Business Planning Workshop Register now In this action-packed 2…Read More
Register Now Preview modal- Financial markets are moving and…Read More
Accounting: Data interpretation Posted on January 21, 2020
Data interpretation and technology is increasingly relied upon for good business decisions and planning. Without it, in today’s world, you are merely guessing, and you are being left behind.
Fortunately, software developments have simplified basic accounting measures so that you can access the data in real time from any place and cast a strategic lens on what you see.
Here is what your data is trying to tell you…
- What your consumers want – with the right software, you can see which products or services are trending, where and when customers are buying and how much they are spending. This data is a powerful insight into your sales and marketing strategy.
- What’s likely to happen down the track – forecasting tools use retrospective and preemptive data points to highlight what is likely to happen to your cashflow position later on. It’s the closest thing small business can get to having a crystal ball and we have seen the data dictate moves that prevent major business disruption.
- Who owes you money – real time invoicing solutions no matter where you or your clients are, will have a positive impact on your cashflow situation, and you can look at these details anytime and set up automated payment reminders. This function has had a positive impact on the reliability of information as we move away from untraceable paper options.
Our role as accountants is evolving. We are increasingly advising our clients on how to refine, interpret and capitalise on the data they can pull from their software to pre-empt risks and opportunities, and offer solutions. We will be sharing more information about data interpretation at our upcoming U-Factor Workshop. Register here.