The Business Data Insights Playbook

The Business Data Insights Playbook
How to give your accountancy practice a competitive advantage with data and insights
About ACCA About CA ANZ
ACCA is the Association of Chartered Certified Accountants. Chartered Accountants Australia and New Zealand is a
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544,000 future members based in 176 countries that upholds talented and financially astute members, who use their skills
the highest professional and ethical values. every day to make a difference for businesses the world over.
We believe that accountancy is a cornerstone profession of Members are known for their professional integrity, principled
society supporting both public and private sectors. That’s judgement, financial discipline and a forward-looking approach
why we’re committed to the development of a strong global to business which contributes to the prosperity of our nations.
accountancy profession and the many benefits that this brings to We focus on the education and lifelong learning of our
society and individuals. members, and engage in advocacy and thought leadership in
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we build a sustainable global profession by re-investing our We are a member of the International Federation of
surplus to deliver member value and develop the profession for Accountants, and are connected globally through the
the next generation. 800,000-strong Global Accounting Alliance and Chartered
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respected research, we lead the profession by answering today’s We also have a strategic alliance with the Association of
questions to prepare us for tomorrow. Chartered Certified Accountants.
www.accaglobal.com www.charteredaccountantsanz.com
The Business Data Insights Playbook 2

Contents Introduction ............................4 Section 2: Buyer’s Guide ....... 26
Business requirements checklist 27
Introduction to business data insights 5
Help getting started, up to speed
and delivering performance 28
Fit for purpose – functionality

Section 1: The Opportunities ...9
and integrations 30
What does being ‘data-driven’ mean 10 Change management action plan 33
The difference between data, Support when you need it – what
information and insight 13 works for you? 34
Data visualisation 14 Price isn’t everything – weighing up
The importance of data ethics 16 the full cost 36
Controls and risks of data analytics

and visualisation 18
Case Studies .........................38
Integrating data to deliver high quality
insight and reporting 20
Data analytics automation 22
AI trends 24

Introduction
Done right, collecting and analysing business data offers all
manner of insights into how a business is performing – and
ideas for improving it. Here’s how to get started.

Introduction
1
Introduction to business
data insights
We live in the age of big data, where most businesses DATA ANALYTICS AND VISUALISATION EXPLAINED
routinely collect mountains of information. Yet, despite
the range of analytical tools available, many businesses
struggle to extract the full value of the data they collect.
Finance teams and accountants may already have DATA ANALYTICS DATA VISUALISATION
access to much of the data aligned with business involves collecting, sorting and is a general term used to
outcomes. As a result, they are in an ideal position examining data to understand describe technology that
to use data analytics to find the 'signal' in the 'noise', scenarios in an organisation. helps us identify trends
revealing valuable insights and future opportunities, It provides a foundation for and patterns in data.
and guiding decision-making for stakeholders. decision-making that connects
business strategy with the It begins with mapping
Data-driven decision-making can help a business organisation's operations. the relationships between
respond faster and adapt with greater certainty when data points and sets, then
the unexpected happens, such as the COVID-19
presenting the trends and
pandemic. Overnight, business plans had to be rewritten
other highlights as images,
and financial predictions recalculated as the assumptions ANALYTICS TOOLS
help accountants and finance graphs and key metrics to
they were built on were turned upside down. This is the
professionals gain a holistic help stakeholders more
perfect time to invest in analytics that help decision-
makers evaluate their options for the future. view of data held in different accurately identify the
silos, allowing them to uncover challenges, risks and
Advanced forms of data analysis often require the better insights into an opportunities they need
specialist skills of data scientists. However, finance organisation’s day-to-day to address in the business.
professionals can add value by translating data and future performance.
insights into commercial impact through planning,
budgeting and performance management.

Introduction
1 2
Introduction to business data insights For more information, see Dan Vesset’s guest
post on IBM’s blog.
(continued)
Other models of these stages are discussed in
Analytics in Finance and Accountancy:
• CA ANZ Website
• ACCA Website
SUPPORTING DECISIONS WITH ANALYTICS AND DATA VISUALISATION

Dan Vesset, Group Vice-President of Analytics and Information Management at IDC’s market research and
advisory practice, suggests analytics can be segmented into five categories to support decision-making:
1/ PLANNING
What do we want to achieve?
Planning for future activities requires an understanding of past
performance to help identify deviations from the norm, trends in specific High
activities, p
otential scenarios, and assessment of risks and constraints.
Reporting drills into historical data to inform planning. For example, store
2/ REPORTING
What happened?
managers use sales data to plan rosters, and procurement managers track
Wh PR
at
m D
ig
E
the top products sold each month to adjust future orders each season.
IC happ
TIO en?
ht
Wh MO
N
at’s N
ha I
Data analysis digs deeper to find anomalies and patterns, often via pp
3/
TO enin
ANALYSIS
RIN g no
Why did it happen? visualisation. If a product didn’t sell well, analysis might reveal customer
G w?
needs changed – such as a collapse in suit sales as people work from home. COMPLEXITY Wh AN
yd A
id
i
LY app
SIS en?
th
Reporting tools can help monitor KPIs, often in real time, tracking progress
4/
R
MONITORING Wh EPO
or identifying issues. A spike in web traffic might prompt a scaling up of at
What's happening now? ha
RT ppe
resources, or weekly sales figures can motivate efforts towards targets.
IN ned
P
Wh LAN
G ?
a
to t do
N we we?
ac
From patterns in historical data, predictive analysis can test scenarios
IN an
5/ PREDICTION Low
G t
hi
ev
What might happen? and forecast results to recommend to clients which actions are likely
to maximise opportunities and limit risk.
Low BUSINESS VALUE High
Source: The Data Warehousing Institute

Introduction
1
Introduction to business data insights

(continued)
Sourcing raw data for analytics KEY CONCERNS WHEN USING DATA TO BOOST BUSINESS PERFORMANCE
Firms and finance professionals already have access
to raw data from the following sources: USER PROFILES & REQUIREMENTS DEMAND MANAGEMENT & PRIORITISATION
What do stakeholders need to know from data? Don’t just allocate data resources to whomever
1. Financial data: income statements, balance
How will they use it to develop insights? How will shouts the loudest. Prioritise tasks according to
sheets and cashflow statements.
they align it to the business strategy? These the business strategy and be guided by effective
2. Operational data: inventory, customer service and requirements might include methods to mitigate customer segmentation.
payroll records, plus data from routine business risk or maximise allocation of resources.
activities. For example, a restaurant tracking SOLUTIONS DEVELOPMENT
average mealtime per table can action this DATA GOVERNANCE & QUALITY Adopt a collaborative approach to addressing
intelligence to maximise reservations and profits. How will you ensure data is accurate, consistent key stakeholder needs and triggers.
and complete before it is analysed? Improve
3. External data: online traffic, competition pricing, TECHNOLOGY PLATFORM
data quality at the source by training staff with
exchange rates, industry reports or government Take time to research, choose and implement the
guidelines for data entry. Redesign processes to
data such as census statistics. right tools capable of scaling with your business:
reduce data 'noise', and improve data security
and privacy – particularly with regards to • Define preferred specs before reviewing
product options
“The software allows us to review personally identifiable information (PII).
• Adopt software-as-a-service or a cloud-based
business activity at any point platform to scale more easily
LEADERSHIP & RESOURCING
and get an up-to-date position. Commit time and energy to embedding analytics • Focus on user profiles and needs – don’t get
Historically we had to wait for and data visualisation throughout the business to ‘feature happy’
clients to send in bank statements encompass all operational data; from overheads • Aim for controlled self-service, with secure
and other reports – you can push and wages to inventory and the supply chain. and accountable access permissions
a button and get them now.” Leaders will need to consider upgrading • Assume a mobile-first mindset, as most
technologies, processes and staff skills. people will use the technology on the go.
Brett Wooffindin CA, Lawson Avery Ltd
Chartered Accountants (NZ)

Introduction
1
Introduction to business data insights Source: Analytics in Finance and Accountancy:

• CA ANZ Website
(continued) • ACCA Website
In 2019, ACCA and CA ANZ reviewed the use of

technology among members of both organisations. Excel 81%
We asked: ‘Which technologies are currently in use

