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4 key pillars to automate financial services for success

Accounts Payable

Accounts Receivable

Automation

Financial operations

Karolina Jarosinska

May 17, 2024

In recent years, finance automation solutions have revolutionized many sectors, including finance, by helping finance teams automate financial processes, streamline day-to-day operations, reduce costs, and enhance supplier and customer relationships. Embracing finance automation should be one of the key foundational pillars of every global business from the very outset; however, in order for it to be successful, a comprehensive approach encompassing data integrity, process optimization, technology utilization, and people-centric initiatives is required.In this article, we will cover the benefits around cost reduction, efficiency, and compliance coming from automating financial operations, as well as key strategies for successful implementation.

Why use process automation?

Automating financial operations comes with undeniable benefits. Fyorin’s clients report on average savings of 120 hours and 40,000 euros per year thanks to automating their global payments and other financial processes. Financial process automation enhances the efficiency and accuracy of finance teams by automating various financial tasks and processes, such as managing payments and producing reports. Here are some tangible reasons why all global businesses should consider embracing financial automation:

Cost Reduction: McKinsey report estimated that up to 70% of repetitive tasks in finance can be automated, translating to substantial cost savings across the organisation.

Efficiency Gains: Automation expedites routine tasks, allowing finance teams to reduce manual work and instead, concentrate on strategic endeavours.

Regulatory Compliance: By reducing human error and providing accurate, auditable records automation ensures adherence to regulatory standards and keeps records ready for audits.

Enhanced Customer and Employees Experience: Automating processes such as payables, receivables, and payroll facilitates faster transactions, seamless currency conversions, and streamlined payment procedures, enhancing both customer and employee satisfaction.

1. Consider the processes to automate for operational efficiency

Before considering tools or embarking on major automation projects, the initial step is to reevaluate the accounting processes earmarked for automation. These should primarily target areas where your finance team spends the most time performing manual processes, which adversely affect efficiency and operational costs.In addition to manual processes, it's crucial to identify which finance and accounting processes can benefit from automation to enhance efficiency and accuracy.Placing technology atop a shaky process yields shaky results – potentially amplifying errors and necessitating additional workarounds. Automation aims to save both money and time; thus, if it fails to achieve this you need to reevaluate the process.Typically, the processes that can be automated include:

Accounts Payable: This encompasses centralising bills into one place, processing payments, automating payment and approval workflows, along with reconciling paid invoices within the accounting system.

Accounts Receivable: An end-to-end accounts receivable process facilitates not only the issuance of invoices but also the segregation of incoming payments for enhanced revenue visibility and accurate reconciliation. This is particularly beneficial for businesses with a high volume of incoming payments like e-commerce.

Expense Management: Automating the reconciliation of card expenses alleviates the need for the finance team to chase employees for invoices and receipts at month-end, providing a comprehensive overview of business spending. Effective expense automation can mitigate overspending and enhance budget control.

Reporting: Dealing with multiple financial institutions can pose reporting challenges, whereby by the time the data is aggregated it becomes outdated. Real-time access to financial data from diverse sources, accessible through a single platform, not only streamlines the reporting process but also facilitates better-informed decision-making.

2. Consider the integrity of data

The second step involves scrutinising the data that will be involved in the automation of finance processes, ensuring a stable and reliable flow between systems. This typically necessitates establishing a real-time connection via APIs, ensuring the accuracy of data flow and working with the most up-to-date information.Furthermore, efforts should be made to transition away from spreadsheets where feasible, opting instead for cloud-based solutions where data is secure, encrypted, and easily integrated with preferred tools. In the realm of accounting, this transition may entail adopting dedicated accounting software.

3. Consider tools and technology for financial process automation

After addressing processes and data considerations, the next step involves exploring the finance automation tools you wish to use for automation. Robotic process automation (RPA) can be particularly effective for automating specific repetitive tasks within financial management.There are various options - you can opt to automate each process with a separate tool, each connected to one another for a multi-tool tech stack or a unified tool that connects everything in one platform.While a multi-tool stack may offer specialised functionality, it often entails significant subscription costs. In contrast, a unified platform like Fyorin not only centralises financial operations but also minimises expenses. Moreover, a unified solution simplifies support by providing a single point of contact for all financial automation needs, a crucial benefit for growing SMEs.Whichever option you choose - pick a trusted vendor that has helped SMEs similar to yours, implement automation across multiple functions at scale. Fyorin has experience working with companies across various industries - from aviation, affiliates to SaaS and technology companies streamline their financial operations by implementing automated processes through our unified platform.

