Accounting and

Finance Analytics
Prepared By: Charles Ethan Chua
 Analytics in the field of
finance and accounting

• This aims to discern patterns in customer

spending, identify market behavior, anticipate
trends, and predict reactions.

• Involves managing, analyzing, and mining

multiple streams of data.
 They both aim to

• Be more strategic • Paint a picture

- Boost value and credibility of a - Present easy to interpret
business’ finance function visualizations for easier
understanding and heavier impact

• See into the future • Put pieces together

- Provide insights - Combination of internal and external
data
 Importance and
uses
• Monitoring and Improving business
performance
What is
Accounting • Improving client experience
Analytics? • Identifying and managing risks

• Cash-flow analysis
 Importance and
uses

• Uncovers accurate, actionable, and

What is realistic insights across departments
Finance • Prediction and planning
Analytics? • Immediate response on marketing
shifts and trends
• Error and redundancy reduction
Importance of finance
analytics

• Horizontal Analysis
• Multi-company Comparison
• Industry Comparison
 Types of Financial Analysis

• Horizontal analysis
- Side-by-side comparison
- Aims to determine major shifts in data

• Multi-company Comparison
- Comparison of financial ratios of two organizations
- Must be of the same industry sector
- Aims to find financial related strengths and weaknesses
 Types of Financial Analysis

• Industry Comparison
- Contrasts the results of a specific business and the average results of an
entire industry.
- Aims to determine any unusual results in comparison to the industry’s
average.
Financial Analytics Process
 They both aim to

• Focus • Purpose
- FA: Decision making and overall - Fa: Strategy
strategy - AA: Integrity
- AA: Ensures transparency, anomaly
detection and fraud • Data sources
• Methods and techniques
- FA: Predictive modeling - FA: External Data
- AA: ratio and variance analysis - AA: Internal Data
 They both aim to

• users • Time horizon

- FA: Analysts, investment - Fa: short- and long-term financial
professionals performance
- AA: Auditors, accountants - AA: historical data and accuracy
Thank you!!