The vast majority (87%) of finance leaders use finance data analytics, according to the American Productivity & Quality Center (APQC) 2024 Financial Priorities Survey. This single statistic appears to be good news, as it paints a picture of a cohort of tech-savvy professionals with a willingness to understand and act on the latest information.
Dig a little deeper, though, and this encouraging statistic looks less impressive: The survey also shows that 39% of finance leaders are still relying on Excel. While Excel was a truly game-changing technology when it emerged in 1985, it has become an aging utility in a world of quickly evolving and impressive new data analytics tools.
It’s time to address and change manual processes with Excel alternatives
Many CFOs and finance leaders may feel overwhelmed at the idea of making a change to long-held processes. Rather than exploring new ways of operating, they continue to update charts and graphs manually, visualizing data through Excel charts and graphs that can be varied in only a single dimension.
In contrast, the latest data visualization tools can be adapted to a user’s needs, incorporating two or more variables at a time. The best platforms also have dynamic dashboards, and some can be updated on the fly.
When it comes to identifying and deploying more sophisticated finance tools, many of today’s leaders appear ready for a change. Specifically, 60% of finance leaders surveyed by APQC said that “finance function process improvement” is a focus for 2024. What’s more, over half (55%) said that they plan to focus on cash flow management.
How data analytics tools can boost financial accuracy and improve O2C
The APQC study notes that creating “accurate financial forecasts” and providing an “accurate view of key performance indicators (KPIs)” are the two top use cases for data analytics—at 78% and 69% respectively. As for the biggest gains from a more robust data management solution? Accounts receivable (AR) professionals can realize notable improvements to the order-to-cash (O2C) cycle.
When respondents were asked which actions their organizations take to manage and increase cash flow, the leading answer was “decrease spending/expenses” at 35%. Having a stronger data management solution not only lets AR professionals manage processes more efficiently and effectively; when these tools are part of the mix, they offer an AR team a clearer line of sight into their own businesses.
For instance, with Billtrust Cash Application’s User Access Audit module, leaders can pull data from different sources to gain a single, comprehensive view of their full payment picture. Thanks to customizable dashboards, predictive reports, and drilldown capabilities for deeper analysis, Billtrust’s data analytics can provide real-time insights when receivables inquiries arise.
Benefits of visualizing data in a new way
A robust data management solution often furnishes deluxe data visualization capabilities. Think easily updatable tools with dynamic dashboards that can also help uncover correlations between various aspects of data by letting a user visualize two or more variables at a time.
Looks matter, too. A new generation of data-analytics tools are sensitive to aesthetics as well as functionality; some are even designed by graphic artists to help users interact with data better.
Strikingly, the top reason that respondents to the APCQ survey said they use data visualizations is to improve storytelling within financial reports. If a picture is worth a thousand words, forward-thinking finance leaders are starting to realize that clear and compelling graphics may be invaluable.
Read more about Billtrust Cash Application’s robust reporting capabilities and insights.
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FAQs
Data analytics tools offer advanced features such as dynamic dashboards, multi-variable visualizations, and real-time updates, which Excel lacks. These tools enhance financial accuracy, improve decision-making, and streamline processes, making them superior to Excel for modern finance teams.
Excel, while powerful, is limited by its manual processes, single-dimensional charts, and lack of real-time data integration. These limitations can lead to inefficiencies, errors, and outdated insights, which are critical drawbacks in a fast-paced financial environment.
Data analytics tools provide comprehensive insights into the O2C cycle by offering predictive reports, customizable dashboards, and drilldown capabilities. These features help accounts receivable professionals manage cash flow more effectively and identify areas for process improvement.
Dynamic dashboards allow users to visualize multiple variables simultaneously, update data in real-time, and uncover correlations between different data sets. This flexibility and depth of analysis are crucial for making informed financial decisions and improving overall business performance.
Data visualization tools improve financial reporting by creating clear, compelling graphics that enhance storytelling. These tools help finance leaders communicate complex data more effectively, making it easier to identify trends, make predictions, and present insights to stakeholders.