There’s a difference between data and information. Data is a collection of individual facts, information is the arrangement or sequence of the facts.
In accounting, data can be represented by the individual transactions, and information as the resulting reporting of those transactions as a group leading to a total.
Businesses and organisations have a lot of financial data, but not all of it is converted into information.
Statutory financial reporting requires the data to be organised into certain categories, in particular ways. Each transaction is recorded in a way so as to meet those categories and to provide the reports needed.
But that data can also be used for non-statutory reporting.
The beauty of data analysis is that data can be re-organised into information that is extra to the usual reports and can give management more specific insights into their business performance.
Do you have data in your financial accounts that can be used in other ways? That can be used to provide information about your business that the standard reports don’t tell you? That can be used to help identify specific aspects of your business performance?
I suspect you do. And I can help you find it. Contact me to find out more.
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