Why is Financial Process Automation Essential?

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Why is Financial Process Automation Essential?

CFO Tech Outlook | Wednesday, September 15, 2021

Even the tiniest accounting error can cause havoc across the Finance function, all the way up to the CFO.

FREMONT, CA: Finance and accounting are unquestionably the most sophisticated and complex corporate functions. Due to human interaction, manual financial processing is prone to inaccuracies and redundancies. Finance process automation is critical for reducing errors and oversights and increasing efficiency.

Automatable Finance Processes

Established practices frequently constrain corporate financial processes. Long-established procedures instill an ingrained perspective in people, making it harder to adopt modern approaches such as automation. Employers and employees both gain from embracing financial process automation. Reengineering the economic function through workflow automation reduces labor costs, improves cash management, accelerates closings, and increases profitability. The following is a list of automated financial processes:

Accounts Payable: The accounts payable process is rife with irregularities and deficiencies in standardizing invoices and payment requests. Automation of this process significantly reduces the error margin and also speeds the invoice creation and approval processes.

Tax Accounting:Accounting for taxes is a laborious, repetitive, and time-consuming process. Automating the tax accounting process increases the accuracy and speed with which tax claims are processed.

Detection of Fraud: Manual finance systems are prone to submitting duplicate or erroneous claims. Automating the claim submission process ensures that claims are submitted consistently and also prevents the filing of duplicate claims and oversights.

Approval of Vendor Bills and Expense Claims: Approval of vendor invoices or expense claims is time-consuming and involves data scrutiny and validation. Automating the approval process reduces the approval cycle and eliminates bottlenecks and delays in the process.

Why is it critical to automate financial processes?

A financially viable organization's backbone is sound financial processing. Automating financial processes enables businesses to save time and money. Here are some reasons why financial process automation is critical:

Increased visibility into fiscal health: An automated finance function provides a 360-degree perspective of the organization's financial health. Top management can make data-driven business judgments.

Increased precision: Automated procedures are more precise and efficient. Additionally, standardizing the financial approach prevents duplicate or exaggerated claims.

Centralized access to and control finance operations: A centralized, automated finance processing system enables central access to and control finance activities. Additionally, automation streamlines and optimizes communication both within and between finance departments.

Optimized resource utilization: An automated finance processing system allocates resources intuitively. 

See Also:Top Financial Control and Automation Tech Companies

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