The automation advantage: How finance teams can achieve more
The automation advantage: How finance teams can achieve more
Many CFOs are showing a strong commitment to increasing investments in accounting technology to future-proof their finance operations. As highlighted in a recent Gartner report, 92% are planning an increase in such investments. For mid-market businesses, automating the finance function is essential to driving scalable growth in their digital transformation.
Automation offers a fundamental benefit: it saves time for greater innovation. Given that many CFOs are committed to increasing investments in automated solutions, how can finance teams leverage these tools to replace outdated manual processes and unlock greater efficiency and innovation?
What tasks can be automated?
1. Accounts payable and expense management
Accounting software which has optical character recognition technology (OCR) can deliver great automation benefits.
When it comes to accounts payable, such software can automatically scan invoices, extract relevant data and then store files digitally, significantly reducing time spent on manual data entry and removing paperwork altogether.
OCR also allows employees to use mobile expense apps, where they can upload pictures of receipts and automatically submit expenses wherever they are. This streamlines the process across the organisation, benefiting employees and enabling the finance department to process claims more efficiently and timely.
2. Data integrations
Cloud accounting systems use APIs to automatically integrate with a whole range of business applications, such as inventory, payment and invoice platforms. This automation transforms their workflows, reducing the need for manual data re-entry – and the errors that come with this – and enabling the consistent and accurate flow of financial information. Crucially, this means firms can access a central hub of data that provides real-time insight into their company’s financial performance and health.
One key area of system integration is connecting to bank feeds. Automated bank reconciliation enables firms to sync transactions with their accounting system in real-time, showing an accurate picture of how the money in their bank accounts correlates with their financial records. This removes the need to manually import transactions, download and upload bank statements, and reconcile data.
Firms can also integrate payroll software to ensure the swift and accurate distribution of salaries, tax calculations, and compliance with local regulations.
3. Reporting
Management reporting
Timely and insightful reporting is essential for effective finance management. Automation enhances management reporting by leveraging advanced analysis tools and customisable dashboards. Finance teams can generate targeted reports and filter data based on specific criteria such as projects, departments, or periods.
This use of automation streamlines the process of trend identification, reduces the need for manual data sorting, and significantly improves overall financial management efficiency. By having instant access to relevant financial information, decision-makers can respond quicker to market changes and internal performance metrics.
Consolidated group reporting
For organisations operating multiple entities or subsidiaries, consolidating period and year end can be a complex task. Automated consolidation reporting software simplifies the month-end process by aggregating data from various sources into a unified format. This reduces the time and effort required to produce accurate group accounts and minimises the risk of errors associated with manual consolidation.
Automation of group entities ensures that intercompany transactions are properly eliminated and any foreign currency balances are translated on consolidation. This means finance teams can focus on analysing consolidated data to inform wider business decisions.
Enhanced decision-making with automated insights
Automation is increasingly becoming the key differentiator for organisations rapidly accelerating their growth trajectory. By streamlining processes, enhancing accuracy, and offering real-time insights, automation empowers finance teams to shift their focus from routine tasks to strategic decision-making and innovation. It enables businesses, particularly mid-market companies, to scale efficiently without overextending resources.
For finance leaders, automation leads to new opportunities for growth, talent retention, and long-term success. The future of finance marks a shift away from manual processes, blending advanced technologies with human expertise to deliver deeper, data-driven insights and more strategic decision-making.
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