# Five considerations for financial analytics and reporting success
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-07-15
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: 5 Key Considerations for Financial Analytics Success
Meta Description: Discover 5 considerations for financial analytics and reporting success, including tools, data accessibility, and report flexibility. Learn more with Oracle
URL: https://financedigest.com/five-considerations-for-financial-analytics-and-reporting-successhtml

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_By **Thomas Sutter,** Finance Centre of Excellence, Oracle NetSuite_

Businesses today rely on data, and fortunately there’s no shortage of it. In fact, the amount of information processed by a single [business](https://www.financedigest.com/how-to-start-a-business-in-louisiana.html) unit now would have overwhelmed the largest enterprise just a few decades ago. Yet, 95 percent admit to being overwhelmed by data quantities at least some of the time, while 45 percent say not having the data they need is one of the greatest internal business threats they face, according to a recent [State of Growth](https://go.netsuite.com/LP=10183?regsource=em&nsCampaignCode=Email_EMEA_Horiz_StateofGrowth_0421&elqCampaignName=Email_EMEA_Horiz_StateofGrowth_0421&elqCampaignId=6230) [report](https://www.financedigest.com/social-media-platform-x-back-up-after-brief-outage-downdetector-shows.html) from Oracle NetSuite.

So how can [finance teams](https://www.financedigest.com/what-skills-and-areas-of-knowledge-should-finance-teams-develop-during-2023.html "What Skills and Areas of Knowledge Should Finance Teams Develop During 2023? ") navigate a scenario in which they are overwhelmed by data volumes, but don’t have certainty about the validity of the data in front of them?

Enterprise Resource Planning ( [ERP](https://www.netsuite.co.uk/portal/uk/resource/articles/erp/what-is-erp.shtml)) systems have become an essential tool for managing and organising [business](https://www.financedigest.com/how-to-start-a-business-in-louisiana.html) data by eliminating departmental data silos. While each department may only [need access](https://www.financedigest.com/what-needs-to-happen-to-improve-the-landscape-for-smes-trying-to-access-finance-options-in-the-uk.html "What needs to happen to improve the landscape for SMEs trying to access finance options in the UK") to a subset of data, bringing it all together within a single system provides a much richer view of the organization as a whole. However, not all systems are created equal.

With these factors in mind, here are five considerations for financial [analytics and reporting success](https://www.financedigest.com/predictive-analytics-a-new-way-of-insuring-success.html "Predictive analytics: a new way of insuring success").

1. **Are tools fit-for-purpose?**

Spreadsheets are popular for reporting thanks to their ease of use, but they come with some significant limitations. Working with [spreadsheets increases the risk](https://www.financedigest.com/businesses-unaware-of-operational-risk-caused-by-spreadsheets.html "Businesses unaware of operational risk caused by spreadsheets") of reporting errors. Changing a single formula in a widely distributed report can have significant consequences, causing recipients to question the accuracy of the underlying data. They are often seen as a poor choice for running analytics as spreadsheet-based [reports](https://www.financedigest.com/social-media-platform-x-back-up-after-brief-outage-downdetector-shows.html) are out of date almost as soon as they’re created. To ensure accuracy, they must be updated frequently, which can increase version [control issues and makes it more difficult to keep data](https://www.financedigest.com/dollar-buoyant-as-robust-u-s-data-keep-fed-hawks-in-control.html "Dollar buoyant as robust U.S. data keep Fed hawks in control") in-sync. While spreadsheets may be a feasible option amongst small, early-stage businesses, there are a multitude of ERP options to overcome reliance on them as [operations grow and there is more data to manage](https://www.financedigest.com/synapse-appoints-new-finance-and-operations-manager-to-support-the-rapid-growth-of-the-business.html "Synapse appoints new Finance and Operations Manager to support the rapid growth of the business").

2. **Is data accessible?**

The ability to combine data elements in [unique ways](https://www.financedigest.com/5-unique-ways-to-go-greener-in-the-office.html "5 unique ways to go greener in the office") is one of the great benefits to having the right tools in place. For example, having access to the right tools would allow you to bring together financial, production and [organisational data](https://www.financedigest.com/can-financial-services-organisations-harness-data-and-bi-to-catch-up-in-the-digitalisation-race.html "Can financial services organisations harness data and BI to catch up in the digitalisation race?  ") to evaluate the cost of producing a given product at one location versus another. However, this may not be possible if your [business](https://www.financedigest.com/how-to-start-a-business-in-louisiana.html) is using separate systems or spreadsheets, or even the wrong ERP system. For instance, your [analytics solution may only have access to financial data](https://www.financedigest.com/big-data-analytics-fraud-prevention-in-the-financial-sector.html "BIG DATA, ANALYTICS & FRAUD PREVENTION IN THE FINANCIAL SECTOR"), but not project management details because the two modules have different architectures.

An ERP system with a single database makes it easy to provide centralised access to [data from different departments](https://www.financedigest.com/data-analytics-scenario-planning-and-the-finance-department.html "Data analytics, scenario planning, and the finance department"). If [information is being captured within the system](https://www.financedigest.com/the-radiology-information-systems-market-shall-be-growing-unabatedly-in-the-future.html "The Radiology Information Systems Market shall be growing unabatedly in the future"), it will easily become available for different teams to analyse and draw insights from.

