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How to improve your business with real time financial data management

Real-time data is a type of information which will be delivered immediately after being gathered. You can imagine this situation. You purchase an ice-cream box on a scorching day. As soon as you pay cash and the clerk finishes your payment process, your purchase will be delivered to the company’s account software. It is considered to be sales revenue.

The definition of real-time data

Real-time data is a type of information which will be delivered immediately after being gathered. You can imagine this situation. You purchase an ice-cream box on a scorching day. As soon as you pay cash and the clerk finishes your payment process, your purchase will be delivered to the company’s account software. It is considered to be sales revenue.

The company’s accounting specialist can click on your purchase and view all of your necessary transaction data. Your purchase immediately turns up on their revenue figures. Everything takes place in real time.

Real-time data is a strategic point.

Data and analytics are defined as the key of a company’s digitization and transformation efforts. Many financial as well as accounting systems, together with other business solutions, are taking advantage of the advantages provided by real time data.

The reason for this is that it comes with an immense impact on a company’s performance. For accounting teams and management, they can take a look at how their company is working at any time. Coming with a high level of financial visibility, they can generate decisions quicker, which promotes them to be more competitive on the market. Let’s see how real-time financial data should be implemented in your company.

Advantages of real-time financial data

a. Learn your business performance

First and foremost, real-time data can allow you to know how your company is working in a granular and a global view at any time you want.

According to your system’s level of detail and tracking, you may distribute your business into such elements as location, department, project, client, vendor and so on. You can assess how each of these factors is contributing to your company and how it influences on the success of your operation. You should also make a comparison between the elements this year and those of last year in order to understanding your business operation better.

b. Recognize fraud and mistakes more quickly

Due to the fact that transactions are made immediately, you can realize errors and any suspicious activity earlier. You will know when account balances are not lining up. If a payment is made in correctly, you would know what to do next immediately.

It may be pinpointing error behavior to minimize damage while refining your internal controls. With a lot of data flowing into your system in real time, you should be capable of accelerating your bank reconciliations and monthly closes.

What is more, there are fewer data mistakes to be witnessed. If they take place, you can detect and fix them in a timely manner.

c. Advance the accuracy of your business predictions, forecasts and goals

As you have captured the latest and the correct data, you can leverage it to set your business goals according to historical facts. You may begin to become more confident in your financial system.

What is more, this kind of data can also be utilized to set realistic goals for your future. You can take a look at your company’s performance, take note of the trends to establish a plan for your development. Also, you can change when you capture data in real time on a daily, weekly or monthly basis so that you can increase your profit, open new branches or just advance the effectiveness of your projects or products.

d. Make use of updated reporting

Every financial system’s reporting abilities are different. However, with real-time data, your financial reports will let you see your current position now. There is no need to look forward to a particular moment to pass your reports.

Also, there is no need to wait for another piece of data to complete your report. Everything can be made simpler in order to save time offering information to major stakeholders. The reporting process is now much easier than what you may think it would be. Last but not least, real-time data means less manual data entry.

e. Establish strategic business decisions

All the advantages of real-time data will tie into an overarching theme which more data results in more insights. Insights also result in a heightened ability to generate decisions for the development of your company.

As you can get the information regarding your operation, the changes you have made, your difficulties and challenges, what has taken you back or what is operating well, you would know what you are going to do this year. You can not use the data of the previous year to make plans for this year.

You are taking advantage of real-time financials, made on the base of historical data, to make decisions. You can think of future and connect what you have already known about your company with the outside environment.

It would be a convenient solution to manage your organization and people into a more competitive market. For instance, when the systems are linked to the Sage Intacct, all your business transactions will move to show you how your operation is doing. You can utilize its predefined dimensions such as location or class to see reports reflecting your business.

In addition, you are not just limited to financial data. You can pull operational data to get the whole view of your enterprise. It is reporting capabilities to bring about more flexibility and deeper insights every time you sign in.

As you are checking your existing financial system or discovering others, you should focus on each system’s real-time abilities such as how it will gather data, how much data it would pull in and hot it is shown.

You may need to export and import data regularly or set up connections to your business applications. With real-time data and a financial system, you can get a lot of advantages if its capabilities are more robust. You can save a lot of time for your accounting team and let the executives of your company to make strategic business decisions. It’s time to start with financial data management in real time.

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