Accountancy report analytics
What? What? Why? Accountancy report useful analytics
BRUCE LAISTER
Last Update a year ago
Accountancy report analytics
Analytics is quite simple when you follow these 3 questions. BUT first, what is analytics?
Analytics is the process or reviewing the reports you have in front of you. This can be a "birds eye view" or a microscopic view. This depends on the first W. Let's do it
First
The question is WHAT are you trying to achieve? Analysis of anything can never be done without this. It's much like getting on a bus and not knowing where you are going. It's never pointless.
Second
WHAT do you need?
This is going to be a report of some description. A report is a collection of data that is taken from the accounting system in the specific format you requested.
Third
WHY is the final step. Why do you want to do this? Why get on that bus? This is closely linked to the first What.
Accountancy report analytics An example please.
What? How much did I earn last year?
What? A report of the salaries and wages account. You get the Year to Date report from your payroll system too.
Why? Because it is much easier than going through your payslips or bank accounts.
This information needed is all there, it is just waiting for you to request it. This report(s) should be available in less than 4 minutes.
Accountancy report analytics is extremely important for several reasons:
1. Financial decision-making: Accountancy report analytics helps organizations make informed financial decisions based on the analysis of financial data. It provides insights into the financial health of the organization, identifies trends, and highlights areas of improvement or potential risks. This information is crucial for management to make strategic decisions and allocate resources effectively.
2. Performance evaluation: Accountancy report analytics allows organizations to evaluate their performance against key financial indicators and benchmarks. By analyzing financial data, organizations can assess their profitability, liquidity, solvency, and efficiency. This evaluation helps identify areas where the organization is performing well and areas that need improvement.
3. Compliance and regulatory requirements: Accountancy report analytics ensures organizations comply with financial reporting standards and regulatory requirements. By analyzing financial data, organizations can identify any discrepancies, errors, or fraudulent activities in their financial statements. This helps maintain transparency and integrity in financial reporting.
4. Risk management: Accountancy report analytics helps organizations identify and manage financial risks. By analyzing financial data, organizations can identify potential risks such as cash flow problems, excessive debt, or declining profitability. This allows management to take timely actions to mitigate these risks and ensure the financial stability of the organization.
5. Stakeholder communication: Accountancy report analytics provides
organizations with valuable insights that can be effectively communicated to stakeholders. Whether it is shareholders, investors, lenders, or regulatory bodies, stakeholders rely on accurate and meaningful financial information to make decisions or assess the organization's financial performance. Accountancy report analytics helps in presenting financial data in a clear and concise manner, making it easier for stakeholders to understand and interpret the information.
6. Planning and forecasting: Accountancy report analytics plays a crucial role in the planning and forecasting process. By analysing historical financial data, organizations can identify patterns and trends that can be used to make future projections. This helps in setting realistic financial goals, budgeting effectively, and making informed decisions about resource allocation.
7. Audit and internal control: Accountancy report analytics is essential for audit and internal control purposes. By analyzing financial data, organisations can identify any irregularities or discrepancies that may indicate fraud or errors. This helps auditors and internal control teams in conducting thorough and effective audits, ensuring the accuracy and reliability of financial information.
In summary, accountancy report analytics is of utmost importance as it provides organizations with valuable insights for decision-making, performance evaluation, compliance, risk management, stakeholder communication, planning, and audit purposes. It helps organizations stay financially healthy, make informed decisions, and maintain transparency and integrity in financial