From the course: Job Interview Tips for Accountants

How to approach this question

From the course: Job Interview Tips for Accountants

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How to approach this question

- Data analytics seems to be the trendy thing these days, but it's nothing new to accounting professionals. While the terms may be new, accountants always manage and interpret vast amounts of data, so this question should not throw you off. Companies are desperately looking for people, especially accountants, to have this skill and be able to apply it in their daily roles. This question is really about whether you recognize how it applies to the accounting function and its relevance for the company. Your response should focus on three areas. First, make a link from accounting to data analytics. Accounting has always had a need for data. Everything an accountant deals with is vast amounts of financial information, so point out that data analytics is nothing new for most accounting professionals and share some examples. Next, define cases from an accounting context. Any skilled financial professional knows the significance of reported financial data and that it can be interpreted in a variety of ways. Discuss how financial data can be used to forecast various future scenarios to balance risk and performance expectations. You may want to mention specific software you know well like the Excel add-on Crystal Ball to conduct Monte Carlo simulations. Lastly, explain the value of setting expectations. Companies acquire large amounts of data and are challenged to analyze it properly. It's important to state that a good accountant knows that there's never just one correct financial answer. This is because expected results are highly dependent on the data fed into the accounting models and the strategy decisions, which ultimately impact the financial expectations. With the significant amount of data being drawn in and used, your role is more than to conduct financial transactions. It's to leverage the information and data to drive efficiencies and business effectiveness. Make sure to explain this when you're asked this type of question.

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