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What are descriptive analytics?

Descriptive analytics can be used to describe events that have occurred in the past and are used to assist in analyzing historical information.

Descriptive analytics are more common as the methods are not as advanced as predictive analytics. Even though most finance and accounting teams don’t even know what descriptive analytics are, they are likely using a form of descriptive analytics in their daily activities.

Some very common examples of descriptive analytics include total number of users, period to period sales or expense changes, revenue per user, or changes in pricing.

Basically, companies have loads and loads of data. Many companies know how to use this data at a very high-level, but very few know how to use historical data to improve their business. The role of data analysts is becoming increasingly important as companies have more data than ever. Data analysts help companies collect and classify data using data aggregation and data mining techniques.

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