# Upgrading the finance department: The benefits of real-time analytics
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2020-10-30
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: The Future of Finance: Embracing Real-Time Analytics for
Meta Description: Discover how modern analytics are revolutionising the finance industry, providing real-time insights and accurate forecasts for better decision-making.
URL: https://financedigest.com/upgrading-the-finance-department-the-benefits-of-real-time-analyticshtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/economy-recovery-6-1736838754631-compressed.jpg)

_By **Andy Campbell,** global solution evangelist at FinancialForce_

Traditionally, accounting has involved looking at past sets of data and metrics, such as KPIs from previous months and years. However, there are flaws in this approach since relying purely on historical data fails to paint the full picture. As such, the [finance department](https://www.financedigest.com/ai-in-the-finance-department-augmenting-not-replacing.html "AI in the finance department: augmenting, not replacing") of yesteryear, driven strictly by accounting functions and compliance, is rapidly disappearing.

What we’re witnessing is the transformation of the core function of finance. It no longer simply generates reports, budgets, and plans: it also works with internal stakeholders and [customers to provide innovative experiences](https://www.financedigest.com/solving-the-customer-experience-conundrum-how-fs-organisations-can-use-data-to-level-up.html "Solving the customer experience conundrum: How FS organisations can use data to level up") and organisation-wide value. This requires a dramatic shift in long-established mindsets along with a new level of visibility and rich, [timely data](https://www.financedigest.com/why-now-is-the-time-for-banks-to-use-their-data-to-support-customers.html "Why now is the time for banks to use their data to support customers"), to help increase agility and redefine business models. As a result, firms are able to make more [effective and impactful](https://www.financedigest.com/the-power-and-impact-of-effective-conversations-in-the-workplace.html "The Power and Impact Of Effective Conversations in the Workplace") decisions and can gain a competitive advantage.

The importance of modern analytics has increased in recent months due to the Covid-19 pandemic, which has caused entire workforces to [work remotely](https://www.financedigest.com/digital-insurance-and-the-remote-working-and-studying-boom.html "Digital insurance and the remote working and studying boom") and placed a magnifying glass over the cracks in existing systems. In this new reality, using new systems, as opposed to antiquated spreadsheets, makes it far easier for individuals to [share data](https://www.financedigest.com/how-data-sharing-can-give-brands-confidence.html "How data sharing can give brands confidence") and information whilst having to work remotely. The use of modern analytics platforms also provides more complete and timely information with which to make [business critical](https://www.financedigest.com/marketing-communications-is-a-business-critical-pillar-now-and-in-a-post-pandemic-future.html "Marketing Communications is a business-critical pillar now – and in a post pandemic future") decisions. The [benefits that financial companies gain through the use of real-time analytics](https://www.financedigest.com/how-crowdsourcing-can-help-drive-the-benefits-of-advanced-analytics-in-financial-services.html "HOW CROWDSOURCING CAN HELP DRIVE THE BENEFITS OF ADVANCED ANALYTICS IN FINANCIAL SERVICES") cannot be understated.

**Create forecasts which provide greater accuracy**

Today’s [business world](https://www.financedigest.com/how-business-leaders-can-adapt-or-replace-covid-related-perks-to-the-post-pandemic-world-while-keeping-employees-on-side.html "How business leaders can adapt or replace Covid related perks to the post-pandemic world while keeping employees on-side") is more fast-paced than it’s ever been, a situation that has been exacerbated by the current crisis. The world changes from day-to-day and even hour-to-hour, meaning that forecasting needs to be done with greater regularity. In a world where a companies’ cashflow position is critical to their survival, the monthly forecasting schedule of old no longer applies and [management by spreadsheet](https://www.financedigest.com/goodbye-excel-spreadsheets-hello-performance-management-tools.html "Goodbye excel spreadsheets, hello performance management tools") isn’t viable.

Modern analytics systems can do far more than traditional spreadsheets ever could. They provide a common, consistent, and timely source of [data that can be shared](https://www.financedigest.com/global-shares-slide-dollar-gains-as-rates-rise-on-strong-data.html "Global shares slide, dollar gains as rates rise on strong data") across the whole organisation. By using real-time analytics, data and metrics can be received and analysed more effectively, [leading to more accurate forecasts](https://www.financedigest.com/covid-19-is-impacting-the-high-speed-steel-market-size-business-revenue-forecast-leading-competitors-and-growth-trends-2031.html "COVID-19 Is Impacting The High Speed Steel Market | Size, Business Revenue Forecast, Leading Competitors And Growth Trends 2031") being developed with the result that the organisation makes better decisions.

Additionally, we cannot simply look to the past. It is imperative that a modern analytical approach is used when [projecting future](https://www.financedigest.com/fluid-coolers-market-by-covid-19-impact-analysis-volume-and-value-revenue-business-opportunity-future-projections-and-key-trends.html "Fluid Coolers Market By Covid-19 Impact Analysis – Volume And Value, Revenue, Business Opportunity, Future Projections, And Key Trends") performance as it provides far greater levels of insight than just looking at what happened before. The beauty of modern analytics solutions, especially those that embrace advanced AI capabilities, is that they are capable of combining past, present and [future information to understand trends](https://www.financedigest.com/predisposition-biomarkers-market-future-trends-segmentation-strategies-to-boost-growth-applications-with-covid-19-impact-till-2028.html "Predisposition Biomarkers Market Future Trends, Segmentation, Strategies to Boost Growth, Applications with Covid-19 Impact till 2028") upon which to act. For example, finance teams can track previous and current levels of [cash flow and revenue](https://www.financedigest.com/xerox-shares-slide-as-annual-revenue-cash-flow-forecasts-take-a-hit.html "Xerox shares slide as annual revenue, cash flow forecasts take a hit") alongside future predictive insights, such as rates of renewal and expansion, thus providing the perfect balance. Adding to this, these solutions include advanced forecasting methods—such as predictive time series models and machine learning—that offer a highly accurate view of [future cash](https://www.financedigest.com/cash-me-if-you-can-the-future-of-contactless-commerce.html "Cash me if you can: The future of contactless commerce") flow.

