The power of predictive analytics is changing the game for management accountants. Historically, management accountants focused solely on providing financial information and crunching numbers. However, staying ahead of the technological curve has become increasingly essential, and it’s no longer enough to rely on strategies that lack data support.
Consider sentiments from the Association of Chartered Certified Accountants (ACCA), a professional organization dedicated to improving the standard of accountancy worldwide. According to a post on the ACCA’s website: “Knowledge of big data analytics and website analytics should be considered a key skill for any accountant.”
For management accountants looking to develop their understanding of data analytics, Lamar University offers a Bachelor of Science (B.S.) in Management Accounting and Analytics online program. This program focuses heavily on the intersection of data, analytics, accounting and the evolving strategic role of management accountants to provide future graduates with cutting-edge knowledge and prepare them for a future in this rapidly advancing field.
What Is the Role of Data Analytics in Modern Accounting Practices?
Data analytics allows forward-thinking management accountants to develop business strategies that traditional spreadsheets can’t accomplish. Mufudzi Babylon Ndoro, an assistant management accountant at United Lincolnshire Hospitals NHS Trust, writes on LinkedIn that: “Management accountants use data analytics to track financial performance, identify trends, and make recommendations to improve efficiency and profitability.”
In other words, harnessing the predictive capacity of data-driven insight helps management accountants see problems and opportunities sooner than they otherwise might. This takes practical skills, and the hands-on approach of Lamar’s online program includes training on essential analytics software including Excel, Access (with SQL), Tableau, XBRL, SAS, SAP/ERP and Weka.
How Does Data Analytics Drive Decision-Making in Management Accounting?
Data analytics allows management accountants to refine and improve their decision-making processes. In a Medium article, finance professional Rizwan Ahmed argues that data analytics will enable practitioners to enhance their decisions by helping them better determine what has happened in the past.
“For example,” Ahmed writes, “an accountant might use descriptive analytics to analyze past revenue data and identify a decline in sales during economic downturns.” Data analytics can also help management accountants determine why such events happened and then help them apply predictive analysis to determine “what might happen in the future,” according to Ahmed.
Management Accountants Become Strategic Partners
In the past, some have argued that management accountants should partner with data scientists in order to capitalize on big data’s evolving potential. Yet, an education in data analytics offers a chance for accountants to position themselves as ideal strategic partners for business leaders. As experts with deep knowledge of both accounting practices and tools for predictive, data-informed analysis, management accountants trained in this area can offer strategic insights with precision.
In fact, accountants have always needed to explain and interpret data. The ACCA reports, “This role is just as relevant today as it was in the past, so management accountants have to be able to understand the data analytics, and be able to communicate that.”
This means that despite the increasing importance of data analytics, the primary job of the management accountant remains the same: to help businesses improve profitability and efficiency. Accountants must evolve and take steps to ensure their proficiency in data analytics to set themselves apart.
Learn more about Lamar University’s online B.S. in Management Accounting and Analytics program.
