Role of Analytics in Finance & Accounts Function

Marc Lessem - Senior Executive Director, Nexdigm, begins the webinar by talking about the changing role of the Finance and Accounts (F&A) function along with a brief of how they have evolved over the years. He then discusses the common challenges that the F&A teams face, how important it is to have a strong foundational team, and the roles that people, processes, and technology play in meeting its long-term goals.

Marc talks about the application of analytics in F&A with a few examples and the four essential steps that any F&A organization must take.

Then, the panelists were asked to talk about how the analytics journey for any F&A function begins. To this, Vikram Lalwani - Senior Manager, Nexdigm, about the primary tactical areas where analytics can improve the F&A process and how switching from excel to using a bi tool can help release bandwidth for the F&A professionals. Next, the panelists were asked which factors must be considered to ensure seamless execution of all functional areas. Here, Mehul Shah –Special Adviser, Corporate Initiatives, Nexdigm, answers by first talking about why any organization would consider implementing analytics. He then talks about how KPI is one such important factor in evaluating a seamless execution process. Improving KPIs is a direct indicator of a successful process. He also sheds light on how important the interpretation of data is and how it goes a long way in ensuring the success of any process.

Vikram then adds to the above points by highlighting the importance of clean and accurate data. He talks about how misleading and inefficient it can be to receive data that contain errors.

While discussing the business value that F&A leaders can derive by implementing analytics, Mehul mentions that analytics improve the overall internal processes, can improve fraud control, and can be used to double-check internal data. He further adds by talking about the different ways analytics can help improve the deliverables of any F&A function.

The panelists then spoke about the estimated cost and duration of implementing analytics in any F&A function, whether the same needs to be implemented entirely in-house, and whether there is room to outsource some of the analytics work. The panelists also discussed the need to know how to code for the F&A team to use and interpret the analytics data and the factors to build an efficient F&A function.

Vikram makes an important point that highlights the presence of a learning curve. When it comes to data interpretation, it is a continuous process that is not black and white. There is a lot of judgment based on experience, so it is important to learn from it continually.

In conclusion, just like it is important to use the analytics data, it is equally important to have the eye to interpret it. Furthermore, the way the experts read between the lines of the analytics data and how they make use of their respective judgments adds true business value to an F&A function. An organization must not solely rely on data but should use it only as a tool to meet its long-term goals and vision.