Data analytics

Definition

Data analytics involves examining raw data to draw conclusions, identify patterns, and support decision-making. It uses statistical tools and software to convert data into actionable insights.

5 Must Know Facts For Your Next Test

1. Data analytics can enhance financial reporting accuracy by identifying anomalies or trends in financial data.
2. In accounting information systems, data analytics helps in real-time monitoring of transactions and compliance with regulations.
3. Professionals with skills in both accounting and data analytics are in high demand for roles such as forensic accountants and financial analysts.
4. Data visualization is a critical component of data analytics, making it easier to communicate findings to stakeholders.
5. Predictive analytics can forecast future financial performance based on historical data, aiding in strategic planning.

Review Questions

Related terms

Big Data:

Large volumes of complex data that require advanced methods for analysis.

Predictive Analytics: Techniques that use historical data to predict future outcomes.

Data Visualization: The presentation of data in graphical format to make information accessible and understandable.