Financial statement analysis

Financial statement analysis

What is financial statement analysis and why is it needed?

One of the many things modern technology has given us is a plethora of data, and ways of making sense of it. From wearable fitness devices to Spotify informing us of how much music we’ve listened to over a given period, the data is presented to us in clear and digestible ways so we can act on it.

With this information, we can objectively see what we’re doing well and what we need to work on. Only walking 2,400 steps a day and getting a disrupted four hours of sleep? Knowing this, we can intentionally walk more and implement a new sleeping routine, and watch as the graphs change to show improvements.

The power of this information is in how it’s presented to us. We aren’t bombarded with data to try and make sense of; rather, we’re shown the analysis, so we can instantly see the top-level details to see what’s happening and what needs improvement.

Businesses require exactly the same, and that’s the role of financial statement analysis. Put simply, it’s the analyzation of an organization’s financial statements, from which important decisions are made. The analysis is used internally - for managing finances - and by external people to consider the value of a business, evaluate its performance, and see its overall financial health.

The need for financial statement analysis software

Financial statement analysis software is required for two main reasons: clarity, and speed.

For example, if when we looked at our sleep data we had a minute-by-minute breakdown, it would quickly be overwhelming. What could we be expected to do with that level of information? Instead, we see an overall analysis with the ability to drill down into the areas we need to.

It’s the same with financial statement analysis. The information needs to be readily available and digestible, suitable for decision-makers to act appropriately and stakeholders to have the important facts. Otherwise, financial statement analysis becomes incredibly time-consuming, requiring multiple team members to pore over every detail and present it in an appropriate way to senior management.

How Vena provides better financial statement analysis

With Vena, the financial statement analysis is done on your behalf. Because it pulls all of a company’s data together into a central repository, where it’s available 24/7, the analysis can be completed in mere seconds. The financial reporting is instant and incredibly powerful, adding new levels of clarity and providing unparalleled detail into overall financial performance. 

Vena’s powerful software allows data to be viewed in various ways, even permitting drilling down into a single spreadsheet cell to analyze data on a granular level. Financial modeling can be performed to plan against different scenarios, and reports are readily available at the click of a button. 

Vena also makes collaboration more accessible than ever before. No longer is data siloed in different teams, nor are there multiple versions of a file floating around. Team members don’t need to email the latest file, and changes aren’t a mystery.

Instead, the central repository provides a single source of truth, accessible by all approved team members. Changes are noted within an audit trail, and all information is always up to date.

With so much data available and interpreted at all times, Vena can help to drive results for your business in unimaginable ways.

User case study: 50% reduction in month-end close time

Capstone Infrastructure, an independent Canadian power producer, used to spend 10 days on their month-end financial close times. They also had issues with version control and data accuracy. Once the business implemented Vena, they had financial statement templates, integration with all of their source systems, and automated financial statements. The result? A 50% reduction in in their close times.

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Capstone infrastructure


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