If you’ve ever dreamed of expanding your business without hiring a single new employee, this post is for you! In the last decade, banking has been transformed by advances in automation. Computer systems and artificial intelligence have reduced the need for human labour to a fraction of what it once was.
The majority of small firms are paid late, with $825 billion in outstanding invoices in the United States. Automating your small business does not mean eliminating employees; it means that those who stay on can enjoy more time off or do more fulfilling work.
The finance industry is one that has been resistant to automation. However, there are many ways that automation can benefit your business in finance.
Here are 5 ways that automation can benefit your business in finance.
1. Streamline Accounting Operations:
This is the first obvious area where automation can benefit your business in finance. There are many different accounting and bookkeeping software applications out there that you can use to automate and streamline your accounting operations.
Many of these applications are available as software as a service (SaaS) applications, so you don’t have to install anything on-premise or maintain any servers or other infrastructure. These cloud-based services will give you all the features that you need to do accounting, bookkeeping, and more.
2. Improve Compliance:
Compliance is another area where automation can benefit your business in finance. There are many different regulatory requirements that you must comply with as part of your business operations. The more work you can automate, the better off you’ll be. There are many cloud-based solutions that will allow you to automate many of your compliance operations and make it much easier to do compliance-related tasks in a more timely manner.
3. Automate Money Management:
Automating your money management will give you the opportunity to better manage your cash flow and other aspects of the way that you handle your finances. There are numerous money management automation tools out there that give you this capability. These tools will allow you to automate tasks like managing your ACH recurring payments, maintaining vendor files, and more.
4. Automate Pension Fund Accounting:
Pension fund accounting can be a very tedious and time-consuming process if it’s done manually. However, there are tools that you can use to automate this process. These tools can be used to manage your pension funds in a very efficient manner and ensure that everything is properly accounted for ongoing basis.
5. Automate Compliance with Regulatory Requirements:
Finally, regulatory compliance is another area where automation can benefit your business in finance by allowing you to manage each of your regulatory requirements much more efficiently than ever before. There are many different regulatory requirements that govern your business, and the more automation you can use to handle these issues, the better off you’ll be.
How To Automate Your Finances
There are many ways that you can automate your finances. If you’re just starting out, you may want to try out some of the automation tools that are available as part of SaaS applications. These will provide a wide range of features that can help you automate many of your accounting tasks and improve the way that your business operates.
If you need more advanced capabilities or have an existing financial system, there are additional options for automating your finances with additional technology and software. This can be done by implementing software as a service (SaaS) model or by using hardware-based solutions to manage the transactions in real-time.
If you have an accounting system that you’re using, there may be a web-based version available that will allow you to gain additional functionality. One example of this is Quickbooks Online, which provides more advanced capabilities than the desktop version of Quickbooks. If you’re using QuickBooks Pro or Premier on your desktop, it’s definitely worth checking out what’s available through the online version.
The key thing to remember when automating your finances is that it should be used in conjunction with other business processes and procedures. Automation should not replace humans entirely; instead, it should complement their work and help them to do more in less time.
According to interviews with organisations that have used cutting-edge financial automation technologies, businesses can save up to 70% on finance operations costs while also having faster turnaround times, less errors, and less human intervention.
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- Create a meaningful forecast
- Navigate and report information
- Integrate with internal systems and external partners
- Implement a new or existing system
Processes That Should Be Automated
As you see, financial automation does not necessarily require the purchase of an in-house solution. By taking advantage of the cloud and SaaS instrument, or business process automation tools, your organization can free up staff, save valuable dollars, and improve productivity.
Your organization’s finance department will likely be able to benefit the most from these automation products. These are not only cost-effective but also easy to implement and maintain. It does not require a great deal of training for your workers to manage their finances using these products, and the payback is generally very quick.
You could make the switch to automation with little trouble and in the process improve your bottom line. However, you should always keep in mind that automating your finances cannot replace a human adviser who can provide such guidance as you would receive from a financial consultant or another advisor in your personal life.
Despite this, 87% of CEOs believe they need a faster means to examine financial and performance data in order to reach growth ambitions.
Some Examples Of Automation In Finance
Here are some examples of automation in finance:
• Cloud-based accounting software that’s integrated with payment processing services to automate payroll. This will allow you to process payroll right through the online system, and it makes it easier for employees to access their pay stubs online.
• Automated bookkeeping software that’s integrated with online banking services. This will automatically download all of your transactions from your bank account and allow you to do the bookkeeping while your banks handle other operations like ACH transfers and more.
• Accounting software that’s integrated with banking, third-party vendors, and other back-office applications to automate many processes.
