Written by Praveen Kumar
Microsoft Business Applications Practice Manager at Royal Cyber
Every organization strives to provide its clients with excellent service by improving the efficiency of their IT ecosystem. The key goal of such organizations is to achieve the desired state of profit and success. In order to achieve this goal, there needs to be a crystal-clear business plan.
Finance is the heart of any Organization. It needs to meet the Financial planning to run a smooth and Profitable Organization. Hence, the above Business goal can be achieved only with the help of effective financial management.
Financial management is the strategic planning, organizing, directing, and controlling of financial undertakings in an enterprise.
The primary objectives of Financial Management include:
Maintaining required Operational funds in an Organization
Guaranteeing good return on investment of shareholders from the organization
Sustainable growth and stable Business Operations
Optimum and efficient utilization of funds
Creating safe investment opportunities to invest in
It involves Fund Raising, Financial Planning, Utilization of Funds, Financial Decision, and Improve Profitability. The profit factors are majorly depending on the Financial Analysis and Reporting of all the wings in an Organization.
Be it any industry, whether service or manufacturing, there are several departments, which function day in day out to achieve organizational goals. The functioning of each department has strong Operational dependency with each other, where the Finance department has an impact on each decision making for all departments.
The Financial aspects of every department are recorded with their Financial transactions, which were taken up for analysis and reporting to various stakeholders to Run a Profitable Business.
From the above scenario, we can understand the need to analyze every transaction, whether the transaction has arrived from Sub ledger or General ledger. By having said above all, a powerful feature is needed to achieve Financial Analysis and Reporting in an Organization for their Success.
Dynamics GP Analytical Accounting (AA) is the best example of Microsoft’s commitment to help businesses increase productivity.
Analytical Accounting enables tracking the additional information while entering transaction entries and analyze all the account transactions with the specific criteria. After analyzing the financial transactions with the specific criteria, we need to develop Financial Reporting with greater details. Using Analytical Accounting is preferable over adding additional GL accounts because we only need to add the dimension to certain accounts.
Let’s say users need to trace specific things such as profit centers or cost centers or Report on a specific region?
When you have decided what you to trace, you will need to determine the specific dimension codes you wish to use for traceability. Dimensions can be alphanumeric, numeric, yes/no, or date.
Once dimension codes are created, you can assign the respective codes to the ledger. This is key for reporting. It gives the ability to flag specific accounts for certain dimensions.
And then, the flagged accounts are connected to specific modules such as inventory or payables, and the data will flow through accordingly.
Some of the Major Benefits are to:
Get Detailed Transaction Dimensions
Flag Specific Financial Accounts
Use Excel for Multi-level Reports
Add Codes to Finance Charges
Define Account Access by Dimension Code for Specific GL Accounts
Hence, Financial Analysis and Reporting can be achieved easily to increase your business productivity.