In today’s world, figures tell stories, especially figures in the financial statements (“accounting data”). Those accounting data screams out a lot of information when you are able to use analytics to dissect the accounting data.
That information when derived, explains many things in the financial market. We call this skill: Data Analytics. Data analytics help a business optimize its performance.
Data analytics is broken down into four basic types:
(i) Descriptive analytics
It describes what has happened over a given period of time. For e.g.
- Are sales stronger this month than last month?
- Has debt collection improved this year as compared with last year?
(ii) Diagnostic analytics
It focuses more on why something happened. This will involve more diverse data inputs and a bit of hypothesizing. For e.g.
- Why did cashflow deteriorate despite sales had increased this year?
- Why did net profit margin dropped when sales had gone up?
- How come trade receivables keep increasing when sales growth has not changed for two consecutive years?
(iii) Predictive analytics
It focuses on what is likely to happen in the near term.
(iv) Prescriptive analytics
It suggests a course of action. For e.g.
- The company has obtained a bank loan despite having healthy current asset ratio. What is the purpose of that loan? Buying a tangible fixed asset or is an investment about to take place?
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Our Group & Associates have a team of professionals who are Public Accountants, Chartered Accountants, Tax Practitioners, Liquidators, Lawyers, Consultants and Valuers who are ready to serve you.
We have an experienced team with many years in the accounting, auditing, tax and consulting industry.
With our huge number of satisfied customers, we can assure you of our reliable services which you will not get elsewhere. You are able to reach to the Managers or Directors in-charge of your portfolio anytime despite that our staff handling your work are very reliable too.