In the past, a strong foundation in accounting principles and financial reporting was enough to start a successful career in accounting and finance. Numbers still matter, but now the focus is on going beyond the fundamentals of accounting.
According to Robert Half’s Singapore Salary Guide 2024, data analytics ranks as the top technical skill employers seek in accounting and finance professionals. The report also revealed that adopting business intelligence tools is now a key priority to improve data-driven insights in this sector.
Data is driving the future of finance, and the ability to connect data with business issues will become one of the most in-demand skills in this number-crunching sector.
What is Data Analytics in Accounting and Finance?
Data analytics in accounting and finance involves examining large sets of financial data to uncover meaningful insights and enhance decision-making. It uses data tools and technologies to extract, clean, analyse, and visualise this data.
Example: PwC’s smart audit platform Halo and KPMG’s Clara Platform utilise predictive analytics to help clients forecast revenue trends and detect unusual transactions during audits. These tools are AI-powered, but data analytics form the foundation, enabling accurate financial reporting, improved audit quality, and precise risk detection.
Based on insights from an ACCA study of accounting professionals in the UK and Asia, data analytics is now acting as a catalyst for transforming accounting and finance professionals into business strategists. The study highlighted several key benefits, along with the percentage of professionals who regarded each as necessary:
- Increased business efficiency and productivity (67%)
- Faster and better decision-making (51%)
- Improved planning and forecasting (49%)
- Enhanced risk management (40%)
- Real-time performance insights (38%)
- Higher data quality (38%)
- More accurate trend visualisation (37%)
- Strategic support (31%)
- Fraud detection (27%)
So, Why Do Data Skills Matter Now?
Simply put, data + accounting skills = modern finance.
The rise of Industry 4.0, also known as the Fourth Industrial Revolution (4IR), driven by innovative technologies such as IoT, GenAI, robotics, and cloud computing, has generated enormous amounts of data. From customer behaviour to logistics trends, modern finance now requires professionals who can interpret both financial records and external data sources (also called orthogonal data).
Examples of external data sources include:
- Weather data affecting inventory planning
- Google search trends for consumer interest and demand forecasting
- GPS traffic data provides real-time insights
- Social media engagement
Analysing these external data sources alongside financial data helps businesses make accurate financial predictions, manage risks proactively, and identify new opportunities for growth and expansion.
Another consequence of Industry 4.0 is the expansion of modern fintech. Its core technologies include Artificial Intelligence (AI), Machine Learning (ML), Big Data Analytics, Blockchain, and Distributed Ledger Technology (DLT), all of which rely on data analytics as their foundation.
Industry 4.0 has made data skills essential for accounting students, signalling a significant shift in how accounting and finance are taught and practised. This new landscape opens up fresh opportunities for learners to grow and excel in accounting and finance careers.
Ever wondered what the most essential data skills are? Let’s explore some of the key abilities that can help you thrive in the data-driven accounting and finance sector.
What Are the Key Data Skills?
Apart from solid financial and accounting knowledge, these are the top data skills needed for modern accounting and finance careers in Singapore and around the world:
1. Data Literacy
Understand how to read, interpret, and question data, even from AI tools. This is crucial for making sense of financial information and broader business issues, especially as automation in accounting becomes more prominent.
2. Data Extraction and Cleaning
Learn to collect the appropriate data and prepare it for analysis, ensuring reports are accurate and trustworthy. Well-cleaned, structured data forms the basis of all reliable financial insights.
3. Data Visualisation and Storytelling
Presenting data clearly through charts, visuals, and narratives that support decision-making will be a vital skill. A good visualisation conveys a story by removing unnecessary noise from raw data and emphasising key information.
4. Application Knowledge (Excel, Power BI, Tableau)
Proficiency in business intelligence tools such as Power BI and Tableau is essential for analysing large datasets and deriving insights. However, Microsoft Excel remains an indispensable tool in accounting and finance due to its familiarity and lasting relevance even in the era of Industry 4.0.
5. Problem-Solving and Critical Thinking
Use data to answer questions like: Where is the money going? What risks are we facing? What can be improved? These soft skills are especially crucial as AI adoption accelerates in accounting and finance, and human insights will become important in interpreting machine-generated results.
At LSBF Singapore Campus, you can develop these skills through the Diploma in Accounting and Finance, which features a dedicated Data Analytics module. You’ll gain practical experience with data tools and case studies, preparing you for roles that require both finance and data skills.
Additionally, LSBF’s pathway programmes enable progression to bachelor’s or master’s degrees offered in partnership with UK universities, making them ideal for those seeking career advancement in accounting and finance.
Whether you’re aiming to upskill or pursue a career in accounting, this programme provides a starting point for your future-ready career pathway in this sector.
Speak to our Education Consultant to know more about the advantages of pursuing LSBF’s Diploma in Accounting and Finance.
