ACCA Strategic Professional · Strategic Business Leader · Finance transformation
Tessen Ltd's finance team wants to move from reporting last quarter's variances to anticipating next quarter's cash shortfalls. It will feed historical transactions, customer payment behaviour and market data into a model that learns patterns and forecasts receipts. Which finance transformation shift does this best illustrate?
This illustrates a shift from descriptive reporting to predictive analytics. The model learns from historical and external data to forecast future cash receipts, giving finance a forward-looking, decision-support role rather than just reporting past variances.
- AMoving from descriptive reporting to predictive analytics to support decisionsCorrect
- BOutsourcing transactional processing to a shared service centre
- CReplacing the chart of accounts with a standard global template
- DAutomating bank reconciliations with rule-based robots
Explanation
Using historical and external data to learn patterns and forecast future receipts is predictive analytics, moving finance from backward-looking reporting to forward-looking decision support. Shared services, chart standardisation and RPA reconciliation are efficiency or standardisation moves, not forecasting.
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