Financial automation is transforming the industry – learn why you can’t afford to ignore it anymore!
As the finance industry changes, so do the solutions to its problems. Staying ahead of the curve is increasingly important in the competitive landscape. According to a recent survey from Crayon on competitive intelligence, 87% of professionals reported that their market has become more competitive than it was 10 years ago.
This hyper-competitive environment has led to businesses seeking ways to improve efficiency and increase accuracy. This is where financial automation comes into play.
How financial automation is setting foot in the current business landscape
Financial automation offers many benefits that are hard to ignore. Studies from PWC and SolveXia have shown that it can reduce reporting errors by 90% while optimizing financial processes can cut time spent on tasks by 30-40%. This enormous potential for efficiency gains could lift your business to new heights. So, what processes could be affected by automation?
Which financial processes can be automated?
Important steps have been taken over the years to automate financial processes. From automating invoice processing to providing real-time data, here are some of the most important automation innovations of the last decade.
- Accounts Payable Processes: Automation can greatly streamline the AP process by automating invoice processing, purchase order matching, and electronic payments. Not only reducing manual data entry but also enhancing accuracy and accelerating payment cycles.
- Accounts Receivable Processes: Automation simplifies invoicing, payment processing, and managing collections by reducing manual effort and ensuring accuracy. This leads to faster payments, improved cash flow, and fewer errors, ultimately enhancing customer satisfaction and operational efficiency.
- Reconciliation: Automated reconciliation tools can effortlessly match financial transactions, bank statements, and other records, identifying discrepancies and exceptions. This not only saves time and improves accuracy but also minimizes the need for manual reconciliation.
- Financial Reporting: Efficiently gathering and consolidating financial data from various sources while automating the preparation of financial reports. This streamlined process saves time, guarantees accuracy, and provides real-time insights for better decision-making.
- Budgeting and Forecasting: Facilitating effective financial planning, automated solutions streamline the creation and management of budgets, the analysis of historical data, and the generation of financial forecasts. With this automation, organizations can achieve more accurate financial projections, enabling better decision-making and strategic financial planning.
As more businesses explore the possibilities of automation, many will conclude that there are simply too many benefits to this new technology to ignore. So what are some of these key benefits of financial automation?
Key Benefits of Financial Automation
Automation has many different ways it could benefit your business. From saving time to saving cost, below we have listed some of the most important benefits of financial automation.
- Efficiency and Time Savings: Financial automation reduces manual efforts, enabling teams to focus on more strategic tasks, thereby increasing overall efficiency.
- Accuracy and Error Reduction: Automation minimizes human errors, resulting in more accurate financial data and reports.
- Real-time Insights and Reporting: Automation provides timely and real-time visibility into financial data, empowering decision-makers with the most up-to-date information.
- Cost Saving and Resource Optimization: By leveraging automation, businesses can reduce the need for manual resources, resulting in significant cost efficiencies.
As you can see these benefits can have a significant effect on the results of your company. By implementing some form of automation into your business, many skilled workers can perform more challenging tasks instead of mundane and time-consuming ones. With more efficiency in your time management and saving costs on expensive labor, automation is surely the way to go.
Now that we have discussed some of the benefits of automating financial processes, it is important to understand how to implement such automation.
Best Practices for Implementing Financial Automation
Implementing financial automation can be challenging, luckily some best practices can ensure a smooth transition. We have listed the most important ones below.
- Assess different automation solutions and choose the one that best suits your company and its needs. When comparing different solutions it is important to define what problem you are trying to solve.
- Develop an integration strategy. When you have chosen the best solution it is important to develop a strategy for integration into your already established financial systems. Often these solutions have an API which will make this integration easier.
- Add robust security measures. To ensure the confidentiality and protection of financial information it is very important to add security measures that will protect your data.
With a solid strategy, this implementation should become a piece of cake. These things often look harder than they are, and with the help of companies such as Klippa, there should be no integration problems.
Why You Can’t Ignore Automation Anymore
With the world heading towards a world where more and more will be automated, failure to adopt automation will lead to falling behind your competitors. To stay ahead of the game, embracing some form of automation is no longer an option, but a necessity. To quote the founder and former CEO of GitHub Tom Preston-Werner:
“You’re either the one that creates the automation or you’re getting automated.”
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