Taking a data deep dive: How can I unlock my business’s potential?

We’ve come a long way from the information processing techniques and technologies of decades past. Typewriters are now keyboards, email replaced post and cloud storage is the new filing cabinet.

For owner managers today, the sky is the limit when it comes to technology. One thing that can really accelerate the capabilities of data and technology is knowing how to harness it in a way that allows you to have true insight over your business and valuable conversations with your accountants and business advisors.

Going digital with information management systems

One thing that almost all thriving businesses today have in common is that they’ve embraced the push towards digital.

From the recent advancement of AI capabilities to cloud accounting and HMRC’s making tax digital, businesses need to adopt digital strategies to stay relevant in the modern world and marketplace. And with every industry leaning upon data to help decipher their next move, it’s becoming increasingly important to know how your own data can yield insights to make timely and more informed decisions.

Owner-managers are now looking to different products and processes to make those all important decisions. This includes the use of information management systems. They allow for the collation, storage and maintenance of, and are capable of using an expansive range of data types. The use of which can help your team to forecast future trends, brainstorm alternative approaches to problems and analyse past performance in order to see what’s really going on inside their business.

How can cloud accounting give you more foresight?

As many business owners will be aware, cloud accounting is another effective tool for effective information management.

With the use of software and systems such as Xero and Sage, financial data is becoming increasingly dynamic.

Digital dashboards, for example, store everything you need to know is in one place, making it easier for management to see the bigger picture as well as granular analysis when needed. This will help you to identify any issues that might have been more difficult to see with fragmented information.

Cloud accounting software is able to store valuable financial information in a way that offers insight into not only the numbers, but the overall health of your business. Your advisors are able to access and share these key insights with you, to compliment your conversations. This will help to improve your overall financial visibility and give you a strong grounding to make informed decisions.

Embracing AI in information management

Artificial Intelligence (AI) is on everyone’s radar at the moment. It’s ability to replicate human intelligence can speed up the process of information gathering, whilst analysing patterns and algorithms to forecast and offer useful insights. And whilst AI is undoubtedly a topic of contention, it has huge benefits for business owners when it comes to harnessing data:

• AI speeds up the information gathering and collation process through its capabilities to automate information. This not only helps any delays that may have been previously present in decision making processes, but also saves you, as a business owner a lot of time- something that is worth its weight in gold.

• AI is able to aid data analysis. Identifying new opportunities as well as areas of improvement. Having such data all in one place really helps business owners and management paint a picture of what’s really going on and set the wheels in motion for chasing any new opportunities that might have otherwise been missed.

• Similarly, prediction models help to highlight relationships between variables. Forging new connections between systems, processes, financial and other business data will help inform your management systems further.

Combining data and technical expertise

While the world continues to turn digital, there’s no arguing that a human touch is definitely still needed in business and accountancy alike. That’s where combining data and the technical expertise of your accountant can pay dividends for your business. Especially when it comes to decision making.

Ways in which you can work with your information, your accountancy and business advisors include:

• Proactive and productive conversations based on analysis and forecasting of your current and prospective financial position. Data analysis really plays a hand in telling you where your business is at currently and where it could be six months from now. A professional, whether that be in accountancy, tax, VAT, or any other profession will be able to advise you on your options going forward with plenty of time to carry out actionable steps.

• Your accountant or business advisor will also be able to run an accuracy check of the data on your system. AI isn’t perfect after all, and data needs to be checked and cleansed in order to make sure that it’s accurate.

• Once all your data has been cleansed and analysed, you will be able to form a strategy based the technical knowledge and advice of professionals. Doing so will positively impact your business’ financial health and future prospects.

• Whilst data offers valuable insights, it’s the trusted relationships built with your advisor which will offer a true impact. Your advisor should be taking the time to get to know your business inside and out. This will place them in better stead to make valuable recommendations and suggestions based on your information.

Review your existing accounting processes and information management systems

So, once you know what is possible with information management processes and advisory services, it’s time to review your existing accountancy and financial processes.

Asking yourself what’s working, where your blind spots are and what can be improved can set the ball rolling. It might be evident that you’re increasingly strapped for time and need some extra hands when it comes to making effective management decisions. Or, like many businesses in this economy, you might be looking for a more financially effective way of handling your financials.

Whatever it is, having a conversation with your accountant around what information management services they can outsource, and how it can benefit your key concerns is the next step.

Here to lend a helping hand

Our specialists in outsourced information management can advise you on the right path to take, taking the time and cost out of your hands.

For more information or advice on how we can help you streamline and harness your data to make better informed management decisions, contact us today.