Data visualisation 47%
in your team to support data analytics activities,
strategies and work with clients?’
Data aggregation tools 44%
Most of our respondents continued to see Excel
as the ‘work horse’ for analytics across their
organisations, with data visualisation tools a distant Cloud computing 35%
second. Robotic process automation, machine
learning, AI and deep learning cluster together, and Robotic process automation 17%
the level of interest suggests that respondents are at
the early stages of implementing these technologies.
Machine learning 13%
Artificial intelligence 12%
“Let’s face it, 99.99% of accounting

Deep learning 6%
firms are still not embracing data in the
way they could be. I don’t know how
Other 4%
many are using cloud technology, but
in my view, even those that are, aren’t
using data enough.” Don’t know 2%
Alastair Barlow FCCA, flinder (UK) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Section 1:
The
Opportunities
Timely data will help you make decisions, address
compliance, improve productivity — and drive growth

Data-driven
1
What does ‘being data- LEARN MORE

How finance professionals
can become more data driven
driven’ mean?
Becoming data-driven means making decisions based

on verifiable activities and results represented by data
IS THE EFFORT WORTH IT?
rather than on intuition. It doesn’t mean being a slave
to numbers. It does mean using insights from data as
a key factor in decision-making. People trust accountants and finance “Having live data means we can have
professionals because of their deep real-time conversations with clients about
If you do, you will increase your relevance and understanding of business, making their situation at the time of the phone
value to your clients, especially if you can explain them well-placed to take advantage
relationships between financial and non-financial
call. This helps with forecasting immediate
of data analytics.
data inside and outside an organisation with clear cashflow requirements, as well as providing
and up-to-date visual reports. Delivering new data insights to your a starting point for different scenarios.
clients is as much an opportunity for
We’ve also worked with clients to look at
small and mid-size organisations as it
KEY POINTS the impact of cheaper marketing costs
is for large firms.
on returns to sales, margins and eventual
Practices should change from relying Though smaller organisations have profit (and of course tax).
on intuition to using data evidence fewer resources, their legacy IT systems
are less complex, and they tend to be
Having this data allows for faster decision-
more willing to move quickly. making on what is working, better than
Using data effectively can help build
trust, vastly improve decision-making
ever before. As these costs and returns can
While some organisations may need to change quickly, there is no set-and-forget,
and quality of advice, and boost
undergo a redesign of their systems especially in a time of so much uncertainty.
revenue opportunities
and practices, the good news is new
There are new rules for business and you
Ignoring data could see your practice technologies make it easier and quicker
to become a data-driven business.
need smart data to give you an edge.”
outperformed by others Luke Kemeys CA, Next Advisory NZ

Data-driven
1
What does ‘being data-driven’ mean?

(continued)
5 STEPS TO SUPPORTING STAKEHOLDERS WITH DATA ANALYTICS

A successful transition relies as much on a change in mindset and culture as it does on
embracing new technologies. So how can finance professionals and accountants achieve it?
1/ ASK QUESTIONS 2/ SET A FOCUS 3/ ACT AS A PARTNER 4/ DIG DEEPER 5/ TAKE ACTION
Engage your curiosity – Identify which clients or areas Ensure your data analytics Find out where valuable Start by confining your efforts
reach out to stakeholders of the business will most provides maximum value to internal and external data sits to one area of the business,
and clients to learn what they benefit from data insights. stakeholders by drawing and develop mechanisms to working to improve data
really care about and which Then match the data to clear upon relevant data to make capture and track client processes from collection to
information will be most business objectives. This recommendations on solving information to fill any gaps. analysis and insights. Then
useful. Ask what data they allows you to translate key business challenges. You Determining which data sets apply the lessons from this
have available and what it obscure, high-level data into can strengthen relationships can logically be connected first project to other parts of
represents so you can best digestible insights directly by considering how to share for deeper insights requires the business. You don’t need
interpret it. Then find out relevant to the decisions information across company a detailed understanding of all business units to have fully
how they will use that data to these stakeholders need to systems or integrate data the business context. Use the embedded data functions to
support or guide a decision. make, winning their support analytics into existing objective focus from step 2 to start seeing results.
and encouraging them to processes to enhance clients' prioritise and evaluate any
embrace the process. services as well as yours. new data sets according to
relevance and insight value.

Data-driven
1
What does ‘being data-driven’ mean?

(continued)
SKILLS NEEDED FOR DATA ANALYSIS
PROFICIENCY LEVELS
Early Career Leader Executive

Could be demonstrated Could be demonstrated Could be demonstrated
by the ability to: by the ability to: by the ability to:
• Assemble and analyse data, visualise results • Use financial-analysis tools, techniques • Proactively analyse data from diverse
and produce insights and algorithms to analyse complex data sources to identify, explain and offer insights
• Use a range of basic tools and methods and visualise results into trends and financial performance
to analyse financial data and build • Review complex information or data • Evaluate all available financial information and
business intelligence to produce critical insights data to inform high-level decision-making
• Interpret and construct simple • Organise the collection and analysis of • Promote the use of data to analyse and
financial models relevant information and data inform evidence-based decisions
• Use business information to compare • Evaluate the quality of data and how well • Access business intelligence to improve
alternative positions and inform decisions it supports analysis and decision-making financial performance and planning
• Manage financial data in a secure and • Investigate, interpret and construct • Enforce data security and compliance to
compliant manner. complex financial data models organisational data-management policies.
• Ensure data and information is managed
in a secure and compliant manner.

Definitions
1
The difference between data,

information and insights
For data to have meaning, it needs to be placed in WHAT ARE THE DIFFERENCES?
context. A single data point is just one measurement
of one activity at one point in time. But a sequence
of data points can create a narrative that describes
progress towards a goal.
Many accountants already understand the distinctions

between data and information, and the roles they
play in generating insights.
The next step is to help your stakeholders process DATA is a collection of INFORMATION emerges INSIGHTS are conclusions
these insights and make smart decisions. To really measurements or other when you organise these drawn from information, such as
leverage and understand data, you need to own that records – for accountants, records to make sense of trends. Some begin as theories
data and the access to it, and understand how it can these may be financial them. For accountants, this that can be tested and refined
be applied to the business strategy. transactions such as may mean classifying assets as more data is collected.
inventory purchases. Data is such as inventory or bank Insights suggest why things
typically captured in ledgers, balances into categories happen so you can advise how
“Data is the new oil and it’ll absolutely journals, spreadsheets and, for analysis. You might best to respond. For example,
be one of the most powerful things of course, databases. then filter out some ‘noise’ knowing how many customers
firms can have for their clients to help (meaningless data) and sort pay invoices late isn’t an insight.
them make better decisions. It’s very the rest into meaningful Deeper analysis might reveal
important to have good, clean data in collections, such as averages late payments are connected
and standard deviations. to certain products or times
the first instance so we can make those
of year, informing measures to
sound decisions.”
contain this.
Alastair Barlow FCCA, flinder (UK)

Visualisation
1
Data visualisation “Data visualisation is transformational for our

entrepreneurial clients. It shows what’s going on in the
business rather than just what the balance sheet says."
For data analytics to succeed in guiding decisions, Heather Smith CA, a management accountant and
the insights need to be presented in ways that principal of ANISE Consulting, says having these data
are easy to understand and make sense to people visualisations in front of you is much like using the Warwick Russell's rules for
from non-financial backgrounds, such as marketing tools of your car to get to where you want to go. effective data visualisation:
executives, technology teams or business leaders.
“Dashboards and visualisations are the same as
Visualisation helps you bring the data to life. your car dashboard,” she told Acuity magazine. USE easily distinguishable
“You set your journey and your eyes flick down colours for different values
People can more readily digest and interpret at it to know that you’re on track. I can quickly of data
data when presented as graphics and action look at a report, see where I’m going and make
points – not just columns of figures. adjustments as necessary, and then look back
When viewing raw numbers, the brain has to perform at the road the business is driving on.” ENGAGE a graphic
calculations to compare and interpret the figures. designer to deliver
According to Warwick Russell CA, co-founder of
high-impact graphs,
But when the data is visualised, the comparisons SMEtric Insights, good data visualisations focus
charts and images
and relationships between data points, and even stakeholders on acting on the numbers instead
between different data sets, become easier of simply interpreting them – and can instil
to see. Two bars on a graph make it instantly greater confidence when making decisions.
MATCH colours
clear how the two values compare. He recommends exploring creative ways of engaging to relevant business’s
Data visualisation can sometimes be as simple as with the data in question, and, most importantly, existing colour palette
plotting key business indicators on a digital map – understanding your client’s business well enough
creating an immediate and powerful visual reference to be able to direct your visualisations to them in a
to highlight when and where business issues crop up. way that you know they will be able to fully digest.

