Big Data is increasingly impor
Big Data is increasingly important to companies and accountants.Using a web search on Google or other search sites, find an articlewithin the last 12 months on “Big Data” and accounting. Summarizehow the article describes the use of Big Data in an accountingcontext.
Link of the article I have chosen:https://www.acuitymag.com/finance/big-data-accounting-the-predictive-accountant
For future reference, please give a word limit you want forbetter framing of answer by expert.
Before proceeding to understand the effects of big data, firstlets understand what is Big Data? Is it the large data with filesgoing into giga bytes to analyze? The answer is no, it is infactthe data which supersedes the business transactions and focus overnon quantifiable items in the books of accounts which can have hugeimpact over the financial statements. In this world of technolgywhere products to chose from are immense due to platforms likeAmazon, it is important to track what our customers are inclined tonow a days. Consider a garment retail brand like Levi’s who havebeen known to make jeans which defines fashion. However, in therecent past, it is seen that company’s like Levi’s have moved tothe techniques where they trace their customers preferences viaonline reports generated based upon the google searches.
Use og Big Data in accounting can have many positive effects,with this we can predict how are sales going on the basis of thenumber of clicks on website, what customers are prefering, what arethe slow moving items, what price can be set up for the productetc. Though one may argue that these information were availableearlier also but with the current sizes of business it becomesimpossible to trace such informations manually. Big Data analysiscan proove to be determental here. It can also be used inautomating the receivables report, our sales pattern to the finestof the detail, what kind of purchasing we can make to make qualityof the products better and to improve the productivity of theemployees.