{"id":22497,"date":"2024-01-03T18:24:56","date_gmt":"2024-01-03T12:54:56","guid":{"rendered":"https:\/\/open.money\/blog\/?p=22497"},"modified":"2024-06-06T17:03:18","modified_gmt":"2024-06-06T11:33:18","slug":"finance-automation-and-its-critical-role-in-streamlining-financial-processes","status":"publish","type":"post","link":"https:\/\/open.money\/blog\/finance-automation-and-its-critical-role-in-streamlining-financial-processes\/","title":{"rendered":"Finance Automation and Its Critical Role in Streamlining Financial Processes"},"content":{"rendered":"

Finance Automation, AP Automation, AR automation, Finance Processes<\/span><\/em><\/p>\n

From being manpower intensive to technology-driven \u2013 the shift in finance processes is more evident than ever today.\u00a0 Research shows that for finance functions in every industry, <\/span>at least 42% of all activities can be fully automated<\/span><\/a>, with a further 19% able to be mostly automated.\u00a0<\/span><\/p>\n

\u201cAutomation is cost-cutting by tightening the corners and not cutting them,\u201d says Haresh Sippy, the founder and managing director of Tema India Ltd.<\/span><\/p>\n

You hire finance people for their expertise, ideas, and zeal, not their ability to perform mundane, repetitive finance tasks. Today, there\u2019s automation and AI to handle that. Automating specific manual tasks brings efficiency, cost savings, standardization, transparency,\u00a0 and other benefits.\u00a0<\/span><\/p>\n

Investment in automation is an investment in people. <\/span>Forrester Research<\/span><\/a> found that 57% of surveyed companies reported better employee engagement after implementing RPA (Robotic Process automation).<\/span><\/p>\n

The software can automate a number of finance functions, but first, let\u2019s discuss what finance automation is.\u00a0\u00a0<\/span><\/p>\n

What is Finance Automation?<\/span><\/h2>\n

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\"FinanceFinance automation doesn\u2019t replace people with robots or software. It assists finance professionals by helping them complete tasks using technology with little or no human intervention.\u00a0<\/span><\/p>\n

Finance automation can help businesses handle manual, repetitive tasks that are complex, time-consuming, and boring to bring operational efficiency, standardization, and transparency.\u00a0<\/span><\/p>\n

Automation provides an additional edge over competitors by providing financial insights and analytics to help finance departments direct their efforts toward value creation and strategy building.\u00a0<\/span><\/p>\n

Finance automation leverages machine learning, artificial intelligence, and RPA to automate core finance functions. From invoicing to spend management to financial accounting and reporting, finance automation lets you focus on more critical aspects of finance, such as planning and analysis.<\/span><\/p>\n

Which Business Finance Processes Can Be Automated?<\/span><\/h2>\n

Finance processes can get complex and daunting at times, but they needn\u2019t be complicated. Finance automation can streamline and simplify multiple finance touch-points and workflows.\u00a0\u00a0\u00a0<\/span><\/p>\n

Here are 5 key areas finance automation can transform:<\/span><\/p>\n

(i) Accounts Payable<\/span><\/h3>\n

Managing your company\u2019s accounts payable responsibly and timely is a critical yet tedious job. Accounts payable involves processing invoices, sending them for approval to the correct team or person, and processing the payment while recording each discrete step.\u00a0<\/span><\/p>\n

CFOs realize savings and risk mitigation come through early payments and discounts and keeping a check on processing time. That\u2019s where AP automation comes in.\u00a0\u00a0<\/span><\/p>\n

Automating invoicing and expense management can improve finance processes by increasing accountability, saving time, and ensuring accuracy. It also standardizes and removes bottlenecks and backlogs from AP processes.\u00a0\u00a0<\/span><\/p>\n

The range of technology solutions available today helps handle:<\/span><\/p>\n