Understanding What Big Data Is And Its Impact On Companies
As technology expands in nearly every industry, the accounting sector is likewise undergoing a significant transformation by progressing beyond traditional methods. Therefore, it is crucial for industry professionals to keep up with cutting-edge technologies in order to stay on top of the game and remain ahead of their competitors in the financial sector.
To do so, big accounting firms in Singapore and abroad have already begun adopting premium technologies into their business models – one of them being big data. Big data has been creating quite a buzz in the accounting industry these days. If you do not have much idea about what big data is, this article is for you! Read on to learn more about big data and its impact on companies, particularly accounting teams and firms.
What is big data?
The term ‘big data’ refers to massive sets of unstructured data in a variety of forms. These sets of data are gathered from different sources at a rate so rapid that they are far beyond the processing ability of a traditional server. Big data is also extremely voluminous that it is measured in zettabytes and terabytes. It is all about speed and complexity; hence, it is usually characterised by the three V’s: Volume, Variety, and Velocity.
Big data is an expanding set of data. As time passes, companies collect an increasing number of information from their sources, and with such data, they can conduct practical investigations on business trends and other relevant information. Moreover, with this data, accounting teams can gain substantial insights, automate non-routine financial tasks, and predict future outcomes.
Is big data in accounting a good thing?
The simple answer to this question is yes. Before the emergence of big data, accounting departments were quite limited as to the amount of information they had and the things they could do with such information. Hence, they did not utilise or require powerful tools since they could complete their jobs with traditional software such as spreadsheets.
However, today, accounting professionals are no longer just responsible for making and filing entries. Now, the accounting team is also responsible for extracting insights from financial data to improve operational efficiency and assist in strategic business planning. This is where the advantage of big data in accounting comes in.
Big data in accounting essentially means that an accountant needs to incorporate analytical and technical skills into their knowledge base so that they can effectively manage statistics. They should be able to do this in order to run massive data sets with the use of data mining and statistical analysis tools like the Statistical Analysis System (SAS).
Hiring the accounting services of an accounting firm for this can be highly beneficial for businesses. It will help them provide more value and transform their decision-making abilities in the period of big data.
As data increases to voluminous levels, accountants must now have the ability to use the latest tools and technology to assess financial data. Particularly, accounting firms need to incorporate big data techniques smoothly into their business models to achieve beneficial business transformation. With the use of big data techniques and technology, these companies can enhance their client experience, deliver more assurance over financial statements, and improve their decision-making process.
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