Financial report is very important in every business since it determines the current financial situation of the company and reveals its weaknesses and strengths. Business intelligence is a way to have a timely, accurate and credible business data whenever and wherever you need it. These two are one of the key factors in maintaining a successful business.
Financial reporting as a business requirement
The Bureau of Internal Revenue (BIR) requires every business to keep track of their financial transaction by having Books of Accounts. These include the General Journal, Sales Journal and General Ledger. In a manual accounting system, each transaction should be recorded in the respective books. Data from these books are then summarized in a Balance Sheet and Profit and Loss Statement.
In a computerized accounting system, transactions are entered in the computer while others are done automatically like calculation of interest due, aging of receivables, depreciation and others. The beauty of this type of accounting system is its ability to generate financial statements anytime. This allows you to get a clear view of what’s happening in your business instantly.
However, what if you want to compare dates or let’s say view performances per department or per branch? In a competitive business climate this is also very important and might be the limitation of some computerized accounting systems.
Business Intelligence and Financial Reporting
Once financial reports are generated the next thing you should do is to make sense of those reports, that is to transform them into graphs, charts and comparative data. How well did you perform this year compared to last year? Which product sells better? Did your business meet your targets? All of these questions requires business intelligence.
You can of course use manual computation and preparation of reports but it would take time. The danger of this is you might need that information at a time you need to make an important decision and it might not be readily available,
BI360 for example is a very good example of a business intelligence software. This software pulls your various data from your Enterprise Resource Planning (ERP) or other accounting software and generate custom reports which can be produced and distributed easily. Watch the video below and discover how business intelligence can be immensely useful for your business.
Business intelligence is you tool to really gather and generate all the data you need to get ahed of the competition. Business is like a war thus, never go to war without proper intelligence reports.
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