• Automated cash management software that will help you to better manage your cash flow.
• Automated investment vehicles to help you invest in various types of investments. This can be done by using a Robo-advisor, exchange-traded fund (ETF), or mutual fund (i.e., S&P 500 ETF).
Top 5 Benefits of Financial Reporting Automation
Finance leaders are always looking for ways to automate finance processes. Accounting processes are a great place to start. Automating finance processes can save time and money.
Streamlining your financial reporting process is one of the biggest advantages that automated finance can offer, especially if you are a large organization with an extensive financial management team running multiple reports at different times during the week or month.
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2. Time Efficient
Automated finance reporting also reduces the amount of time that it takes for you to complete financial reports due to the fact that there are no longer many manual steps involved. For example, you can now run reports from any computer and view them from anywhere in the world due to the digital capacity of these reports.
3. Reduced Costs
Another benefit of automated finance reporting is that it will reduce your printing costs by creating digital versions of your financial statements and eliminating your need for paper copies on a regular basis. Digital reports can also reduce the amount of staff time spent creating, collating and distributing these reports manually.
A big advantage of automated finance reporting is that it not only benefits you as an individual business but also your entire industry. This is because it helps to improve the integrity of financial reporting, which allows businesses to grow at a more rapid rate while simultaneously increasing investor confidence.
And finally, automated finance reporting can help your organization to meet new compliance standards and aid with risk management. Protecting sensitive information and maintaining financial data integrity are vital components in staying compliant with certain governmental or legal standards, such as the Sarbanes-Oxley Act.
Risks Of Automating Your Finances
While there are many benefits to the widespread adoption of automation in finance, there are also some risks to consider. Automated solutions should be used in conjunction with humans for proper compliance and regulatory purposes.
In addition, the automation solutions that you use should be compatible with the tools that you’re using to make your financial transactions. If you have an older accounting system that doesn’t have much of a modern version available, make sure that your system is compatible before going down this route.
It’s also important to note that some people are resistant to change, and so automation may not be as beneficial as it could otherwise be. While automation is a great way to streamline and improve your business operations, it’s not the right solution for everyone.
The Main Challenges For Finance Automation
Like any other program, finance automation has a few drawbacks. Take a look at some of the main problems that you may encounter if you are thinking about implementing this type of solution:
• Your current accounting software may not be compatible with your new automated system. This means you will have to purchase different software or make some upgrades to your current accounting application.
• You may have to design and develop an entirely new framework for managing your finances. This will require money and time, though it could pay off in the long run as you manage various areas of finance within one interface.
• Your finance automation system may not be compatible with all parts of your organization, meaning that you may need to split the system into a few different applications and have different systems manage various areas of finance. This can be very expensive in the long run.
• You will have to train your staff in order to get them used to use the new software. This will slow down their work and cause some delays.
• A complete new automated finance system may not be worth it when you consider the cost over time. If you can live without it then, by all means, take advantage of all of its benefits without spending a single penny in order to have them.
Will Finance Managers Be Automated
Finance professionals are always looking for ways to automate business processes. The finance and accounting function is no different. The finance team is always looking for ways to streamline financial planning.
Finance managers play an important role in most businesses since they handle the money that keeps everything running smoothly. Much of their job requires attention to detail and accuracy since they must deal with precise numbers and figures on a regular basis.
A large part of the job is also concerned with planning and forecasting, which means finance managers must constantly look into the future and predict where their business can be successful. Approximately 80% of finance leaders have deployed or plan to implement RPA.
If your goal is to become a successful finance manager, then you need to develop your leadership, problem-solving, and informational analysis skills. You must also be able to work well with others and quickly find solutions that are acceptable to everyone in the office. Finance managers must be able to make quick decisions in order to manage to change business conditions, so it helps if you have good problem-solving skills.
Although finance managers do not use computers as much as other types of business professionals, they often need to use them for budgeting, forecasting and planning purposes. Most finance managers need a bachelor’s degree in finance or accounting in order to get started. This degree will provide an introduction into financial software used by most organizations today.
The Future Of Automation In Finance
Automation in finance is becoming more and more widespread.
RPA (robotic process automation) rose by a whooping 63% in 2018 and is still on the rise.
However, there are still many opportunities to automate your finances, whether you’re doing this within your existing accounting software or through the use of cloud-based applications.
Financial automation will likely become even more common with the advent of robotic process automation (RPA), which uses AI to automate repetitive tasks and processes. This is already a big area, and it will likely grow rapidly in the coming years as businesses look for new ways to increase efficiency and reduce costs.