Why Being Data-Driven is Key for CFOs
In today’s business landscape, CFOs are increasingly expected to drive growth while maintaining a holistic view of business performance. Data-driven financial leadership not only empowers teams but also provides the entire organization with access to critical analysis and insights for informed decision-making in real time—securely and efficiently.
A recent white paper, 9 Emerging Trends for the Futurist CFO, reveals that over 50% of the trends impacting CFOs over the next few years center around data and reporting. Leveraging data for strategic decision-making is no longer a luxury but a necessity for modern CFOs.
Key Challenges for CFOs in 2024: Insights from Microsoft Copilot
When asked about the top three challenges CFOs of small and medium-sized businesses (SMBs) face in 2024 that can be improved with better internal reporting, Microsoft Copilot offers the following insights:
Economic Uncertainty: With the fluctuating global economy, CFOs must make swift, informed decisions. Comprehensive financial reports provide valuable insights into market trends, improving forecasting and planning accuracy.
Cost Management: Maintaining profitability requires CFOs to control costs effectively. Internal reports help identify inefficiencies, enabling CFOs to implement cost-saving measures without compromising quality.
Performance Measurement: Tracking departmental and project performance is crucial for long-term strategy. Internal reports provide data on key performance indicators (KPIs), supporting data-driven decisions and helping organizations stay on track.
But how can CFOs turn this into practical, day-to-day strategies for making their teams more data-driven? Enter the BI Triangle—a framework for breaking down analytics scenarios into tangible tasks, supported by the right tools.
The BI Triangle: Mapping Analytics Scenarios to Tools
CFOs often face the challenge of accessing, analyzing, and presenting data in formats that meet their specific needs. Different scenarios call for different tools, and Microsoft Dynamics 365 Business Central offers a versatile set of analytics solutions to suit any finance leader’s preference.
The “BI Triangle” is comprised of four primary analytics tools:
Microsoft Power BI Finance Reports: Pre-built, customizable reports with rich semantic models and interactive visualizations. These reports offer a deep dive into finance KPIs, allow for custom dashboard creation, and provide shareable insights.
Financial Reporting: A no-code solution for creating specialized financial statements with the exact look and format desired.
Ad-hoc Data Analysis: A flexible tool for grouping, filtering, and pivoting data directly in Business Central, providing in-depth analysis not covered by standard reports.
Excel Finance Reports: Pre-built Excel templates allow finance professionals to manipulate and analyze data with the powerful capabilities of Excel, including formulas, charts, and data visualizations.
With this BI Triangle, CFOs can choose the right tool for each scenario and seamlessly switch between them, as they all integrate with Business Central’s shared data sources.
Power BI: New Reports to Analyze Your Business Data
One of the key benefits of Power BI is access to a robust set of new and improved reports for Business Central, covering critical business areas like finance, sales, inventory, and projects. Power BI’s flexibility allows CFOs to access these insights from any device—whether at the office, on the go, or working remotely. The upcoming 2024 release wave 2 will introduce over 70 new reports to enhance your analytics capabilities across the board.
Tracking KPIs and Staying Alert in Microsoft Teams
With Power BI, creating and tracking finance KPIs is simple. Set metrics based on any number from your reports, establish thresholds, and monitor changes over time. Integrating Power BI with Microsoft Teams allows you to receive alerts when these KPIs hit critical thresholds, ensuring swift action when financial targets are missed.
Executive Summaries with Power BI Copilot
Need an executive summary of your financial performance? Power BI’s Copilot uses AI-driven natural language processing to provide quick, detailed insights. Simply ask questions like, “What was my net income last quarter?” or “How does my cash flow compare to last year?” Copilot generates clear, concise answers, often in the form of charts, tables, or even full executive summaries.
Additional Business Central Analytics Tools for CFOs
Business Central’s analytics suite extends beyond Power BI to offer various tools that empower CFOs to make strategic, data-driven decisions:
No-code Financial Reporting: Coming in 2024, this feature enables CFOs to create and customize financial statements such as balance sheets, income statements, and cash flow statements using a user-friendly interface.
Copilot in Dynamics 365 Business Central Analysis Assist: An AI-powered assistant that helps you analyze finance data through natural language, identifying trends and providing actionable insights.
Excel Finance Reports: Use out-of-the-box Excel reports to manipulate and present your finance data in your familiar tool of choice. Excel remains a favorite among finance professionals for its flexibility in calculations and data presentation.
Unlock the Full Potential of Analytics in Dynamics 365 Business Central
As the CFO role evolves, the ability to harness data for strategic decision-making becomes ever more essential. Microsoft Dynamics 365 Business Central offers a powerful set of analytics tools, allowing finance leaders to make informed decisions, optimize performance, and drive growth. Whether you need quick insights, in-depth analysis, or flexible reporting, Business Central has the tools you need.
Take advantage of cloud and AI capabilities for real-time access to data, and integrate seamlessly with Microsoft products like Teams to collaborate and communicate with ease. With Dynamics 365 Business Central, the future of data-driven finance is here.