Visualisation
11
Data visualisation
(continued)
KEY POINTS POPULAR VISUALISATION TOOLS
Using visualisations gives clients a While many accountants rely on Excel and Examples of ways to combine
clear view of trends and challenges similar products to manage data and create data, information and insights
visualisations, specialist products can deliver into visuals:
Good presentation skills can improve dashboards and customised charts, graphs
buy-in for advice based on insights and other representations, bringing the data
alive for those viewing it.
CHARTS can show
Clients will not engage as much with
A number of data visualisation tools are already multiple accounts over
‘traditional’ data (ie. words and numbers)
popular with accountants, including browser- multiple years, making
based programs for small businesses: Fathom, misstatements easier
Futrli and Spotlight Reporting. to detect.
Microsoft’s Power BI is another, providing a fully VISUALISATIONS of

functional system which enables accountants revenue and deductions
to extract data, create metrics and drill down into can be paired with sheets
“We have report templates for each the detail of trends.
client, with ratios or charts and pictures presenting other elements
Helpfully, it can also connect with some widely of tax data, helping a tax
to review trends. You can see a lot
used accounting software such as Xero and professional create a
more over a longer period with a good
QuickBooks Online to easily create visualisations dashboard incorporating
visualisation than you could by looking a tax-saving solution.
of a company’s financial data and gain insights
at a whole heap of numbers.”
into customers, cashflow and profitability.
Brett Wooffindin CA, Lawson Avery
Ltd Chartered Accountants (NZ)

Data ethics
1
The importance of data ethics
How an organisation captures, stores, accesses, QUESTIONS TO ASK WHEN CREATING YOUR
shares and uses data is governed by regulations. ORGANISATION'S DATA ETHICS GUIDELINES
These rules differ by industry, location and the
types of data collected. For example, financial
data can be subject to different regulations to Before introducing a new data-analysis capability within your business, it is a good idea to audit your
health records – and may also need to comply existing data practices to create (or update) your own data ethics guidelines. Consider the following:
with additional legislation in other jurisdictions.
1. Is the way you collect, access and use data consistent with current community expectations?
And then there’s personally identifiable information Would anyone be surprised at how their data is used? Is data shared, sold or otherwise accessed
(PII), such as customer names, addresses and without the person’s knowledge or permission?
contact details, which is subject to very strict
legislation around capture, storage and access. 2. Is the data accessed or used in ways outside of your current business model?
Are all data processes and usages connected to a necessary business function?
It was to increase such data privacy protections
that the European Parliament introduced its Does the use of data comply with all relevant regulations?
General Data Protection Regulation (GDPR) Assess your current data compliance against existing codes and regulations, including (but not limited to):
in 2018. Businesses worldwide had to swiftly • Australian Professional and Ethical Standards Board 110 – Code of Ethics for Accounting Professionals
redesign data policies, processes and IT systems. • New Zealand Professional and Ethical Standards
• ACCA code of ethics and conduct
These regulations are driven by data ethics.
Organisations committed to respecting the data- 3. Are there any conflicts of interest – personal or professional?
privacy rights of customers, clients, employees Does the existing corporate culture include values or practices that might undermine any new data
and so on are also less likely to be caught ethics guidelines or increase the risk of non-compliance?
out by future changes to data legislation. Once you have a set of guidelines, communicate them throughout the business so that everyone can
confidently work with data while complying with all relevant rules.

Data ethics
1
The importance of data ethics

(continued)
Every change in legislation should trigger a review • How data is used, and how that use is reported
of an organisation's governance profile and ethical
guidelines – and data ethics will become even more • How data is mapped from its source to its uses WHAT WILL MACHINES LEARN?
important as complex data-management tools such • Who has access to the data (including any use of
as machine learning and AI are adopted. parts of the data by third parties) Dive deeper into the ethical
considerations around AI
Accountants, finance teams and firms are increasingly • What controls are in place to manage data quality, and machine learning with
being called on to answer ethical questions about including its completeness, accuracy, a CA ANZ report:
data management and security, particularly relating appropriateness and time-relevance Machines can learn, but
to personally identifiable information. what will we teach them?
• What rules apply to the data at rest or in transit –
Therefore, finance professionals need to understand: including policies for transparency, customer
• How data is collected and what information consent and privacy
is recorded • What policies and processes are in place for
• Where and how data is stored and secured, as well incident response and data breach notifications KEY POINTS
the time frame for keeping or deleting the data
Organisations should follow all
necessary ethical codes
Focusing on compliance will protect

“The main thing is privacy – making sure people understand the profession as a whole
what data we’ve got on them. In a benchmarking scenario, clients
wouldn’t be happy for us to share too much with other people – Without an ethical framework for
even on an unnamed basis.” data, governance issues can arise
Brett Wooffindin CA, Lawson Avery Ltd Chartered Accountants (NZ)

Controls and risks
1

and visualisation
Data analysis and visualisation present huge

opportunities for accounting firms and teams. 1/ OWNERSHIP
You can help clients or your company identify
trends and challenges, improve the customer
experience and generate revenue streams.
While organisations might collect and store data, Good data governance also includes controls
The pay-offs can be considerable: firms that doesn’t necessarily mean they 'own' it. to keep inputs consistent and reliable, so that
can provide better services to clients and all outputs will be relevant and comparable.
Every individual, whether they’re a
accounting teams can become trusted advisers
customer or employee, retains ownership Data should also be secure and organised.
to executives and other business units.
of their personal data. Organisations Make sure everyone consistently feeds it
However, there is a temptation to view data- are simply stewards of that data. into a permission-controlled central location,
analysis and visualisation software as a ‘magic such as a data warehouse or database – and
While modern data-collection tools make only accesses data from that location.
bullet’. But it takes knowledge, planning and
it easier and faster to capture a wealth of
process to unlock the potential of data, and
information about customers and their Any data shared via email, such as a spreadsheet
avoid the pitfalls that can trap the unwary.
interactions with your organisation, that attachment, is disconnected from the centralised
doesn't mean you should collect everything. source. This can result in its quality and
KEY POINTS
timeliness being compromised, and could cause
In fact, reducing data stores greatly reduces issues with analysis and decision-making.
A good-governance framework is vital the risk of exposing sensitive information.
when working with analytic tools Organisations of all sizes clearly need to
A solid data-governance framework – maintain customer privacy, so whenever a
Knowledge and planning are encompassing all of the processes and software person's data is collected it should only be
essential to using data effectively you’ll use – ensures all data is treated with used in a responsible and trustworthy way.
the appropriate care and due diligence.
A poor data framework risks
negatively impacting client services

Controls and risks
1

and visualisation (continued)
2/ TRANSPARENCY 3/ CONSENT 4/ PRIVACY
Trust cannot exist without There are two key forms of consent Media coverage of Europe’s General LINKS TO USEFUL DATA
transparency. How and why data is and the distinction is important: Data Protection Regulation (GDPR) PRIVACY & SECURITY GUIDES
collected should always be clear and has significantly raised customers'
1. Express Consent is where the • How to Protect Your
unambiguous. While a person can expectations of their privacy, but
person explicitly ticks a box or Customer’s Information,
clearly see what data is being privacy laws differ in every country
otherwise gives clear consent for including advice on
collected when submitting an online so it's essential your organisation
their data to be collected and used Australian privacy laws
form or completing a transaction, understands the legal obligations
other data collection methods are for the stated purpose; for example, and risks in every jurisdiction. • Your Privacy Obligations,
less obvious. to subscribe to an email newsletter.
including advice on New
Good privacy practices will help build
2. Implied Consent covers those Zealand privacy laws
For example, tracking technologies trust – and poor practices can drive
such as cookies can build up a situations where the consent can people away. • The Small Business Cyber
profile of a website visitor over time be inferred by the nature of the
Security Guide, including tips
– and many users would be unaware relationship or if the provided Clearly communicate how data
to address key areas of risk
that their online activity data was opt-out option wasn’t selected. shared with the organisation can
being captured and stored. This is improve the customer experience, • 10 Steps to Cyber Security,
Even when consent is given, should and ensure it is only used for the
why many websites now carry a including advice on how to
you need to access or disclose the data purposes agreed to by the customer.
prominent declaration that it uses set up a Cyber Security Risk
for a different purpose later, you will
cookies to track visitor activity, with Management Regime
need to inform the person and give All employees must understand their
links to further information. them a fresh opportunity to opt out. role in protecting data privacy.

