Survey Reveals: Adoption Trends of Financial Intelligence Tools

Recently updated on December 6th, 2024 at 06:11 am

Financial intelligence solutions are essential for advisory firms in the accounting space. These tools empower firms to navigate complex finance, gain valuable insights, and make informed decisions for their clients. However, many firms still rely on manual methods for generating financial intelligence. Despite this, there is a growing recognition of the benefits of automated tools in streamlining analysis and gaining deeper insights.  

What this article covers 

• Understanding of the adoption trends of financial intelligence solutions 
• How automated business intelligence would help advisory firms? 
• Recognition of the potential benefits of automated financial intelligence solutions . 

PathQuest conducted a survey to gain a deeper understanding of the prevailing trends and preferences among advisory businesses regarding the adoption of financial intelligence tools to help businesses to grow, improve decision-making, and stay ahead of the innovation curve. By examining the current state of affairs, we aimed to uncover valuable insights that can guide advisory firms towards more informed decision-making. 

Persistence of Manual, Paper-based Methods 

Understanding the Reluctance Towards the Adoption of Financial Intelligence Tools  

The results derived from the survey revealed that 52% of respondents rely on manual methods for generating financial insights. These manual methods include spreadsheet-based analysis, manual data entry, and calculations. Respondents highlighted the control, customization, and familiarity as the main perceived benefits of using manual methods. 

Think about some of the biggest challenges faced by enterprises when it comes to analyzing large, complex data sets – lack of real-time insights; limited data integration; complex financial analysis; cumbersome reporting; reliance on individual expertise, are some that comes to mind. These challenges are of utmost concern to every CPA or advisor, yet it is surprising to observe some hesitancy when it comes to embracing BI software that has the potential to simplify their work. 

As per the survey results, 54% of respondents stated that they spend 20% to 30% of their monthly time analyzing data manually. This looks in line with more than 50% of respondents choosing the manual way of analyzing data and generating critical insights. When asked if they are comfortable investing so much time for the same, the respondents stated that it has never been an issue for them. 

This shows us that many CPAs continue to trust the familiar manual approach for generating financial insights. Understanding the risks and opportunities that come with a technology-driven approach is crucial when considering the feedback loop between manual and automated processes. Many are not aware that automated processes play a pivotal role in making informed strategic decisions, optimizing performance, and navigating complexities in an increasingly data-driven world. Traditional manual methods, such as spreadsheet-based analysis and manual data entry, have long been relied upon to derive financial insights. Yet, the limitations and inefficiencies associated with manual processes have become more apparent, prompting the need for a shift towards automated BI tools. 

Discover the Hidden Barrier 

58% of respondents feel that manual intervention while creating reports is better than that of automated business intelligence tools, having said that 28% feel that it can help in improving efficiency. 

Organizations deeply entrenched in manual processes often overlook the abundant benefits offered by financial intelligence tools. Surprisingly, more than 75% of respondents displayed a lack of intent when it came to acquiring new financial reporting tools, content with the status quo of manual intervention in their financial report generation. However, advisory firms must seize the opportunity to transcend their comfort zones and embrace the transformative power of financial intelligence and reporting tools. By embracing cutting-edge reporting, analysis, and forecasting software, infused with advanced analytics and real-time data, they can transcend traditional boundaries, help advance the decision-making, and tap into hidden opportunities for unprecedented growth. 

There’s a need to automate, and soon 

While it is tempting for advisory firms to retreat to what they do, there is a dire need for choosing a path towards automation.  

Let us visualize a day in our new reality for a change… 

It is a hectic day at the office, and Alex and Mary, both experienced CPAs also providing advisory services to their clients, go out to grab a quick coffee before starting the never-ending job of analyzing financial data manually. As they sipped their coffees, they began discussing the challenges they faced in their roles. 

Alex sighed and said, “Mary, don’t you feel like we’re stuck in a never-ending loop of manual calculations and spreadsheet analysis? It’s so time-consuming, and we often miss out on real-time insights.“ 

Mary nodded in agreement. “Yeah, you’re right! It’s so frustrating to spend hours inputting data and crunching numbers, only to find ourselves struggling to keep up with complex financial analysis and reporting. And to top it off, relying solely on our own expertise gets so overwhelming.“ 

As they talked about their challenges, an idea popped into Alex’s head. “Hey, Mary, have you heard about automated business intelligence? I’ve been hearing advisors recommend them, saying they improve accuracy in financial advice and forecasting for our end-clients. Maybe we should consider using such software too, given that we’re an advisory firm.“ 

Mary widened her eyes and said, “No, way! That’s it? We just have to get a system that could gather and integrate data from accounting tools. “

Alex said “Yes, that’s it! It will also provide us with real-time insights and comprehensive analytics. Implementing a financial intelligence solution would totally change the game for us.“ 

They feel excited while imagining the positive impact this new solution could have on their roles and the entire organization. They realized that by embracing automated BI tools, they could transform their mundane financial analysis tasks into opportunities for growth and innovation. 

Alex exclaims, “Let’s explore using an automated Financial Intelligence solution. It could enhance our advisory capabilities and achieve extraordinary value.“ 

Mary agrees eagerly, “Absolutely! With a solution like that, we can make data-driven decisions, uncover new opportunities, and stay ahead of the competition. Let’s find cost-effective, top-rated financial intelligence solutions to revolutionize the way we offer advisory services.“ 

As they finished their coffees, Alex and Mary left the cafe with a renewed sense of purpose. They were ready to embark on a journey of transformation, leaving behind the challenges of manual processes and embracing the potential of a financial reporting system. Together, they were determined to create a future where actionable insights and enhanced financial performance became the norm. 

 
In a nutshell

The survey report uncovered the state of financial intelligence software adoption among accounting firms offering advisory services. It highlighted key insights aiming to understand limited adoption of financial intelligence solutions. The findings revealed a recognition of the potential benefits of automated financial intelligence tools, as manual methods for financial analysis face limitations and inefficiencies. Advisory businesses in the accounting landscape must acknowledge the value of automation in making informed decisions, optimizing performance, and navigating complexities in a data-driven world.  

Are manual methods holding your firm back from unlocking the full potential of financial intelligence tools? Dive into our survey report to uncover the adoption trends and preferences for automated systems in the advisory landscape. Explore the barriers hindering transformation and the recognition of the untapped benefits of financial intelligence solutions. Join the forward-thinking professionals and download the full report now to shape the future of your advisory services.

Published on: 30 June 2023

Author

John Bugh

John Bugh is Chief Revenue Officer for PathQuest, responsible for the strategic direction, planning, vision, growth, and performance of the company’s marketing, branding, and revenue streams.

As a seasoned professional with over 35 years of experience in executive sales, marketing, and operational leadership, John has worked to build high-performing leadership-teams that have a demonstrated track record of accelerating growth, increasing revenue, establishing sustainability, and improving profitability.

He is an avid life-long fan of the NY Yankees and loves to snow ski with his family whenever he has the opportunity!