Archive | September 2015
September 28, 2015  

Accounting and big data 

In my view, even though some accountants may not agree, big data will effect how accounting is done. This is particularly true for management accounting.

I was going to write an outline of my thoughts on big data and management accounting, but I found this great post on diginomica. It gives some really good practical insights. It notes how the following, for example, gets accountants interested in big data- it is being used to:

  • Improve the quality of budgets, plans and forecasts
  • Enhance top line revenue
  • Reduce operational costs
  • Detect fraud
  • Assess the viability of a company as an on-going concern
September 14, 2015  

Improving working capital

  
Working capital is defined as current assets less current liabilities. Current assets are inventory, receivables and cash, while current liabilities are amounts owed to suppliers, bank overdraft and other short term liabilities such as taxes due.

Managing working capital is very important. Tie up too much money in inventory and the business is in trouble. A recent report by PWC suggests companies are still not managing working capital as best they can. Read about it and some suggestions to improve working capital here.