Financial analysis pertains to how businesses assess their method and strategy in terms of budgeting, planning, forecasting, monitoring and improving all the details of their financial status.
Learning to understand your business financial status is a basic aspect to cope up with today’s requirement for financial reports.
To prevent risks, these tips will help businesses on their financial analysis and reporting:
• Identify and recognize each financial trend that comes up for assets and liabilities.
• Carefully analyze each event that appears in the financial statements.
• Adjust planned and forecasted figures to know what is happening.
• Always provide regular statements.
If your business financial analysis and reporting will be placed in a micro strategy platform, all activities will be much easier and efficient.
Financial analysis and reporting based on an intelligent application include:
• Budget analysis and budgeting
• Management of the business financial performance
• Analysis of revenues
• Analysis of cost
• Analysis of expenses
• Analysis of cash flows
• Analysis of balance sheets
• Analysis of accounts receivable
• Analysis of accounts payable
• Analysis of billing and invoicing
• Statement of loss and profit
Micro strategy platform has a unique strength that is suited very well to perform even the hardest financial analysis and reporting.
With the help of this method, every financial specialist can have a detailed report, metrics scorecard and interactive dashboards using only a single interface. They can have access to analytics and financial ratios when doing the financial analysis and reporting.
Financial analysis and reporting using micro strategy can answer questions related to finances like:
• If a customer has problems with his payment, who is the one needed to solve this problem?
• In a given date, what can be the value of each liability and asset?
• For every business unit, what is their expense breakdown?
• Which unit is achieving its target?
• In types of revenue, what is trending?
• What are the revenues that are forecasted? Is there any change in this forecast? Why is there a change in the forecast?
• What are the associating trends in the actual figures in margin of profits by any units?
• What are the associating trends in vendors in terms of their cost break down?
• From time to time, what are the changes in cash in term of its position?
• What bills will be due from a certain period of time? How much is its amount?
Many companies heavily rely on their business intelligence just to provide transparency in full scope. The accounting departments of every business or organization have to create information in a quick way and as widely as possible.
To increase the chances of getting high revenues, businesses today also increase the leverage of their business intelligence.
The accounting and finance department of an organization have to deliver quality data about financial analysis in order to improve their financial analysis and reporting. This way, the company can make sure that any discrepancies in their financial report will be avoided.