Which term refers to evaluating financial data for insights and decisions?

The term that refers to evaluating financial data for insights and decisions is data analysis. Data analysis involves systematically applying statistical and logical techniques to describe, summarize, and compare data. In the context of financial data, it encompasses examining trends, patterns, and relationships within the data to glean insights that can inform strategic decision-making.

Through data analysis, organizations can assess their financial performance, identify opportunities for cost reduction, and forecast future financial outcomes based on historical data. This process is crucial for effective planning and enables businesses to make informed decisions that align with their financial goals.

While concepts like forecasting, budgeting, and data entry relate to financial processes, they do not specifically capture the broad and analytical nature encompassed by data analysis. Forecasting involves predicting future financial trends based on past data; budgeting is about creating a plan to allocate financial resources; and data entry focuses on inputting data into a system. Data analysis, however, is the overarching process that leads to actionable insights from financial data.