In this article, we will delve deeper into the concepts of Business Intelligence with a focus on the financial aspect. Read on to discover the advantages of Financial BI and access tips on how to implement it in your business.
Understanding the concepts of Business Intelligence and Financial BI
Business Intelligence is a technology concept focused on data collection and analysis processes. Based on this data, reports are created to assist managers and business owners in the decision-making process.
In practice, BI brings together several tools and applications, used both for collecting data from internal systems and for accessing data from external sources. If we think, for example, of sales BI, the data obtained from the market is as relevant as internal data on sales volume and customer portfolio behavior.
In financial BI, explained below, you will notice that a large part of the information is obtained from internal systems and operations.
In both cases, all the information collected is organized and processed to, at a later stage, compose strategic reports that will provide relevant insights for the company.
Financial BI
Financial Business Intelligence is a branch of BI. In it, data collection strategies are focused on analyzing the organization’s financial operations. In other words, the focus is on collecting, organizing, and analyzing the company’s financial data.
By accessing data from internal systems, managers can have a global and integrated view of their financial operations. This data helps in different situations:
- facilitate the cash flow control process;
- allow monitoring of receivables;
- support the identification of potential financial risks and opportunities;
- facilitate the automation of payments and collections, among others.
Advantages of Financial BI
One of the main characteristics of Business Intelligence is that this practice allows access to secure and consistent data. Therefore, Financial BI adds value and security to the decision-making process of any business.
In practical terms, we can say that BI has a direct relationship with automation, as it eliminates the need to carry out manual and operational activities, gathering data and creating reports quickly — with the help of BI technological tools.
With relevant business information, companies can invest time and energy in more strategic matters. Below, we list the main advantages of using a BI approach in company finances:
- process optimization, with the automation of data collection and analysis;
- agility and quality in the decision-making process, as managers have access to financial reports quickly and reliably;
- gaining a competitive advantage, linked to the intelligent use of information based on real data about the business — and not just intuition;
- predictability regarding possible crises and difficulties, enabling damage mitigation planning;
- identification of trends and opportunities.
Financial BI allows the company to have a clearer understanding of its operations and how they are progressing. This facilitates decision-making according to the context in which it operates.
Applying Financial BI in your company
You have already realized that BI is an interesting solution from the point of view of a company’s strategic management.
Today, with the advancement of technology and the emergence of customized solutions, any company can enjoy the benefits of financial BI.
A great path to follow for a company that wants to implement technological solutions to increase intelligence in management is through the use of management software.
The market offers customized systems, developed with the purpose of automating, integrating and standardizing data collection. Choosing a good system allows the manager to absorb useful and reliable information about the business.
The management system is a tool that enables the execution and integration of activities from different sectors. These activities include the storage and processing of data produced during operations.
Indicators to be analyzed in Financial BI
There is a wealth of information and insights that can be analyzed through the application of financial data intelligence. Below, we have listed some interesting indicators that can contribute to your company’s decision-making:
- invoicing;
- liquidity indicators;
- default indicators;
- profitability;
- contribution margin;
- need for working capital;
- break-even point;
- average payment term;
- average receipt period;
- average ticket.
In addition to having a management system that enables the collection and use of data, professionals responsible for finance must invest in ongoing training in the area of technology.
As you have seen, BI provides concrete information about the company’s economic situation. It allows you to monitor data in real time, as well as generate reports that will support the decision-making process.
Before choosing a management system , analyze your medium and long-term needs. Invest in technologies and solutions that bring reliability and agility to your routine.
Support from specialized companies that focus on companies can make all the difference in the quality of the system and the efficiency of technical support. Therefore, consider these aspects before implementing a new system in your organization.
