In the next few years, McKinsey & Company predicts, businesses will fully unlock the value contained in their data through real-time analytics that drives innovation, collaboration and continuous process improvement.
Accounting professionals will not escape the disruptive impact of data analytics, artificial intelligence and machine learning.
“Data provides new opportunities to gain valuable insights for their clients and organizations, but CPAs and financial professionals need the right skills to be able to take advantage of this wealth of information,” according to the Association of International Certified Professional Accountants (AICPA).
Over the past several years, the AICPA expanded its offerings and assessments to ensure professionals have the expertise and knowledge for the new era of accounting:
- The Data Analytics Core Concepts Certificate signals to clients and companies that CPAs and finance practitioners have the skills to use digital information.
- The Certified Information Technology Professional (CITP) credential demonstrates the holder’s expertise and knowledge of data analytics and how to leverage them to inform decision-making and implement advanced financial reporting protocols.
The AICPA emphasis on data management and analytics prepares “tomorrow’s accountants [to] play a more creative and strategic role in their companies,” Forbes says.
How Can Accountants Become More Data-Fluent?
Acquiring advanced expertise in the connections between accounting information and data analytics gives accountants the insights and expertise to compete successfully for leading roles as strategic partners in a business’s success.
The online Master of Business Administration (MBA) in Accounting program from Fitchburg State University includes explorations in Management Information Systems, Accounting Information Systems and Selected Topics in Advanced Managerial Accounting.
Through studies in these subjects, Fitchburg’s accredited International Accreditation Council for Business Education Studies curriculum reflects the impact of data analytics and related technologies on modern accounting.
According to the U.S. Bureau of Labor Statistics (BLS), jobs for accountants, auditors and financial specialists are expected to increase by 6% through 2031.
How Is Data Analytics Transforming the Accounting Profession?
Data analytics enables accountants to provide more valuable insights and services to businesses, making it an essential skill for finance professionals who want to stay competitive and relevant in a rapidly changing digital landscape.
Analytics-capable accountants can use technology and processes that collect, organize and transform increasingly large and complex datasets to provide “a 360-degree view of the problem being solved … help businesses uncover valuable insights within their financial statements, reduce costs, … increase their efficiency, and better manage risks,” according to Accounting Today.
In addition to automating routine tasks such as data entry and reconciliations, data analytics frees accountants to innovate and collaborate, save time and reduce errors, as well as:
- Improve financial reporting speed and accuracy and reduce potential errors and inconsistencies.
- Identify trends, patterns and anomalies to develop predictive financial models to improve forecasting, recognize opportunities for growth and manage risk.
- Inform strategic decision-making by, for instance, analyzing sales data to evaluate which products are most profitable and which to discontinue.
As the McKinsey & Company article notes, only a fraction of the unstructured data businesses collect from their external and internal operations — and thus only a fraction of the value — is available to decision-makers.
By 2025, it predicts, global networks, including cloud computing, will have “dramatically transformed” real-time analytics that generates faster, more powerful and increasingly precise strategic planning and execution processes.
“Analytical thinking has long been a part of accounting,” says Hevo, a data-management vendor, adding that the tools of the profession have evolved from pencil and paper to calculators, spreadsheets and software. “Today, accounting firms are incorporating data analytics into their business models in order to stay ahead of the competition.”
Learn more about Fitchburg State University’s online MBA in Accounting program.
