Automation: A CFO’s Best Friend?
By far, digital transformation adoption has been comparatively slow in the financial domain. Although more customers prefer a modernized digital experience from financial institutions, many senior leaders, including chief financial officers (CFOs), hesitate to pull the trigger.
One of the major issues driving this hesitation is money. The cost of automation and budgetary constraints are some common concerns when implementing digital transformation initiatives.
Humans fear change, and CFOs are no exception. Changes to the finance function create a justified fear of developing a less effective workflow. Even worse, changes lead to an undeniable discomfort associated with learning new processes and workflows. However, CFOs shouldn’t be afraid of automation. In fact, they should make this transformative technology their best friend.
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| Automation is a CFO’s Best Friend |
7 Reasons Why CFOs Should Make Automation Their Best Friend
Here are some reasons why CFOs should embrace automation as their best friend:
1. Reduced Human Error
CFOs manage the financial activities of their company. They track cash flow, analyze the strengths and weaknesses of the organization's finances and oversee all elements of its financial success. Human errors in this function can be costly, considering the sensitive nature of the information it handles.
As much as CFOs may prefer a human touch, they do not entirely appreciate the implications automation may have on their workflows, teams, and performance. Automation in the finance and accounting function significantly reduces human error. Also, it offers greater visibility and control of financial data.
With such a level of financial data access, visibility, and control, CFOs can make informed decisions around different aspects, including strategy development and forecasting. Also, it will save the money and time spent rectifying human mistakes.
Additionally, human error contributes to about 85% of data breaches. Since automation reduces overreliance on humans, it can reduce the chances of a data breach in the finance function. So, CFOs will have more peace of mind, knowing that their function is safe from deliberate and indeliberate human errors.
2. Focus on Value-Adding Tasks
In the finance function, there are many repetitive tasks, such as collecting, inputting, and validating data. These tasks consume about half of your team's time, leaving limited room to adequately analyze crucial information. As a result, employees and CFOs put more time into "typical" tasks that bring little to no value to the organization. And that’s where automation comes in!
Automation eliminates manual, mundane, and time-consuming tasks and workflows. This frees up CFOs and finance teams, diverting their talents and attention to more enterprise-wide value-adding initiatives. This drives strategic development and productivity in the company’s finance function.
3. Improved Efficiency
Financial resources are often scarce. Therefore, the limited resources must be used efficiently to improve the overall outcomes. However, redundant and manual processes in the finance department hinder efficiency, as they are time-consuming. Also, they are error-prone and repetitive, minimizing their value in achieving the organization’s goals.
Automation takes over redundant and time-consuming processes, streamlining business operations. Tasks that would initially take months or weeks can take a few hours or days to complete.
Top automation service providers offer that functionality for suppliers and vendors to onboard themselves through self-service portals. Doing so allows them to input their data and monitor purchase order statuses. This visibility streamlines the finance function, enabling CFOs to make informed decisions regarding the company's expenditure. As a result, it improves the overall process efficiency.
4. Reduced Headcount
A high headcount in the finance department means you spend more on employee wages and benefits. While automation does not necessarily mean slashing down your finance team, it can streamline your Accounts Payable (AP) process. This eliminates the need to hire more workers to complete manual and repetitive activities in the finance department.
5. Improved Data Analysis Capabilities
Chief finance officers often handle enormous volumes of financial data. This means it can take a lot of time to analyze and generate insights from this data. Fortunately, automation is here to transform CFO’s data analysis capabilities.
Automated solutions can help CFOs collect and analyze large financial datasets from different sources faster and more efficiently. This enables them to gain real-time insights into their company’s financial performance and make data-driven decisions.
Modern analytics tools integrated with automated systems offer valuable insights, supporting strategic financial planning and forecasting. Utilizing automated systems’ data analytics capabilities helps CFOs make better decisions regarding their companies’ finances, gaining a competitive edge.
6. Improved Risk Management and Compliance
Risk management and regulatory compliance are critical aspects of CFOs' responsibilities. Some processes, such as financial reporting and tax calculations, are complex to perform manually. As a result, they are prone to errors. These errors can be costly and can lead to significant legal penalties due to non-compliance.
Automation can streamline risk management and compliance with various financial regulations. It automates complex processes, such as audit preparation, financial reporting, and tax calculations. Therefore, it reduces the risk of non-compliance and promotes accurate and timely reporting to relevant regulatory bodies. This eases the work of CFOs, enabling them to focus on other core processes that require manual interventions.
7. Cost Savings
Automation can significantly improve return on investment (ROI). Also, it brings significant cost savings for businesses. It reduces overreliance on manual labor.
Additionally, CFOs can optimize staffing levels, reallocate resources and attain greater operational efficiency. Also, automation reduces the need for paper-intensive processes, printing, and physical storage. This minimizes costs related to paper, storage space, and ink.
Trusted Consulting Partners for Automation Anywhere
Several trusted consulting partners offer services for Automation Anywhere, including Accenture, Gleecus TechLabs Inc., Damco Solutions, and NTT DATA Business Solutions. Additionally, Evoke Technologies lists Automation Anywhere as one of their technology partners, and Automation Anywhere offers a list of verified services partners. Look at some trusted consulting partners for Automation Anywhere:
- Accenture: A global professional services company with expertise in strategy, consulting, digital, technology, and operations, offering a broad range of Automation Anywhere services, according to the company.
- Gleecus TechLabs Inc: A partner with skilled RPA professionals certified in Automation Anywhere and other technologies like AI, advanced analytics, data management, and cybersecurity.
- Damco Solutions: It provides Automation Anywhere development services, including certified developers and subject matter experts for project assessments and implementation.
- NTT DATA Business Solutions: It offers strategic consulting, implementation, training, and ongoing support for Automation Anywhere, according to their website.
Trusted consulting partners for Automation Anywhere offer specialized expertise to help businesses implement and scale automation effectively.
Trusted consulting partners have certified professionals trained in Automation Anywhere solutions. They assist with deployment, integration, and optimization of automation workflows. Consultants help identify automation opportunities and create tailored strategies. Reliable partners provide continuous monitoring, troubleshooting, and upgrades. Many partners specialize in automation for healthcare, finance, retail, and other industries.
Final Thoughts
While automation seems a highly disruptive technology, CFOs shouldn't be afraid to embrace it. It can significantly transform how they work, improving performance, productivity, and efficiency in the finance function. However, automation should be implemented strategically and thoughtfully.
So, CFOs should evaluate which processes can be effectively automated and assess potential risks and limitations. Also, they should ensure proper security controls and measures are established to protect data integrity across all automated processes.