Financial automation of a company is not just a fashionable phenomenon but a prerequisite for any company`s successful functioning. Even though several organizations continue to keep using spreadsheets, «de-Excelization» is a modern trend now.
Automated financial task setups allow regimenting the different operations effectively due to the prompt receipt of data necessary for the timely adoption of competent administrative decisions. Also, modern accounting systems ensure the coherence and consistency of information, which reduces labor costs for data negotiation.
Prerequisites for Financial Automating
Many factors contribute to the massive automation of financial tasks. At the moment, the main prerequisites are:
- Great information cost. As a rule, administrative costs can be 40-300% of the production cost.
- The fidelity of automatic procedures. Qualitative information takes a long time to prepare and has short-term validity. When tasks are performed manually, there is no operational analysis and long-term forecasting.
- Financial responsibility. Fines for late payments, for poor-quality regulated reporting, and for taxes not paid on time are major cruxes for any company.
What Tasks Can be Automated?
The organization, which has implemented special auto-systems, short-circuits the fulfillment of many processes, as well as increases their accuracy:
- Budgeting&Planning. Automation allows to unite the work of departments and establish a single financial goal for the company. Programs can draw up a budget, create a purchase and sales plan, delegate responsibility for the financial result, analyze and adjust plans.
- Treasury department. A well-built and automated treasury allows you to avoid the accrual of fines and penalties for the unfulfillment of obligations. Thus, automation provides control over the use of funds, management of limits and balances of funds, accounts receivable, and communication with the banking system.
- Consolidation. Gathering and combining information about the financial condition of the organization into a single system is necessary. As a result, intragroup elimination transactions occur automatically. Group reporting is always available online.
That is why there is no doubt that such tasks` complete automation is inevitable — this practice will provide up-to-date information on the company`s financial condition.
The benefits of automation are essential to the management department. For example, the DG of an organization gets:
- the business profitability increasing;
- the ability to make accurate decisions on the business areas development;
- the total control over the financial condition of the company;
- the data centralization and detailing.
The CFO gets:
- the “human factor” depreciation and, as a result, reduction of natural losses expenses;
- timely identification of financial risks;
- acceleration of consolidated reporting.
Besides, automation of the security services is also needed so that the department can:
- control access to the financial data of the company;
- minimize the risks of leakage of commercial and financial information.
A huge advantage is that financial automation software vendors usually provide full support during their program`s operation. By the way, such a system appropriates even for a small business. For example, you can take a payday loan from Payday Depot to connect the program and make sure it works well.