Financial analysis in the computer environment has become an integral part of the profession of economist, accountant, financier. This article will consider the analytical capabilities of the Data Room software.
The financial Data analysis in a Virtual Data Room
Monitoring the movement of financial flows is becoming more and more difficult, it is necessary to constantly take into account many factors. At the same time, the control process itself is more and more a problem of multicriteria optimization. Besides, some participants in financial management may be geographically removed from the main team involved in financial management at the enterprise at different points in time. All this is accompanied by the fact that the requirements for transparency and realism of data on financial flows are becoming more stringent since information about the current state of affairs is used not only to assess the current state of the enterprise but also to predict its future state.
According to visit, today, in international practice, there is a successful experience of transferring critical business functions to the virtual infrastructure, such as accounting and operational activities, risk management, and information security. In this case, Virtual Data Room is used.
The use of virtual technology increases the effectiveness of financial analysis. This is achieved by reducing the time of its implementation, the possibility of using a large amount of information about financial and economic activities, reducing errors in calculations, the use of methods of modeling and optimization, almost not implemented manually and by traditional methods.
Financial analysis in a market economy is one of the most important management functions. It is an in-depth, scientifically sound study of economic relations and the movement of resources in a single production and trade process.
How does it work?
The Data Room allows you to solve problems of business plan development, business development design, analysis of investment projects for enterprises of any type and scale. The software provides an analysis of the planned investment activities of the company, allowing you to visually and in detail model its financial operations, ensuring the creation of an adequate financial model of the planned business. Analytical capabilities of the Data Room allow for financial and investment analysis, various comparisons. Besides, you can identify and compare value chains, assess the profitability of customers.
Indicators of the financial condition can be analyzed for the specified period or in the dynamics of a number of months, quarters, or years, as well as compared with the recommended values. The financial Data analysis is carried out not only on the initial values of indicators but also on the basic and chain rates of their growth.
How do companies benefit from using Data Room solutions?
Cloud-based Data Rooms make all financial processes much easier, providing finance departments with new functionalities:
- integration with various digital assistants allows you to receive the necessary information much faster;
- operations ranging from budget requests to reporting will be automated;
- data in spreadsheets will be replaced by information visualization that will be intuitively accessible and easy to use;
- digital technology will make information exchange between departments much easier and will end the use of repositories;
- the company will quickly make effective management decisions based on quality, timely and accurate financial information.
It also should be mentioned, that the use of cloud solutions helps to reduce the barriers to market for innovative companies. Simplified integration between financial and technology sector participants will help reduce transaction costs and increase the transparency of outsourcing schemes, which will increase the speed of adaptation of financial institutions to changing market conditions.