There's without doubt digital transformation was accelerated during the pandemic, but that doesn't necessarily mean it had been within the right areas.
Because despite finance leaders and businesses focusing on their digital transformation strategies throughout the pandemic, many are yet to prioritise the day-to-day functions of their accounting departments.
As employees left work, businesses scrambled around for laptops, cloud computing systems and software to facilitate remote working conditions.
But the dust has settled and also the way forward for remote, office or hybrid working seems just a little clearer, you're ready to take stock of where tech investments still need be made.
Collaboration tools such as Microsoft Teams and Slack have left us in good stead, but it is time for you to think long-term concerning the future of the company – especially in accounting, an area notorious for being an electronic transformation laggard.
Manual process hinders progress
Automation is different our lives to the point where we don't have to type the same email all the time, where our favourite junk food order reaches our fingertips prepared to be ordered, or can drive us from A to B without us touching the steering wheel. Well, at some stage in the future a minimum of.
Yet with regards to finance departments, an area known for labour-intensive and monotonous tasks, where automation can definitely show its stuff, we've got the technology is almost nowhere to be seen.
A recent survey of just one,000 finance leaders showed that companies over the UK, EU and US still overlook accounts processing automation, with many still heavily reliant on manual processes.
One in five businesses continue to be using Excel spreadsheets and manual processes for accounts payable – just 18% have adopted full automation, with end-to-end invoice capture, approval and payment.
A typical accounts payable process would involve a colleague manually entering invoice details into a system of record, receiving approval from managers, and finally initiating payment.
Although it sounds simple in these three steps, manually processing invoices has shown again and again to improve the potential of human error, miscalculations and incorrect or double payments.
According to Gartner, the price of processing one invoice in the UK can range from lb4 to lb25, and in some cases can rise as high as lb50. The cost of invoice processing using automation tools can help to eliminate this up to 80 %.
Many businesses are taking a loss through higher invoice processing costs and slow payments and collection processes, as well as the impact on client and supplier relations.
Accounts Payable requires a tech injection
But it doesn't need to be by doing this. In fact, many businesses have woken up to the very fact they require better processes, with similar survey of finance leaders showing that Cloud and SaaS solutions were the very best tech priority for 41% of companies.
This is largely being driven by limited resources in finance departments and invoice volume, with businesses receiving and sending between ten to ten thousand per month.
The use of manual processes, along with a glance at the benefits of technologies such as automation, has driven a wish to digitise. As possess the proof points, with businesses standing to realise an 80% decrease in processing costs and 70% faster processing cycle times.
Automation in accounts payable eliminates the requirement for human interaction, and for that reason error-prone tasks. In turn, this cuts down on the chance of fraud, as digital records are kept for full visibility and traceability further down the chain and for audit purposes.
Going digital also creates sustainability advantages, lowering the quantity of paper needed to be printed. It also helps reduce labour, storage and printing costs, as well as better help businesses review and optimise their internal resources.
With automation, finance and accounting departments will also help optimise supplier payment processes, improving efficiency without compromising on quality and spend control.
No more excuses
The accounts payable function was already in desperate requirement for automation before the pandemic. Now it's end up being the stand out candidate.
Now, with mounting financial constraints and an even Post-pandemic, greater emphasis must be put on time and cost savings, allowing finance professionals to focus on high-priority matters.
Although many companies have focused their efforts on keeping operations going and staff working over the past year, the advantages of automated solutions simply cannot be prevented any longer.
With manual processes turning out to be too time-consuming and high risk, any opportunity to improve quality and efficiency should be thought to be a top priority.