How to Streamline Finance Workflows

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How to Streamline Finance Workflows

CFO Tech Outlook | Thursday, September 22, 2022

Manual data entry is time- and resource-consuming, and manual data handling can lead to costly errors and discrepancies.

FREMONT, CA: The finance function is one of the most vital and overworked divisions in every corporation, regardless of the business or industry. Finance helps companies to track their financial situation and manage cash flow and profits, and finance personnel performs multiple duties daily for the organization's seamless operation. A streamlined financial workflow optimizes cash inflow to improve a business's bottom line. Management may make data-driven investments, sales, and tax filing decisions by tracking financial workflow. Clear financial documents help preserve an audit trail.

Process inefficiency

Outdated systems create information silos that complicate finances, and Manual finance processes drain the finance team's productivity. Inefficient manual methods waste finance teams' time checking and matching data. Manual financial reporting can stress out qualified finance professionals. Financial reporting needs multiple levels of examination and validation.

Unclear roles

Manual financial methods don't define team members' roles. When roles and duties aren't defined, tasks slip through the gaps. Team members don't know who should approve which request. Lack of ownership and accountability can cause process redundancies or unfinished activities. Without accountability, a team loses credibility and trust.

Duplication and fraud

Fraud is a constant problem that organizations must prevent. Fraud may harm any company. Fraudulent billing, duplicate invoicing, and manual accounts payable processes raise the financial risk. Manual finance processes can be manipulated, overlooked, or duplicated. To preserve a company's financial health, it must implement a solid approval process that prevents finance staff from tampering with data or submitting duplicate invoices or erroneous approvals.

Information management inefficiency

Manual financial processes can't handle such large data quantities. Manual finance systems struggle with data storage, tracking, and organization. Management and financial audit teams must quickly find and access these records. Paper documents are often damaged and lost when received and processed.

Approval delays

Manual approval methods lack role clarity. The team doesn't know who should approve financial requests. Manual finance processes delay approvals. Manual approvals slow down payment processing. Late payments and purchase order delays result from delayed payment processing, leading to supplier dissatisfaction and a rise in late purchase orders and invoice payments. Payment delays hinder business operations. Purchase order delays cause late projects and product launches.

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