Why your accounting firm needs business intelligence

Today’s world runs on big data.

And with the rise of generative AI and machine learning, accessible analytics tools, business intelligence software, rich data sets, real time and historical data, algorithms, data warehouses, and predictive analytics, accounting professionals now have access to an unprecedented volume of information about their clients.

The question is no longer what you know. It’s what you do with that knowledge. 

By applying business intelligence (BI) theories and analytics skills, you can turn raw data into insights that help you make smarter, faster decisions, increasing your firm’s efficiency, productivity, and risk management.

For firms looking to stay ahead, especially during an accountant shortage, that’s not just useful—it’s a growing imperative.

What is business intelligence accounting?

Business intelligence accounting is the process of taking relevant data from your firm’s accounting systems and business intelligence solutions, visualizing it logically, then using the pulled analytics to inform your business strategy (and that of your clients’).

The insights that BI unlocks mean greater visibility over your firm, resulting in increased productivity, efficiency, and the ability to make smarter, data-backed business decisions.

The business intelligence process

Business intelligence works by using BI tools to collect, organize, and analyze business, client, and accounting data to uncover actionable insights and help you make better decisions.

Here are the different aspects that make it effective:

• Data gathering. BI seeks out any and all data that could be useful, from team performance, to service value, to client behavior. Accounting technology can simplify and even automate the collection process, tracking, processing, and storing your data in real time, so you can surface trends and comparisons faster. Look for tools and providers that offer team-wide visibility over all aspects of your business.

• Data visualization. Useful BI relies on being able to understand huge amounts of data, so the way it’s presented is crucial. Visual tools, like graphs and infographics, can make data more digestible for firm and business leaders, teams, and clients alike.

• Data analytics. This is what sets you apart from other firms: your ability to interpret data and draw conclusions about the areas of business that matter most to your firm and your clients. Over time, the accuracy of this data analysis builds trust, unlocks growth opportunities, and sharpens your competitive edge. 

• Data-based decision-making. This is all about leveraging your intel to make informed decisions for your firm and your clients. For example, time tracking data can help you identify clients that consume more time than they generate revenue. Based on that, you might decide to increase your pricing, adjust time management, or implement tools like AI to increase efficiency by as much as 18 hours per employee each month, according to The State of AI in Accounting Report 2025.

How does business intelligence apply to accounting firms?

Focusing on business intelligence is a strategic move. 

For accounting firms, it can help improve efficiency and output by identifying operational hurdles and growth opportunities. 

For your clients, it means they’ll receive reliable insights about financial data that advance their business goals, making them more successful, satisfied, and easier to retain.

But these outcomes are only as strong as the data itself. The best, most insight-rich data should come from your firm’s central nervous system: your practice management tool.

Because your practice management tool is the centerpiece of your accounting software tech stack, it houses data about clients, work, internal and external communications, revenue and profitability, billing, payments, and budgets. And as a result, has the potential to uncover critical business insights, identify growth opportunities, improve efficiencies, and forecast cash flow.

Karbon Practice Intelligence is BI software built for accounting firms. Because Karbon is an accounting practice management tool with features like a deep email integration, advanced workflow capabilities, automation, and payment processing, it enables data-driven decision-making across every level of your firm.

You can visualize your data across a growing list of pre-built, easy-to-digest dashboards, including:

• Resource Planning

• Work Status

• Work In Progress

• Work Outstanding

• Repeating Work

• Client Communication

• Email

• Time

• Budget

• Billing

• Revenue: Invoices, Payments, & Credits

• WIP & AR Aging (coming soon)

These dashboards help to answer critical questions like:

• How much work does my team have planned for the upcoming period?

• Which team members might be over or under utilized?

• Are we replying to customer emails mostly within our agreed service levels?

• How much WIP has been billed, returned, or remains unbilled?

• How long does it take to get paid—and how much are you recovering from overdue invoices?

• Who are your top-paying clients, and how fast do they pay?

• What are your effective billing rates, and how do they vary by service and client?

📈 Discover Karbon Practice Intelligence

Benefits of using business intelligence in accounting

Business analytics and intelligence in accounting offers many benefits, including:

• Boosting productivity. Measuring your firm’s performance can help you identify bottlenecks, improve capacity planning, and track important metrics. Using that information, you can lead your team and enhance your accounting processes to be more productive.

• Better visibility into important KPIs and metrics. Business intelligence makes key performance indicators and metrics easily accessible and understandable. You can track progress in real-time, spot bottlenecks, and measure success against goals, helping you to make data-driven decisions with confidence.

• Greater insight into data. Business intelligence tools reveal patterns, trends, and anomalies quickly, helping you make smarter decisions, identify opportunities, and address risks proactively—improving business value, accuracy, efficiency, and confidence in both firm and client strategies.

Implementing business intelligence accounting at your firm

The right software delivers the insights you need to run your firm and deliver your services effectively. Look for purpose-built accounting tools with automated data mining and analysis, and that offer a variety of customizable data dashboards, so you can maximize the impact of your business intelligence.

Where BI can identify areas of improvement, artificial intelligence can be used to solve them. 

For example, if your Client Communication dashboard in Karbon Practice Intelligence identifies that your team is not responding to client emails within your agreed service levels, you can use Karbon AI to close the gap by using it to summarize conversations, generate quick replies, compose emails, and automate client reminders.  

Many companies still spend 80% of their time on data cleansing. By taking the leap with AI and leveraging the right tools and training, you cansave up to seven weeks per employee annually.

Ultimately, BI can improve operational efficiency as well as productivity, as long as you’re looking for the right insights, such as:

Pretium Solutions used Karbon Practice Intelligence to uncover inefficiencies in their firm, as well as identify scope creep in some of their clients, allowing them to charge for work that had been previously unbilled. That’s just one of many examples of how business intelligence can directly translate into more profit and ultimately better outcomes for your firm.

Ramp up your firm’s business intelligence with Karbon

At the end of the day, exporting data and setting up Excel spreadsheets doesn’t move the needle for your firm (or boost morale for your team). Technology can help you make the most of your resources by streamlining and automating your business operations, systems, and processes, so you can increase productivity for the tasks that actually make a difference.

88% of businesses strongly agree that having a tech-savvy accountant is important. At this point, it’s just status quo.

Karbon keeps all your communication, client management, workflows, and documents in the one ecosystem, giving you comprehensive business intelligence on the strategies and services that have the greatest impact on your firm, your team, and your clients.

Book a demo with Karbon to learn more about how its BI capabilities can improve your firm’s bottom line.