Automating financial processes has been a challenge for companies seeking greater productivity and better placement in the market. This is because successful financial management direct impact on business growth .

In this case, controlling inputs and outputs , maintaining growing financial health is important for any company, but not all achieve this. One of the reasons is exactly the use of manual processes.

In practice, these processes are more error-prone , especially when there is a large volume of data. Thus, in the long term, this can lead to several damages to brands. Therefore, automation is, first and foremost, an essential resource for continuous growth and higher business performance.

In this article we are going to talk about the benefits of automating financial processes , as well as how this automation helps to overcome the challenges of achieving efficient finance management. Continue to find out more!

Why automate financial processes?

The automation of processes is growing in several sectors and business services. According to research by IDC , by 2023, it is projected that 70% of institutions will have accelerated the adoption of digital technologies .

This premise would not be different for the financial sector, since it deals directly with business resources. As it is an area whose performance affects all other sectors, financial management needs to be attentive and accurate.

Automation, in this sense, is a strategy to optimize processes in financial management , eliminating errors and their respective consequences. With the help of technology to carry out processes, previously done by hand, precision and agility in management are ensured.

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

4 Benefits of automating financial processes

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

1. Cost reduction

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

2. Updated data management

The automation platform will process the data in real time , which offers the manager a more accurate view of the evolution of the company's financial status.

3. Greater productivity

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

4. Failure reduction

The technology eliminates the error in data processing, something recurrent when they are manually operated. This precision in recording and processing data also provides greater security for management decision-making .

5 Challenges for strategic financial management that process automation helps to overcome

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

1. Cash flow control

Cash flow performance directly influences the financial health of the enterprise. From it, the inflows and outflows are controlled and the balance for working capital is projected.

Thus, when there are flaws in cash flow records, the company's budget planning is compromised. The consequence is the disorganization of finances , for example, with the withdrawal of resources from where they should not be to cover excessive expenses at the end of the month.

2. Inventory management

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

On the other hand, the automation tool allows financial planning to replenish products in stock in a predictive and accurate manner, according to demands.

3. Control of accounts payable and receivable

When the company offers different payment alternatives to the customer, it is necessary to deal with the processes and periods of each one of them. Manual monitoring may not be able to manage these differences, identify processing failures, among other details.

This can result in difficulties in paying off monthly debts, leading the company to the risk of default , even with the 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 sectors . It is necessary for the finance department to be aware of all resource demands in order to consider them in budget planning.

Otherwise, you may face problems such as delay in payroll, taxes, stock replenishment, among others. Automating financial processes facilitates this communication and mitigates risks, as budget demands can be monitored remotely and integrated into the management platform.

5. Maintain business credibility

Constant errors and inconsistencies in financial management compromise the company's credibility with suppliers, partners and investors . After all, in this context, when it presents a history or report, 'the account does not close'. Manual processes involve recurring risks, such as:

  • data inconsistency at checkout;
  • loss of data and electronic or printed documents;
  • delay in the balance of financial results.

In addition, the manual process such as filling out an excel spreadsheet, filing and collecting printed documentation will require more time from the team or person in charge.

Discover Sky.Simple 

Among the possibilities available on the market, Sky.Simple brings some differentials that can help automate the finance sector. With a focus on fully digital management, the tool enables the company to better manage communication with its suppliers.

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

Sky.One 's tool also makes it possible to increase the drawn risk to have working capital, without consuming bank credits, which reduces indebtedness.

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

Now, if you understood how much process automation is capable of transforming the management of a business, it is likely that you are thinking about going beyond financial management. If this is your case, stay with us and discover now how to integrate your business.

Written by

Sky.One Team

This content was produced by SkyOne's team of cloud and digital transformation experts.

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