Financial Intelligence
Will be at least four (4) pages (excluding Title and Reference Pages), typed, double-spaced, 12-point and 1” margins, and comply with all of the requirements of APA formatting. Term papers will follow APA formatting/citations and a minimum of four (4) academic references are required. Papers will be based upon relevant, authoritative and current information available from Internet and Library sources to include Wed Links within this course. Term paper must be formatted in Word
Financial Intelligence
Financial Intelligence entails the collecting of financial information and data and comprehending it in terms of capability and nature to enhance the predictions on the intentions. In recent times, technology and innovations have been enhanced automated and specific functions that enhance financial needs to enhance informed decision making. The financial intelligence is effected through software ability different ability that enhances prediction and thus decision making of the financial steps or processes to adopt. In this regard, financial intelligence have the capability to conduct and carry different functions such as matching data currency data, retention or original currency information, translation of currencies, use double-entry accounting logic, retention of interest data, develop time-dependent hierarchies, enhance the management , regulatory and legal roll-up, conduct intercompany matching, eliminations and reconciliations as well as conduct multiple consolidations while considering reporting standards. Financial intelligence gathers financial data and information that is vital in making vital developing predictions and trends using the developed technology and innovations to ensure that the financial world is in a position to make informed financial decisions with great significance.
Financial intelligence and its components
The financial intelligence theory becomes effective upon being transformed into a real to real-world application. In the real world application, executives and employees are in a position to understand and implement different accounting principles (Babu, 2012). In this regard, financial intelligence enables the employees and executives to make informed financial aided by technology and innovations. Under financial intelligence employees and executives that have not been in a position to have formal education will be in a position to understand and apply the basic financial principles. In this case, upon encountering accounting information ensures that the concerned parties use the financial intelligence to adopt the best course of action.
The foundation of financial intelligence is based on the collection of relevant and vital critical data. The decision-makers have the understanding and ability to read basic financial documents such as the balance sheet, cash flow statement and income statement (Babu, 2012). The employees and executives need to understand the differences in the statements, profit, cash and the reasons for the balances experienced in the balance sheet. The understanding of the basic knowledge enables the relevant parties to gather all the relevant information to the financial intelligence system for analysis and assessment.
The art of applying financial intelligence matters to ensure that it gives the rights and appropriate predictions for the decision making process. Effective use of financial intelligence technology ensures that the results and outcome give represent the actual situation on the ground for successful decision making (Goel, 2017). Therefore, the use of financial intelligence uses both art and science to enhance an effective understanding of the economic /financial situation on the ground especially when different assumptions are applied. Therefore, caution needs to be employed to ensure that in the art of using artificial intelligence to reflect the actual situation on the ground.
There is the analysis part of financial intelligence that entails the assessment and Assessment of the financial results to get their actual meaning and financial implication. The financial results indicated under the financial intelligence system and technology are worked on through calculation of liquidity, leverage and profitability existing in the economic environment and situation based on the data input and assumptions applied (Goel, 2017). At this point, the results can enable the different parties’ makes future predictions that will greatly determine the financial direction of an organization.
Additionally, the persons involved in the application and implementation of financial intelligence need to look at the big picture to enhance effective and efficient decision making. One needs to evaluate the predictions made regarding the actual economic and financial environment. This is a vital factor that ensures that effective considerations are made thus certified that the decision made will eventually increase the chances of financial success (Goel, 2017). The decision made and predictions established are implemented in consideration of changing customer needs, regulations, competitors and the economy. This approach ensures that the decision made will fit in the prevailing economic environment thus achieving high financial and economic success bot in the current and future times.
The finance intelligence and beyond entails the act of understanding financial concepts and intelligence competency to gains brads financial information and knowledge. The broad financial knowledge enables the organizations to wade in any financial situation by achieving success or recovering from depressions (Benhayoun et al., 2013). The financial managers and business executives are in a position to look beyond the financial numbers by adopting an analytic eye to enhance the making of informed and effective financial decisions. The business can thus be in a position to identify opportunities and capitalize on them effectively.
Benefits of Financial Intelligence
There are different benefits associated with financial intelligence and improve business operations. First, financial intelligence ensures that business organizations are in a position to survive different financial environments (Kohtamaki and Farmer, 2017). Every business aims at increasing profit and revenue levels but this is not always the case as there are financial challenges and barriers. The financial intelligence is in a position to predict different financial situations and environments that will befall an organization thus enabling it to make efficient preparations. The business takes steps and decisions that will handle prevailing and upcoming financial situations and emerge strong through financial status.
The financial intelligence can further be likened to auditing as the business is in a position to evaluate and analyze different business procedures and processes. In this case, financial intelligence reveals sections that increase profitability or losses (Kohtamaki and Farmer, 2017). The exercise ensures that financial gaps that make the business fail are established thus prompting the business to seal them through adopting appropriate policies and business decisions. On the other hand, intelligence indicates sections that the business needs to put a lot of effort to increase profit since such opportunities are underutilized. This approach ensures that business is always on the right track as weaknesses in businesses are eliminated thus preparing a path for financial success.
Conclusion
Financial intelligence is a vital aspect of any business organization and it gathers business information and knowledge that ensures the making of financial predictions. The financial predictions enable the business leaders in making effective decisions concerning prevailing and future economic conditions. The financial intelligence is a process that is conducted and implemented in stages that involves the collection of relevant financial data and effectively assesses and analyzes it in consideration of assumptions and prevailing economic situation thus making predictions. The [process ensures that business leaders gather adequate information and knowledge that ensures that an organization can adopt effective and efficient policies and decisions to ensure the business continues to prosper economically.
References
Babu, K. V. S. N. (2012). Business intelligence: Concepts, components, techniques and benefits. Components, Techniques and Benefits (September 22, 2012).
Benhayoun, N., Chairi, I., El Gonnouni, A., & Lyhyaoui, A. (2013). Financial intelligence in prediction of firm’s creditworthiness risk: evidence from support vector machine approach. Procedia Economics and Finance, 5, 103-112.
Goel, S. (2017). Earnings management detection over earnings cycles: the financial intelligence in Indian corporate. Journal of Money Laundering Control, 20(2), 116-129.
Kohtamäki, M., & Farmer, D. (2017). Real-time Strategy and Business Intelligence (pp. 11-37). Cham: Springer International Publishing. https://doi. org/10.1007/978-3-319-54846-3.
