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- 5 Benefits Of Automating Finance & Accounting Processes - February 13, 2019
As advanced technology and digitalization continue to deliver more nuanced solutions in the business arena, the financial sector has not remained immune to these changes. Quite the contrary, since finance is one of the most sensitive functions of any modern-day business, a wise and forward-thinking CFO will gladly embrace innovation to assist with the core of their work. In turn, these generous tech tools and systems enable more opportunities for business growth, greater precision, and comprehensive yet lightning-fast data analysis that was once merely a dream.
There are even more far-reaching, long-term benefits of automating your finance function to the best of your ability. The following advantages in turning to automation every step of the way in your accounting processes are perhaps just the first ones we have been able to notice, and we may have just scratched the surface when it comes to what technology can do for us in this realm.
Reducing human error
By far the greatest issue in the finance sector is precisely human error. We, as human beings, are prone to mistakes no matter how intelligent or well-educated we might be, and when the time comes to work with sensitive information such as fine-tuning financial projections or monitoring cash flow changes, any fluctuation can be disastrous. Whether your accountant fails to notice an error in your books, or they simply miss a crucial piece of your budget puzzle that could help you to stay solvent, with such high competition in the modern market, no business can afford human errors of this kind.
That said, utilizing automation tools helps to spot, treat, and prevent such issues in the future. Regularly optimized by your experts on the team, these tools are meant for eliminating, or at least minimizing the chance for errors that could cost you a valuable employee, a client, or your entire business.
Improving day-to-day cash flow
Right next to error-spotting, the most common and often neglected issues businesses face nowadays is cash flow. It can occur in numerous ways, from unpaid invoices by your most profitable clients, late supplier deliveries, poor ROI levels on certain products or services, all the way through to not being able to scale as you grow. Some may appear to be minor at first, but they all have the potential to escalate rather quickly and disturb your everyday operations.
This is where automating certain aspects of your financing sector can help restore balance to your cash flow. For example, relying on a direct debit system to receive recurring automated payments, deal with outstanding ones, and enable versatile payment options for your customers can all help you stay solvent and successful. Offering various payment options alone is more than enough to give your business a financial boost, while pairing it with other listed perks helps you inspire loyalty in your customer base, and keep your finances in order.
Better time allocation for more relevant tasks
Truth be told, few things can be considered more relevant than the very blood-flow of your company, which is precisely your finance department. However, when you are dealing with a growing business, many employees under your wings and more customers flocking to your door, it can become challenging for your expert accounting teams to handle the workload, its complexity, or manage to resolve issues in time.
Manually dealing with every single task can be not just taxing, but also exceptionally time-consuming. This is where automation comes to shine. No more mind-numbing, repetitive work; Leave the number-crunching to AI-driven tech solutions instead so that you can utilize all of your brain power to deliver more data-driven strategies.
More employment opportunities
If you are confused by this notion, you’re not alone. Too many people live under the false impression that relying on AI or automation in general will actually cause more people to lose their relevance in any given industry, especially this particular one. Yet, the truth is quite the opposite, since research indicates that by the time we reach 2020, which is just around the corner, AI implementation will provide more work opportunities than the ones it deems unnecessary. It will apparently create approximately 2.3 million jobs in this fast-growing field!
That said, implementing automated solutions in any sector may bring structural changes within a business, but only to benefit both your brand and your employees. These advancements serve as a chance to grow your knowledge base, utilize the thoroughly combed-through data delivered by your tech, and have more people taking meaningful action based on said data to bring more profit and boost client satisfaction in the process.
Easier access to well-analyzed data
A survey of CFOs and their decision-making processes has shown that 72% of data-driven businesses experience a profit increase, whereas those who rely on their gut instinct tend to make more jeopardizing decisions that can cost you not merely profit, but long-term insolvency. Without insights provided by analytics software and similar tech solutions, no modern corporation can or should bet on its own survival. The business climate has changed to embrace hard facts and number-based information to ensure scalable growth.
With automated processes constantly working to analyze and deliver reports to your finance experts, you can rely on them to make fully-informed decisions, discover new KPIs that affect your bottom line, and ultimately diminish the risk that comes with all the financing decisions of any business.
It is no longer the question of if it’s right to automate, but to what extent, as every modern brand will benefit in numerous vital ways from this growing trend. Make sure that your business is driven by data and innovation, and you will provide yourself with years of solvency to come.
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