**Efficiencies and time-saving**

But it is not just about getting the best quality information, it [needs to be in a form that is easy for users to consume](https://www.financedigest.com/money-orders-vs-checks-what-you-need-to-know-as-a-consumer.html "Money Orders vs Checks: What You Need to Know as a Consumer"). Executives and [managers need](https://www.financedigest.com/looking-to-buy-a-rental-property-heres-why-you-need-a-property-manager.html "Looking to Buy a Rental Property? Here’s Why You Need a Property Manager") access to the right information, in the right format, at the right time and ideally, on the right device.

The answer lies in tailored dashboards designed with the user in mind, with [key information](https://www.financedigest.com/golf-apparel-market-key-players-and-production-information-analysis-with-forecast-2031.html "Golf Apparel Market: Key Players and Production Information Analysis with Forecast 2031") highlighted and the ability to focus and drill down for additional details. And by automating the production and distribution of this data not only does this ensure greater adoption, but this also [saves time and increases business](https://www.financedigest.com/how-cloud-computing-saves-businesses-money.html "How cloud computing saves businesses money") efficiencies.

**A 360 view of the** [business and its customers](https://www.financedigest.com/3-reasons-your-business-needs-customer-reviews.html "3 reasons your business needs customer reviews")

Real-time analytics is not just about the speed with which information can be produced. By unifying disparate [data sources](https://www.financedigest.com/exclusive-tiktok-nears-deal-with-oracle-to-store-its-data-sources.html "Exclusive-TikTok nears deal with Oracle to store its data-sources") into one cohesive and visible whole it is possible to provide a richer and more holistic view of the business. For example, a forward looking cashflow forecast will require information concerning [costs and income from a wide variety of sources](https://www.financedigest.com/caixabank-proposes-sector-wide-freeze-in-variable-mortgage-costs-source-says.html "Caixabank proposes sector-wide freeze in variable mortgage costs, source says"). This might include [revenue forecasts](https://www.financedigest.com/covid-19-is-impacting-the-variable-speed-drive-market-size-business-revenue-forecast-leading-competitors-and-growth-trends-2028.html "COVID-19 Is Impacting The Variable Speed Drive Market | Size, Business Revenue Forecast, Leading Competitors And Growth Trends 2028") from sales, invoicing and debt, procurement, payroll, accounts receivable and accounts payable to name but a few. Businesses generate valuable data from all departments and an analytics [platform enables](https://www.financedigest.com/matchly-the-us-fintech-platform-that-enables-employees-to-access-their-401k-employer-match-raises-1-7m-in-pre-seed-round.html "Matchly, the US fintech platform that enables employees to access their 401(k) employer match, raises .7m in Pre-Seed Round") you to look at the data in meaningful ways and uncover insights you can’t get through traditional systems.

By integrating [information from different systems](https://www.financedigest.com/health-care-information-systems-market-growth-set-to-surge-significantly-during-2018-2026.html "Health Care Information Systems Market Growth Set to Surge Significantly during 2018 – 2026"), you can also get a complete view of your customers. You can see patterns [emerge that reveal the health](https://www.financedigest.com/who-declares-end-to-covid-global-health-emergency.html "WHO declares end to COVID global health emergency") of those customers and the profit margin that they deliver. You can then use this insight to better optimise these relationships for mutual benefit. Additionally, the walls between departments can be broken down further by sharing workflows and approval processes, through the use of common [reporting and analytics](https://www.financedigest.com/five-considerations-for-financial-analytics-and-reporting-success.html "Five considerations for financial analytics and reporting success") tools.

This is critical for [service businesses](https://www.financedigest.com/more-companies-investing-heavily-in-business-services-software.html "More Companies Investing Heavily In Business Services Software"), or companies that run a subscription-based model, where customer loyalty and renewals are the difference between a healthy, thriving business and one in the red. Analytics can enable you to understand the behaviour of those customers that continually renew—and the patterns of those who don’t. That information [creates opportunities](https://www.financedigest.com/tire-materials-market-to-create-an-incremental-opportunity-of-us-99-99-bn-by-the-end-of-2028-fmi.html "Tire Materials Market to create an incremental opportunity of US$ 99.99 Bn by the end of 2028 – FMI") to establish what is causing customers churn and what you can do to address the issue. In addition, by understanding the true [cost to serve and establishing the real levels of profitability it is possible to distinguish and prioritise those customers that are the most important](https://www.financedigest.com/german-gas-import-costs-surge-153-in-first-half-as-imports-drop-24.html "German gas import costs surge 153% in first half as imports drop 24%") to retain.

Real-time analytics provides the opportunity for businesses to not only predict [upcoming](https://www.financedigest.com/veterinary-suture-kit-market-will-generate-new-sales-opportunities-in-upcoming-year-says-fact-mr.html "Veterinary Suture Kit Market Will Generate New Sales Opportunities In Upcoming Year, Says Fact.MR") opportunities or roadblocks faster but understand why they exist in the first place. A 360-degree view of your own business and your [customers provides](https://www.financedigest.com/verasity-joins-the-brightcove-marketplace-to-provide-customers-with-proprietary-ad-tech-technology.html "Verasity Joins the Brightcove Marketplace to Provide Customers With Proprietary Ad-Tech Technology") the insights to make genuinely impactful decisions for the benefit of the business. With these benefits realised through these new technologies, the finance function is now capable of synthesising a broader range of information and becoming more influential within the organisation.


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---