Why Data Analytics is a good Career for CAs

Written By PracticeGuru dated: 19th Feb, 2021

2 Min Read

Business world is fast changing due to technology and CAs will have to play different roles in it. It will create new challenges but also new opportunitis for CAs. One such great opportunity is Career in Data Analytics. It is going to be most sought after profile with healthy salaries and benefits. In this article, we will discuss what is Data Analytics, its importance today and how a CA can consider it as career option.

Today everything is being digitised and finance world is not exception to it. Financial and tax system has grown and developed a lot due to digitisation. Data is new oil which runs every business. Data is everywhere. Data will only increase in future, making data analytics the biggest skills to have for any professional. Currently Data analytics is helping CAs in audits, financial analysis and strategy.

What is Data Analytics

Data analytics can be defined as a science of arranging raw data in a systematic way so that it can make some sense, show some trends on the basis of which conclusions can be made, decisions can be taken and future predictions can be made.

Why Data Analytics is important

Traditionally businesses were capturing data in form of accounting, stock and fixed assets records. It was done manually till computers arrived on the scene. It was all internal data. Then came the age of external data where market information was being captured. Today Everyone is capturing data and analysing it, whether it is your competition, big organisations and institutions and even the government. It is a competative advantage today for someone who can do it skillfully. Data analytics helps businesses in multiple ways and in multiple areas. From sales to security, data analytics can change the way a business is done. It is adding to both efficiency and effectiveness of business.

Opportunities for CAs

1. Audits

2. Benchmarking

3. Management Information

4. Investor and Lender Information

5. Tax function

6. Financial analytics

What are tools for Data Analytics

a. Data smoothing tools - These tools are used to extract, load and transform the data.

b. Data Analysis Tools - spreadsheets, programming languages are the examples.

c. Visualisation Tools - Microsoft Power BI and Zoho Analytics are some beautiful tools today for this.

Types of Data Analytics

1) Descriptive - What action can be taken

2) Diagnostic - Why it happened.

3) Predictive - What is likely to happen.

4) Prescriptive - What can be solution.

Benefits of Data Analytics

A) Fraud Detection

B) Creditworthiness Assessment

c) Predicting Bad Debts

D) Process automation

CAs can make contribution in all above fields with their experience and training. ICAI institute has already started preparing its members for this.

Internet of Things, Algorithms, Machine learning and Artificial Intellegence are the latest technologies which will take Data analytics to still higher levels in future.

There are many courses available on data analytics which CAs can consider doing. Going forward every CA will have to have at least basic knowledge of Data Analytics. Today is the right time to learn more about it.

We hope this article has given basic information about Data analytics as a career option for you and it has generated interest in you to consider it seriously.

DISA as a career option - read here

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