Accounting and finance are two of the toughest professional areas in terms of job pressure and world related stress. Before going to further into it, lets clearly understand what is accounts and finance.
- ‘Accounting’ focuses on the day-to-day flow of money in and out of a company or organization. This is more about accurate reporting of past data in compliance with the laws and standards.
- ‘Finance’ is a wider term for the management of assets and liabilities and the vital planning of future growth. This is about looking forward and growing ample of money or mitigating losses.
What is Finance automation?
Finance process automation is the use of software to automate key finance-related tasks like accounts reconciliation, journal entries, and preparing financial statements with minimal human intervention. It enables finance departments to streamline processes and ensure that everything runs as smoothly as possible.
How does finance automation help you?
Your finance team has to collect data from various departments, customers, suppliers, and various sources. Also, the finance team needs to look up various data sets to prepare reports, while fetching out the data there is the possibility of mistakes in the numbers, by automating the process you can get an accurate number on the reports.
Moving from manual process to automation helps the team to save much time by automating day to day regular tasks. Anything that slows you down is replaced by a reliable and automatic process.
When it comes to budget approval or claim approval or reimbursement having an automatic system set up will help you save much time. And also it will help you to eliminate unwieldy email threads checking on every approval request.
When all your systems are interconnected, you can able to get an entire picture of your financials. You can understand the logic behind your fluctuating financials which will help you make faster and smarter business decisions.
How to automate your financial processes?
Here are some of the most frequently used finance business processes list:
- Treasury management
- Strategic planning and financial analysis
- Expense management
- Billing and credit
- Investment appraisal
- Compliance with regulations
- Capital expenditure
- Accounts Payable
- Accounts Receivable
- Preparation of financial statements
- Travel Management
- Safeguarding assets
- Inventory management
- Business advisory
- Payroll system
- Writing accounting policy and procedure manual
- Budgeting and budgetary control
- Procurement management
- Asset management
- Working capital management
- Employee reimbursements
- Cheque requests
1. Standardize Your Financial Processes
Before you look at automating your processes on a digital platform, sketch out the workflow and form on a whiteboard. You’ll be able to see where you need to make changes and streamline tasks. It’s also important to talk to stakeholders to get their perspective on what needs to change to make the process better.
2. Create a Digital Form and Workflow
Build the perfect form to capture all the important information you need. You can customize it to make it even more useful for your team. Then, create the finance workflow, keeping in mind conditional tasks, sequencing, and how to dynamically assign people to different tasks.
3. Integrate With Other Software
Once you’ve automated the different financial processes, you need to ensure that your systems are communicating and sharing information with each other. Select tools that can be easily integrated; sometimes a third-party application, like Zapier, can help you with connecting these different tools.