Big Data to Continue to Transform Financial Forecasting in 2019
Big Data is only getting bigger as business usage increases and more companies change the way they look at their processes in 2019. A recent Gartner survey found 62 percent of participants have indicated that their management teams have developed plans or initiatives to increase digital practices and 47% have at least been encouraged to pursue an increase in digital practices. More than analyzing buying patterns or customer relationships, Big Data can allow entrepreneurs to improve their financial forecasting and future trends.
Predicting company success and finding potential opportunities is a common goal for any entrepreneur. By leveraging real-time/big data metrics, finance teams can gain valuable insight into trends, improving their ability to take advantage of upcoming opportunities or mitigate risk. When considering the benefits, implementing big data metrics does not have to overcomplicate your existing financial reporting methods.
Utilize the resources you already have in place. Businesses big and small are already housing stores of information in their existing systems, whether through their business or sales management systems. For example, customer relationship management systems hold valuable details about sales, sizing, markets and more than can be referenced across departments. However, all that data means little without the ability to effectively distinguish between what is important and what is just white noise. These details, although large in quantity, can allow forecasts to adjust as events occur if properly utilized.
Don’t be afraid to let go of old technology. The typical Excel spreadsheet forecast focused on historical trends is very limiting when considering how extensive your decision-driving data may be and the way activities affect different parts of your business. These simple documents continue to emphasize the inefficiency of solely using historical data to make future business decisions. By embracing real-time metrics and overall real-time forecasts, entrepreneurs can gain a greater understanding of how specific actions affect their forecasts.
From technology-based accounting solutions to management information, analysis, and reporting, Talley LLP is the premier business consulting firm for entrepreneurs and their closely-held businesses. For more information on how to leverage your business’s data technology, contact Talley today.