For accounting firms, big data represents an opportunity for expansion and new service delivery.
Leverage Big Data- Big data is one of the biggest buzzwords of the last few years, but it has tangible effects and benefits that reach across industries. More data is created every year than the year before, collected from applications and devices that many people use all day. This absurdly large data set is rapidly becoming more accessible and thus usable by those willing to examine it.
For accounting firms, big data represents an opportunity for expansion and great service provision. Those who have the adaptability and insight to work with big data’s possibilities and predictive capabilities may soon find they become more valuable than their peers.
Why Big Data Matters
Big data’s true value doesn’t just lie within the number of data points it contains. After all, big data is typically measured in tera- or zettabytes, which is far beyond the scope of any human organization to really parse.
Instead, the power of big data lies in its ability to reveal trends and patterns in human behavior that are difficult to see with smaller data sets. Accounting already deals with the collection and analysis of data sets, so the marriage of the two — industry and resource — seems inevitable.
Big data is usually collected and identified as such by considering these four Vs:
- Veracity, or trustworthiness, of the data
- Velocity, the rate at which new data points are created
- Variety, the multiple sources from which multiple types of data are acquired
- Volume, the actual quantity of data
Actionable big data will have incredibly high volume, excellent variety, high velocity, and high veracity. The good news is that big data of this kind is becoming more common across industries, allowing accountants access to broader data sets.