Data is an invaluable resource in the current ever-changing marketplace. As a business owner, knowing how to interpret, consume, and communicate data is an indispensable skill that helps you to come up with informed and strategic decisions. This creates the need to have qualified business data analytics working for you.
The ability to leverage data-driven insights into your decision-making processes is extremely powerful for your business interests. Before we look at how businesses are harnessing the power of data, it is important to understand what business data analytics are and which advisors recommend you analyze and track.
Business analytics is the basic use of math and statistics to find meaning from data to make better business decisions.
Across industries, all data-driven approaches must be employed by business analytics and business tax professionals to make informed business and financial decisions. Only then can your business attain organizational success.
Without these business analytics tools, you would not know which prescriptive analytics, testing, and other strategies you should employ to help determine which outcomes yield the best results.
Below are detailed explanations of the top three business analytics factors your business advisors should track:
If you value data and need to use it to ensure your organization’s success, you will want to get a handle on your firm’s cash position. After all, this is what will determine your ability to purchase business inventory, pay your staff, invest in growth, and cover other expenses.
Without a proper handle on your business’ cash flow, you can spend hours trying to even out your sheets but still won’t get your books to balance. Business analytics drives business planning through continuous iterative exploration. These practices help you understand numbers and the importance of tracking your year-to-date expenses, year-to-date revenue, and other projected revenue and expenses.
You must always be on top of your cash flow to know the most feasible and financially strategic options available to you at all times.
As a savvy business, your current and projected capacity will always determine your ability to meet all your organizational goals and objectives. It’s crucial that you maximize all potential activities and production output under all conditions at all times to ensure your business is 100% efficient and operational.
Business analytics anticipates these situations and analyzes plus interprets data to determine the likelihood of capacity changes and conditions that may influence it.
Factors that may influence capacity changes:
Businesses that execute capacity management poorly may experience diminished revenues due to customer attrition, decreased market share, and unfulfilled orders. As a business, an inability to replenish inventory promptly isn’t good for business.
Your organization’s marketing and sales pipeline can make or break your entire business. This is the stage where you convert your leads into customers. Chiefly, your main revenue comes from your sales pipeline.
Prospects for your future projects are your most valued direct assets and indicator that your business is on the right track. Prospective clients provide you with a visual snapshot of your business’s health and where prospects are in your sales process. Companies that define a formal sales process may record revenue growth of up to 18% more than companies that don’t.
You can always buy capacity on the market. But you cannot buy clients and projects and expect to make sales. The chances are that you will end up with dormant contacts from prospects who will probably never engage with your products or brand.
The importance of business data analytics is now more evident than ever, as more businesses illustrate how powerful these business analytics tools can be in growing and improving your organization’s success. At the individual level, having a deeper understanding of data can improve your decision-making process in the workplace and ensure career advancement and recognition.
Contact BAAP CPA for Business Advisory and Business Data Analytics Services
As a CPA firm in Clearwater, our business tax professionals provide business tax services and business analytics to secure your business’s success. BAAP CPA offers business tax services in Clearwater and is ready to guide your organization through more than just business analytics. We look at the future and find places where your organization can maximize profits at a reduced tax burden. Give us a call today for the best tax advice and business advisory in Clearwater!