Data Analytics for Business Audit #1 PDF

Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché Co founder of a Data for Finance Consulting firm. We support the financial departments of companies (from €100m to €3 billion of revenue) in t...

Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché Co founder of a Data for Finance Consulting firm. We support the financial departments of companies (from €100m to €3 billion of revenue) in their data issues. At the same time, I really enjoy sharing my knowledge through LinkedIn and TikTok. Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché 1st of December Introduction to management control 2h00 15th of December Deep dive in financial reporting 2h00 Data Analytics for audit and compliance 2h00 Python for financial analysis 3h00 Setting up a performance management dashboard in Power BI 6h00 19th of January 19th and 26th of January 2nd of February and 8th of March Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché “The word 'Finance' comes from the French word 'finir' which means 'to end' or 'to settle'. It's all about paying debts!” 6 Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché KEY PARTS OF FINANCE Every day, we deal with money. Whether we're buying something, saving, or even investing it. SAVING 7 Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché SPENDING INVESTING BASIC DEFINITION Finance is the study of how individuals, businesses, and governments manage and use money. 8 Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché WHY DO WE NEED FINANCE ? It's central to our daily lives, the success of businesses, and the health of entire economies. PLAN THE FUTURE 9 Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché BUY THINGS WE NEED STAY SAFE IN EMERGENCIES Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché “Corporate finance revolves around a business's financial activities, primarily aimed at maximizing shareholder value.” 11 Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché CORPORATE FINANCE Corporate Finance deals with the financial activities of a company in the long term. CORPORATE FINANCE KEY ACTIVITIES Budgeting Forecasting Capital investment decisions 12 Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché CORPORATE FINANCE Goal of corporate finance is to ensure sustainable business growth Efficient allocation of financial resources Manage the company's capital structure Balance risk and profitability Ensure sustainable business growth 13 Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché “Market Finance pertains to the buying, selling, and trading of securities like stocks and bonds.” 14 Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché MARKET FINANCE Market finance is based on 3 main points : How does it work ? Focus on the financial markets and their participants. Deals with trading assets like stocks, bonds, and currencies. Aims to price assets based on their risk and return. 15 Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché Market finance involves activities in both primary markets, like IPOs, and secondary markets, such as stock exchanges, requiring a deep analysis of market behaviors and trends and heavily relying on data and real-time information. KEY DIFFERENCES Corporate finance FOCUS Internal focus (within a company) Long-term financial planning and strategy DECISIONS 16 Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché vs Market finance External focus (larger financial market dynamics) Immediate or mid term decisions based on market conditions Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché “The finance industry is dynamic, and roles can evolve based on market conditions, technological innovations, and other factors.” 18 Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché 🤯 ROLES IN FINANCE - PANORAMA Corporate Finance Financial Planning & Analysis (FP&A) ▪ Financial Analyst ▪ Budget Analyst ▪ Cost Analyst Treasury ▪ Treasury Analyst ▪ Cash Manager ▪ Risk Manager Accounting & Reporting ▪ Management Accountant ▪ Financial Controller ▪ Internal Auditor Corporate Development ▪ M&A Analyst ▪ Corporate Strategy Analyst 19 Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché Market Finance Credit Management ▪ Credit Analyst ▪ Credit Manager Taxation ▪ Tax Accountant ▪ Tax Consultant Capital Budgeting ▪ Capital Analyst ▪ Project Finance Manager Investment Banking ▪ M&A Banker ▪ Equity Capital Markets Analyst ▪ Debt Capital Markets Analyst Private Wealth Management ▪ Financial Advisor ▪ Private Banker ▪ Investment Counselor Sales & Trading ▪ Sales Analyst/Associate ▪ Trader Foreign Exchange ▪ Forex Dealer ▪ Derivatives Analyst Asset Management ▪ Portfolio Manager ▪ Mutual Fund Analyst Executive Roles ▪ Hedge Fund Analyst ▪ Chief Financial Officer (CFO) ▪ Private Equity Analyst ▪ Finance Director ▪ Finance Manager Fixed Income ▪ ▪ Fixed Income Analyst Bond Research Analyst Financial Services ▪ Stock Broker ▪ Commodities Trader Risk Management ▪ Market Risk Analyst ▪ Credit Risk Analyst MAIN ROLES IN CORPORATE FINANCE Let’s zoom into 3 main roles : Budget Analyst, Financial controller and CFO Budget Analyst Financial Controller ▪ Responsible for analyzing, reviewing, and overseeing budgets. ▪ Oversees accounting and financial operations of a company. ▪ Collaborates with departments to design and implement budget plans. ▪ Ensures accurate and timely financial statements. ▪ Monitors spending ▪ Manages financial staff and coordinates with external auditors. Chief Financial Officer ▪ Top executive responsible for managing an organization's financial actions. ▪ Defines financial strategy and works closely with other executive leaders ▪ Reports financial status and performance to board members. 