Of course, balance sheets, income statements and cash flow statements are business staples when providing a picture of a company’s financial position. Nonetheless, the “Why” takes a deeper analysis so that organizations learn how to improve operations impacted by direct and indirect spending.
Revenue numbers are usually the first step in financial analysis, but how an organization manages its expenses and costs impacts profitability. So even when revenue flattens due to external factors, spend analysis helps businesses face dips in sales. Also, the outcomes of a spend analysis are basically what helps a business plan for what could be an uncertain future.