Statistically Guided Accountancy

Big data is arguably the most important trend in the world of accounting. That said statistics has become a key tool for accountants in the modern market. Take the case of an auditor. It is practically impossible to carry out a reliability assessment without dealing with big data. The only practical approach lies in the use of statistical samples to represent the entirety available data. A knowledge in statistics proves paramount in such a case.

Reliability assessments are, however, far from the only accountancy tasks that bring accountants face to face with big data. Every form of accountancy undertaken in today’s world necessitates interaction with big data.

A controller streamlines the activities of his or her firm to ensure profitability. These accountants are usually jacks-of-all-trades. Since they deal with the entirety of an organization’s statistical needs, they cannot specialize. Even with all their vast know-how, however, they need statistical knowledge to flourish in today’s market. To ensure and guarantee profitability, they have to understand the statistical philosophies governing forecasts and analyses.

Another case is the policy recommendations that the American Benefits Council developed to promote retirement security. The policies were developed after analysis of historical statistical data. The accountants that were called in employed statistical know-how alongside their accountancy expertise to standardize, regulate, and manage defined benefit plans. That goes to show just how frequent the interaction between accountants and big data has become in today’s data driven market.

In a nutshell, it is impossible to work in today’s and tomorrow’s markets without interaction with big data. Such interactions are best handled by a person who is educated on the principles, ideologies, and workings of statistics. The modern accountant, therefore, has a lot to gain from statistical know-how. Not only does it make him or her more efficient; he or she or gets exposure into new markets that would have been otherwise unreachable.