Automate Financial Processes – Companies across all industries and departments rely on digital tools to automate their processes. A current study shows that digitization will change financial processes – from reporting to accounts payable and accounts receivable to forecasting, risk management, and the annual financial statements. The advantages for finance departments lie in the automation of time-consuming processes. The move away from manual work steps saves time and money. But there is another side of the coin if you want to automate financial processes.
Automating Financial Processes: What You Need To Keep In Mind
The crux of all forms of automation is that processes are accelerated, but individual needs take a back seat in some cases. That can be poison for the internal working atmosphere as well as for the relationship with the customer. Therefore, how finance departments can benefit from automated processes without neglecting customers and employees arises.
A sure instinct is required, especially when it comes to customer relationships. There are processes in the financial sector that do not have to be personalized – a standard letter is sufficient for invoicing. The situation is different with sensitive topics such as reminders.
Many companies are already relying on automated solutions for receivables management. This is useful because it saves time. On the other hand, it is not advisable to treat every outstanding claim and therefore every customer in arrears in the same way. It makes a difference in how long a claim is unique, how much it is, and whether it is a reliable existing or new customer.
Automate Financial Processes: More Room For Flexibility
These differences need to be taken into account if you want to automate financial processes. Accordingly, care should be taken to ensure that it offers scope for adjustments when choosing a platform. Some cloud solutions allow this by allowing the address and tonality to be individualized. A reliable existing customer can receive a friendly payment reminder with a wink. In contrast, a new customer with a high claim that has been outstanding for a long time will receive a much stricter warning.
Less Internal Conflicts
The combination of automation and flexibility is therefore of crucial importance for customer loyalty but also internal processes. Finance departments benefit from automated solutions. However, communication between the departments must not be neglected. For example, a common reason for outstanding payments is that finance and sales are inadequate in communicating.
The solution: cross-departmental tools. Some providers have focused on building dispute management, i.e., optimized internal communication between departments, into their software. In this way, all relevant employees keep track of paid and unpaid invoices, pending dunning processes, and manual adjustments.
A careful selection of the financial platform allows the advantages of automation to be used without the risk of annoying customers or causing internal frustration. A special plus: The incoming payment of outstanding invoices can be accelerated by up to 20 percent. Conversely, this means that the combination of automation and flexibility also ensures that a company increases its liquidity in the long term.
The advantages for finance departments lie in the automation of time-consuming processes. That can be poison for the internal working atmosphere as well as for the relationship with the customer. The situation is different with sensitive topics such as reminders. Many companies are already relying on automated solutions for receivables management. This is useful because it saves time.