Technology is advancing at a rapid pace over a multitude of industries, and the corporate world is scrambling to catch up. It seems as if the bottom falls out for a major corporation every single day, and you need the best tools possible to ensure that your company isn’t next on that list.
With financial analytics software, you can be privy to a wide array of essential information that could make or break your business. Better yet, it may reveal some hidden truths about both your business and competitors that could alter your entire business plan.
From budgeting to financial ratios, you need a comprehensive financial risk analysis solution for every component of your business. Investing in these tools is absolutely crucial if you plan on keeping up with the competition. Here are just three of the many ways that financial analytics software can help your business reach new heights:
- Budgeting and planning software
Between 2013 and 2014, about 0.7% of 14,405,210 surveyed businesses ceased operating because of a lack of personal loans/credit. This is unacceptable, and most of these failures could have been avoided with professional budgeting solutions. Financial analytics software will take all of your loans, credit, and other liabilities into account to ensure that you have enough capital to keep growing.
- Business valuation
“Incompetence” is the reason why nearly half (46%) of businesses inevitably fail. These companies tend to price emotionally, live too high for the business, don’t pay taxes, have no knowledge of pricing, lack proper planning, possess no knowledge of financing, and have no experience in record-keeping. Business valuation should play a major role in determining how you spend capital. You need a visible representation of your company’s value through financial analytics software to get a true grasp for your current state in the market.
- Financial ratios by industry
An estimated 25% of businesses fail after their first year, and many of these failures are caused by an improper understanding of ROI and other important ratios. If you continue feeding money into a failing, fledgling venture, you’ll be out of business in no time. Financial ratios will give you a better idea of how your investments impact your business, allowing you to spend more judiciously.
The very foundation of the corporate world is analytics, and your business needs to obtain the most advanced technology possible. Invest in financial analytics software and take your business to the next level of success.