Why AI is a game-changer for real-time business intelligence and accounting
Anders Liu-Lindberg
Leading advisor to senior Finance and FP&A leaders on creating impact through business partnering | Interim | VP Finance | Business Finance
Real-time BI and accounting have been around for several years but developments in artificial intelligence (AI) have taken it to a whole new level. In this blog, we’ll learn about real-time accounting for business intelligence and the benefits it could bring to your business.
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Automate the mundane to maximize the value-added service of Finance
The difference between legacy accounting methods and real-time accounting enabling technologies is like the difference between an FM radio and the Internet.?
In a nutshell, it means saying goodbye to monotonous manual data entry
Imagine a scenario where your books are kept automatically updated at all times.?
Now imagine having that data presented in an easily accessible dashboard where the entire company has access to view all the key metrics and insights.?
Wonderful to play make-believe for a while, isn't it? Well, it’s actually real.?
What is real-time business intelligence and what are the benefits?
Being able to analyze and deliver data, information, and insights as events and situations unfold, instead of having to analyze them only after they’ve already happened, allows businesses to make decisions based on what is happening at the moment, rather than having to do it based solely on historical data
It’s like a sports coach or team manager being able to access data on their player’s performance levels, physical status, and psychological approach to the game while the play is in motion, rather than having to wait until a break in the game to make changes or decisions. It’s the speed of thought leading to the speed of action.?
Real-time reporting
How does real-time accounting compare with traditional accounting??
It really is the polar opposite of traditional accounting, which (especially in comparison to the solutions available today) leads to slow processes of PnL analysis and delays when doing inventory and stock analysis.?
Traditional accounting, whether using a cash basis or the accrual method, is very slow and time-intensive because of manual data collection and entry. It also needs more people-hours to generate the same amount of data when compared with real-time accounting.??
Automation’s huge benefit is as an enabler for your employees, allowing them to unpack the data it creates to make more informed, more accurate decisions that lead to bigger impacts.?
Real-time business intelligence case studies in action: Moving Finance from being data processors to value-adders
Take for instance CloudMargin, one of Fintech’s fastest-growing start-ups. And, as many fast-scaling start-ups know, as it expanded, their finance function felt the pressure to perform.?
Manual data collection and spreadsheet-driven processes stop Finance from digging into the story behind the numbers to add value. Planful is an award-winning cloud-based solution that has a strong track record of helping to automate finance functions with AI.?
To get the most out of data, companies need to analyze it as soon as it is created because that’s when it provides the most effective and relevant insights.
As Ben Blake, Financial Controller at CloudMargin, explained: “Planful shifts my role from processing information to adding value to that information. What also mattered to our leadership was running “what-if” scenarios, and that was troublesome in spreadsheets.?
We couldn’t easily access historical information, couldn’t easily see the impact of a scenario on our cash position, and couldn’t determine how different what-ifs would impact the business.”
By using a cloud-based solution like Planful that can seamlessly access the required data by integrating with CloudMargin’s CRM and online accounting platform, they were able to quickly automate the data flow between the different tech solutions, with a single “source of truth” that included historical data.?
Companies worldwide are reaping the benefits of integrating AI into their accounting systems and business intelligence.
Business leaders need this real-time information to evaluate up-to-the-minute performance, trial new ideas, model competing scenarios, and make future financial predictions. The faster that information is available, the better decisions business leaders can make to guide the company forward.?
Benefits of real-time business intelligence and accounting at a glance
Having an overview of issues or developments as they arise is invaluable and leads to better decision-making and more efficient inventory management.?
Reacting more swiftly to changes by making decisions based on real-time data, rather than waiting for periodic reports, can be particularly valuable in industries where conditions change rapidly, such as stock trading or e-commerce.?
And, for businesses that deal with physical goods, real-time BI can provide the most up-to-date insights into inventory levels, helping prevent stock-outs or overstock situations.
With immediately available insights, businesses can quickly identify and resolve issues, and streamline operations. It also makes identifying short-term opportunities easier.?
