What is Financial Analytics ?
Financial analytics is the creation of ad hoc analysis to answer specific business questions and forecast possible future financial scenarios. Financial analysis software can speed up the creation of reports and present the data in an executive dashboard, a graphical presentation that is easier to read and interpret than a series of spreadsheets with pivot tables.
SAS Business Analytics – provides an integrated environment for data mining, text mining, simulation and predictive modeling — a mathematical model that predicts future outcomes – as well as descriptive modeling, a mathematical model that describes historical events and the relationships that created them.
Why it matters now ?
Deeper insight In today’s highly competitive business environment, companies need more from Finance than accurate financial statements and reports. They need forward-looking, predictive insights that can help shape tomorrow’s business strategy and improve day-to-day decision-making in real time. In short, they need finance analytics.
Why Finance Analytics
Finance as a partner to the business
Over the past few years, companies have opened their eyes to the value that Finance can bring to many aspects of business—well beyond the traditional role of providing a standard set of financial reports year after year. Now, more and more business leaders are looking to CFOs for partnership and actionable insight. This is a big opportunity; but it’s also a big challenge. Finance analytics arms CFOs with the tools to make sense of an increasingly complex world. By combining internal financial information and operational data with external information such as social media, demographics and big data, finance analytics may address critical business questions with unprecedented ease, speed, and accuracy. Here are just some of the questions finance analytics can help answer:
- What is our risk exposure with specific customers, and how does each customer relationship affect working capital?
- How can we streamline and enhance our business processes to make them more efficient?
- Are we investing in the right opportunities based on capital and/or revenue, and how do our business decisions affect our key value drivers?
- How profitable are my products and services across sales channels and customers?
- Which customer segments may offer the largest margins, now and in the future, and how are those margins affected by the choices we’re making today?
- What future events could affect our stock price?
Benefits of Financial Analytics
- See into the future Provide forward-looking strategic insights, not just backward-looking financial reporting.
- Turn mountains of data into nuggets of insight Filter and analyze large amounts of data promptly and easily.
- Put the pieces together Combine internal and external data to generate insights that weren’t possible or practical before.
- Paint a picture Present data and results visually so they are easier to understand and have more impact
- Take action with confidence Become a data-driven organization that makes investments and operating decisions with more confidence and mitigated risk.
- Be more strategic Boost the Finance function’s value and credibility as a strategic partner to the business.