Accounting & Financial Reporting Tips for Big Data Companies in the Face of Digital Disruption
- Did you know that Google stores 10 exabytes (10 billion gigabytes) of data every day?
- What’s more, Amazon, the largest big data company, hosts 1,000,000,000 gigabytes of data across more than 1,400,000 servers.
This is a massive amount of data that mere humans cannot even fathom to process, let alone account for and report it. This is where technology lends a big hand to record and document such massive volumes of big data.
Technologies such as AI, data analytics, ML, and blockchain are playing a much more significant role in the accounting profession today. And by leveraging such technologies, Singapore-based companies could hugely benefit by obtaining increased efficiency and competitive advantage.
Let’s see how big data companies can manage, account for, and report their financial data effectively.
When Reporting Big Data, Less is More
With the number of data generated by big data companies growing every day, it’s simply not feasible to use a one-size-fits-all reporting solution. This is why all across the industry, the trend of tailored reporting is very becoming. In fact, companies are being forced to think more strategically about extracting, collating, and reporting data efficiently.
Studies show that data analytics alone contributes around S$1 Billion annually to Singapore’s economy. And the estimated value for business analytics services is expected to reach a whopping S$37 Billion by 2022.
Clearly, the answer is right in front of you – a tailored financial reporting solution. However, despite a robust and agile solution, here are some things you must keep in mind while reporting financial data in the face of digital disruption.
- Take a Look at Your Performance Metrics
Ascertain the key metrics that drive your business operations. This can help determine the ideal way to customize your data and boil down key data points for your financial statements, assisting in data collation.
- Break Down Data and Prepare it for Financial Use
Once you have the key metrics in place and the data has been collated, you need to break down data and make sure it’s ready to be reported. Remember, every single element and transaction needs to be reported in your company’s finances. One simple slip can result in severe headaches of an audit. So be cautious.
- Targeted Reports Should Be Your Target
Targeted reports or accounts can help you keep track of everything. For instance, you can curate different reports for different types of data ranging from sales, revenue, expenses, customer transactions, etc. This will help you know more about the operational side of the business and understand the frequency at which data needs to be reported.
Make Sure You’re Using ONLY the Best Reporting Solution
Now that you know about the ideal pathway to effective accounting and error-free financial reporting, it’s a good idea to evaluate whether your current reporting system meets your business needs.
The XBRL solution offered by DataTracks can help you convert your financials meticulously into the XBRL format, making it ready for final submission to ACRA, Singapore’s accounting, and regulatory authority. DataTracks has delivered over 200,000 reports to 19,900 clients worldwide, improving their financial reporting. Your business can be next. Get in touch with an XBRL expert @ +65-31-582-850 or email at firstname.lastname@example.org and make sure you have the best tool in the box for accounting and financial reporting.