A company’s performance can be compared to benchmarks extracted from a database of similar companies which the BARS system has access to. Analysts use this feature to detect more efficiently discrepancies in a particular company’s finances when compared to the industry norm, such as for example abnormally low liquidity or a strongly divergent equity ratio. Consultants can then advise their clients of these discrepancies, discuss their causes and, if necessary, plan corrective measures. But same-sector comparisons are only useful if the database they draw from is sufficiently comprehensive to be statistically significant. Large-scale BARS systems generally have access to over 100,000 balance sheets.
However, smaller companies will usually have too few data points to allow productive analysis. Companies with less than 1,000 clients sometimes only have access to very few, or no references in the desired sector. Until now, the only alternative was to purchase access to data from third-party providers, who sell access to their large pools of balance sheets. Since obtaining and maintaining these data pools is a very costly operation, purchasing access to them also incurred high licence costs. These sorts of agreement are therefore not usually economically viable for smaller companies.
But for BARS systems there is a powerful and very attractively priced solution to this problem. Companies can access the largest pool of balance sheets that is available in Germany, published in the Bundesanzeiger. This contains all accounts published in Germany.
BARS users can therefore access over 1,000,000 for each business year since 2008, currently totalling over 5,000,000 items.
Unlike the access licence packages described above, BARS users can access individual data subsets without purchasing a licence for the whole pool. They need only pay a comparatively low fee depending only on the records effectively accessed—individual balance sheets, groups of balance sheets or individual comparison queries.
The balance sheet data pool of the Bundesanzeiger is available for S&N to use in the BARS system. It is updated daily with newly published accounts from the Bundesanzeiger Verlag for maximum relevancy.
For many companies, especially smaller ones, this cloud service is an efficient and cost-effective alternative for accessing the central BARS database, requiring neither extensive private databases nor expensively purchased third-party ones, providing powerful cross-sector comparison services and selective access to individual records.
If you want to learn more about “Balance sheets from the cloud”, drop us a line.