Help your business win: Business intelligence importance & how data analytics can be the difference…
The importance of business intelligence cannot be over-estimated for any business owner wanting to improve decision-making and drive better results.
Just like successful sporting teams, having the right data available helps your business win the game.
Take the advent of cloud accounting technology. It’s been great for business because it enables better decision making, if you learn to use it properly.
Hopefully, by the end of this short article you’ll see why you should be using more business intelligence tools in your own business…
The start of the journey with Xero
One of our primary objectives has always been to save time for our clients, so that they have more time to work with us on their business.
So five years ago, we started the journey of helping all clients implement Xero.
We could see how it would save them heaps of time and give them access to their financials anywhere and at any time.
Another real time-saver with Receipt Bank
As the next step in our journey towards greater business intelligence, we then implemented Receipt Bank to automate invoice data entry for clients.
We suspected that this would be a game changer – and we were right. Not having to enter invoice information was awesome and, even better, we could click on a link to actually see the invoice. It was just “wow!”
The amount of time we were saving clients was great because we knew how time-poor business owners were.
If we could save them hours per month, it would mean they’d have more time to work on their business; but work on their business in two ways – strategically and analytically.
Data analytics – another game changer
Access to a Microsoft product called PowerBI has introduced us to using more data analytics.
And, let me tell you, our world has been turned upside down again – in a great way. As an advisory and business coaching firm, this software has been another game changer.
It’s showed us that small and medium businesses now have the opportunity to do what big business has been doing for years: analyse what’s going on in the business from a data perspective to make better decisions.
Pre-data analytics days…
Let me describe a very simple scenario of what used to happen.
Typically, each year we would set a budget for a client:
Sales of $100k for June last year? Let’s target sales of $110k for June this year. That’s a 10 percent increase – but with no real strategy for achieving it.
That was our first mistake.
Just because a business sold $100k last year, it doesn’t mean it will do that again this year: besides, who bought last year and what was sold to them?
These may sound like simple questions but many businesses do not know and their accounting systems don’t report it easily.
Business intelligence importance and how to reap the benefits
True data analytics brings real business intelligence.
And the dashboards we have built for clients allows this by helping them extract all of the information they need from their accounting system in the same report.
One of our clients serves multiple cities. We broke down their sales by territory, by customer, and by product. We then looked at the average dollar sale and the number of invoices issued.
The decision-making that came out of this was amazing. It opened up a great number of opportunities for the business. And we automatically extract all of this data straight out of Xero.
Business is no different to sport. All sports these days have every stat on Earth available to them and now the same level of data is available to every small business.
At Advise, we’re passionate about helping you grow your business using the best technology available. That’s why we’re accountants who help you win and not just keep score!