and data analysis tools is a crucial skill. Accountants must learn to optimize processes and deliver insights using these tools.
- Data analysis and interpretation—knowledge of data analytics and using tools such as Excel are essential for financial forecasts and trend analysis. They enable data driven decision making.
- Data management—understanding Accounting Information Systems (AIS) and data management techniques ensure data security and integrity, guaranteeing accurate and accessible data.
- Problem solving—analyzing data and solving business problems requires critical thinking. Accountants must assess the quality of data and diligently ask the right questions to draw meaningful conclusions.
- Effective communication—conveying data insights to non-technical stakeholders requires effective communication. Accountants must use data visualization to create compelling narratives that support business decisions, translating complex data into understandable information.
Data driven accounting – The SCG Case
Technology is an enabler and a necessary component for running an efficient business. At SCG, technology is integral to our operations. We use a variety of tools to deliver our services.
In our Client Accounting Service (CAS) we use tools like Xero, an accounting solution which offers analytical features such as cash flow forecasts and visible financial metrics, enabling accountants to assess clients’ financial health and make informed decisions.
We also use Dext and Hubdoc to extract financial data from documents like invoices and posting to the accounting system without manual intervention. These are AI and Machine Learning enabled tools that use Optical Character Recognition (OCR) technology to extract financial data from financial records that our clients upload.
To streamline audit testing, we use data analytics tools, such as Mindbridge and IDEA, to provide audit services. In our tax services, we use data analytics to improve compliance, detect anomalies, and reveal valuable business insights for our clients’ benefit.
Finally, with cloud-based solutions, accounting professionals today can work anywhere they have access to the internet securely. At SCG, our cloud-based tools enable us to serve clients across the globe and give our staff the opportunity to work at home or from the office.
Problems and fixes
The obstacle to moving to a data-driven approach is the lack of relevant skills. At SCG, we address this through ongoing training programs and an insistence that people use data. Accountants can stay ahead and provide value in this data-driven environment by investing in the right skills.
Mindset and attitude continue to be an obstacle to using data. It takes time for people to move from thinking in a manual to technological contexts. To make the most of thinking in a technology context, one must invest effort in mastering the technology tools and looking for ways to exploit them to be efficient.
Conclusion
The role of an accountant is evolving, and data-driven skills are essential for making an impact. Mastery of these skills enables accountants to provide valuable insights and influence critical business decisions. Accountants who have these skills are positioning themselves to seize multiple opportunities in the future.
James Etu
