With the integration of automation in finance and accounting, the role of finance professionals has altered. Finance automation tools have made it easier for them to prioritize and devote time to better things that can benefit the company. Finance automation and automation in accounting have enabled them to shift their attention from the lower levels of processing to the higher ones. So, what exactly do you mean by automation in finance? Finance automation is defined as the integration of machine learning and artificial intelligence to make tasks like financial analysis, payroll administrations, accounts payable, accounts receivable invoice automation etc., quick, efficient, and free of errors.
Automation is not a luxury anymore. It is a necessity if you wish for your business to thrive. Companies are changing the way they tap the potential of their employees. Financial process automation will help you tap the most of your employees potential. Let us see how.
With financial process automation, ground-level tasks like data entry, processing invoices, reconciliation of accounts payable and accounts receivable can become simpler. The finance automation tools can perform these tasks on their own without demanding human intervention. The employees can also take on other vital activities that can be rewarding for the company. Furthermore, it will also reduce the cost of materials that are needed to carry out these processes.
Finance automation will simplify the finance process management. It will reduce the paper trails. The chances of losing crucial documents will reduce since one can find all the details in a single place.
Human error is inevitable, and companies must work around the same. No matter how experienced the accountant is, there is always a chance for human error. A mistype while entering the invoice number or the amount can cause losses to the company. At times it can even affect business relationships. Automation in accounting will reduce these errors to almost zero.
It comes as no surprise that machines work faster than humans. Automated accounting systems make it possible to process the data, invoices, and payments within a few minutes. Furthermore, not all invoices are in a paper format. Businesses also accept invoices in an image format, and entering the data from the images into the accounting system can be time-consuming. Furthermore, most of the repetitive tasks performed by employees are tedious. Employees can dedicate this time to things that matter.
Automation finance can paint a comprehensive picture of the total capital of your company. It further paves the way for automating finance reporting. With this, financial analysis is just a click away. It can assist the employees in studying the trends in receiving payment, clearing dues, cash flow, etc. It will further speed up the decision-making process at the top since all this data can be made available in real-time. Businesses can also study the minute aspects of their business and check for several parameters for growth. This data which is on the cloud, is available 24/7, making it accessible from anywhere.
While accounts payable deals with purchase orders, the account receivable deals with sales orders. Both of these transactions demand accuracy within stipulated times. The two departments that work closely for these operations are the procurement and finance departments. To perform this task manually, one needs to have excellent communication and cooperation. Accounting process automation will provide one single stop for both these departments. It will reduce the chances of misunderstanding, and everyone can access the data at the same time.
Reconciliation outlines various financial activities carried out by the company. These activities include withdrawal and deposits. Every month the accountant needs to reconcile the bank statements. Traditionally, he would need to match every transaction. The process ensures the payment of bills and cash deposits into your bank account. Instead of spending time over this, the finance automation tools make it easier to do the math and spot any differences. If the differences arrive, the accountant can then resolve them as the quickest possible.
An important task carried out by the HR and the finance team together is the payroll. This task is repetitive since it happens every month. Payroll software will reduce the load on the team and efficiently process the salaries. Furthermore, it will also reduce errors in calculating leaves, remuneration, and expenses. Employees can themselves check the status and determine their tax regimes.
Businesses rely and thrive on accurate data. They use these numbers to close deals, run campaigns, and strategize the upcoming fiscal year. Finance process automation makes it easier for organizations to create data reports. One does not need the help of multiple formulas applied to a spreadsheet to get a final report. Automation in finance and accounting makes it possible for organizations to draw several data across departments in the quickest possible time.
Automation in finance and accounting is possible with the help of machine learning and artificial intelligence. It saves time, reduces error, speeds up processes, and reduces the paper trail. Moreover, it enables you to draw data that can prove beneficial to the company in no time. You can automate the processes at the ground level to increase the efficiency of the higher levels. Automation is speedily becoming an integral part of how organizations operate today. It will only be wise for others to do the same and put the available resources to better use.
Use AI & ML powered OCR software or APIs to extract data from Invoices.