Integrating data
1
Integrating data to deliver high quality

insight and reporting
From balance sheets to spreadsheets, data has been “COVID-19 has heightened the need to KEY POINTS
the lifeblood of accountancy throughout its history. know not just your top-line revenue and
Knowing the different data types can
Traditionally this data was added to, and sourced profit, but fully understand the drivers
give you a professional advantage
from, accounting systems, and was used by firms to behind them. What causes your revenue
provide advice and services to clients. But in 2020, to increase or decrease every month? What Consider adopting data-analysis
this one-size-fits-all model is fast becoming obsolete. is your current product mix that is the most tools to help find insights
resilient or the highest margin? Where in
Instead, modern accountants are beginning to
analyse data from a far wider field, in a bid to gain
your marketing and sales pipeline are you The vast range of data available
losing sales? can be hard to source
“information on where value is being created or
destroyed in real time and projections that … These questions are now front and centre
provide insights into increasingly dynamic and to all the conversations I have with my
volatile markets and economies”, according to the clients and the only way to answer them is
International Federation of Accountants.
with live data. This could be from a CRM
Already trained to aggregate and analyse financial or point of sale tool. The trick is to focus
information, accountants are ideally positioned on answering questions about revenue and
to extract value from non-financial data sets, and cost drivers. These answers will determine
therefore better understand changes in customer the strategy for either trading through
demand and external market factors.
the current uncertainty, repositioning to
For an accounting firm or any financial function within maximise profit margins or even growing
a business, data analytics can support the transition your business despite COVID-19."
from an historical focus to a predictive practice.
Jason Topp CA, SMYD Chartered Accountants NZ

Integrating data
1
Integrating data to deliver high quality LEARN MORE

Skills for The Professionals
of 2020: Big Data
insight and reporting (continued) Accounting Course
MAKING SENSE OF DATA TYPES OF DATA
Data is everywhere, and it just keeps getting UNSTRUCTURED DATA

If you haven’t already, now could be a good
bigger. Every one of us leaves behind a trail of Often text heavy and unorganised
time to develop a strategy to integrate and
data as we go about our lives. And when we’re beyond where it is stored. A single
extract value from structured, semi-structured
online, the raw data we create can be huge. record can include multiple data types.
and unstructured data (that is, everything from
Examples: videos, photos, phone
spreadsheets and databases to corporate press
But while businesses routinely collect and access calls and social media posts.
releases and media interviews) that makes sense
mountains of data every day, most remains as
for your firm and your clients.
unstructured information. Many businesses STRUCTURED DATA
only process and extract value from a small The reporting, monitoring and predictive analytics Rigidly organised in specific fields,
percentage of the data available to them. can then be embedded into workflows to provide making it easy to search, log, capture
regular guidance and inform decision-making: and analyse.
Yet there can be a lot more value hidden in all
of that raw, unstructured data. Examples: data in spreadsheets
1. Identifying opportunities to increase efficiency
or databases, including operating
or reduce costs
Accountants and other financial professionals statistics and transactional data.
are already accustomed to working with large 2. Developing and monitoring KPIs
amounts of structured and semi-structured data. SEMI-STRUCTURED DATA
3. Forecasting future performance to inform
And with the right tools, you can also search Less organised, this data doesn't fit
planning
through all of this unstructured data as well, within a structured database or table
extracting the most relevant or promising bits of 4. Monitoring external risks but can contain tags making it possible
information and transforming them into a format to search and extract some value.
5. Increasing revenues through more targeted Examples: emails, calendars, web
ready to be used in analytics.
or segmented marketing. pages and zipped files.

Automation
1
Data analytics automation
With the right mix of tools and processes, many data- each value is the same in both places, and generate KEY POINTS
processing and analytical tasks can be performed reports to show which invoices have been paid
automatically with little or no human intervention. and those that are still outstanding. Some systems and software can integrate
with each other to automatically share data
Most cloud-based accounting systems already This automated reconciliation and validation
integrate with other business software and apps, ensures the data is timely, accurate and complete Automation tools improve speed and
allowing them to sync data between them. before the analysis begins. accuracy in data analytics
This not only saves time but also increases accuracy Similar automated processes can also be
Manual data analysis is time consuming
by removing a stage of the process where human implemented to search through and compare
and has a higher risk of human error
error might creep in. massive data sets that might otherwise take an
accountant weeks or months to analyse manually.
Automated systems can also verify each piece of
data, checking information across multiple sources. For example, several companies have built robotic
auditors that can analyse millions of transactions in a
A business-reporting system, for example, can few seconds. These then interpret the results and flag
compare the aggregated sales information in interesting findings to the auditing team to explore.
a database with the individual invoices to check
“We’re exploring robotic process

automation to layer more on top
of data capture so we’re increasing Robotic auditors can analyse
efficiency and control. It’s about millions of transactions,
capturing the right data the first time relationships and patterns
quickly, without human interaction.” in mere seconds

Automation
1
Data analytics automation

(continued)
Automation Playbook:
LEARN MORE
automating workflows
BENEFITS OF DATA ANALYTICS
AUTOMATION FOR REAL TIME CA ANZ Members exclusive content
REPORTING BY ACCOUNTANTS
This CA Catalyst Automation Playbook
When it comes to efficiency and accuracy, data- 2. Practice management — automation is being explores how to plan and implement change
analytics automation is already proving to be used to handle administrative tasks such as and continually improve your practice.
valuable in the areas it has been applied: work scheduling, data storage and retrieval,
work in progress and debtor levels. It draws on a range of expertise to offer
1. Client accounting — automation accountants a starting point to update
can eliminate the double-counting that 3. Compliance — automated analysis of activity or introduce new software and tools into
occurs when accountants take data from across an organisation's systems can help their practice.
spreadsheets and invoice books and manage compliance with security, privacy and
pull it into their systems. other practice policies.
Automatically analysing verified data across 4. Advisory — wide-scale automation will
multiple reports means your clients can work allow accountants to spend more time on
with up-to-date and accurate information higher-value advisory work, allowing them to
about the financial health of their businesses. entrench themselves as trusted partners for
Automatically tracking and analysing a client's clients and business teams.
income and expenses can also help you While all the talk of automation may seem futuristic,
give them insights into their spending along it is this increased focus on the human aspects of
with your own suggestions on how they can business that really represents the future.
improve their financial outcomes.

AI trends
1
AI trends
For accountancy, the present era represents

HOW DOES AI WORK?
opportunities and challenges. In the shape of artificial
intelligence and increased automation, technology
is radically transforming the profession at an
In short, AI means intelligent machines and reports for analysis, and reduce fraud by
unprecedented pace.
systems that can mimic the thoughts and actions monitoring 100 per cent of spend reports.
In these early stages, there is still plenty of confusion of humans.
According to Kristin Stubbins, Assurance
over what AI is and what it will do, which is causing
In a business context, that covers a range of skills Innovation and Disruption Lead, PwC Australia,
potential panic, frustration and misunderstanding.
including: audit alone is likely to look very different in 10
But, with 85 per cent of executives telling a 2017 • speech recognition years’ time as AI and machine learning become
Boston Consulting Group survey that AI will help their • natural language processing and translation prevalent in accounting and other financial
companies attain a competitive advantage, now is reporting roles.
• visual perception
the time to gain a firmer grasp on its capabilities and
• learning “All routine tasks will be automated, whether in a
invest in an AI product.
• inference finance function, back office or audit function.”
• planning and decision-making. “There will be increased use of new technologies,
Allied to machine learning – machines that can and that will mean a high level of sophistication
“The most unknown element of AI of analysis and checking of routine information.”
is the insights we can get from other learn from the data they're fed – and other forms
of automation, this technology is likely to “This will allow finance functions and
industries for benchmarking – giving
be formidable. professionals to focus more on forward-looking
clients a better view of how they
compare to other businesses that For example, it will reduce the time required to information rather than backward-looking
identify non-compliance issues in financial data, information. And that is a fundamental shift in
may be relevant.”
help extract and classify data and populate our profession.”
Brett Wooffindin CA, Lawson Avery
Ltd Chartered Accountants (NZ)