20 Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché THE BACKBONE OF FINANCE: DATA For finance, data are everywhere. Central to financial decisions Guides investment strategies Determines market trends Data driven 22 Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché BEFORE THE DIGITAL AGE Before computers and digital tools, data in finance had a different landscape. 📒 Physical ledgers and receipts 📝 Manual data analysis ❌ Time-consuming and prone to errors 23 Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché BEFORE THE DIGITAL AGE As technology found its way into finance, data handling underwent a massive transformation. Introduction of spreadsheets Faster and more accurate analysis Automated data processing 24 Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché TODAY: BIG DATA & AI Today, with big data and AI, the role of data in finance has reached new horizons. Real-time data analytics Personalized banking with AI Predictive financial modeling Supported by less expensive storage and computing capacities 25 Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché FUTURE: LIMITLESS POSSIBILITIES As technology continues to advance, the role of data in finance will only become more integral and sophisticated. Enhanced data security Integration of quantum computing Even more personalized financial services 26 Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché MANAGING YOUR BUSINESS WITH FINANCE Income Statement 29 Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché Revenue Gross margin Operating income MANAGING YOUR BUSINESS WITH FINANCE Income Statement Cash-Flow Statement Balance Sheet and WCR 30 Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché Revenue Gross margin Operating income Money spent Cash received taking into account payment and collection times Financial health of the company at a given time the amount of funds required to cover financing needs related to the company's activity Need data DATA DRIVEN DECISIONS Budget Analyst Financial Controller Data driven decisions 31 Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché Chief Financial Officer KEY COMPONENTS OF A FINANCIAL REPORT Balance Sheet – A Snapshot of Financial Health Description: provides a snapshot of a company's financial position at a specific point in time. It lists the company's assets, liabilities, and shareholders' equity. Importance: crucial for assessing the company's financial stability and liquidity. Cash Flow Statement – Understanding Liquidity Description: tracks the flow of cash in and out of the business, categorized into operating, investing, and financing activities. Importance: essential for analyzing the company's liquidity and cash management. 32 Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché Income Statement – Measuring Performance Description: shows the company's revenues and expenses over a specific period, culminating in the net profit or loss. Importance: vital for understanding the company's operational efficiency and profitability. Statement of Shareholders' Equity Description: outlines the changes in the equity section of the balance sheet over a period, including shares issued, dividends, and earnings or losses. Importance: important for shareholders to understand how their equity in the company has changed over time. USE CASE Based on the provided data set, produce a P&L (income Statement) for 2021 and 2022 ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Revenue Cost of goods sold Gross Margin Operating expenses Staff costs Operating Income Other Expenses Other Revenue Net Income Link to download the dataset : https://we.tl/t-Tmcjy9aA2P 33 Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché 1st step : clean GL 202X (account, amount) 2nd step : Merge GL 202X with DimCompte 3rd step : identify missing acccount 4th step : update DimCompte 5th step : Group By « agrégat 1 » sum amount CURRENT CHALLENGES Technical Analytical Long to produce Never up to date Diversified players Limitations of traditional tools (Excel) Not frequent enough Little depth of analysis Purely financial data Data Solutions as a response to these challenges 34 Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché POWER BI POUR LE PILOTAGE DE LA FINANCE Data Collection ETL Data Storage Cloud storage of data model Connection to production databases (accounting, finance, control, market data, etc.) 35 Creation of a star model based on different sources Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché Definition of access rights Refresh strategies Data Visualisation Creation of traditional visuals (P&L, CashFlow, etc.) Creation of more analytical visuals (trend analysis, etc.) Albert Global Data School - Data Analytics for Business Audit - Antoine Bosché