Finance administrators should wholeheartedly welcome the advancement of robotics technology.
Streamlining Financial Processes: The Path to Automation
In the rapidly evolving world of business, the importance of efficient financial management cannot be overstated. However, financial managers and directors often find themselves bogged down by procedural administration, with an excessive amount of time spent on paper pushing and administrative tasks. Fortunately, the advent of automation offers a solution to this problem.
According to a study conducted by Oxford University, there is a high probability of financial accounts managers and officers being fully automated within the next two decades. This automation could significantly reduce the administrative workload, allowing finance teams to focus on adding real value to the business.
The key steps to automate financial processes in a mid to large-sized business are as follows:
- Map and Analyze Current Financial Processes The first step is to conduct a detailed mapping of existing workflows, identifying each task, stakeholder, and manual touchpoint within financial processes such as budgeting, invoicing, purchase requisitions, cash application, and order closure. This helps visualize bottlenecks, high-volume repetitive tasks, and opportunities for automation.
- Identify Automation Potential and Prioritize Select processes that are rule-based, high-volume, repetitive, and have clear decision criteria suitable for automation. Common candidates include invoice processing, accounts payable/receivable, data entry, and approval workflows.
- Optimize Processes Before Automating Streamline and improve existing workflows to remove inefficiencies prior to automation, avoiding the risk of automating flawed processes. This includes simplifying approval chains or standardizing data formats.
- Choose Appropriate Automation Technology Select solutions leveraging AI and machine learning for intelligent automation, capable of handling complex, unstructured financial data. Ensure software can integrate seamlessly with your ERP, CRM, and banking systems for end-to-end automation.
- Design and Define Executable Automated Workflows Develop clear workflows that include automated data capture, validation, approvals, and payment scheduling. Use tools like forms and flowcharts to define and connect each step within automated sequences such as budget approvals, invoicing, purchase requisitions, and cash application.
- Prepare for Deployment and Train Staff Plan rollout carefully to manage employee change resistance, train stakeholders on new systems and workflows, and establish security and compliance protocols.
- Implement, Monitor, and Continuously Improve Launch automation gradually, monitor performance metrics to track efficiency gains and error reduction, and refine workflows for continuous improvement.
These steps create a connected and streamlined financial process environment that minimizes manual efforts, reduces errors, and accelerates financial operations throughout the organization.
For instance, a customer found they were spending £8,000 a quarter shipping invoices between branch locations. By automating this process, they could potentially save a significant amount of money.
The arrival of automation can lead to less stress, increased effectiveness, and a greater feeling of value for finance teams. It's important to note that automation software will not replace human jobs, but rather create new opportunities for them. As Harry Mowat, UK Managing Director of Greentree Software, suggests, investing in operational intelligence can deliver impact and free up resources, potentially leading to cash savings and reduced operational overheads.
In conclusion, the path to automation offers a promising solution for streamlining financial processes, reducing administrative workload, and empowering finance teams to focus on adding real value to the business.
References:
- Deloitte Insights
- FinancesOnline
- Gartner
- ERP Focus
- Forbes
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