AI trends
1
AI trends (continued)
Getting up to speed with AI the profession as a whole will have far greater KEY POINTS
So, what should firms be doing now to keep ahead opportunities to pursue work that is more client-
of the adoption curve? focused and advisory in the near-future. AI is able to mimic some of the
ways humans think and behave
Firstly, you should carefully research what AI systems
are available, with cloud providers such as Google For accountants this means being able
Cloud and Amazon Web Services offering ready- to use AI to do many useful jobs
made products – although you may choose to DIGITAL NATIVES HAVE AN
develop your own. ADVANTAGE Misunderstanding AI can cause
frustration and confusion
Once that’s in place, you’ll need to make sure you’re As the technology progresses,
capturing relevant data to ‘train’ machine-learning there’s likely to be a snowball
models and support AI activities. effect within the industry, as
It’s also important to work with data scientists and those entering the profession
engineers to analyse data for outcomes relevant to in time are more liable to
the firm, such as detecting anomalies that indicate be natural ‘digital natives’.
fraud or non-compliance. With improved technology
operated by those who
And before releasing to production, you should iron intuitively know how to use
out any incorrect assumptions by training your AI it, there will be benefits in
or machine-learning model on limited data. recruiting talented people
and in doing business with
In the face of this cutting-edge tech, the changes are
clients who expect services Providers such as Google Cloud
set to be far-reaching – and positive – with practices
and insights powered by AI. and Amazon Web Services offer
already finding greater freedom from time-consuming
administrative duties. And the outcome of that is that ready-made AI products

Section 2:
Buyer's Guide
What to consider when weighing up
vendors to deliver on your data strategy,
execution and maintenance

Checklist
1 2
Business requirements checklist
Use this checklist to help you choose the right technologies to gain value from data.
REQUIREMENTS QUESTIONS TO ASK TIPS
Read product reviews on independent websites as well as vendors' websites to identify which
functions will meet your business and technical needs. These may include:
FUNCTIONALITY FIT Does it contain the right tools to help you 1. Financial/management accounting (aggregating accounting information/accounting for transactions)
execute your data strategy? 2. Sales orders (recording customer orders for inventory supply)
FOR PURPOSE
3. Accounts receivable and accounts payable
4. Tracking compliance with relevant legislation and regulation
5. Sales-analysis reports
How does it share data with other applications?

INTEGRATIONS Read case studies to learn more about the real world benefits of integrating apps with core systems.
What are the business benefits of those integrations?
How does it help your business comply with

data-privacy and data-protection rules in
COMPLIANCE AND Review security reports about the product or service to find out
the countries in which you operate?
SECURITY how it also protects data from viruses and other malware.
Does it incorporate audit tools to minimise the
risk of internal breaches?
Will your sensitive data be kept onshore or in jurisdictions If you plan to use a cloud-based service – particularly a service used by a provider with overseas
DATA HOSTING
with equivalent data-privacy and data-protection rules? data centres – check the legal agreements to ensure you comply.
Will it support timely and accurate reporting Select products that support reporting based on all relevant data. Ask the vendor to demonstrate how
REPORTING
on all relevant data? reports are relevant and up-to-date.
Will it support the creation of graphs or other visual Decide if you want it to integrate with another analytics tool to create graphs, bar charts and other visual reports.
ANALYSIS
representations of activity trends to support analysis? Visuals of analytics will help you make data meaningful to teams and clients without financial backgrounds.
Does the supplier understand the accounting Choose products and services from established suppliers with strong reputations. You can check supplier
SUPPLIER
sector and provide effective support? performance through web searches and conversations with peers.

Getting started
1 2
Help getting started, up to speed

and delivering performance
In most cases, your business will need help to

deploy and use all the beneficial features of data- 2/ GETTING SET UP 3/ GETTING UP TO SPEED
driven systems. Although simple online tutorials may
be all you need for some features, for advanced
features or products still in development, you may
Are you confident setting up new applications? The time it takes for your team to get over
need hands-on help from product engineers. Here's
the learning curve of a new application or
what to look for.
system needs to be factored in.
What to look for:
• Clear, step-by-step instructions for
1/ BEFORE YOU START Questions to ask the supplier:
deployment and set-up ? • What are the pros and cons of self-
• Responsive help desk learning and coached training options?
YES
•R
eview infrastructure, data and system (phone and online) (Some might offer both, while others will
requirements for products and services Tip: Nominate one person to test the offer self-learning only, but could connect
set-up experience and then create you with training partners.)
•F
ind out whether the vendor supports
a cheat-sheet for the team
self-learning or guided training, or both • Is the product or service backed by
•C
heck reviews online for the accreditation or certification programs
What to look for:
implementation experiences supporting advanced use?
• Proactive support from the supplier
of other businesses to get your business set up • What online support is available for users
•A
sk suppliers to outline the typical and quickly to refresh their training? Is there a cost?
timeframes for set-up and training based • Cost-effective pricing for
on experiences of business like yours NO
hands-on support
•F
ree up time in your team's schedules to Tip: The cost of a professional
accommodate training set-up needs to be lower than your
opportunity cost if you tried to get
it all working yourself

Getting started
1 2
Help getting started, up to speed and

delivering performance (continued)
SELF-LEARNING VERSUS COACHED TRAINING – PROS AND CONS
PROS
• Ability to work at own pace
Tips:
• Potential to get actual work done while learning
• Review online training guides and video • Potential to select the training modules in any order
tutorials for ease of user training – particularly • Ability to track everyone’s progress
SELF-LEARNING for non-technical team members.
Access online training or guides CONS
• Identify features and functionality for advanced
at times that suit you. • Potential loss of productivity while trying to decide where to start
or technically skilled users.
• Quality and logic of user guides and FAQs might not be up to scratch
• Sometimes difficult to find answers to specific questions
PROS
• Structured lessons help users build their knowledge efficiently
Tips:
• Ability to support less-tech savvy team members with extra coaching
• Review training modules and topics to ensure • Ability to quickly gain answers to specific questions
they meet the business’s needs.
COACHED TRAINING CONS
• Check the qualifications, skills and experience
Work with experts in workshops • Pace of learning is set by the trainer, which could disadvantage faster
(including certifications) of experts delivering
and other sessions. or slower learners
the coaching.
• Set times for training takes team members away from billable work
• Skills and experience of trainers may vary

Fit for purpose
1 2
Fit for purpose
When choosing technologies to help you manage data and produce insights, some of the big questions are:
1. • Is it better to build on a product that supports multiple potential integrations with other tools, including third-party plug-ins?
OR
2. • Is it better to have a self-contained suite of products from one vendor?
PROS
• Opportunities to use data in advanced, specialised ways
• Minimises vendor lock-in
OPTION 1 These products support common • Eliminates need to pay for unused functionality
Product with multiple accounting data functions, but • Creates flexibility to respond to changing requirements and new opportunities
potential integrations integrate with third-party apps or CONS
(including third-party plug-ins) plug-ins to extend functionality. • May be difficult to transport data and files between apps
• Unpredictable costs hampering budgeting
• Building skills in multiple products
• More bugs across the product suite
PROS
• A more consistent and intuitive user experience
• Ease of transport of data and working files from one app to another
These products provide all common and • Fewer bugs across the product suite
OPTION 2 • Predictable cost per user/per session
some extended functionality, without
Self-contained suite of products
integrating to third-party apps or plug-ins. CONS
• Locked into a single vendor
• May be required to pay for unused functionality
• Data working files may not be compatible with other systems

Fit for purpose
1 2
Fit for purpose (continued)
CLOUD VS ON-SITE SYSTEMS

“If a cloud application won’t open the
data points, that’s an application we prefer Cloud On-site systems
not to work with. Cloud-based accounting On-site systems run on servers,
systems hold your data and storage and networking in on-
We also want our finance team to provide access via the browser. premises data-centres.
appreciate the importance around single
versions of the truth and high-quality
data, and understand how data might PROS PROS
be structured and the value of bringing • Always working with the latest version of the • Upfront, rather than ongoing, cost may suit
it in from other systems. software, with all maintenance, upgrades or business model
patching done for you • Greater ease of and control over
Clients just want to sit in a meeting and • Pay per use, making budgeting easier customisation (business-led rather than cloud
understand what’s going on in their • Easy access to an innovative ecosystem vendor-led)
business. They care about the end result, to extend functionality • Control over implementation and deployment
not the path, the process or the tools
used. They trust us to put the right tools CONS CONS
• Ensure compliance with data sovereignty • Additional infrastructure deployment,
in place and be as efficient as possible.
requirements (keeping sensitive data onshore) maintenance and upgrading costs
And they want us to capture that data as
• Check ownership of data and data-related • Lack of flexibility to meet changing
accurately as possible.” analysis and visualisation business or market conditions
Alastair Barlow FCCA, flinder (UK) • Requires strong security practices from teams • Extra workload takes technical team
members away from key business activities

