Financial data is a powerful tool that can be used by investors, businesses, and lenders. It provides stakeholders with an insight into the financial health and future prospects for a company and its operations.
Traditional financial data is obtained from long-established sources like press releases, financial statements, and SEC filings. This information includes information about equity, assets, liabilities, income, and expenses. Assets include a company’s physical personal, tangible and intangible property, while liabilities refer to financial obligations and debts that an organization owes others. Income however, is the increase in value that a business achieves through investments and sales. Expenses are the costs of managing a business, and are subtracted from income to determine net income.
Financial analysis and reporting can assist businesses build trust among employees, creditors and investors. Offering them access to accurate and centralized financial information on demand can reduce risk and improve transparency and accountability.
There are a variety of ways to collect and analyze financial data, from preparing invoices and receipts manually to using automated solutions. Nanonets for instance, is an AI-powered platform that can analyze and extract financial information from documents like invoices, receipts and financial statements. It also detects patterns and trends within the data and help users draw projections based upon past or emerging trends. This can help improve efficiency, cut expenses and increase profits.
