Enhancing Financial Reporting Systems: A Conceptual Framework for Integrating Data Analytics in Business Decision-Making

• Author(s): Joseph Ozigi Basiru ; Chinelo Linda Ejiofor ; Ekene Cynthia Onukwulu ; Rita Uchenna Attah
• Paper ID: 1705166
• Page: 587-606
• Published Date: 31-10-2023
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 7 Issue 4 October-2023

Abstract

In the dynamic landscape of modern business, financial reporting systems play a pivotal role in driving informed decision-making. However, traditional financial reporting methods often lack the agility and precision required to address the complexities of contemporary markets. This study presents a conceptual framework for integrating data analytics into financial reporting systems, emphasizing its transformative potential to enhance business decision-making processes. The framework explores how data analytics, powered by advanced tools such as artificial intelligence (AI) and machine learning (ML), can streamline financial reporting by automating data collection, processing, and visualization. It highlights the role of predictive and prescriptive analytics in uncovering trends, forecasting financial outcomes, and offering actionable insights. The integration of real-time analytics within financial systems is also examined, demonstrating its impact on improving operational efficiency and strategic agility. Moreover, the framework delves into the challenges of adopting data analytics in financial reporting, including data privacy concerns, system compatibility issues, and the need for skilled professionals. Strategies to address these challenges, such as investing in robust cybersecurity measures, fostering data literacy, and adopting scalable analytics platforms, are discussed. The study underscores the implications of analytics-driven financial reporting on governance and compliance. Enhanced transparency, accuracy, and timeliness in financial disclosures foster stakeholder confidence and align with regulatory requirements. Additionally, the integration of data analytics supports scenario analysis and risk assessment, enabling organizations to navigate market uncertainties effectively. This conceptual framework serves as a roadmap for businesses seeking to leverage data analytics to revolutionize their financial reporting systems. By bridging the gap between raw financial data and strategic decision-making, the integration of data analytics not only enhances reporting accuracy but also provides a competitive advantage in an increasingly data-driven business environment.

Keywords

Financial Reporting, Data Analytics, Business Decision-Making, Artificial Intelligence, Machine Learning, Real-Time Analytics, Predictive Analytics, Transparency, Governance, Strategic Agility

Citations

IRE Journals:
Joseph Ozigi Basiru , Chinelo Linda Ejiofor , Ekene Cynthia Onukwulu , Rita Uchenna Attah "Enhancing Financial Reporting Systems: A Conceptual Framework for Integrating Data Analytics in Business Decision-Making" Iconic Research And Engineering Journals Volume 7 Issue 4 2023 Page 587-606

IEEE:
Joseph Ozigi Basiru , Chinelo Linda Ejiofor , Ekene Cynthia Onukwulu , Rita Uchenna Attah "Enhancing Financial Reporting Systems: A Conceptual Framework for Integrating Data Analytics in Business Decision-Making" Iconic Research And Engineering Journals, 7(4)