How can automating financial processes transform your management?

Automating financial processes has been a challenge for companies seeking greater productivity and a better market position. This is because successful financial management directly impacts business growth .

In this case, controlling income and expenses while maintaining growing financial health is important for any company, but not all achieve this. One of the reasons is precisely the use of manual processes.

In practice, these processes are more prone to error , especially when dealing with a large volume of data. Therefore, in the long run, this can lead to significant losses for brands. Thus, automation is, above all, an essential resource for continuous growth and improved business performance.

In this article, we'll discuss the benefits of automating financial processes , as well as how this automation helps overcome the challenges of achieving efficient financial management. Read on to learn more!

Why automate financial processes?

Process automation is growing across various business sectors and services. According to research by IDC , it is projected that by 2023, 70% of institutions will have accelerated their adoption of digital technologies .

This premise would be no different for the financial sector, since it deals directly with the business's resources. Because it is an area whose performance affects all other sectors, it is necessary for financial management to be attentive and precise.

Automation, in this sense, is a strategy to optimize processes in financial management , eliminating errors and their respective consequences. With the aid of technology to execute processes previously done manually, precision and agility in management are ensured.

This brings greater effectiveness to the management of the sector , which can direct the team towards more complex and less operational tasks, in addition to better managing the business's resources.

4 Benefits of Automating Financial Processes

Now let's talk in more specific terms. Besides reducing errors, what are the advantages of automating financial processes? We highlight the main benefits .

1. Cost reduction

The reduction in errors resulting from the precision in calculations made by artificial intelligence prevents the company from spending on corrective actions , as well as the losses from an inaccurate budget.

2. Updated data management

The automation platform will process the data in real time , providing managers with a more accurate overview of the company's evolving financial status.

3. Increased productivity

In addition to gaining agility, as bureaucratic and operational tasks are delegated to the automation tool, the team can be better utilized in solving strategic business problems.

4. Failure reduction

Technology eliminates data processing errors, which are common when data is handled manually. This precision in data recording and processing also provides greater security for management decision-making .

5 Challenges for Strategic Financial Management that Process Automation Helps Overcome

There are certain challenges in business budget management that can become real obstacles to growth . What many companies ignore is that automating financial processes reduces or even eliminates these difficulties. Let's take a look.

1. Cash flow control

Cash flow performance directly influences the financial health of a business. It's used to control inflows and outflows and to project working capital balances.

Thus, when there are errors in cash flow records, the company's budget planning is compromised. The consequence is disorganized finances , for example, with the withdrawal of funds from where they shouldn't be to cover excessive expenses at the end of the month.

2. Inventory Management

Automating financial processes also benefits inventory management, a sector directly linked to finance and purchasing. Here, when the process is done manually, there is a risk of outdated information and errors that compromise the entire delivery process to the customer .

Conversely, the automation tool allows for financial planning to replenish products in stock in a predictive and precise manner, according to demand.

3. Accounts payable and receivable control

When a company offers customers several payment options , it needs to manage the processes and timelines for each one. Manual monitoring may not be sufficient to handle these differences, identify processing errors, and other details.

This can result in difficulty paying monthly debts, putting the company at risk of default , including on services it depends on for its full operation.

4. Communication between teams

One of the main bottlenecks for financial management is the lack of effective communication between departments . It is necessary for the finance department to be aware of all resource demands in order to consider them in budget planning.

Otherwise, problems such as delays in payroll, taxes, inventory replenishment, and others may arise. Automating financial processes facilitates this communication and mitigates risks, as budgetary demands can be monitored remotely and integrated into the management platform.

5. Maintain the credibility of the business

Constant errors and inconsistencies in financial management compromise a company's credibility with suppliers, partners, and investors . After all, in this context, when the company presents a history or report, 'the numbers don't add up'. Manual processes involve recurring risks, such as:

• Data inconsistency in cash register closing;
• Loss of electronic or printed data and documents;
• delay in the release of financial results.

Furthermore, manual processes such as filling out Excel spreadsheets, filing, and retrieving printed documentation will require more time from the team or person responsible.

Get to know Sky.Simple 

Among the options available on the market, Sky.Simple offers some unique features that can help automate the finance sector. Focusing on fully digital management, the tool allows companies to better manage communication with their suppliers.

With the platform, suppliers receive real-time information about payment forecasts and confirmation of receipts, in a transparent and agile manner. This not only improves the workflow in supplier management but also enhances the relationship with them.

Sky.One's tool also allows for the expansion of the risk factor used to obtain working capital, without consuming bank credit, thus reducing indebtedness.

Therefore, the next step is to choose an automation platform and eliminate the problems of manual processes. To choose the ideal tool, evaluate the critical points of financial management in your company , the main demands, and the objectives to be achieved.

Now that you understand how much process automation can transform business management, you're probably thinking about going beyond financial management. If that's the case, stay with us and discover how to integrate your business.

Written by Skyone