The Integration of Big Data Analytics in Financial Reporting Processes

Abstract

This research investigates the transformative potential of integrating big data
analytics into financial reporting processes, proposing a novel methodological framework that diverges from conventional approaches. While existing literature predominantly focuses on isolated applications of analytics in auditing or fraud detection, this study introduces a holistic, process-oriented model that embeds analytics throughout the entire financial reporting lifecycle—from transaction capture
to disclosure. The originality of this work lies in its conceptualization of financial
reporting not as a static, periodic output but as a dynamic, data-intensive process
that can be continuously optimized for accuracy, timeliness, and predictive insight.
We formulate and address three primary research questions: (1) How can big data
analytics be structurally integrated into each phase of the financial reporting process to enhance reliability and efficiency? (2) What are the critical technical and
organizational prerequisites for successful integration? (3) What novel forms of
assurance and stakeholder value can such integration generate beyond traditional
financial statements? Our methodology employs a hybrid design-science and casestudy approach, developing a reference architecture and validating its components
through simulated application to complex, multi-source financial data scenarios.
The results demonstrate that integrated analytics can significantly reduce manual
reconciliation efforts, enable real-time anomaly detection, and facilitate the generation of forward-looking, non-financial performance indicators. Furthermore, the
study reveals a paradigm shift towards ’continuous reporting,’ where the boundary
between operational data and reported information becomes increasingly blurred.
The conclusion articulates the original contribution of this research: a comprehensive, actionable framework for the data-driven re-engineering of financial reporting,
challenging the prevailing compliance-centric model and proposing a new valuecreation oriented paradigm. This work provides a foundational roadmap for practitioners and opens several novel avenues for academic inquiry at the intersection
of accounting, data science, and information systems.