Review the past records of significant and common problems encountered by the company, including their effects on sales performance and on the buying public.
Find out if a damage control plan is implemented to curtail the effects of these problems. How effective or efficient is this plan, and does it generate the desired effect? Are customer concerns and complaints properly addressed? Are there studies conducted to avoid the recurrence of such problems, and have they been properly translated and transformed as effective solutions?
- Evaluate the efficiency of the accounting system and its ability to provide timely and accurate reports as a basis for management’s decisions and for regulatory-compliance purposes.
This involves a study of the flow of processes for recording the business transactions and the internal controls implemented. Determine the types of data being used by management for projections as well as the performance metrics used in coming up with their projections.
- Examine credit policies for allowing customers the privilege of making purchases on account. On the other hand, there should also be credit policies for the company’s own debt-incurrence.
The analyst will have to calculate the turnover ratios for buying and selling activities and how credit sales impact the liquidity of the company. Compare the cost of money vs. the yields produced by sales on credit.
- Prepare the performance metrics for all the systems reviewed. Compare the results against the company’ s own standards and against the industry’s benchmark.
The analyst’s objective in doing this is to provide support to what has been identified as the strengths, weaknesses, opportunities, or threats (SWOT) existing in the company’s system.
- Create a strategic model that would serve as a guide for programming a system that will improve, enable, and enhance the existing structure of the company.
The results of an analyst’s job will assist the software developer in creating a business system that will adhere to the managerial strategies developed after a thorough SWOT analysis has been performed.
- Prepare forecasts, cost-to-benefit justifications, problem resolutions, and other support to the proposed key initiatives for financial planning and selling activities.
This denotes that the business analyst has gathered enough data, made sufficient tests and analysis, and is now ready to present a sound business system that management could bank on for its operations.