Is real-time financial reporting working for your business?

What tools and technology do you use for real-time financial reporting? If your answer includes Excel spreadsheets, you’re (believe it or not) in the majority.

According to the Chartered Accountants ANZ 2024 Technology Research (supported by Phocas), 82% of financial teams still use these manual tools to track financial operations. Only 22% of organisations track financial performance daily, despite the increasing demand for real-time information and data-driven decision-making.

Together, these figures highlight the close connection between how often financial teams can generate reports based on the traditional accounting tools they're using – and the critical role of real-time reporting.

The challenges of manual reporting

Fact: manual processes are time-consuming and prone to errors. But, even though 69% of organisations say human error is their primary concern around maintaining data integrity, spreadsheets are still the most popular way to generate financial statements and management reports.

When you rely on spreadsheets and other manual processes, gathering and consolidating data is often tricky. The result? Outdated and inaccurate reports. This way of working wastes time and hinders strategic planning, budgeting and forecasting – and your bottom line.

The limitations of manual reporting become even more apparent as a business grows. Data scattered across disparate systems bogs down financial teams, which can lead to missed opportunities and delayed responses to market changes.

What is real-time financial reporting?

Real-time financial reporting is achieved with software that integrates financial information from a company’s ERP and other sources into one platform so that the financial reports are always up-to-date. Custom reports and visualizations can be created easily from the numbers enabling people from across the business to track and measure KPIs relevant to their role.

Everyone can explore information in a format that makes sense for your business – from summary numbers to transaction-level data. This means immediate access to the data you need to make proactive, revenue-generating decisions.

The benefits of real-time financial reporting

With real-time financial reporting, you get immediate access to the data you need to make faster, stronger business decisions that align with your business objectives.

Here are some of the many ways real-time reporting can benefit your business:

• Better cash flow management. With real-time data, you can plan for expenses, predict shortfalls, track overdue payments, and make informed decisions about borrowing and investing.
• Improved collaboration. When everybody across the business has access to the same data, it’s easier to collaborate, and there’s less chance of duplicating work.
• Solve problems quickly. When you can assess your financial health in real-time, it’s easier to spot irregularities and address issues before they become problems.
• Increased agility. Change is constant in business. Real-time reporting allows you to seize new market opportunities and drive profitability.

Where does your business rank on the real-time reporting success scale?

To assess if real-time financial reporting is working in your business, here are some metrics to consider:

• Frequency of reporting. How often are you producing financial reports? Are you among the 22% generating reports daily, or are you lagging behind?
• Number of errors. Are manual workflows leading to frequent inaccuracies, or do you have confidence in your data?
• Speed of decision-making. How quickly can your organisation make decisions based on financial data? Does the management team have to wait for reports?
• User adoption. Gauge how well your team embraces reporting tools. This can indicate how easy it is for them to integrate real-time information into their work.
• Strategic outcomes. What is the impact of your financial reporting on business goals? Have you identified cost-saving opportunities or new revenue streams?

The role of accounting software in financial reporting

According to the Chartered Accountants ANZ 2024 Technology Research, 40% of organizations have turned to Business intelligence (BI) software to address the limitations of manual reporting. This software consolidates data from multiple sources and helps stakeholders create comprehensive reports and dashboards offering real-time insights into accounts receivable, accounts payable and sales and product performance.

To show you what that means practically, here's a closer look at how BI software can make real-time reporting more accessible, faster, and more impactful across operational teams.

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While just 7% of respondents in the survey use an all-in-one BI and FPA platform for analysis, financial reporting and financial planning – there are many benefits of also using the consolidated data platform for these important tasks because then all your reporting systems, budgeting and forecasting is all connected and accessible to different parts of an organization.

Dynamic financial statements

In a cloud based BI and FP&A platform, it is also super easy to create income statements (profit and loss), balance sheets, and cash flow statements with just a few clicks using the financial statement software in the platform – no Excel spreadsheets or manual manipulation required. You automatically blend financial metrics and operational data in an intuitive financial management environment.

Self-serve reporting

Teams can also quickly analyze the data in real-time to make quick, informed decisions with on-demand reporting. This relieves pressure on financial teams, meaning they can focus on value-add tasks like trend analysis.

Drive growth with sales analytics and forecasting

Empower your sales and marketing teams with information that helps drive revenue growth and improve sales strategies. Custom dashboards, charts, and graphs turn numbers into actionable insights that help them improve sales performance and achieve their targets. For example, if a product line isn't selling well in a new region, you can adjust your sales strategy to suite a changing business environment.

They can also tap into historical data, seasonal data, current trends, and actual performance data to create accurate sales forecasts by sales rep, region, product, or customer segment.

Use real-time reporting to your advantage

While 79% of accountants surveyed reported being moderately to extremely data-driven, many still struggle or work hard to obtain accurate business performance numbers. Many face issues with data accuracy and downtime, spending up to five hours a week unraveling and cross-checking information. This raises the question: is this really a good use of a professional’s time?

The time for real-time accounting software has come. As data drives business, the more accurate and accessible it is, the greater the capacity and efficiency of your team. This is particularly true for the CFO, finance and IT teams, who are often responsible for data wrangling and consolidation. With the right technology, data automation occurs in real time, allowing everyone to create their own reports.

Phocas software is a robust BI and FP&A platform that centralizes data, speeds up financial reporting, and delivers powerful insights to guide better decision-making. It integrates seamlessly with many ERP systems and is easy to use.

Sam Moss, Chief Operating Officer at Quality Bearings Online, a Phocas customer in England, says, “We needed something intuitive that didn’t require a lot of training and allowed us to perform ad hoc analysis."

“With Phocas, when we’re in a live meeting and want to validate someone’s instincts or intuition, we can quickly check the data or drill down on financial transactions. It’s like VAR in sports (when done well)—it literally takes 10 seconds, and we can all move on,” Sam explains.

Real-time financial reporting software keeps you competitive and responsive. In an era where financial insights drive decisions, the benefits are too valuable to ignore.