Understanding the value of a daily financial operating report can make a tremendous difference for a business in terms of efficiency and ability to reach potential customers. Tracking a company’s expenses and revenue every day can give the chief executive and chief financial officers a greater realization of how a business operates and where the company needs to be more cost-efficient.
Merging data and predictive analytics within the reports can further grow the business and make the financial updates an asset that enhances the entire company. Creating a strategy for integrating finances with modern data software can be a tremendous enhancement to a company’s bottom line and make a huge difference moving forward. Daily financial reports reflect what a company has done with its money. Integrating data allows a business to see what it can do with those funds moving forward.
Preparing for what’s next
Predictive analytics combines statistics with data mining software, along with current and historical information from outside the stats, to make analytical-driven predictions about the future. This technology can have a huge impact for a business, especially in the fields of marketing and sales, Inc. magazine explained. Integrating forward-thinking data within a financial report gives a company the chance to anticipate the best way to attract customers.
“Seventy-four percent of businesses that use predictive analytics were able to measure customer profitability.”
Predictive analytics can also help a business stand out from its competitors. By foreseeing trends and having a strong understanding of what consumers are looking for, a company can focus its efforts to better identify the products people want to buy. A study by the Aberdeen Group found that 74 percent of businesses that use predictive analytics were able to measure customer profitability, and 61 percent were able to determine a customer’s lifetime value. This information helps a business moving forward, because it knows who its primary consumer targets are and what they can expect from those people financially down the road.
Giving your business a leg up
Within a daily financial operating report, predictive analytics gives CEOs and CFOs the ability to forecast a company’s overall direction. A stronger understanding of how to better utilize resources will help grow profits in the long term. For sales teams, understanding the specifics of what customers want can make all the difference. High-performing sales teams are 3.5-times more likely to use predictive analytics than their underperforming counterparts, the 2015 State of Sales research report found.
By updating company employees every day on what a business is doing to reach customers and expand sales, a financial report can give plenty more insight to a business’s goals than just a bottom line.