Power BI for Financial Reporting: New Era of Transformation
6 MIN READFinancial reporting and analysis are complex. Managing massive data is such a task and analytical tools are the savior. Do finance professionals actually find Power BI useful for the finance sector? Among all the available options, Microsoft Power BI and Fabric are some of the most reliable and advantageous solutions with data analytics capabilities.
Microsoft Power BI and Fabric have leveraged business to stay ahead of the curve. Generating a group of financial statements in Power BI is in huge demand. Today, cutting-edge technology is a prominent necessity in a tech-driven world to abstract insights.
This blog aims to demonstrate the tailored solution we have provided on the Power BI. We have explored finance professionals’ challenges and proposed a solution using tools like Power BI for financial reporting.
Key Challenges Faced by Finance Professionals with the Data
For finance professionals, data is their real treasure, from data collection to making the final report out of it, their life revolves around Data wrangling. Generating financial reports out of massive financial data takes a lot of time, and accuracy also gets affected. As a result, Power BI is useful for finance professionals as it saves them from the challenges mentioned here:
- Data Silos: It is one of the most prominent problems finance professionals face in data management. Data Silos are disintegrated and separate data managed by various departments of the organization. Fragmented data is the main cause of inefficiency and leads to dissatisfied customer experience. Big institutions like American Finances and Investments need automation in their data management system.
- Data Accuracy: As mentioned above, fragmented data into various departments are the reasons why resources and time cannot be optimized to the fullest in the finance sector. The only way data accuracy can be improved is by fixing the errors in the data. Power BI for financial analysis is a practical solution as it will save time and ultimately reduce the workload.
- Data Privacy: Data insecurity and poor data management cause operational disruption, reputational damage, and legal challenges. Finance companies are heavily investing in robust and scalable data management systems as data privacy is their top priority.
- Data Scalability: With the growth of Financial organizations, the volume of data also grows massively. A large amount of data gets a bit complex in management, every day there are tons of new financial events taking place, and similar-looking data lack scalability. By optimizing analytical tools like Power BI for financial reporting data scalability can be increased.
Identify what is the solution
The financial sector is heavily dependent on data gathering and storing. Adopting effective data collection, storage, and management systems are the prominent solutions for excellent customer service, strategic decision-making, and competitiveness in the era of technology.
Data Architecture
Businesses heightened the need for digitalization with the surge of comprehensive and analytical methods for their flourishing data. Therefore, flexible architectures are technologies intended to improve query performance and handle unstructured data. Although these challenges are exposed to various challenges, including expensive maintenance, and difficulty in scaling.
Cloud Solution
Dedicated cloud data warehouses and increased use of SaaS solutions have transformed the entire BFSI data structure. Modern data architecture necessitates thinking about whether data should be stored in a traditional database or another technology that is better suited to the use cases.
Data Modeling
There will be many who will wonder why Data modeling is important in the finance sector. Data modeling is the approach of assembling easy-to-understand visuals and layouts of the data to represent the flow. This approach helps organizations organize and arrange data to better understand linkages, patterns, and trends. It enables an organization to use data more efficiently to meet business needs.
Creating a data model using Power BI is possible. It is a fantastic tool that allows us to share files with clients in PDF or PowerPoint format. Users can generate various scenarios based on their choices in Power BI, although it offers fewer capabilities in comparison to Excel. A major benefit of implementing Power BI is the ability to work with massive databases rapidly.
Financial Modeling
What is financial modeling? Financial modeling and Data modeling are excellent approaches in the financial sector. But what differs between these two? Financial modeling is the process of presenting financial data in an Excel sheet to determine future growth and scopes based on previous financial results. This consists of a framework to assist management in making smart choices based on financial reporting.
Learn how Power BI and Fabric work
Understanding the constant interaction with data to extract valuable insights for the customers is an inevitable KPI of financial professionals. Power BI a reporting and analytics tool has been a game changer. It extracts data from various data sources and turns it into BI report formats. This analytical tool is notably aiding businesses in anticipating trends, tracking performance, and making data-driven decisions.
In our previous blog we have explained the recent launch of Fabric by Microsoft makes the data management game top-notch.
Fabric is a complete environment of AI-fueled tools and services on OneLake. Microsoft Power BI and Fabric may seen as similar as these two technologies are data-focused. However, they serve different purposes in the data pipeline. Fabric addresses a wide range of data integration and processing and Power BI focuses on the end-use of your data assets.
Working on Power BI in Microsoft Teams
It is convenient to generate reports using Power BI in Microsoft Teams. It allows users to visually represent any data with the help of Power BI service.
- Firstly, access the Power BI app from Microsoft Teams.
- Then go to Workspace in which you will see the data in the designated file.
- Here in the American Finances and Investments Bank’s data is already categorized in the folder. Managing data with accuracy is certainly a challenge for Finance professionals.
- For Instance: BFSI professionals need a powerful solution to manage data. Power BI and Fabric provide a comprehensive yet consolidated solution for data management.
- Once you click on the file, the interface will open categorizing and segmenting the investment data by Year, Quarter, Month, Week of Month, Symbol, Series, and Day Name.
- Users will have access to review all the categories of the pages such as Quick Market Stats.
- And lastly, the ribbon button in Power BI allows one to extract data and create a report of it.
It simplifies the review of specific data out of a wide range of Financial data. This segmentation has dual benefits; data accuracy and speed. Publishing and sharing the reports with clients and colleagues is now easy with the Power BI service.
Sum Up
Finance professionals and organizations are heavily dependent on the data to make strategic decisions. This data gets increased abruptly within a short span of time and causes challenges in data management. An individual can’t sort the financial data manually and bring efficiency to the work. However, Microsoft Power BI and Fiber are practical and most appropriate solutions for financial reporting and analysis in such cases. Consider how profitable a business could be if a person could do hours of work in a matter of minutes with a single click. Before Power BI for financial statements, you only had a few clients, but now you have more time and clients. These approaches not only prevent burnout but also provide you with new clients and prospects for success.
We at MoreYeahs aim to deliver cutting-edge solutions to businesses. Our teams have seasoned professionals with notable industry expertise in Power BI.
Microsoft Power BI and Fabric are the most promising technologies to get accuracy in reporting.