Fit for purpose
1 2
Fit for purpose (continued)
Customisations System upgrades Security patches Product roadmaps
Security patches protect Product roadmaps map out vendors’

Customisations allow businesses System upgrades enable businesses
businesses and users from fast- plans and enable businesses to
to tailor data-powered systems to to access new features and
evolving cyber-threats such as ensure products and services
meet their specific requirements. minimise the risk of cyber-breaches.
viruses, spam and ransomware. continue to meet their needs.
Key considerations: Key considerations: Key considerations: Key considerations:

•C
onsider customisation when • Ensure vendors provide regular • Ensure vendors regularly release • Review product roadmaps for any
required for specific client or upgrades and provide a security patches, and issue out- planned changes (such as new
business needs (customisations fixed schedule of-cycle patches to minimise risks integration strategies) that may
can add complexity and require • Automate upgrades to minimise presented by severe threats impact usability and alignment
skilled technical resources) workloads and risks with business objectives
•S elect vendors that help you • Ensure upgrades do not ‘break’ • Work with vendors on amending
customise software without: or compromise integrated changes to product roadmaps if
(i) compromising your apps or systems required, while identifying
ability to follow product alternative systems if necessary
roadmaps or
(ii) forcing you to work with
them to switch unwanted
features off.

Action plan
1 2
Change management action plan
1/ SET CHANGE
OBJECTIVES 3/ SELECT THE RIGHT
TECHNOLOGY 4/ SECURE SENIOR
LEADERSHIP BUY-IN 5/ ACHIEVING
BENEFITS
FROM YOUR
Identify what needs to be achieved Ensure leaders understand the DEPLOYMENT
Technology gives your business the
capability to deliver on its change importance of the change management
management objectives exercise to secure support for data No process transformation project
• Data hygiene: find and fix any data initiatives, including staff reskilling and can be considered a success unless
quality issues and processes
changes to organisational structures it meets the objectives established
• Documentation: develop new policies, • Ensure system specifications meet at the start of the program
such as data ethics guidelines your needs
• Compliance: ensure systems and • Engage executives early in the
• Focus on user profiles and needs
processes with relevant legislation exercise and articulate benefits
rather than features • Focus data-analysis questions
clearly – change management takes
• Roadmap: set milestones for when the • Allow self-service, but ensure it's on business priorities (instead of
planning, negotiation, education
business should start to see benefits controlled to minimise risk posing open-ended questions such
and diplomacy
• Apply a mobile-first mindset that as, ‘What does the data show?’)
• Capture and incorporate feedback
enables team members (and clients) • Use analysis to deliver incremental
2/ GATHER USER
REQUIREMENTS
to access data on smartphones,
tablets or other devices any time,
from any location
• Ensure senior executives are
involved as leaders of project
committees
improvements that can, collectively,
deliver powerful results
• Connect outcomes of analyses to
Capturing user requirements early is key • Back technology selection with an • Hold regular briefings – at every deliver benefits across multiple
enterprise data-management stage you need to demonstrate business teams and functions
program that: to every stakeholder how • Help clients or business teams
• Identify groups affected by a new (i) captures data needs data analytics will benefit their respond effectively to the outcomes
initiative and capture their requirements (ii) e
nsures data meets data-quality department, solve their problems of data analysis (i.e. how can we act
• Document meetings and save notes in requirements and make their role easier on this data analysis or reporting to
a shared folder to make them easier to (iii) s tandardises data sharing across
deliver measurable benefits?)
access and update systems
• Create review documentation (iv) m onitors for data-correction and
following inputs from other teams improvement opportunities

Support
1 2
Support when you need it –

what works for you?
Deployment is only step one in the effective use of new technologies to obtain value from data. Continued
success relies on the maintenance, upgrades and support channels vendors provide for their products.
Here are some of the key questions you should ask when evaluating vendor support capabilities.
QUESTIONS
Maintaining data-driven systems means: 1. Does your vendor provide effective software maintenance tools and advice?
• Modifying software to adapt to changes 2. Are your vendor’s maintenance plans competitively priced over the lifecycle
in operating systems, databases and other of their software?
environmental aspects 3. What is included in the vendor’s maintenance agreement?
• Updating software to account for new 4. What access does the vendor require to your systems to
user requirements undertake maintenance?
MAINTENANCE • Fixing errors or issues 5. Are the terms and conditions of the maintenance agreement acceptable to your
• Stopping problems emerging in future. business (i.e. what disclaimers exist around maintenance quality, and to what
extent is vendor liability limited?)
QUESTIONS
1. Does the vendor provide software upgrades on a regular basis, enabling you
to access new functionality and better performance?
Upgrading a data-driven system typically
2. Do these software upgrades ‘break’ or cause problems with
means replacing an existing version with
integrated systems?
a more secure version that incorporates
UPGRADES better functionality.
3. To what extend do you need to manage several upgrades simultaneously?
4. Does the vendor provide specific migration tools for upgrades?
5. Do the vendor’s software upgrades cause performance degradation?

Support
1 2
Support when you need it – what

works for you? (continued)
QUESTIONS TO ASK THE VENDOR ABOUT SUPPORT

SUPPORT CHANNELS
Does the vendor include response times in service level agreements covering support?
Vendors provide a range of channels for businesses

to seek help with the data-driven systems they offer. Does the vendor have skilled technical team members available to respond to
These channels include: complex queries?
•E
mail help desks — useful for getting a detailed
record of instructions and the discussion; but may
Does the vendor have adequate customer support resources to cover all channels
involve some back and forth, as well as delays.
adequately? (i.e. does it dedicate resources based on the channels most relevant and most-
• Chatbots — useful for quick answers to common used by its clients?)
questions, or for escalating to a person.
•P
hone — best for direct response, though the
Are these support channels integrated? (i.e. if you interact with the vendor over one
quality of support can depend on who answers.
channel, is that interaction captured across every channel so you do not have to explain
• Social media — typically used for complaints or the same issue multiple times?)
general questions almost anyone can answer.
• Online ‘knowledge bases’ — can be the most
convenient way to find detailed answers on Is the support you need available as and when you need it? (i.e. while chatbots and
common usability questions. knowledge bases may be available 24 hours a day, seven days per week, for example, can
you reach a service desk agent outside business hours to address an urgent problem that
cannot be managed through automation or self-service?)

Costs
1 2
Price isn’t everything – weighing

up the full cost
COSTS KEY QUESTIONS

Using data-driven technologies can be an expensive
exercise for businesses and firms that do not account
for all associated costs and have clear metrics to
determine returns on their investments. ACQUISITION COSTS Q1/ Do the business benefits or needs (such
To deploy a data-driven system, you as keeping data onshore) of an on-premise
Here is how you can weigh up all the costs involved will need to acquire software and data-driven system justify acquisition costs
in a deployment, accounting for external costs such supporting infrastructure, or subscribe versus a cloud system? (Does an upfront fee
as implementation, and the internal costs of adopting to a cloud-based system. or a licence per-user per-month best suit my
new technology. firm or business?)
Option 1: Software and
All technology projects can be costed based on Total supporting infrastructure
Cost of Ownership (TCO) – a measure that helps This may mean buying servers, storage and Q2/ What internal people and resources do
businesses and firms determine the costs, both direct networking equipment, and the required I need to assign to help with tasks such as
and indirect, of a solution over its lifetime. software. It will also require you to assign evaluating data-driven systems?
According to project review, recovery and advisory team members to complete the acquisition (Can I justify the cost of engaging consultants
specialist Henrico Dolfing, businesses and firms process (including evaluating products) or partners to help?)
should break down costs into acquisition, effectively.
implementation, operating and improvement Option 2: Cloud-based system
to determine the TCO of a data-driven system.
Acquiring the cloud option may simply Q3/ What technology do I need to acquire to
involve providing payment details and run a new data-driven system?
ensuring workers have browser access.

