The Chief Financial Officer (CFO) is the essential backbone of the business, responsible for making crucial decisions based on the inflow of endless quantities of data. This data must be effectively collected, monitored, and analyzed before using it in the decision-making process. The challenge for CFOs is how to efficiently accomplish this task to contribute to the business’s profitability, without losing too much valuable time. Data analytics in the cloud is the answer.
How CFOs Can Handle Big Data
A survey by Protiviti in 2019 revealed that 79% of financial executives believe that enhanced data analytics is a high priority to improve knowledge and capabilities over the next year. The question is, how can CFOs overcome obstacles to making informed decisions using the vast amounts of incoming data?
The answer lies in using data analytics software solutions. This technology can remove the burden of manually sorting through mountains of data and using obsolete spreadsheet programs for critical financial decisions.
Financial Analytics Every Business Needs
According to Forbes, there are six key financial analytics that every business should be using.
- Predictive Sales
Improving sales is the number one goal of every business. This analytic helps determine the accuracy of forecast sales, while also helping to improve future predictions.
- Customer Profitability
Not all customer sales are created equally. You may find a greater amount of sales came from specific groups of customers. For example, perhaps one category of sales is a direct result of a social media post or advertisement online. This data can help determine where to focus on future marketing efforts.
- Product Profitability
Some product sales may be more profitable than others. This analytic can help decide where to focus future product promotions. Conversely, products that are resulting in losses can also be determined and acted upon accordingly.
- Cash Flow
Businesses need cash to run day-to-day operations. CFOs need to keep on top of cash flows in and out of the company to ensure its financial health is stable.
- Value-Driven Analytics
Helps a business reach their goals based on the values of its daily operations.
- Shareholder Values
This analytic examines company shareholders’ returns.
Financial analytic software can accurately measure all the above efficiently.
The Cloud and Data Analytics
Cloud computing — the storage and access of data over the internet instead of in-house computers — has revolutionized how financial information can be harnessed. Using financial analytic software to access data from the cloud, real-time reports can be processed and shared at any time with staff in remote locations. Other benefits to using cloud computing with financial analytic software include:
- Enhanced Security
When it comes to a company’s financial data, there is no such thing as too much security. Cloud computing providers use enhanced security measures to protect company data from breaches.
- Cost-Effective Solution
In addition, computing from the cloud eliminates the expenses of maintaining onsite servers and other computing costs.
- Big Data Storage
Financial data and applications can take up tremendous space on office servers. Storing it in the cloud alleviates this concern while also making it accessible from anywhere at any time.
- Data Accessibility On The Go
The cloud also enables financial professionals to monitor and analyze data from mobile devices when they are not in the office or outside of regular business hours.
The Future of Financial Analytics In the Cloud
Using the cloud with financial analytic software empowers CFOs to have access to real-time data for critical decision-making. Many companies also see immense cost-savings benefits. According to a study by MarketsandMarkets, the finance cloud market size is estimated to grow to $29.47 billion by 2021.
At Helios, our data analysis and cloud computing solutions can help your business achieve its objectives. Contact us for more information on our complete line of data strategy services and plans.