There is no doubt that big data has been a major gamechanger for the financial sector. Companies around the world are expected to spend over $25 billion on financial analytics by 2028.
In today’s world, data is more important than ever for businesses. As a result, accountants who are skilled in data analysis are becoming increasingly vital to the success of businesses. Accountants skilled in this area can assist companies with audit and assurance services, ensuring that the data collected is accurate and reliable.
Large financial institutions aren’t the only ones being impacted by big data. Small businesses are also using data analytics to improve their own finances. One of the most important ways to capitalize off of the benefits of it is by hiring accountants that have a detailed knowledge of big data.
This article will explore five reasons why data-savvy accountants are becoming increasingly necessary in order to meet the needs of modern businesses.
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Hiring a Data-Savvy Accountant is More Important than Ever
As a business owner, you have to keep an eye on different matters to ensure nothing goes off track. You have to ensure that all operations keep working smoothly, from sales to marketing to investment. But one of the most integral components of any business is accounting and finance.
As financial regulations and accounting standards evolve, it is more important than ever to take advantage of data-driven financial management practices. To keep your financial and accounting matters on track, you need a reliable and competent accounting professional that uses data analytics to keep themselves organized.
An accountant with a detailed knowledge of data analytics will provide valuable insights that can accelerate business growth and also enable you to deal with tax issues. All companies prefer to have CPAs (certified public accountants) that can help them in tax planning, financial statement, budget creation, and much more.
You may think that hiring a professional CPA will be too costly. But you need to understand that it is a long-term investment that will reward you in the future. Accounting and finance management is the backbone of any business. It will be a blessing if you have a reliable CPA equipped with relevant hands-on knowledge and experience. Experienced CPAs better understand different financial situations and give their input to help you make the right business decisions. Furthermore, data analytics has helped streamline many accounting processes, so you might not have to spend as much to hire a CPA to complete certain accounting tasks.
Let’s find out some of the benefits of hiring a CPA with a detailed understanding of data analytics.
1. Better Tax Handling
Dealing with tax issues is one of the biggest concerns for all businesses. They want to reduce tax deductions or any other tax-related issue that harms their company. They need a CPA who can provide them with better guidance in this regard.
As businesses need CPAs, there are great opportunities for all aspiring individuals who want to be CPA. However, passing the CPA exam is hard, and you might need professional help. Many educational platforms such as Wiley education offer services to help students pass the exam. It facilitates you in preparing for the CPA exam from any part of the world at your convenience. CPAs play a key role in minimizing the credits and tax deductions that help businesses save money, allowing them to invest more to grow their business.
Data analytics has made it a lot easier to handle taxes. Deloitte actually wrote a white paper on this topic, which pointed out that data analytics helps improve the decision-making infrastructure and make smarter decisions by leveraging real-time data. They can also use visual data to better conceptualize their tax situations.
2. Dealing with Filing Issues
Another headache for businesses is to reduce the filing issues. A CPA keeps businesses updated about the changing tax laws to manage finances accordingly. CPAs are aware of the current financial and tax landscape and can help create better strategies to prevent filing issues.
Digitization has made filing taxes easier, but there are still problems that can arise. Fortunately, data analytics makes it easier to address them by quickly reviewing documents before filing.
3. Taking Care of Audit
An audit can be a complex and tedious process. It would be best if you had the expertise of a CPA who can represent you efficiently in front of the government bodies like the IRS (internal revenue service). Audit involves the management and presentation of different financial records and materials.
With experience and knowledge of CPA, you will have a better idea of how you have to represent yourself for the items included in the tax return report. A professional CPA has a solid grasp of government laws and regulations and can make auditing a hassle-free process for you.
An accountant that understands data analytics will have a better edge during an audit. They will be able to mine your records much more quickly to identify possible red flags that warrant an explanation. Of course, the IRS is also using big data on its end of audits, so having a data-savvy accountant is more important than ever.
4. Full-time Availability
Once you hire a CPA, you have his full-time availability. If you need any financial or tax-related advice, you can consult them anytime. You can also call a meeting any time with your CPA for tax planning and get their strategic advice based on the financial statistics of your company.
Having financial expertise in your company can help you make strategic decisions based on facts and figures to accomplish your financial goals. It is pertinent to mention here that some business owners get the service of a finance company to deal with their financial matters; however, it is not a good strategy as you cannot approach them anytime. It may increase your cost, so hiring the CPA is the best option for you.
You will be able to hire a full-time CPA more at a lower cost if they are leveraging data analytics, because this helps them complete their job more efficiently.
5. Managing Assets and Reducing Overhead
CPAs know how to manage your business assets, from keeping data safe to looking after commercial real estate. They help businesses assess competitors’ strengths and create strategies according to the customer response. It gives companies an idea of how they have to manage or modify their assets according to market trends. Eventually, it helps companies to attain financial stability through the valuable input of CPA.
On the other hand, CPA helps you to minimize business overhead. A good CPA can help you determine areas where you are overspending to help you keep track of your expenses. Also, CPA can fulfill different financial responsibilities, so you do not have to hire additional staff, and you will save a lot of your money.
Again, big data is crucial for managing your resources as efficiently and cost-effectively as possible.
Data Analytics Makes Accountants More
There is no question that big data has changed the field of accounting. You must know that running a business is not a one-person show. You need quality resources like a CPA who can positively manage your business expenses and keep everything on track. They will have an easier time doing the job if they have a handle on data analytics. It will eventually impact your business growth positively, and you will accomplish your goals.
Hope you enjoyed the article. Happy Reading!