How Analytics in the finance and accounting industry assist small and medium-sized businesses?

Sumesh Krishna, Partner


HLB HAMT - Accounting Firm in UAE

Phone:- +971 4 327 7775
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    Accounting and financial professionals have long used analytics in their work. Since the 1980s, several financial teams have utilized data to report on trends and past performance. Today’s organizations must utilize data to make informed decisions, enhance efficiency, save costs, and reduce risk. Analytics add significant value and aid in solving business challenges, playing a critical part in corporate success.

    Analytics in finance and accountancy

    • Organizations increasingly rely on more predictive and prescriptive analytics to look ahead across various measures. Finance and accounting professionals must understand this and guarantee that they have the relevant skills.
    • Finance and accounting analytics can be used in risk management, fraud detection, financial forecasting, budgeting, and performance monitoring.
    • Data analytics, for example, may assist banks and financial organizations in identifying possible credit risks and predict the possibility of default based on previous financial data.
    • Financial statement irregularities that point to fraud or mistakes get identified using analytics. Data analysis tools may also assist accountants in recognizing trends in economic performance and improving resource allocation and budgeting decisions.

    Overall, analytics in accounting and finance may give firms valuable information and help them make data-driven decisions to reach their financial objectives.

    Analytics in finance and accountancy for small and medium-sized businesses

    Accessing your company’s financial health and maintaining competitiveness depends on having up-to-date, accurate financial records and reports. To enhance a company’s business performance, you need to relay financial analytics, which offers both high- and granular-level views of its financial data.

    • Predictive, data-driven insights support your team throughout the process by comprehending and analyzing previous performances, forecasting future performance strategies, and outlining actions to follow to make better-assured decisions.
    • The most potent Cloud-based analytics solutions available to large organizations are now available to SMEs. This includes Microsoft Power BI for complex modelling, as well as machine learning using Azure Cloud services and the Salesforce and Tableau analytics platform. It has become increasingly essential for SMBs to respond as SMEs experiment with technology, become data literate, and even develop SME analytics solutions better suited to small businesses than commercial enterprise analytics. At COVID-19, SMBs no longer had to impress members of the practice or clients with the value of analytics in information generation.
    • While the pandemic accelerated the use of analytics by SMBs for SMEs, they also acquired an appreciation of analytics in finance.

    Things/Suggestions that support SMEs and help them gain familiarity with analytics

    • Ensure you have a strong chart of accounts with few clear expense lines and different jobs within accounting tools such as Xero, MYOB, or QuickBooks, and utilize an appropriate tool for each project.
    • The next step is to extract the transactions and data from the accounts. Data Dear assists with the extraction of data into Excel and report generation utilizing pivot tables for quick analysis.
    • With knowledge of the accounting data, cash flow forecasting and scenario planning are possible with Float, which delivers an automatic two-year forecast and scenarios based on the present cash flow status. The Scenarios may include the loss of a significant client, late payments, or new hiring.
    • The utilization of financial prediction software “Futrli’s Predict”. This software functions like a GPS, which automatically pulls all financial data from the Cloud accounting system and delivers a precise cash flow forecast (e.g., the future business position inclusive of cash, sales, expenditure, profit, and tax).

    Role Of Analytics in Finance and Accountancy

    • Financial Forecasting and Planning:

      Small and medium-sized businesses (SMBs) may utilize analytics tools to estimate future income and spending, create financial strategies, and find cost-cutting possibilities.

    • Cash Flow Management:

      SMBs may better manage their cash flow and ensure they always have adequate cash by reviewing cash flow statements and utilizing predictive analytics.

    • Risk Management:

      Small and medium-sized businesses (SMBs) may utilize analytics to detect and manage financial issues such as credit and market risks.

    • Budgeting and Performance Analysis:

      Small and medium-sized businesses (SMBs) can employ data analytics to evaluate actual financial performance to budgeted expectations. This can allow them to identify areas for improvement and make more intelligent budgeting decisions in the future.

    • Bookkeeping Automation:

      By automating regular accounting operations, SMBs, and practices may spend less time on manual bookkeeping and more time on higher-value activities (Purchase and procurement data entries, bank reconciliations, etc.).

    • Fraud Detection and Prevention:

      By intensely analyzing financial data, practices may spot possible fraud and implement measures to prevent it.

    • Audit Analytics:

      Data analytics do better and more effective audits, detect risks and errors, and assure compliance.

    • Compliance Risk Management:

      Using analytics to identify areas where the firm may be non-compliant and provide ways to implement remedial measures can assist in reducing the risk of non-compliance.

    Wrapping up

    As organizations increasingly focus on the 3Ps (people, profit, and purpose) in creating their strategy, assessing various performance targets become critical. The broader predictive and prescriptive analytics to look forward across this more significant range of metrics is becoming increasingly important for organizations. Finance and accounting professionals must understand this and ensure they have the necessary skills.

    • We must recognize that the data we need to operate with comes from several sources. It might be structured or unstructured data like video, audio, text, or email. Any information that helps us analyze organizational performance and customer behaviour. Financial professionals must take an active part in data governance and data accuracy.
    • Machine learning algorithms applied to data sources can provide insights into the future. Yet, we must ensure that; we can comprehend the narrative presented.
      In short, by harnessing data to deliver necessary insights, analytics may help SMBs and practices in finance and accounting become more efficient, make better-informed decisions, and reduce risk. SMBs can obtain a competitive advantage and boost their bottom line by implementing data analytics approaches.

    HLB HAMT to Assist!

    With numerous changes in rules and technologies, the auditing sector is undergoing rapid transformation. HLB HAMT seeks and provides high-quality audit and advisory services, with technology at the core of its operations, such as Data Analytics, RPA, and Business intelligence dashboards. Our service focuses on the customer’s risk aspects, and we work as a team with our employees and the client to provide quality services at a low cost.



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    HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.
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    Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits.... And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit more
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    In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional... and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.Wishing HLB Hamt team all the very more
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    We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a... lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly more
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