Manual processes for operating and managing Finance & Accounting (F&A) functions are not just resource-intensive and uneconomical, they are also error-prone and fast becoming outdated. CFOs are increasingly looking to leverage technology and automation to make the right decisions and enhance the effectiveness of the finance function.
Automation consolidates processes across the organization and standardizes operations to eliminate disparities and redundancies. Implementing an effective automated solution adds value to the business and provides an agile framework for the organization to grow. The reliance on automation has increased because it helps transform the F&A function by adopting best practices, simplifying processes, ensuring process adherence and regulatory compliance, and creating greater transparency for all stakeholders.
However, any such solution must have the capability to seamlessly integrate with the existing systems of the organization. It must also be scalable and flexible in handling the changing needs of the business within a dynamic economic and regulatory environment.
There are four key benefits realized by automating the F&A function:
- Increased efficiency and accuracy: Automation reduces manual work and the time taken for each task. It also eliminates human errors, time lag, and handoffs. In addition, revenue leakage due to double-payment or non-realization of discounts is minimized.
- Satisfaction of stakeholders: Accurate, timely transactions ensure that both suppliers and customers gain greater satisfaction from their engagement with the organization.
- Reduced costs: Automation decreases operational costs with less time and effort spent on data collation. It also reduces the processing cost per invoice, including the routing costs for approval. Additionally, it allows skilled F&A personnel to focus on high-value tasks rather than mundane, repetitive ones.
- Greater visibility: Data presented through centralized dashboards improves transparency in processes, thus enabling organization-wide visibility for leaders. Automation facilitates data gathering in real-time to generate effective reports for better decision-making.
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