Data analytics technology has become a pillar in modern business. A growing number of companies are utilizing data analytics to improve their operating strategies.
One of the most important functions that data analytics is helping with is finance. Companies are projected to spend just shy of $20 billion on financial analytics services in 2030.
Are youu wondering how your company can benefit from financial analytics? Keep reading to learn more.
Financial Analytics Offers Huge Benefits for Companies of All Sizes
You can do a lot to improve your business’ financial performance by using data analytics. This can greatly impact your ability to hire the best people, maintain staff’s salaries and effectively grow your business.
So while a lot of us are busy focusing on the day-to-day tasks of running a business, there are many things that we can do to boost our business’ financial performance and make it run more effectively. The right data analytics tools can be very valuable.
Here are some financial analytics tools that are worth exploring:
- TrendingView is a financial analytics tool that helps you create useful financial visualizations.
- FactSet Research Management is a financial analytics tool that helps companies take advantage of opportunities more quickly.
- eMoney is a financial analytics tool designed for financial advisors, but your business can try using it as well.
This article will list five fundamental focus areas for a business’ financial performance. You can keep reading to learn how to use financial analytics technology to make the most of them.
1. Chase any outstanding payments
This is extremely important, regardless of whether the payments due are small or large. You always want to ensure that there are clearly stated terms and conditions with the payment due date. You need to pay attention to this whenever contracts are signed for goods and services. It is important to set reminders closer to the time to remind whoever may owe you to pay.
For some businesses, it may be worth investing in certain financial analytics software that takes payments automatically. This can remove the administrative frustrations of chasing the other party for the outstanding amount.
A lot of financial analytics tools make it easier to keep track of outstanding invoices. You can easily mark any billables and use your analytics tools to see the state of payment.
2. Find ways to rearrange expenses
Expenses should be evaluated every month or quarter. You might have standing orders for a service you are paying for that you no longer need for the remainder of the year, so these can be eliminated.
Other expenses that could be changed include shopping around online for the best insurance deals, offering exchanges in goods or services instead of as, or making up for discounted payments.
Finally, if your company is paying for office space through renting, it may be worth adopting a hybrid working model and only using communal workspaces on the days you need to get together. This can help save on expenses, including rent, utility bills, and transport.
Data analytics tools make it easier to take a deep dive into your finances. Some budgeting tools will connect with your bank account and data mine information about your spending habits. You can use this data to make more informed decisions.
3. Offer multiple payment options
“Offering payment options open to customers can open up your business to different markets,” explains David Soffer of financial price comparison, Proper Finance.
“This could include paying in cash, credit, PayPal, or even via stalled payment services such as Klarna. By providing more payment options, this will allow your business to cater to a greater number of potential customers, consequently resulting in more purchases being made.”
“This can help to increase sales and avoid customers going elsewhere.”
4. Make use of Government grants where possible
The UK Government offers many financial grants to businesses, both small and large. This can be a great way to borrow money to invest in infrastructure, talent, and technology to help make your business more efficient and thus consequently improve your financial performance. The Government offers grants to companies that may be interested in pursuing the following; research and development, innovation, exporting, and expansion.
Data mining tools make it a lot easier to find government grants. Some of them can aggregate data from search engines, so you don’t have to manually look for new grants all the time. A full listing of government grants that businesses can apply for can be found here: https://www.gov.uk/business-finance-support.
5. Keep track of your cash flow
One of the most important benefits of financial analytics tools is that they can help manage your cash flow more easily. Trovata and CashAnalytics are two of the best tools for doing this. They can help you resolve many financial issues.
“It is highly important to stay on top of your business’ cash flow,” says Richard Allan of funding startup, Capital Bean.
“This includes monitoring all ingoings and outgoings. This can help you to identify trends, as well as plan ahead for the financial year – working out where to budget, what to sell, as well as which offerings you may need to forgo.”
“Keeping track of your cash flow could simply consist of routinely checking in on expenses every month or quarter but will certainly prove to be beneficial in saving money on certain areas of the business that may not require investment right now.”