Costs
1 2
Price isn’t everything – weighing up

the full cost (continued)
COSTS KEY QUESTIONS
Q1/ What do I need to upgrade Q2/ What internal people/ Q3/ I will need to train my team
IMPLEMENTATION COSTS to support a data-driven system? roles do I need to involve in the to use the new system. How much
To implement a data-driven system, you Do I need to install faster internet implementation program (and will productivity drop during the
will need to set up the new hardware and connections to provide access to at what cost)? What additional education process, and how much
software and deploy the system to users. a cloud-based data system? licence or other costs do I incur will the training itself cost?
if I use implementation partners?
OPERATING COSTS Q1/ How can I predict changes Q2/ Do I need to employ new Q3/ Can I scale the system without
You will need to keep your data-driven to support, licensing and other people or assign existing team occurring excess costs to meet
system and any supporting infrastructure costs, and ensure my business and members to ensure continued fluctuations in demand or usage?
running over time, accounting for changes in budgets can accommodate any seamless operation of my
the business and its relationship with vendors. unexpected changes? data-driven system?
Q1/ What costs will I incur to add

Q2/ Do I need to invest in Q3/ What external and internal
IMPROVEMENT COSTS functionality to support the changing
expert assistance to improve my costs will I incur training people on
You will need to improve your data- needs of my business or clients? Do
data-driven system, including new or improved functionality?
driven system to meet changing I need to consider other systems or
implementing customised
business or client needs. moving to more functional versions
functionality and features?
of my existing system?

Case Studies

Industry experience of data analytics
Analytics in Finance and Accountancy
A small and medium-sized

LEARN MORE
• CA ANZ Website
• ACCA Website
business and practice perspective
The most advanced of cloud-based analytics tools staffing and making more use of their data than 1. Within the accountancy tools, such as Xero, MYOB
available for large organisations are readily accessible would otherwise be possible. This allows them to or QuickBooks, ensure that you have a good chart
for SMEs and small-to-medium-sized practices (SMPs). shake up the business and get rid of ‘fat’. Rather than of accounts with clear expense lines and different
This includes Microsoft Power BI, which is suitable for pivoting, business is vaulting to a business model jobs, and use a suitable tool for each project.
complex modelling, and machine learning using Azure change. Locating the assets and exploring how they
Cloud services and the Salesforce Tableau analytics can be reworked are the key issues. Exemplars of this 2. The next step is extraction of the transactions and
platform. As SMEs experiment with shift are gin companies that are now making their own data from the accounts. DataDear helps extract
technology and become data literate, SMPs are having sanitiser brand, a change seen globally. Local cafés are data into Excel and generates reports using pivot
to respond and even develop SME analytics solutions selling picnics and focusing on their take-away service. tables for a rapid analysis.
more suited to small businesses than the commercial
enterprise analytics tools. During COVID-19, SMPs SMP BUSINESS MODELS ARE ADAPTING SWIFTLY 3. With an understanding of the accountancy
have no longer had to convince members of the data, cash flow forecasting and scenario planning
practice or clients of the benefit of analytics in According to the Australasian consultant interviewed, are achievable using Float, which provides an
generating information. even the SMP accountancy professionals are changing. automated two-year forecast and scenarios built
During COVID-19, a tax accountant who was used to on the current cash position. The scenarios might
The accelerated use of analytics by SMPs for SMEs hiding behind a computer has been providing online include the loss of a major client, late payments
during the pandemic has not only helped them advisory services using Zoom videoconferencing and or a new hire.
gain an appreciation of analytics in finance but also the Skype communication tool. The same consultant
enabled access to government-assistance wage and practitioner runs an online support group for 4. The use of financial-prediction software is the
subsidies and tax stimulus. Access to that assistance SMEs, with each session running into two hours. This core of Futrli’s Predict. Automatically pulling
requires a demonstration of significant decline Australasian support group covers the globe with all the financial data sitting in the Cloud
in income compared with the same period in the attenders from Malta, Ireland, the UK and US. accountancy system, Predict acts like a GPS,
previous year. For SMEs to demonstrate eligibility providing accurate cash-flow forecasting and
requires a real understanding of the numbers and an To support SMEs and help them gain familiarity with the future business position inclusive of (but not
analysis by the SMP. One Australasian consultant and analytics (particularly predictive analytics) and ‘off limited to) cash, sales, spend, profit and tax.
SMP argued that businesses might actually make more the shelf’ software, the Australasian consultant made
money by recognising revenue, sorting through several suggestions.

A technical team works on coding analytics programs
while finance understands the requirements. When
the technical team struggles with storytelling, the
finance team’s collaboration helps to generate the
right visualisation of the information.
The SME–SMP perspective of the founder of a UK giving data specialists and data scientists training in business, helping to understand client requirements
accounting, consulting and data-analytics business accountancy and management information. and acting as a bridge between the customer and
has led this interviewee to follow a different software-development team.
trajectory when engaging clients. The first step of LEADERSHIP NEEDS TO COMMUNICATE THE
the methodology is to gain an understanding of the IMPORTANCE OF ANALYTICS The finance team uses predictive analytics internally
early-stage business through the business strategy to help understand customer behaviour and
and by segmenting the customer markets to help Challenges for the founder include the necessity proactively manage delivery resources. Within the
inform and align the financials, and reporting from of communicating to SMEs the power and value of business itself, dashboards help the finance team
the ground up, with the essence of the business. analytics they may have not used before. The key present the company performance. A technical team
It involves understanding the key stakeholders in person providing a mandate for analytics in an Asian works on coding analytics programs while finance
the business and the metrics and information that SME is typically the CEO. The business owner or CEO understands the requirements. When the technical
support decision-making. ensures collaboration takes place for data sharing. team struggles with storytelling, the finance team’s
Thus, the focus is not on financial information but on collaboration helps to generate the right visualisation
This understanding allows the founder’s company actionable insights. This is important owing to the of the information. Importantly, the finance team
to gain sufficient knowledge to run the finance high cost, for an SME, of implementing the analytical members can help the client to understand the
function for a client. From an analytics perspective, tools. The cost is dependent on the requirement for business case and ROI. The finance team helps
the choice of tools is secondary to understanding the bespoke visualisations aligning with the business monitor the ROI on a continuous basis.
sources of not only financial data but also the non- strategy and carefully generated charts from key
financial data and the best approach to ingesting data sources. The end-user experience is built on The CEO runs an internal academy for training, which
the data. The sources include electronic point of alignment with the client’s business strategy. does not preclude attendance at public conferences
sale systems, e-commerce websites, customer to help close any gaps in knowledge of the tools. The
relationship management (CRM) and warehouse The CEO of an Asia-based data-technology soft skills requiring development are those needed
systems. Bringing all this together provides greater applications provider sees analytics technology as for selecting visualisation methods for different data
confidence in decision-making for the business helping analyse and cut through much more data sets or problems and using storytelling to support
owners. It requires a hybrid of skills covering than using only Excel and mental skills. A variety the chosen visualisation. These soft skills complement
accountancy and finance, basic technology and data of software is available to generate analytics and the existing finance and accountancy skills, so a tech
skills. The development of such skills is achievable by this CEO’s finance team is actively involved in the (analytics) aware finance professional needs them all.

Case study
Alastair Barlow FCCA,

founding partner at flinder (UK)
Alastair Barlow FCCA enjoyed a stellar start to his better at making the finance function as controlled To really leverage data, you need to own the access to
career at PwC, rising through the ranks during his and efficient as possible, of course, but, additionally, it, ensuring it is well-structured and accurate:
12 years with the firm, from Assurance Manager to they also have an important role to play in providing
becoming a leader in MyFinancepartner. powerful business insights: “Data is the new oil and it’ll absolutely be one of the
most powerful things firms can have for their clients to
In his last two years at PwC he launched "We want to leverage data across the business help them make better decisions. It’s very important
MyFinancepartner, a tailored accounting service for to sit with the CEO and business strategy to help to have good, clean data in the first instance so we
start-ups, which proved his assumption that a big inform and drive. So, a real seat at the table as an can make those sound decisions."
advantage small to medium firms have over their accounting, consulting and data-analytics business.”
DATA VISUALISATION HELPS ILLUSTRATE
larger counterparts is nimbleness.
INTEGRATED DATA HELPS IDENTIFY BUSINESS INSIGHTS
BUSINESS OPPORTUNITIES
Though he's proud of his time with the Big Four Finance professionals should also become familiar
firm, he grew frustrated with the drawn-out decision- Barlow recommends adopting technologies that with using data-visualisation tools to report insights as
making processes often experienced in any large integrate data from all parts of the business for clearly as possible, especially when presenting to non-
organisation, so in February 2017 he launched a start- strategic real time reporting. Blending financial and financial people, suggests Barlow:
up of his own called flinder, to address a gap in the non-financial data helps businesses understand a lot
accountancy and data analytics market for SMEs. more about what's happening beyond revenue. "Data visualisation is transformational for
entrepreneurs who are creative and don't like to get
"All practices have had to reinvent themselves in Digging into the latest numbers helps uncover trends bogged down with reams of numbers. Good data
this modern-day data-rich world," he explains. "Let's and opportunities: visuals make insights jump out at them straight away.
face it, 99.99 per cent of accounting firms are still
not embracing data in the way they could be. I don't "If you have more customers, you need to know "They're less interested in how the data is collected or
know how many are using cloud technology, but in my where they're coming from, what marketing activities structured, or what the balance sheet says, and more
view, even those that are, aren't using data enough." contributed to sales, and what they're buying. Over concerned about what's going on in their business –
time you'll also get a clearer picture of customer and what decisions they need to make. So, embrace
Barlow suggests accountants need to do more than acquisition costs and the lifetime value of a customer, the power of data to make better decisions, and get
just provide accounting services. They need to get and you can use those metrics to scale the business." ahead of your competitors."

