Real-time financial reporting is essential for decision making
September 9, 2023

It goes without saying that timely and accurate decision-making is crucial for success in business. A survey reported that 92% of companies are investments in real-time analysis and modern data solutions.  This indicates the importance of real-time financial reporting as well as a change towards more-things digital.

Embracing the Data Deluge

Projected to hit a staggering 460 exabytes per day by 2025, the world's data generation represents immense opportunities for businesses. Applications of data span from accelerating business intelligence to informed forecasting and strategic decision-making. However, a pressing question arises: Are businesses effectively tapping into this resource? Are they dismantling data silos within their enterprises to harness data for outcome-oriented decisions? Unfortunately, for numerous financial services organizations, this answer remains elusive. New Vantage Partners indicates that merely 31% of companies are cultivating a "data-driven organization," while a mere 28% foster a "data culture”. Embracing innovative technologies becomes not just advantageous but essential for these organizations, allowing them to harness the potency of data in their decision-making endeavors.

Timely Insights for Rapid Decision-Making

The essence of effective business decisions cannot be overstated. However, a McKinsey Global Survey revealed that only 20% of respondents affirm that their organizations excel in decision-making. Only half assert that decisions are made in a timely manner, with a staggering 61% deeming at least half of decision-making time ineffective. For managers within an average Fortune 500 company, this translates to a loss of over 530,000 days of productive work annually, with labor cost waste amounting to around $250 million per year.

Herein comes real-time financial reporting as a remedy. By facilitating instant access to an organization's financial performance data, it equips decision-makers to respond promptly to market fluctuations, seize opportunities, and navigate unanticipated economic shifts. This agility, in turn, endows businesses with a competitive edge, ensuring they remain at the forefront of their industries.

Enhanced Accuracy and Transparency

Real-time financial reporting brings about a significant leap in data accuracy. The infusion of automation and system integration slashes the chances of errors inherent in manual data handling. Research from the Aberdeen Group spotlights the impact: leading real-time accounting adopters enjoyed a remarkable 24% surge in accuracy for actual-to-budgeted revenue, far outpacing their slower peers. These trail blazers also achieved a staggering 24-fold acceleration in book closure. Moreover, the same survey underscores that 72% of respondents consider real-time reporting pivotal for maintaining compliance, elevating accuracy, and bolstering organizational productivity.

Efficient Resource Allocation and Risk Management

Real-time financial reporting emerges as a guiding compass for resource optimization. Swift identification of overspending or underinvestment zones empowers organizations to promptly recalibrate their budgets. Furthermore, a Varonis report underscores that the finance sector remains a prime target for cyber threats, with an average of 350,000 sensitive files exposed. In this realm, real-time reporting steps in, enhancing risk management by promptly furnishing the data necessary to appraise potential financial hazards. This proactive stance empowers businesses to enact mitigation strategies before problems escalate.

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