Importance of Big Data in Accounting for Management

Running head: ACCOUNTING FOR MANAGEMENT
Accounting for Management
Name of Student:
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1ACCOUNTING FOR MANAGEMENT
Table of Contents
Introduction......................................................................................................................................2
Importance of Big Data in accounting.............................................................................................2
General complexities presented by Big Data and additional complexities for the for-management
accounting information....................................................................................................................4
The way management accountants leverage big data......................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................9

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Introduction
As discussed by Gandomi and Haider (2015) Big data is considered as the data sets
which are so “voluminous and complex” that the different type of the traditional system of the
data collection techniques are not appropriate to deal with them. The main challenges pertaining
to the big data includes “capturing data, data storage, data analysis, search, sharing, transfer,
visualization, querying, updating, information privacy and data source”. The various number of
the ideas associated to the big data are originally based on the three concepts namely “volume,
variety, velocity”. The latter attributed concepts are further seen with veracity or the noise is in
the data and value.
The terminology of the big data is applied to the “predictive analytics, user behaviour
analytics” and certain advanced method by extracting the value from the data. This has been
further seen to be applicable to the various type the concepts which are related to the “spot
business trends, prevent diseases and combat crime”. The various types of the scientists,
practitioners of medicine and business executive and government alike are able to regularly meet
with the difficulties pertaining to the “large data-sets in areas including Internet search, fintech,
urban informatics, and business informatics” (Tsai et al. 2015).
The main scope of the study relates to address the importance of big data in accounting.
Some of the other relevant discussions of the study has been seen to include the general
complexities presented by Big Data and the various types of the additional complexities for
management accounting information. The latter part of the discussing further seen to be
conducive in presenting the information associated to how the accountants leverage big data, to
enable better business decision making. The main form of the discussions has been seen to be
based on the “future opportunities, implications and challenges for management accountants” to
upsurge use of big data in their decision making and the modification to these new environments
by management accountants (Goes 2014).
Importance of Big Data in accounting
As stated by George, Haas and Pentland (2014), Big Data or the data analytics has been
creating a buzz in the business sector which varies “across numerous spheres”. As per the

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“Association of Chartered Certified Accountants (ACCA)” the big data relates to the chunk of
data which are gathered progressively and combined with using tools and “technologies” such as
“debit cards, the Internet, social media, and electronic tags”. A massive amount of the data
unstructured or does not conform to an “explicit and predefined data model”. The data sharing
will allow for both internal and external movement of data which can be improved by the
accounting professionals. This will considerable save time and money and able to escalate
efficiency (Zhou, Fu and Yang 2016).
The role of Big Data in accounting has been seen to be based on the various types of the
concepts which are associated to the new types of the data being accessible. The different types
of the “video, audio, and textual information made available via Big Data” will be conducive in
providing improved “managerial accounting, financial accounting, and financial reporting
practices”. In terms of the managerial accounting information the use of “Big Data” has been
seen to be important for contributing to the development and “evolution of effective management
control systems and budgeting processes”. In terms of the various types of the financial
accounting concepts the contribution of the big data has been observed with the potential to
enhance the quality and relevance of the accounting information which has been seen to be
related to the enhancing the “transparency and stakeholder decision making”.in terms of the
general reporting the Big Data is observed to the “useful in providing useful information” as the
“dynamic, real-time, global economy evolves” (Costa 2014).
The huge opportunity in the accountancy is also observed in using the big data for real
time financial predictions. The incorporation of the information pertaining to the big data by the
accountants has been further based on the use of the data in terms of measuring the financial
performance and how they regularly serve to the operations of the business. Some of the main
form of the depictions of the information has been further seen to be identified with the use of
the big data in terms of getting access to the unprecedented amount of the information which has
been seen to be conducive for financial advantage. The use has been further seenw3ith the major
significance which are seen to be considered for “increasing operating efficiencies, assess risks
and identify advantages and weaknesses through analysis” (Mackie, Sim and Johnman 2015).
It has been further discerned that the use of the big data has been able to provide the
accountants with the necessary information associated to the positioning of the accountants in