We all can agree on the fact that financing and accounting are vital tasks for any business. Their components tend to grow with each new development in different industries. And thus, this calls for a solution to help remove errors from manual financial functions. Finance automation is a key to error-free accounting and financing, using which businesses can thrive in this highly competitive market. Finance automation helps businesses to save time from repeating manual accounting tasks.
There happened to be many debates that financing automation may replace finance professionals. But truth be told, it helps finance-related teams by unlocking their potential instead of replacing the same with computational software. Studies from independent bodies like the Gartner Report suggest that finance automation can reduce the working time of almost 30% of each finance professional if appropriately integrated.
Finance Automation
It can be stated as the computational technique that can help automate critical financing operations like expense management, bookkeeping, bank reconciliation, and many more with little or no human interaction. And like most other automated industries, finance automation provides faster and more accurate results than traditional methods. For example, NetSuite for finance uses technologies that involve Robotic Process Automation, AI, etc., to make this whole thing a big success.
How does automated Finance help accounting teams and businesses?
Automated finances have a lot of integrated functions that can elevate any business to new heights with a proper approach. Given are a few reasons why finance automation can help you succeed in any industry:
Improved Financial Analysis
An excellent tool for finance automation will provide your business with a self-sustaining ecosystem that is comprehensive and continuous. Nowadays, most finance automation software like NetSuite for finance can generate good business reports like payment performance reports, cash flow statements, P&L reports, and many more. So, these reports can be accessed quickly whenever you need them.
Also, with the help of the reports, you will be able to study different business aspects such as profitability index and opt for reqd. Changes in financial plans. With such extensive tools, finance teams can go for faster and wiser decision-making and thus ultimately helps the business achieve more growth.
Saves Time and Manpower
A typical finance team involves countless weekdays for entering data manually and processing hundreds of invoices. Apart from this, other components of business accounting, such as reimbursements and reconciling accounts receivable and payable, play a vital role in the business. These tedious tasks are done manually and take a lot of effort and time.
But with the help of automation with NetSuite for finance, such working hours can be reduced to a few minutes. It thus improves efficiency. Automation in accounting and finance leads to better financial results. It allows the stakeholders to focus on more critical aspects of the business.
Error-free results
We all know that there would be accountable human errors that can sometimes happen. And such small mistakes with errors generate serious consequences in business strategies. And automation in finance helps eliminate such minor errors that can occur sometimes.
Thus, the risks regarding any error are eliminated with the help of computational tools. These days, finance automation systems can handle operations from invoice scanning to automatically performing reconciliation.
Fewer risks regarding fraud
Information leaks can lead to disaster implications in any business. And with the manual system of accounting, there are chances that data sheets can get out of the wrong hands. But since automated financial management systems are digitally protected, this information that is critical for business is not prone to such risks and gives Financial Security.
Data breaches in digital finance management and automation systems are impossible thanks to dozens of layers of firewalls. And the technology that is used in this automation tool allows you first to detect and then prevent such frauds in the business.
Which Finance functions need instant automation?
If you are looking to upgrade your finance system to an automated one in the business, then the following functions need automation right now:
Accounts Payable
Accounts payable, a critical function, must be taken care of throughout the year. These are the transactions required to be recorded and processed for vendor payments. And keeping it updated in time helps in operating the business smoothly.
An automated finance system helps in removing all the hurdles involved in this process. This provides single access to procurement reports. Using such a tool, tracking invoices, as well as purchase orders, is made simple. This improves visibility across the business leaders and finance teams.
Accounts Receivable
Like accounts payable, accounts receivable also play a vital role in the smooth running of any business. The difference that it holds from accounts payable is that purchase orders are recorded and processed instead of sales orders. Automation in finance can help make this accounts receivable function more straightforward and ensure faster delivery of payments.
Using the automation tools in the account receivable function, finance teams can track the sales invoices and bills, which are matched automatically with the receipts obtained by the customers. This ultimately brings transparency to the purchase system and helps in the growth of the business.
Financial Analysis and Management
All finance teams need to analyze their financial data since it represents the growth of the business. And taking balance sheets manually to analyze such sensitive information is a tedious task for any team.
With automation in finance, businesses get a 360-degree view of the financial data at their fingertip. These powerful business reports can be generated in minutes. And the finance team can improve policies that can lead to better results and impact.
Reconciliation
Reconciliation is the process of checking bank statements. Also, most accounting teams handle it manually, making it a headache at the end of each month. It involves withdrawal, deposits, and other important finance activities. Since these are essential components in finance, errors can’t be accepted by the accounting teams.
And proper bank reconciliation ensures that the payments, cash collections, and deposits are processed correctly. Automating this process allows faster handling of all these operations and helps achieve more accuracy. And thus, it saves a lot of effort as well as time that goes into matching transactions manually.
Payroll
Another function that needs to be automated in finance is Payroll management. Executing a payroll system is vital to every business, and an efficient payroll management system ensures business growth. Smart and automated payroll software allows this system to get simpler and faster with an end-to-end payroll approach.
Conclusion
For business owners and financial professionals looking for ways to enhance their efficiency in financing and accounting, financial automation is a great option to explore. Not only are the accounting tasks basic, but automated financing procedures can maintain end-to-end operations for your business. It can play a vital role in the growth of your business. So choose any automation software for finance that can help in acting as a financial CRM alternative and take the business towards a new integrated financial success story. NetSuite for finance is a great tool to start this automation journey.