3. **Are reports flexible?**

ERP and accounting software providers usually offer an array of pre-formatted reporting templates that can be used to [create financial](https://www.financedigest.com/how-to-create-financial-goals-for-your-business-in-2021.html "How To Create Financial Goals For Your Business In 2021") statements and other standard [reports.](https://www.financedigest.com/social-media-platform-x-back-up-after-brief-outage-downdetector-shows.html) This helps [save time and money](https://www.financedigest.com/money-saving-hacks.html "Money saving hacks") by eliminating the need to create frequently used reports from scratch.

However, a format that works for one company doesn’t necessarily work for others. Having a set of predefined reports can be useful, but financial statements, for instance, [need to be easily tailored by employees to present data](https://www.financedigest.com/why-finance-teams-need-to-go-beyond-numbers-to-an-active-relationship-with-data.html "Why finance teams need to go beyond numbers to an active relationship with data ") in various ways for different stakeholders. For example, [business leaders](https://www.financedigest.com/how-business-leaders-can-support-the-mental-health-and-wellbeing-of-their-workforce.html "How business leaders can support the mental health and wellbeing of their workforce") may be satisfied with a summarised income statement, but departmental heads could require more detailed information. More often than not, changing the layout or including additional [data elements on a report can be complex](https://www.financedigest.com/tackling-the-complexity-of-data-within-financial-organisations.html "Tackling the complexity of data within financial organisations") and time-consuming.

Creating ad-hoc reports traditionally required a level of technical expertise that few staff possessed, but modern ERP systems offer flexibility that can help overcome the labour-intense [ways of manipulating data](https://www.financedigest.com/three-ways-the-data-cloud-can-keep-financial-services-competitive.html "Three Ways the Data Cloud Can Keep Financial Services Competitive") into certain formats.

4. **Is your KPI monitoring restricted?**

Key performance indicators (KPIs) allow [managers to see how their team is performing](https://www.financedigest.com/goodbye-excel-spreadsheets-hello-performance-management-tools.html "Goodbye excel spreadsheets, hello performance management tools") against objectives, helping organisations focus on achieving specific goals and informing everyone if performance is falling below targets. You can’t manage what you can’t measure, so having the right KPIs is essential.

Most software packages come with industry specific KPIs built-in, but to be effective, KPIs must be matched to the specific [business model](https://www.financedigest.com/7-factors-to-consider-before-your-business-moves-to-a-subscription-model.html "7 Factors to Consider Before Your Business Moves to a Subscription Model") and objectives of the company by the users themselves. No two organisations are the same, and some software providers overlook this, assuming that a handful of standard KPIs are all that any [business needs](https://www.financedigest.com/financial-records-retention-what-do-businesses-need-to-know.html "Financial records retention: what do businesses need to know?"). The right system will allow for a level of flexibility that ensures everyone in the [organisation is working](https://www.financedigest.com/uk-based-bitfount-raises-5m-seed-to-streamline-collaboration-between-organisations-working-with-sensitive-datasets.html "UK-based Bitfount raises M seed to streamline collaboration between organisations working with sensitive datasets.") towards the same objectives.

5. **Can dashboards be tailored?**

Linked to these KPIs are dashboards, which play an [important role in giving employees](https://www.financedigest.com/why-is-employee-reward-and-recognition-so-important.html "Why is employee reward and recognition so important?") visibility into the organisation’s goals, while linking KPIs to what they can control in their specific role. In addition to displaying KPIs, they help individuals stay focused by alerting them to issues that need to be [addressed](https://www.financedigest.com/if-the-nation-backs-fintech-we-need-to-address-a-few-things.html "If the nation backs FinTech, we need to address a few things") or tasks that need completion.

However, dashboards that are one-dimensional are often more of a hindrance than a help and are unlikely to provide [insights and efficiencies to help respond to business](https://www.financedigest.com/how-giving-insights-into-card-spend-can-help-organisations-to-manage-their-business.html "How giving insights into card spend can help organisations to manage their business") needs. Fortunately, when used correctly, dashboards can increase efficiency by making it easy to access important information straight away, so time isn’t [wasted searching](https://www.financedigest.com/paid-search-advertising-how-to-identify-wasted-spending.html "Paid search advertising: how to identify wasted spending") for reports or frequently used features. This also eliminates users being overwhelmed or bombarded by irrelevant [data outside of their job](https://www.financedigest.com/asian-stocks-edge-up-before-u-s-jobs-data-defying-wall-street-selloff.html "Asian stocks edge up before U.S. jobs data, defying Wall Street selloff") requirements.

**Is it time to up your [financial analytics](https://www.financedigest.com/4-ways-high-performance-analytics-powers-financial-services.html "4 ways high-performance analytics powers financial services") and reporting game?**

To take full advantage of data, companies need analytics that add [business value and reporting](https://www.financedigest.com/local-government-business-support-getting-worse-report-shows-as-70-of-uk-firms-say-its-not-good-enough.html "Local government business support getting worse, report shows, as 70% of UK firms say it’s not good enough") that is meaningful and insightful. While many software providers offer these tools, not all systems are created equal. Choosing the wrong solution that has isolated data and is not easy for employees to [quickly make changes](https://www.financedigest.com/seeking-right-tone-new-uk-pm-truss-had-to-quickly-change-gear-for-queen.html "Seeking right tone, new UK PM Truss had to quickly change gear for queen") themselves, can severely limit an organisation’s ability to take advantage of their data. Alternatively, selecting the right solution will deliver a level of flexibility and reassurance that the right data is getting to the right people, at the right time. Ask yourself these five questions to see if there is room for improvement.


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