5 AI, data analysis and predictive tools you need to know

Data-driven accounting practices, supported by a range of management and analytic software, are no longer the way of the future; it’s today’s reality for accountants keen to add value to their clients.

In Oracle Netsuite’s 15 accounting trends to pay attention to in 2023, the first five relate to digital technology:

• Automating repetitive tasks
• Using AI for data reviews
• Integration of information sources
• Creating digital revenue models
• The increasing use of forecasting and planning software

“Finance functions are becoming significantly more analytical – and technology will help push the accounting and finance department from reactionary and transactional to proactive and analytical,” report author Scott Beaver said.

Skill up to leverage potential

That’s not to suggest that an accountant’s role in gathering data to enhance understanding of what is happening within a business, or to provide explanations for business performance and suggested remedies, is a bygone skill. It is more about taking the next steps from that base: being able to analyse and manipulate the data to forecast the future state of a business and/or market, and recommend actions to get there.

A report by the International Federation of Accountants (of which the IFA is a member), The Professional Accountant’s role in data notes that accountants have the opportunity to use data as an asset, and create data management value chains that drive strategic outcomes across an organisation.

“While professional accountants have always dealt with data, their professional expertise can be predominantly focused on structured data sets, which are no longer the norm,” the IFAC report says.

It goes on to explain that the existing experience and expertise of accountants is nonetheless valuable as a platform from which to expand. It enables the use of both financial and non-financial data to derive insights that assist in decision making across the organisation – with an impact on both responding to risk and capturing opportunity.

“However, to do so these professionals must supplement their existing competencies with the additional skills and knowledge required to fulfil key roles in the data management value chain,” IFAC’s report says.

That means moving beyond Excel and learning to use new data analysis tools that will enable you to develop and contribute more to your own and your clients’ businesses. Predictive analytics has multiple applications, such as improving operations by forecasting inventory and resource requirements, forecasting sales, analysing loss drivers and building budgets.

Here’s where you start

Here are a few tools to look into:

1. Microsoft Power BI: Single-source of truth (SSOT) is a term you will become very familiar with when reviewing data tools. It means that data from many systems will be aggregated in one location, and that is one of the big benefits of Power BI. It can work with your existing business apps to create sophisticated, dynamic data visualisations and real-time dashboards, and uses Copilot to create the reports and projections you need. It also offers a mobile app and a free trial.
2. Tableau: Tableau helps businesses collate data from multiple sources such as databases, spreadsheets, and cloud apps including Google Analytics and Salesforce – Tableau was acquired by Salesforce in 2019. Its drag-and-drop or ‘clicks not code’ UX and interactive visualisations that can be tailored by industry are valuable features. It can be installed on your server or accessed online, including a phone app.
3. Looker: Part of Google Cloud, Looker supports more than 50 SQL dialects and allows you to build custom applications using the data it provides. It enables users to analyse different segments of a business such as supply chains, customer behaviour and value, and distribution processes. You can also ‘view source’ to gain an insight into how the data is being manipulated. The storytelling feature then allows you to present your analysis to clients through data-rich visualisations.
4. Syft Analytics: Winner of the Customer Experience of the Year award at the International Accounting Forum and Awards this year, and Xero’s UK App Partner of the Year, Syft integrates with a wide range of apps to create actionable reports and insights. It is able to benchmark your clients’ data against industry and generate business valuations, as well as create budgets and scorecards. The product reviews often favourably mention the speed and quality of technical support for the tool.
5. Sisense: Another multi-award-winner, Sisense’s appeal is in its ability to provide AI-powered analytics to even the least tech-savvy user and embed those benefits in both employee and client applications and workflows. The cloud-based tool offers a highly-customisable, scalable dashboard and insights menu, and several reviews highlight its speed and adaptability, as well as its ability to democratise access to business intelligence.

Your business may find it increasingly important to be able to evaluate performance, predict risks or advise on how to maximise opportunities in customer payment patterns and operational efficiencies.

Being able to analyse not only what has happened but also what is likely to happen and recommend appropriate strategies will help you become a trusted partner for your clients.