Over the last few years, there has been rapid development in technology which affects every industry and in a highly competitive global market. It’s very important to adopt these technologies to stay competitive in the market. The finance department within a company is key for measuring the performance of the company, managing the risk, and assessing the return on investment.
Therefore it’s important to keep the finance department up to date with the latest technology. One of the ways to increase the efficiency of the finance department is automation.
What is automation in finance?
Using the latest technologies execute financial processes and operations without any manual intervention. It may be using different technologies such as robotic process automation or artificial intelligence or a combination of both to increase the productivity of the finance department. With the use of these technologies, the time of the finance staff can be effectively utilized in high-level strategic activities.
Scope
Some of the processes that can be automated in finance are as follows.
Accounts receivables and payables: Most of the manual work involved in the receivables and payables can be automated.
For instance:
- Sending reminders to customers for the payment,
Posting of entries in ERP using automated tools like Automation anywhere software by automatically extracting the data from supplier invoices, posting it to the system, and sending it for approval. It effectively eliminates the need for a data entry staff.
Payroll: timely payment of staff dues is important to keep employees motivated. It’s a difficult task for the human resource department because of the reconciliation and cross-verification with different timekeeping systems.
With the use of automated tools, these activities can be automated in real-time without the need for reconciliation at the end of the month.
Benefits
Savings in staff cost: With the use of these tools labor costs can be saved as most of the repetitive tasks can be eliminated or automated.
Elimination of errors: Errors in the process can be eliminated or avoided as no manual tasks are involved.
Employee satisfaction: Higher employee satisfaction due to less manual work or repetitive work.
Timely decisions: The data is processed in real-time so that the management can get insights from the data and take decisions in a timely manner.
Scalability: When the business develops the data streaming to the company will be higher and these automated tools are scalable eliminating the additional staffing requirement if it’s done manually.
Automation is clearly a game changer and in the future, every process will be automated. Those who are outdated will be out of the market and those who embrace the changes in technology will have an edge over their competitors. It’s a great opportunity for every business to automate the whole finance department to the extent possible.
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