Case study
Brett Wooffindin CA, director at Lawson

Avery Ltd Chartered Accountants (NZ)
Brett Wooffindin CA is passionate about innovating lot more data in a timelier fashion. Historically we had data such as climate and market trends, can help the
the role of finance, having served in private and to wait for clients to send in their bank statements – farmers make better decisions about how they invest
government-owned businesses after gaining his CA you can push a button and get that now." in and manage livestock or crops.
accreditation at a Big Four firm. He's had stints with
investment banks in London and contracted for top-10 CLOUD-BASED SYSTEMS POWER ADVISORY "Data visualisation helps clients understand what
NZX listed companies where he specialised in change SERVICES WITH DATA INSIGHTS they need to do," says Wooffindin. "We have report
management and process improvement. templates for each client and we're looking at more
Wooffindin says firms that want to move into advisory ratios or charts and pictures to review trends. You can
Since joining Lawson Avery in 2015, he's helped the must be proactive in providing clients with up-to- see a lot more over a longer period than you could by
100-plus-year-old firm evolve from a fairly traditional date information to help them make decisions. And looking at a whole heap of numbers."
accountancy practice with mostly paper-based he believes cloud technologies are essential tools to
processes serving rural businesses, to a modern foster more active client relationships. INTEGRATED DATA BOOSTS PRODUCTIVITY
advisory firm using cloud and other technologies
to serve clients in industries such as agriculture, "You don't want to wait until the end of the year to tell Wooffindin also looks for opportunities to automate
professional services, transport, tourism and retail. them whether they've had a good year or a bad year," weekly processes as much as possible. Hubdoc, for
he explains. "Use up-to-date reports to advise clients example, can save a few hours by automating data
Wooffindin's specialisation in cloud computing throughout the year and help them understand the entry for payment of invoices, while payroll automation
includes advisor certifications from online-accounting drivers for financial metrics." saves even more time, and by removing data entry
powerhouse Xero and Figured (an online livestock, steps, prevents errors from creeping in.
crop and production tracking, farm budgeting and Integrating apps for various parts of the business via
forecasting tool), which he combines with extensive the cloud into a common record means Wooffindin "Instead of fixing errors in records, accountants
experience in strategic planning to help clients and his clients can track performance with accurate can focus on more valuable work," he says. "By
improve business performance. data about the health of the business at every stage. automating our processes we're hoping to save 35 per
cent on time for accounts and tax returns. It's great
"Software now allows us to review business activity at Lawson Avery's primary producer clients, for example, for the client, because we've got more time to spend
any point, any day of the week and get an up-to-date are benchmarked with other farms, and detailed advising them on what they're doing now and what
position on that," he says. "So, we're now capturing a data analysis throughout the year, including external they need to do next, rather than what they've done."

Acknowledgements Disclaimer
ACCA and CA ANZ wish to acknowledge the contributions to this report This information in this document is of a general nature only and is not intended to be advice. Before making any decision
of Nick Banks, Alastair Barlow FCCA, Seamus Byrne, Jonathan Crossfield, or taking any action, you should consult with appropriate accounting, tax, legal or other advisors. No warranty is given as
Blaise Curran, Iain Ferguson, Luke Kemeys CA, Stuart Ridley, Jeremy Rowe, to the correctness of the information contained in this publication, or of its suitability for use by you. To the fullest extent
Warwick Russell CA, Sunny Sirabas, Heather Smith CA, Jason Topp CA, permitted by law, Chartered Accountants Australia and New Zealand (CA ANZ) its subsidiaries, affiliates and controlled
Clive Webb CA and Brett Wooffindin CA. entities, including the New Zealand Institute of Chartered Accountants (together the CA ANZ Group) are not liable for
any statement of opinion, or for any error or omission contained in this publication and disclaims all warranties with regard
We have also drawn on a range of publicly available documents from to the information contained in it, including, without limitation, all implied warranties of merchantability and fitness for
several organisations including but not limited to Acuity Magazine, a particular purpose.
Australian Cyber Security Centre, Australian Government business.gov.au,
Boston Consulting Group, The Data Warehousing Institute, IBM, IDC, The CA ANZ Group is not liable for any direct, indirect, special or consequential losses or damages of any kind, or
The National Cyber Security Centre UK and The Privacy Commissioner loss of profit, loss or corruption of data, business interruption or indirect costs, arising out of or in connection with the
New Zealand. use of this publication or the information contained in it, whether such loss or damage arises in contract, negligence,
tort, under statute, or otherwise. Where this document contains hyperlinks to websites operated by third parties these
References are linked to websites throughout the report. linked websites are not under the control of CA ANZ Group and the CA ANZ Group is not responsible for the contents
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The Business Data Insights Playbook

The Business Data Insights Playbook 2

Fit for purpose – functionality 

Controls and risks of data analytics 

Data analytics automation 22

The Business Data Insights Playbook 3

The Business Data Insights Playbook 4

The Business Data Insights Playbook 5

SUPPORTING DECISIONS WITH ANALYTICS AND DATA VISUALISATION

Source: The Data Warehousing Institute

The Business Data Insights Playbook 6

Introduction to business data insights

The Business Data Insights Playbook 7

Introduction to business data insights Source: Analytics in Finance and Accountancy:

In 2019, ACCA and CA ANZ reviewed the use of

We asked: ‘Which technologies are currently in use

Artificial intelligence 12%

“Let’s face it, 99.99% of accounting

The Business Data Insights Playbook 8

The Business Data Insights Playbook 9

What does ‘being data- LEARN MORE

Becoming data-driven means making decisions based

The Business Data Insights Playbook 10

What does ‘being data-driven’ mean?

5 STEPS TO SUPPORTING STAKEHOLDERS WITH DATA ANALYTICS

The Business Data Insights Playbook 11

What does ‘being data-driven’ mean?

SKILLS NEEDED FOR DATA ANALYSIS

Early Career Leader Executive

The Business Data Insights Playbook 12

The difference between data,

Many accountants already understand the distinctions

The Business Data Insights Playbook 13

Data visualisation “Data visualisation is transformational for our

The Business Data Insights Playbook 14

KEY POINTS POPULAR VISUALISATION TOOLS

Microsoft’s Power BI is another, providing a fully VISUALISATIONS of

The Business Data Insights Playbook 15

The importance of data ethics

The Business Data Insights Playbook 16

The importance of data ethics

Focusing on compliance will protect

Brett Wooffindin CA, Lawson Avery Ltd Chartered Accountants (NZ)

The Business Data Insights Playbook 17

Controls and risks of data analytics

Data analysis and visualisation present huge

The Business Data Insights Playbook 18

Controls and risks of data analytics

2/ TRANSPARENCY 3/ CONSENT 4/ PRIVACY

The Business Data Insights Playbook 19

Integrating data to deliver high quality

The Business Data Insights Playbook 20

Integrating data to deliver high quality LEARN MORE

MAKING SENSE OF DATA TYPES OF DATA

Data is everywhere, and it just keeps getting UNSTRUCTURED DATA

The Business Data Insights Playbook 21

Data analytics automation

“We’re exploring robotic process

The Business Data Insights Playbook 22

Data analytics automation

Fit for purpose – functionality

Controls and risks of data analytics

Data analytics automation 22