4. Consider people and proper training

Automation is not intended to replace human effort but rather to complement it, enabling finance teams to focus on more strategic tasks and improve overall business processes. However, concerns may arise, particularly from legal and compliance teams, regarding security and the delegation of day-to-day operational decisions to automated systems. This prompts questions about error detection and timely correction. If however, automation is implemented with due care and consideration for business needs, it can bring favourable outcomes for both teams and the company’s bottom line.It is imperative to involve the team from the outset of the automation to ensure that the system is tailored to the business’s requirements, including access and controls. Finance teams possess invaluable knowledge of processes and inefficiencies, making their involvement essential.Despite automation, human oversight remains indispensable, especially for complex financial decisions like approvals. Ensure that training is provided to each team member so they can operate the system successfully. This includes the ability to identify potential mistakes, rectify them, and report any further inefficiencies for continuous process optimisation.

Unified platform for automated cross-border financial transactions and more

Fyorin is a financial operations platform, powered by our global network of financial institutions, delivering treasury management, payables, receivables, expense management solutions and automating money movement for payment institutions, fintechs and global businesses. With Fyorin you can:

Automate your global payables. Centralise all bills in one place, approve, automate reconciliation and send payments in any currency, over any payment rails including SEPA, SWIFT, ACH or other local method, enhancing your finance functions.

Get paid faster and reconcile global sales instantly. Issue invoices and payment requests in multiple currencies, receive payments into individual sub-accounts to get a granular view of the incoming payments, improving your finance operations. Automation also ensures accurate recordkeeping of financial transactions, enhancing compliance and fraud monitoring.

Consolidate all your banking into one platform. Easily manage, control your treasury and diversify liquidity risk from one place, with one login. Enjoy hassle-free global banking and greater financial operations efficiency with a streamlined reporting and real-time access to data.

Interested in automating your financial operations with Fyorin? Get in touch with us by emailing [email protected] or book a demo!

Frequently Asked Questions

How does intelligent automation improve financial performance?

Intelligent automation enhances financial performance by streamlining the accounting process, reducing manual data entry, and improving the accuracy of financial reports. This allows finance professionals to focus on strategic planning and analyzing critical financial data.

What role does financial analysis play in finance transformation?

Financial analysis is crucial in finance transformation as it helps finance leaders assess the financial health of an organization. By utilizing intelligent automation technologies, finance departments can process real-time financial data, allowing for more accurate and timely financial reporting.

How can automation technology aid in managing financial systems?

Automation technology simplifies the management of financial systems by automating complex tasks such as cash flow monitoring, expense reports processing, and financial statements preparation. This reduces the need for human intervention and minimizes processing errors.

Why is involving key stakeholders important in the automation journey?

Involving key stakeholders ensures that the automation process aligns with the organization’s strategic planning and financial goals. Finance leaders and other stakeholders provide valuable insights into legacy systems and can help identify areas where workflow automation will be most effective.

How does machine learning enhance risk management in financial reporting?

Machine learning enhances risk management by analyzing structured data to detect anomalies and potential fraud in financial reports. It automates the identification of risks, allowing finance departments to take proactive measures to safeguard financial data.

What are the benefits of using automated tools for financial planning?

Automated tools for financial planning provide real-time financial data, streamline the preparation of financial reports, and improve the accuracy of financial performance assessments. These tools also reduce the time spent on manual tasks, allowing finance professionals to focus on more complex tasks.

How does intelligent automation impact the efficiency of finance departments?

Intelligent automation increases the efficiency of finance departments by automating manual tasks such as data entry and report generation. This leads to faster processing times, fewer errors, and the ability to complete tasks that would otherwise require significant human intervention.

What challenges can finance professionals face with data migration in automated systems?

Finance professionals may encounter challenges such as ensuring the integrity of critical financial data during data migration. Transitioning from legacy systems to new automated systems requires careful planning to avoid disruptions and maintain compliance with tax regulations.

How does workflow automation improve the accuracy of financial statements?

Workflow automation improves the accuracy of financial statements by reducing human errors in the accounting process. Automated systems ensure that financial data is consistently updated and reconciled, providing a reliable basis for financial analysis and reporting.

Fyorin, your financial partner

Fyorin, a financial operations platform for digital businesses, automates and monetizes the movement of money, making financial operations smoother, faster and more efficient. The platform eliminates 90% of manual work, allowing businesses to connect with their preferred accounting platform to automate receivables and payables.