Analytics is a technical process of detecting and communicating all the relevant details found in a data. It converts raw data into meaningful insight which helps the companies with better decision making, understanding requirements and consumer demands, predicting future events and contingencies with inculcating new insights. The concept of analytics is widely used by organizations to cope up with new challenges and be prepared.
Finance plays an important role in creating/increasing the value of your business. Hence, the need of introducing the system of Financial Analytics to make better-informed decisions and strategic moves in your business. Let us now begin considering the growing importance of financial analytics.
What is Financial Analytics?
Financial Analytics is the conception of ad hoc analysis to provide probable answers to business queries. It can extrapolate the present to possibly forecast future financial scenarios considering given set of conditions. The software used for Financial Analysis has the capability to deliver the reports swiftly and dispense the required information in an executive dashboard. It provides a graphical representation that is very convenient to interpret and is easy to understand as compared to the set of spreadsheets using pivot tables, this methodology offers numerous advantages.
Main Uses of Business Financial Analytics
When there is a need to analyze a huge amount of data, companies can make use of this systematic procedure of business analytics to get the perspicacity that is in demand. The vital use of such analytics helps most of the business units of an organization to know the situation better. It can also help higher executives and other operational representatives of the company to make informed decisions on the basis of analyzed accurate data. As a whole, it will ultimately aid the company to spot out the advanced and latest business opportunities & trends, by cutting redundant costs and eliminating any inefficient processes involved in the system.
Widely used Financial Analysis Software Programs
Highlights of the contemporary software programs used for financial analysis,
- SAP ERP Financial Analytics– This set of analysis program helps the organizations to circumscribe their financial goals. It can assist in developing business plans, help in tracking the revenue & monitor the costs during the execution phase.
- Oracle Financial Analytics– It is the modular component of Oracle’s Integrated Business Intelligence software. This application provides insight into the general ledger as well as the clarity of performance against the company’s budget. It is also helpful in understanding the impact of staffing costs, supplier or employee performance and their role in enhancing the revenue and consumer satisfaction.
- IBM Cognos Finance– It provides enhanced data analysis capabilities for the sales function, supply chain function, workforce management function.
- SAS Business Analytics– This application offers an integrated environment for text & data mining, simulation & prognostic modeling for predicting future outcomes, this is a mathematical model. It also into descriptive modeling, which is again a mathematical model that establishes a relationship between historical events.
- NetSuite– It offers financial dashboards, intelligent reporting and analytic functions for real-time monitoring of Key Performance Indicators (KPIs).