Four Financial Analytics Benefits Which You Must Know to Make Your Business Grow

Blog | August 3, 2018

Introduction
What is Financial Analytics?
Why is Financial Analytics Important?
Financial Analytics Benefits

Importance of Financial Analytics

Financial Analytics in the Digital Era

Today, analytics has become an essential component for businesses and organizations to stay competitive and relevant. Financial analytics helps businesses understand and interpret their current and past performance, and predict future performance to make better business decisions. Financial analytics software helps in speeding up the creation of reports and enables data presentation through graphs, which are much easier to read and comprehend.

What is Financial Analytics?

The creation of ad hoc analysis or business intelligence analysis that answers specific business questions and helps in predicting financial scenarios is known as financial analysis. It is an essential tool to gauge the financial issues of businesses and work upon them to improve the overall performance of the businesses.

Why is Financial Analytics Important?

Financial analytics is important because of the evolving business models and the emerging and shifting needs of traditional financial departments. Financial analytics also aims at managing and measuring tangible assets, something all organizations must engage in doing. Smart business decisions and minimum financial loss are close principles of financial analytics.

Financial Analytics Benefits

1. Analytics of Customer Profitability

Customer profitability is a method to differentiate between customers that help a business make money viz-a-viz those who cause loss of money. It works on the 80/20 rule which means that 20% of customers cause 80% of the profit and 20% of customers are responsible for 80% of the customer-related costs. It is very important to understand which customer falls into which category. By understanding customer profitability, it becomes easy to extract useful insights from each group of customers.

2. Analytics of Sales Prediction

Predictive sales analytics helps in figuring out the success rate of sales forecasting. This can further help you in improving sales predictions. Sales predictions can be done in several ways like analyzing past trends or analyzing the correlations. Predictive analysis helps you sail through the peaks and troughs of your business.

Contact us to know more about financial analytics and how it can benefit your organization.

3. Analytics of Product Profitability

To stay in the competition, it is very important for the business to locate the area of its profit and loss. Product profitability is a financial analytics tool that paves the way to discover the profitability of an individual product. Which product or service is bringing you revenues is what product profitability analyzes. It is an excellent tool to gain insights across a range of products and to boost profits with time.

4. Analytics of Cash Flow

To have an eye on the health of your business, it is very important to have an eagles eye on the movement of cash in your business. Cash flow analytics uses real-time or retrospective indicators like working capital ratio and the cycle of cash conversion. Consequently, cost flow analytics also helps you keep turning the cogs and increase the flow of cash by prioritizing the needs of customers.

Conclusion

Financial analytics is an essential instrumentthat large and small business owners should use to measure the growth of their business and to make changes in their strategies as required. Financial reports would be more accurate and reliable with the aid of financial analytics.

Speak with Quantzig’s advanced financial analytics experts to know how financial analytics can help your organization stay ahead of the competition and substantially improve its efficiency and profitability.

Request for a FREE proposal now to learn how to harness the true potential of predictive analytics with the help of Quantzig’s advanced financial analytics solutions.

Connect with us

Insights

How Retail Marketing Analytics can help with rise in Sales Margin?

Written By: Sudeshna Ghosh Key Takeaways of Retail Marketing Analytics Introduction to Retail Marketing Analytics The retail industry necessitates innovative strategies to drive growth, enhance customer engagement, and optimize profitability. A compelling case study underscores the transformative impact of Retail Marketing Analytics, wherein a retail client witnessed a remarkable 10% rise in sales margin. The deep […]

Establishing an Effective Vendor Evaluation Framework: Dos and Don’ts

Introduction to Vendor Evaluation Process As the name suggests, vendor evaluation is a basic process of evaluating new and old vendors using a quantifiable approach. It holds a top spot in the agenda of every business irrespective of its sector since businesses have a huge portfolio of suppliers, and it’s essential to gauge their performance […]

Marketing Mix Modeling Helps Client Realize 17% Increase in MROI

Introduction to Marketing Mix Modeling Embark on a transformative journey as we delve into our latest case study, unveiling the triumph of Marketing Mix Modeling that catapulted our client to a phenomenal 17% surge in Marketing Return on Investment (MROI). Witness the strategic prowess of precision marketing strategies, simulation models, and adept utilization of marketing […]

Marketing Data Management: How to Leverage Your Data

The Best Practices of Marketing Data management

How Marketing Analytics for Pharmaceutical Industry Can Increase MROI

Introduction to Marketing Analytics for Pharmaceutical Industry Almost all industries today are making use of advanced data analytics to thrive in a data-driven world. The pharmaceutical industry is no exception. Advanced data analytics is crucial for pharmaceutical testing and analytical services market and pharmaceutical personnel, allowing them to harness the power of both traditional and […]

Ways You Can Optimize Marketing Spend with Marketing Budget Optimization

Written By: Sudeshna Ghosh Key Takeaways for Marketing Budget Optimization Introduction We all know marketing has a significant impact on any company’s website traffic, revenue growth, and brand recognition. For marketers operating with limited funds, optimizing your marketing spend is essential to improve business performance without overspending your marketing dollars. But do you know how to […]