Why Data Drives New Business Insights For Finance Teams
British data scientist and mathematician Clive Humby summarizes the importance of data this way, “Data is the new gold.” Like gold, data is a precious, durable, valuable commodity—and in many ways, the dominant currency of the modern business market. Accounting advisory services can embrace data by using accounting business intelligence software, giving their clients what others struggle to provide: actionable business insights. Read on to discover why data is essential to modern business, the power of data-driven decisions, and how to leverage this opportunity using the right tools.
The Essential Role of Data in Modern Business
With the digitization of more and more day-to-day business processes, data has become, simultaneously, a natural byproduct and a crucial asset. Each transaction, interaction with customers, purchase, sale, and order produces data artifacts. These pile up in spreadsheets, databases, emails, and accounting books. When used properly, these sets of data can enable businesses to:
- Identify sales trends
- Pinpoint strengths and weaknesses in marketing and other customer acquisition spending
- Identify correlations between money spent and incoming revenue
- Strategically decide how to fund and support different streams of revenue.
Data-Driven Decisions Already Transform Many Industries
Data has evolved far beyond being merely a novel source of information: 90% of corporations explicitly identify data as a “critical enterprise asset,” according to a recent report by Gartner. These same organizations identify data analytics as an “essential competency,” enabling them to remain competitive in a business environment characterized by frequent changes and advancements.
For example, the coffee chain Starbucks employs a team of 20 data analytics experts across the globe. They analyze a combination of maps and geo-specific data to determine approximately how profitable a new store would be in that area. They even use data to make decisions regarding exactly where to place the store and how to design it to boost its revenue potential.
Embrace Data Opportunities in Finance and Accounting
Data can play a central role in accounting advisory services. If you unify data points from across an organization’s infrastructure via an accounting dashboard within accounting business intelligence software, you can, at a glance, access data that empowers you to give prudent, reliable advice.
For example, a firm with accounting business intelligence software can use data to:
- Ascertain reasonable, attainable financial goals.
- Predict how a business’s needs will change over the next five or 10 years.
- Demonstrate how your accounting advisory services provide value—both in the short- and long-term.
- Provide financial performance analytics that outlines the current and future health of a company.
How To Choose the Best Business Intelligence Tools
To set your accounting advisory services apart from the rest, you will want to choose the right accounting business intelligence software, equipped with tools that make it easier and faster to provide insights. For example, your solution should incorporate:
- Smart KPIs that can be used to evaluate the success of decisions and systems
- A performance dashboard that puts actionable data from disparate sources in a single-pane-of-glass view
- Real-time reports of financial performance that empower you to give clients pertinent, time-sensitive advice
With PathQuest SCALE, you can leverage an accounting dashboard and simplified, automated accounting tools to enable your finance team to steer the company ship towards its next horizon—using data as the rudder. Whether you’re leveraging it as a tool for your internal finance team or providing accounting advisory services to other businesses, PathQuest SCALE can save you time and energy—giving you the chance to take advantage of data: 21st-century gold. Let’s explore.