The Role of Business Intelligence in Finance Transformation

10/13/2020 Many businesses use productivity tools and collaborative software to automate and streamline their tasks and internal processes. Those technological solutions simplify the way we do things and help us in managing various business aspects while also ensuring greater accuracy, speed, and ease. Additionally, they enable better communication and collaboration among several departments within an organization, including customer service, sales and marketing, HR, and more.

Due to the need for managing company numbers and figures in an accurate and organized manner, in many organizations, finance has seen a drastic change with the adoption of such software solutions. Beyond record-keeping, accounting, and preparing payroll, with technology adoption and business intelligence solutions, finance has evolved to take on a more significant role in running a business or managing organization efficiently.

Gain Insights into Business Intelligence

Business intelligence refers to the use of technology solutions that help businesses to collect, sort, and analyze they generate, thereby turning them into useful insights. The resulting information helps the management to make informed decisions that are backed by accurate data. BI enables businesses to understand and uncover the hidden patterns and trends, allowing leaders to respond accordingly to what the data is telling us.

The decisions made by businesses determine their success or failure. Fortunately, BI solutions provide decision-makers with accurate and timely information to make effective strategies and carry out planned activities. You might be wondering who in an organization has the responsibility to manage and take control of BI operations. As the IT department handles and processes corporate data, you may be thinking that it falls into their domain.

However, as businesses and organizational roles are evolving, the management experts are beginning to realize that the business intelligence software belongs to the finance team. Many organizations are already starting to put this into practice.

Finance leaders Taking on a Prominent Role

Due to the ever-changing landscape and increasing financial responsibilities, the chief financial officers (CFOs) are finding themselves in the corporate board meetings. Apart from record-keeping, financial planning, and managing corporate financial risks, CFOs are now also in charge of data analysis. Until recently, the CFO assisted the COO and CIO in their responsibilities. CFOs are undertaking even specific activities relating to operations as well as information technology.

According to the research by an executive recruitment firm Crist Kolder Associates, only 33% of Fortune 500 and S&P 500 companies still have COOs, compared to 45% in the year 2000. As core corporate responsibilities get split between the CEO and CFO, this trend of shrinking COO's count will continue.

A Critical Role of CFO and Finance

With the increase in competition, risks, and challenges in running a business, there is a growing need for a robust finance team and a dynamic leader heading it. Such a financial gatekeeper, having access to and the ability to process data generated by various departments, can report the board on the performance and overall health of an organization. With a clear understanding of different units within an organization, the CFO is more suited to lead the integration of information, data, and technology across the departments. Additionally, BI tools enable finance to collect and analyze the data and create an overview of entire corporate processes.

Moreover, the finance team can use business intelligence to make sense of what's happening within and outside the organization, helping the management to make strategic decisions. CFOs take ownership of making the best use of business data and financial reports to help the company runs more effectively and efficiently.

With the collection and consolidation of financial and operational data from across various departments and units in an organization, business intelligence tools transform finance and enable managers to make informed decisions.

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HostBooks Inc.

To manage business accounting data as well as financial data in a more cutting edge manner, HostBooks comes with the following highlighted features.To maintain financial transaction records, there would not be any requirement of manual intervention as HostBooks automates the process. To a large e…