How can accounting firms use data analytics to become more profitable? While data analytics is increasingly becoming an important part of running any business, it’s clear that data-driven companies are more likely to report higher profits, less waste, and superior customer satisfaction than their competitors. With this in mind, I’ll show you how accounting firms can implement data analytics into their business model in order to gain a competitive advantage against their rivals. Let’s get started!
What is the strategy?
Using Data Analytics to Help Clients Meet their Objectives Accounting is a profession that has been around for centuries, and in recent decades it has experienced seismic change with more innovation occurring now than ever before. Having said that, just like any other industry, it is faced with challenges such as how to remain competitive, acquire new clients and generate greater revenue in an increasingly competitive marketplace.
A growing number of accounting firms are using data analytics to help meet these challenges. In addition, they are also discovering ways in which it helps them better serve their clients by delivering insights into how companies can make more money or increase profitability by improving employee productivity or providing better service to customers.
What type of tools do you need?
Before you even start gathering information and building your dashboard, think about what kind of tools you’ll need. Depending on how much access your firm has to customer data, you may want to use a tool like Google Analytics or Facebook Insights.
If you don’t have access to client information and are only looking at public social networks like Twitter and Instagram, tools like SocialFlow and Hootsuite can be effective. Whether it’s an existing tool or one you plan on building from scratch, make sure that any piece of software is compatible with your firm’s other technology needs before getting started.
How to get started?
Data analysis is a wonderful way to add value to a business, but can also get very complex very quickly. For those just getting started, it’s good to take things slow and focus on making positive changes that your company can sustain over time. Before you go analyzing your heart out, figure out what you’re hoping to achieve through an analysis and why that’s important.
Is there something about your current processes or operations that leaves room for improvement? If so, take note of those items so you have some kind of idea where you want to head when it comes time for analysis.
Tips from real life examples
Data Analytics. Use of data analysis in business is nothing new, but the increasing importance of technology in almost every aspect of life is driving companies to perform more calculations and analyze more data than ever before.
Thanks to rapidly falling costs for computer storage and processing power, companies have access to masses of information about their customers and processes that was never available just a few years ago. Modern business intelligence software can dig through all these potential treasure troves with an ease that would have been unimaginable just a decade ago.
Conclusion
Data analytics has come a long way since Bill Lumbergh told Peter Gibbons to hire more guys. Analytics can provide insights into who your customers are, what they’re looking for and how you can make their experience even better. The explosion of cloud-based apps and startups also means there’s a greater variety of tools for businesses to use in order to understand how all their parts fit together. In other words, accounting firms have more options now than ever before when it comes to building, testing and deploying data-driven strategies.
