Start Championing Financial Analytics
Using financial analytics was once seen as a fad. Now, using financial analytics has proven to be effective in many aspects of a business. It is used in many areas including forecasting financial performance, pricing products and services, identifying new markets, improving margins, strengthening operations and assessing and monitoring risks.
The role of today’s Chief Financial Officer (CFO) has expanded past profit and loss, expense management and budgetary control. You need to be more strategic.
CFOs should lead the effort in establishing financial analytics at a business. They are the most logical choice to manage the analytics to serve the company’s needs. Most CFOs are already using financial analytics. They use it to evaluate what areas of the business are strong and what areas need improvement. They are the ones that collect data from operations, supply chains, production processes and other areas.
4 Reasons to Own Financial Analytics
- Financial Analytics Empower CFOs
Using financial analytics empowers CFOs to conduct a more centralized control of operational decision-making. Deloitte CEO and former CFO, Frank Friedman, said in CFO Magazine, “As profit can fall between the operational cracks, analytics can be a game changer by leading to improved operational discipline.”
- Financial analytics produces insights that demystify some of the accepted wisdom that resides within the business
As the CFO, you are already a very respected leader within the company. And, now when you challenge results, you will have solid data to convince co-workers you are right.
- Expand your strategic leadership role in:
- Growing the top line
- Expanding your influence outside your primary financial role
- Strengthening your ties through the business
Since you are not using spreadsheets when you work in financial analytics software, potential errors and omissions are greatly reduced. You won’t have to provide formulas, functions, links, or other programming.
CFOs can evaluate the business’s financial health and also view the predicted cash balance, receivables, inventory payables, and other liabilities. They can even create what-if scenarios in IndustriusCFO and calculate financial ratios based on projection statements.
If you’re a CFO and you don’t own financial analytics yet, now is the time to upgrade to these reliable systems. It’s time to become a strategic leader and help make the business you work for successful.