Accuracy is the new buzzword in corporate boardrooms as decision-makers are beginning to emphasize the principle to cut costs, drive up sales, and generally bolster the bottom line. Never has the business sector so embraced the quest for data precision in all its forms. That’s just one of many factors behind the rise of data science as a rewarding career field. Indeed, talented individuals from all academic backgrounds are finding out that it’s possible to build a career around the ability to study, manipulate, analyze, and parse all kinds of information.
In the computer age, information is never in short supply. But the task of today’s savvy managers is to learn how to identify useful data out of a potential sea of numbers and facts. In the practical world of commerce, data scientists can assist owners with analyzing tax documents, evaluating driver inspection reports, studying on-site accident statistics, judging the effectiveness of advertising campaigns, reviewing monthly expenses, and more. Here are details about some of the most common ways that management and ownership teams leverage the power of accurate data.
When it comes to keeping tax bills low as legally possible, precise data is the most potent weapon there is. While it’s possible to outsource the entire accounting and tax preparation function to a reliable third party, those who tackle the job themselves should use the best software product they can find. It’s immensely helpful to keep daily records of all income and expenditures, no matter how small or insignificant the transactions might seem. Even when you suspect that a given purchase might not be deductible, it’s best to record it and make that judgment later.
One of the most common reasons people overpay their business taxes is inaccurate data collection. Rarely is the software or expert accountant at fault for a sloppy tax return. Especially for smaller organizations and startups who are filing for the first time, gathering all the potentially relevant taxation statistics and records is the best way to keep the tax bite as small as possible and thus boost the bottom line.
DVIRs For Fleet Managers
For decades, commercial fleet supervisors have understood the immense value of driver inspection logs. A generation ago, drivers kept the logs manually and were constantly adding new lines of information to the document. Nowadays, the entire system is automated, and DVIRs (driver vehicle inspection reports) are mandated by law.
The records provide management with a reliable way to stay ahead of potential mechanical issues and defects for all the vehicles in their fleet. Not only does the Federal Motor Carrier Safety Administration (FMCSA) require DVIRs to be kept for every driver, but the information in the reports serves to minimize loss of revenue and keep downtime as low as realistically possible. You can find out more about how DVIRs work, the many exemptions that exist, and how the entire logging process happens in today’s busy transport companies.
Advertising Budgets & Results
For organizations in multiple industries, one of the largest line-item expenses is advertising. But how do marketing professionals know whether the money they spend is producing worthwhile results? The answer is tracking and follow-up. One of the most prominent uses for machine learning and AI in business is analytics. Department leaders pay close attention to metrics related to the effectiveness of online, billboard, TV, and radio advertisements.
It’s possible to gather statistics about how every ad dollar performed, but the process itself can be costly and take time. Sales results based on specific time frames can tell a large part of the story, but the information must be detailed and accurate. Otherwise, it’s nearly impossible to see whether promotional expenses were worth the price.
CGS (Cost Of Goods Sold) For Manufacturers
One of the most basic financial measuring sticks is CGS or cost of goods sold. The number reveals how much of an item’s selling price is profit. Accuracy is everything. If a furniture seller calculates that every chair sold in a given month costs $250 to produce, then the sales price of $550 represents $300 of profit. But, calculating that CGS figure means measuring production components like raw material costs, labor, overhead, and more. Large corporations use in-house accounting and finance teams to calculate CGS on a regular basis. Such is the importance of the figure in all retail and wholesale industries.
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