Data is a powerful tool, but you need to know how to harness it. To do that, you need to know what to collect and how to interpret it, and then take action with that information. Making the most of it involves expertise, skills, and software. Financial modeling shows exactly how data can work for your business.
Financial modeling services combine metrics from different areas, including accounts, other financial data, and business requirements. The way those services work is now changing thanks to advances in technology. This article explores how cloud computing can improve the use of modeling for your business.
Financial Modeling – A Crucial Decision-Making Tool
Financial modeling turns data from the past and present into a forecast for the future. You can then use that information to estimate costs and profits for certain projects. Essentially, it’s a decision-making tool that helps you pick your next move. Using a financial modeling service means you can find the right path to growth.
Managing cash flows and financing is key to any new projects or expansion, but there’s risk involved. When you work with a financial modeling consulting team like Acquinoxadvisors, you get access to a financial forecasting & modeling expert. They have industry insights and cutting-edge tools that help you manage the risk.
Sharpening the Tool with Technology
Financial modeling is incredibly useful for gaining insights before you move forward with a project. However, what if that tool could be even better? When updates occur and new features are developed, experts need them immediately. When the software is cloud-based, new services arrive as soon as possible.
User experience is also a key factor. Just because there are experts involved doesn’t mean you should need hours of training to work with a system. Again, technology can help. A cloud-based solution can be accessed from multiple devices and has training and support built in that’s updated regularly.
Cloud Computing and Financial Modeling
Many advisors are now moving their financial modeling services to the cloud. This move means they can work collaboratively with their clients. The modeling process involves significant amounts of data, including sensitive financial information. That’s where technology can step in and improve things.
A system with access controls, enhanced data encryption, and streamlined data management is the ideal answer for the process. Fortunately, all those options exist in one package. Cloud computing prioritizes encryption and ensures that only authorized personnel can access critical data.
Benefits of Cloud-Based Solutions for Financial Modeling
The extra focus on security that comes from cloud computing is a significant benefit. However, it’s not the only one, which is why many companies are moving applications to the cloud. According to an O’Reilly survey, 48% of respondents said they plan to migrate 50% or more of their applications to the cloud over the next year.
When it comes to using software to deliver accurate forecasts, these other benefits make cloud-based solutions a smart choice.
Scalable
Accessing software via the cloud is an excellent way to gain flexibility. The whole purpose of the exercise is growth, so being able to quickly adapt and change your resources as your business changes is essential. You don’t want to end up saddled with rigid systems with functions and features that you don’t need.
Cloud computing is much more scalable. You can add modules and increase capacity, such as the number of users or storage space, whenever you need it. When you don’t, you can reduce and only get and pay for what you need.
Cost-Efficient
There are multiple ways to boost business efficiency, and cloud-based solutions are one of them. Besides the financial modeling fees, you might also be paying to install and use software. If that’s an on-premises program, you’ll face significant upfront investment. Cloud-based solutions, on the other hand, spread the cost over the periods that you use it.
The scalability plays into the cost-effectiveness, as does the fact that it’s all managed by the provider. Plus, you get updates when they’re released without needing to purchase new versions of software. Finally, the reduced amount of downtime and a more reliable service means you’re getting a better deal for your money.
Collaboration
Models require input from several individuals. It’s not just the experts and the company involved but members from various teams, potentially in different locations. Cloud-based financial modeling not only allows for real-time updates, but it means that several people can access and work on the input and interpretation at once.
Analysts and decision-makers need access, and it needs to be seamless. When everyone’s on the same page and can see the same information, then it’s much easier for your company to reach an agreement and move quickly. You also get the advantage of collaborating with machine-learning tools that can quickly respond to changes in the data and form new predictions.
Face the Future on a Firmer Footing
Expanding your business involves taking risks, but what if you could mitigate those risks by using information to inform your next move? It’s possible with financial modeling and the right expertise to guide you. Past patterns and other market data can predict what will happen next.
The power of the process is now being enhanced by technology, like the advances in machine learning and cloud computing. Not only is it now faster and more cost-effective, but it’s also more user-friendly and allows for greater security and collaboration. Choosing this approach means you can face the future and grow your business from a more secure position.