Real-time business intelligence also allows insights into current customer behaviors, preferences, and issues.?
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By being able to identify and improve customer experience on the fly you’re setting yourself up for success by being better than your competitors, leading to sales and marketing optimization because you can capitalize on what's working and correct what isn't.?
This also means better risk management. Instant access to data means you can quickly detect and respond to potential threats or irregularities, such as fraudulent activities or operational inefficiencies.
If you’re able to focus on the most important elements of your business, you’re much more likely to improve your return on investment through investing in business intelligence because faster, more actionable insights can lead to better decision-making and subsequently more immediate benefits.
It can also lead to enhanced collaboration between different functions and business areas. Real-time data can be shared among many different teams, each requiring slightly different data points. This leads to a collaborative environment based on evolving priorities as the most current information shapes events.
And, while traditional BI also offers forecasting based on historical data, real-time BI allows for adjustments to forecasts based on current trends and events, potentially making future financial forecasting
Innovation is happening, are you thinking about it?
AI is here to stay and will only get more influential. As we navigate this AI-driven future, businesses and finance professionals need to embrace and adapt to these innovations.?
Thoughtful and strategic adoption will separate future-facing businesses from the pack.
Is your company planning to digitize its finance function with smart AI tools? Let us know how you feel about it and what’s changing in the comments below.
This was the fourth article in our new series "Demystifying AI in Finance & Accounting". Remember to subscribe to catch the upcoming articles and read the previous ones below.
Don't forget to catch our previous series "Welcome to Finance Function 5.0" below.
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Anders Liu-Lindberg?is the co-founder and a partner at?Business Partnering Institute?and the owner of the largest?group dedicated to Finance Business Partnering?on LinkedIn with more than 11,000 members. I have ten years of experience as a business partner at the global transport and logistics company?Maersk. I am the co-author of the book “Create Value as a Finance Business Partner” and a?long-time Finance Blogger?on LinkedIn with 275,000+ followers. I am also an advisory board member at?Born Capital?where I help identify and grow the next big thing in?#CFOTech. Finally, I'm a member of the board of directors at?PACE - Profitability Analytics Center of Excellence?where I support the development of new analytics frameworks that can improve profitability in companies around the world.
Absolutely! ?? Our expertise in #Excel and #PowerBI aligns with the vision of automating finance processes for real-time insights. Say goodbye to manual tasks and hello to efficiency. Let's make the dream of seamless financial management a reality! #FinanceAutomation #DigitalTransformation #DataDriven
QBO Certified Pro-Advisor, XERO Advisor, MSS, M. Com (Accounting), CMA (Final),
1 年Follow me on LinkedIn: www.dhirubhai.net/comm/mynetwork/discovery-see-all?usecase=PEOPLE_FOLLOWS&followMember=m-shafiul-azam-6358b831
Sr. Account Executive
1 年Great Share! Really interesting to read, would also love your take on AI generated forecasting and reporting. (Something that my company has developed and have been getting great results)
A Business Strategist & information management specialist, leader in digital transformation. An advisor on [SOC1 and SOC 2] and AI governance & cybersecurity solutions Advisor [ISO 27001]
1 年I am still to learn more about the transformation process from legacies to contemporary architecture of accounting practices. It is my strongest believe that the transformation can be excellerated through education structures oh higher learning like universities and colleges and of course not excluding accountants bodies through their CPD initiatives
Director - LMS Advisory, Advising SME's on Growth, Strategic Planning, Maximising Profit & Cashflow to M&A or Exit. Financial enabler. Problem Solver. AI/Tech enthusiast | LMS | KeepMyBooks | WihseFP |Cerebiz |
1 年The progress and potential is enormous. There was a time years ago when we'd be discussing financial results 9 months after a financial year had completed, and the reports were outdated as soon as they were presented. This will be a distant memory. Every business owner deserves real time reporting to empower them to make the best decisions they can. Thanks Anders Liu-Lindberg