Finance automation is trending, and truthfully, we’re all the better for it. Like other business functions, finance automation brings many benefits to companies big and small, but many still hesitate to adopt it.
So let’s take a look at how finance automation can help businesses become more efficient and how it works.
With the rest of the world turning cashless, finance teams cannot ignore the growing need for automation. According to a study by PWC, 60 per cent of CFOs are planning to capitalise on digital transformation initiatives in 2022. Meanwhile, 2022 studies by Gartner reveal how CFOs prioritise departmental restructuring to support digital initiatives in the organisation.
So why all this emphasis on digital? It’s because automation has proven benefits to all companies, be it a big conglomerate or a small local vendor. Here are some of the biggest automation benefits.
It saves an enormous amount of time
Finance teams spend hours on receipts, spreadsheets, petty cash, and other manual tasks that take up an unnecessary amount of time. Data is entered repeatedly through manual processing, i.e. into a claims form, then into a spreadsheet, and again to an accounting system if applicable.
With automation, data is entered into a system only once, saving the organisation up to 30 hours per month in manual time. Automation can also accelerate management reporting and reduce budget cycle time.
Minimises accounting errors
Many finance teams rely on spreadsheets to tabulate and organise their data. But unfortunately, spreadsheets contain the largest source of error for a company, with 9 in 10 spreadsheets containing at least one error.
These mistakes may seem harmless, but they can be costly. For example, a company spends around USD $52 correcting just one expense report with an error, which could accumulate quickly.
Finance automation minimises error by removing most manual work in the first place and automatically disseminating information throughout the system itself. This makes it easy for departments and employees to submit and view data.
It simplifies processes
Manual expense management is also problematic in the process itself. For example, while credit cards are not as manually-heavy as petty cash, employees may be making transitions with credit cards and not submitting a receipt, which leaves a lot of company funds unaccounted for.
Automation streamlines this by giving employees an easy process to follow. With more employees working from home, having a flexible system that doesn’t require employees and finance teams to alternate back and forth with their claims will significantly improve efficiency.
It gives companies invaluable data
As businesses go digital, understanding data is not just a need, it’s a must. Companies are using data to make accurate financial decisions and help them in budgeting. According to E&Y, companies will spend most of their time keeping up with tax and legislative changes in 2022.
This is due to the benefits that businesses are given during the pandemic, which need to be declared during tax time. As such, companies are looking for an automated way to make taxes and audits easier.
A similar sentiment is echoed by Gartner, who states that 72 per cent of CFOs are significantly involved with making budgeting and forecasting more flexible. Automation allows reports to be generated instantly instead of every quarter, allowing companies to have real-time information and pivot where necessary.
How do I automate my finance processes?
Gone were the days when automation was meant for big businesses. Now finance automation is more accessible and less expensive, making it accessible for any type of business and industry.
Here are some of the finance processes that can be automated in a finance department:
- Invoicing - Companies can automate the generation and distribution of invoices, as well as reconcile invoices with sales records.
- Finance Reporting - Generating speedy reports which are readily available during tax time and audits.
- Expense Management - Real-time tracking and managing company employee expenses through pre-loaded corporate cards.
- Expense Reconciliation - Automate bookkeeping efforts such as matching expenses with financial records.
Finance automation significantly improves efficiency, and it’s easier than ever before. Budgetly’s preloaded card and expense management software help Aussie companies be more efficient in the expense process and save up to 30 hours a week of manual time through automation.
To learn more about us, download our eBook, Managing Expenses with Budgetly. Alternatively, schedule a demo today for a personalised chat with our team.
