Reporting taxes just once a year is on its way out. It’s important to prepare for Making Tax Digital, as quarterly reporting is required from 2019. Although it may mean you have to make changes, Cloud Accounting (NI) will help streamline tax and accounting. Making tax digital summary In a bid to simplify tax […]
Archive for Blog
Our (hopefully) insightful ramblings…things that occupy our mind!
A leading US commentator on technology recently commented that “if you choose not to embrace the cloud you are retiring in five years”. Scary stuff, and it is not just the preserve of our transatlantic colleagues, this is also happening across small businesses in Europe. So why is cloud accounting for small firms now garnering […]
Predictive Analytics and Data Science is a new spin on already existing topics. It’s a combination of business analytics, operations research, business intelligence, competitive intelligence, data analysis and modelling and knowledge extraction.
Combine all the above with knowledge of how to use the latest statistical techniques and code and you have a pretty good working definition of what Data Analytics and Data Science is.
What can I do with it?
Previously all of the analysis tools would have been available only to large corporations. With changes in software and hardware, more data is now collected inexpensively by nearly all organisations. Combine this with the lower cost of the tools of the trade means that small business, internal organisations, nonprofits and individuals can use the latest data analytic techniques to discover new opportunities, increase profits and improve services.
The main barrier is just learning it.
Who can learn this?
The pathway we will show you can guide someone from basic computer knowledge right up to junior data analyst. If you have never coded before or your mathematics are rusty we have additional pathways on how you can get up to speed with those too. Cloud Accounting can show you how to productively use data analytics in your job or business.
What are some examples of people who would use data analytics?
These are just some possible examples, the items covered by data analytics can be used in a wide variety of fields:
Research and analysis campaigns. See trends and discover patterns in the marketing data from Facebook, Twitter and e-mail.
Used to predict and forecast new markets. Calculate and discover patterns in the costs of an organisation. Investigate new market opportunities among existing customer data.
Program Managers and Developers
Use data science in the development process and as a part of a product. See the efficiencies and bottlenecks in a team. Discover ways to improve the team management process. Create new ideas for product features from patterns and usage data of existing products.
Improve the supply chain of the company. Manage inventory and improve the process of stock management and purchasing. Measure the performance of different tasks and calculate the resulting costs due to changing conditions.
Business Owners and ENTREPRENEURS
Use data science to discover new opportunities in the market. Build data-driven products that use data gathering and analysis to provide value to a customer.
It's a sobering statistic, but around 80 percent of new business start-ups are destined to fail. The specific reasons for such a high mortality rate vary from business to business, but there are a handful of key mistakes common to many new business owners. Avoid these and your business stands a much greater chance of survival.
1. Lack of research
You may think your business idea is bound to succeed, but it's essential to do some detailed research to back up your instinct:
- Do you really understand what your product is?
- Is there a market for your product or service?
- Will people be prepared to pay what you want?
- What competition is out there?
- Is there a sufficient infrastructure to support your business? Is it seasonal?
- How will you survive lean periods?
Unless you research your market thoroughly, it will be impossible to know whether your business is viable or not.
2. Failure to plan
There are two key areas in which all new businesses must plan:
- First, you need a comprehensive and realistic business plan:
- Ask your accountant when putting this together - he or she will be objective and help you to set targets that are achievable.
- Building goals into your plan will help you measure how the business is performing so you can react accordingly.
- Second, draw up a proactive marketing plan:
- Many new businesses are too passive when it comes to marketing their products.
- It's not enough to design a website and wait for the orders to flood in.
- Marketing should be multidisciplinary and exploit all forms of delivery, whether mail shots, email, or newspaper and magazine advertising.
- You need to keep driving your message and USPs by whatever means.
3. Looking after cashflow
Cash is king - it's a fact of business life: you need to manage your cashflow and that takes planning. Your accountant will help you to devise systems in order to help you:
- Stay on top of your debtors and collect in cash.
- Monitor your outgoings and not overspend
- Set budgets so you can plan for lean times
- Put aside sufficient funds for taxes and other unforeseen expenses.
4. Insufficient systems and processes
Many start-ups fail not because the product is poor but because the business is inefficient. This is where it can really help to bring in an accountant to help delegate some of the aspects that are not always intuitive to a new business owner.
- Implementing appropriate systems and processes in areas such as bookkeeping, stock control, and time management, will help your business run smoothly, allowing you to spend time growing order books instead of firefighting niggling issues.
- Robust accounting systems provide you with measureable data and information that will help you to make the right decisions and keep your business on track.
5. Failure to react
We live in a dynamic world and business environments are constantly changing due to social and technological changes.
- Business models that were once successful are no longer thriving.
- If your business is to succeed you need to innovate and move with the times.
- Stay one step ahead of the competition and be prepare to react to new challenges and potential opportunities.
There are hundreds of potential business pitfalls, but if you avoid making the five mistakes outlined here you'll have sidestepped some of the major causes for business failure.
Cloud Accounting NI through its consultancy service, Cogno, uses data intelligence for a deeper and broader relationship with our clients. We now have higher levels of service and communication.
The accountant as a trusted adviser
Almost 500 SMEs surveyed in the Wolters Kluwer Tax and Accounting Industry Study 2016 reported that they believe they have a “trusted adviser” relationship with their accountant.
The research also revealed that around 83 per cent of accountants can still influence bookkeeping/accounting software purchases in the move towards further automation and the cloud,” he says.
We recommend cloud solutions to our clients. It is more efficient to be in a real-time position with your business adviser. The advice is much more proactive.
The move towards predictive accounting has started
Predictive accounting provides an opportunity for professional accountants to better engage with their clients by using their database, software, readily available benchmarks and analytical tools to unlock opportunities as they arise.
The future is about better knowing our clients and extending oour service offer by adding value to the work you have already done.
Our clients don’t care about how we add things up. What they do care about is the customer journey. How we spot opportunities in real-time and flag them. How we stay in touch with them on transactions and how we speak their language.
For this, predictive accounting is a game-changer. It lets us focus on advice and consulting on complex, challenging issues. It lets us play a more involved and significant role for our clients.
Preparing for industry-wide transformation
Cloud Accounting (NI) is heavily involved in correctly setting your clients up in the cloud for bookkeeping and business intelligence solutions. We then check in frequently with clients and help keep them on track.