Working for many years in the same field, dedicating a large part of one’s academic and professional training to a single theme, one may find oneself in the position of revolutionizing it. Thirty-five years, this is the time that Simone Brancozzi has dedicated to the study of “business pathologies” as an accountant and consultant. “Since 2007,” Brancozzi says, “as a scientific manager I have been working on projects that can transform business data into information that is useful to accountants, as well as to companies themselves.”
CONTROL DASHBOARD
It was in 2007 that the efforts and research of Brancozzi and the company for which he is scientific director, Leonida Consulting srl, materialized and took shape, leading to the birth of the Cruscotto di Controllo®. This is the first cloud software designed for the management and monitoring of business health and continuity, essential for accountants, auditors and entrepreneurs. It is based on the Balanced Scorecard model, a methodology that translates the company strategy into specific performance indicators (KPIs) through four perspectives: financial, customers, internal processes and learning and growth. «This tool, compliant with the EBA (European Bank Authority) guidelines and the Business Plan of the Order of Accountants of Milan, today more than ever represents an indispensable support. Especially considering the entry into force of the crisis reform, in particular art. 2086 second paragraph and letter c of paragraph 3 of art. 3 Legislative Decree 14/2019 entered into force on July 15, which introduced by law the obligation for entrepreneurs and auditors to measure business continuity and to intercept signs (not evidence) of crisis. The program is designed not only for entrepreneurs, but also for auditors and accountants who, by applying the tool to a company, will have a clear answer on what to do to correct any anomalies or potentially disastrous problems. In fact, the software, in addition to making the diagnosis, indicating the level of company health and measuring its continuity, is also able to formulate the tactical and strategic solutions necessary to re-establish the economic-financial balance.
K SCORE
Two years ago, Brancozzi’s efforts gave rise to another invention. “We patented the first AI machine learning algorithm to predict the large risks of bankruptcy of companies in three years.” Since 1968, the predominant model in business economics has been the Z-Score, a discriminant analysis index used to statistically determine the probability of bankruptcy of a company. Despite being harshly criticized, no alternative model has emerged to take its place. K Score is the first to return an accuracy of 88%. “The system was provided with the case history of 400 companies, which subsequently went bankrupt, and we taught the algorithm to recognize the balance sheets that are taking on the typical characteristics of a company about to fail.”
PERFORMANCE
Completing the offering resulting from Simone Brancozzi’s studies is the program “Financial Statement Analysis and Strategic Map”. The software analyzes company performance using financial statement tools and strategic maps, requiring only the upload of an XBRL file. The financial statement analysis aims to provide a detailed view of the company’s economic, equity and financial situation through indicators such as ROI, ROS and ROE, interpreting the results to identify strengths and weaknesses. The strategic map, on the other hand, visually represents the strategic objectives and the paths to achieve them. The strategic objectives are defined, the causal relationships between them are identified and the map is used to monitor progress and adapt strategies. This program offers companies a complete framework to manage performance, improve financial transparency and develop effective strategies for sustainable growth.
For information:
cruscottodicontrollo.it
kscore.it
aicommercialista.it
Prof. Brancozzi acted as a scientific consultant for the creation of an “engine” that provides authoritative opinions on tax issues
With Nassau the future of consulting is now
After the experience with K Score, Simone Brancozzi delved further into collaborative LLM (large language model) models. «These models present various problems – explains Simone Brancozzi – mathematically they have an accuracy of 78% and often, when they do not have an answer, they tend to be banal. When transforming words into numbers, they often do not understand their true meaning, relying on a probabilistic interpretation of the same. They have limited knowledge, as they were born to write codes. Considering that the latest trend is to use these LLM models to replace accountants’ and lawyers’ databases, several professionals are facing these problems». Nassau is the artificial intelligence engine developed by Leonida Consulting, with the scientific supervision of Prof. Simone Brancozzi, specifically designed to solve these problems. Designed specifically for accountants and professionals in the tax and legal sector, the program uses an advanced linguistic model to provide authoritative and immediate opinions on tax, civil, juridical and accounting issues. Nassau analyzes specific regulations and contexts, also integrating users’ personal documents to offer personalized and accurate answers, updated in real time. “We have created an embedding system with our algorithm, providing 130 billion pieces of tax and legal information. When the system is asked a question, all the other LLMs on the market are also consulted. The result is a summary opinion that eliminates the main problem of traditional databases: the document search followed by a lot of time spent reading and summarizing the documents resulting from the search”. From these, documents are extracted that will then be subject to interpretation. Nassau, on the contrary, is able to return an authoritative opinion.
FOR PROFESSIONALS
As Brancozzi himself is keen to point out, «it is not a tool that will lead to the disappearance of the accountant figure. On the contrary. We will make something extraordinary possible, that is, putting everyone in the condition of being the best professional possible. Those who use Nassau will start from a higher level of knowledge, finding in the software an ally that “strengthens” their work». The professional can indicate to the system which sites to consult or directly provide it with materials to take into account and Nassau will use everything as “informative reinforcement”, aimed at giving a more precise and timely response. After 5-7 minutes the system will process the opinion. «You can do without databases and use the software by inserting your own know-how».