If you are a small business owner, one of the most important decisions you will make is what tools to use to automate your business finances. With so many different options available in today’s market, it can be challenging for an entrepreneur to know which service would best suit their needs. This blog post will highlight some of the top online tools and financial management solutions that will help entrepreneurs save time on tedious tasks while making the most out of their money.
Financial Automation Has Already Begun
In truth, financial automation has been in place for several years. Paychecks are automatically transferred into employee bank accounts, and people may set up autopay for utilities, phone bills, and subscription services to risk missing a payment. For businesses, similar procedures exist. According to research conducted by the McKinsey Global Institute, 42 percent of financial operations might be entirely automated, with another 19 percent being “mostly” automated.
That accounts for more than half of the current procedures carried out by finance teams. Robotic process automation, which allows the software to do repeated activities (such as transferring money from one account to another), may help with this automation. In the realm of finance, however, the application of machine learning and artificial intelligence has opened up even more opportunities. These technologies can anticipate future trends and make data-backed suggestions on anything from pricing strategy to market growth choices by analyzing financial data.
While many companies are still behind in AI, the great majority have already implemented some sort of basic financial automation—even if they aren’t aware of it.
How Do Businesses Stand Poised To Benefit From Future Financial Automation?
Automation in financial planning has the apparent advantage of eliminating routine busywork. When done manually, processing accounts payable or following through with regulatory reporting might take a long time. Using an automated system to handle these activities minimizes the chance of human mistakes while also freeing up time for employees to work on higher-level duties. However, when artificial intelligence (AI) is used, the advantages of financial planning and analysis may be significantly increased.
These technologies can access a continuous flow of real-time financial data using a set of controls or algorithms. Machine learning enables these technologies to recognize patterns that a live, breathing person would miss. According to the Association of Certified Fraud Examiners (ACFE), businesses lose 5% of their income on average due to fraud, with more than half of these cases stemming from weak internal controls.
AI analysis is a strong internal control that informs organizations of anomalies immediately, allowing for a quick response to minimize harm. AI integration also will enable organizations to make better, faster choices. Manual financial planning, for example, requires firms to “spend as much as 20% of their ‘planning and analysis’ time gathering data and as much as 30% of that time verifying that information,” according to IBM.
AI collects and validates data automatically while also removing information silos that are common in large corporations. This provides a more transparent perspective of the company’s financial health to financial planning personnel, allowing for more accurate forecasting and a better understanding of underlying issues.
How To Get Started With Automating Your Business Finances
To correctly manage your business finances, you must first select the appropriate tools to lead your operations.
DataRails is an excellent option for companies that don’t want to give up their expertise with Excel spreadsheets. This program creates a consolidated database for financial data by automatically combining data from several platforms. Data gathering on demand and the capacity to report on certain factors enable reliable and valuable information to be sent to a company’s decision-makers.
For service firms, creating and monitoring invoices may be a time-consuming procedure. Fortunately, this is a simple operation that can be automated. With automatic invoicing services, tools like Wave help businesses save time and get paid sooner. For subscription services or continuing projects, features include the option to set up regular invoicing and automated payments and generate reminder emails so that clients don’t forget about issued bills.
Taxes may be a significant cause of stress for company owners, but thankfully, technologies like Taxify can help simplify the process. In this situation, automation aids in the compliance of firms with sales tax rules. The program maintains track of new legislation that might put a company in danger of being audited. This is also beneficial to firms extending their operations into many states since it ensures compliance with various regulations in each state.
Ready To Automate Your Business Finances?
These financial automation solutions are simply the tip of the iceberg regarding how automation may alter your company’s financial planning and analysis processes. Anything from payroll and cost administration to sales forecasting may benefit from automation, resulting in more efficient and informed outcomes. The expense of such instruments should always be weighed against the benefits of increased productivity, reduced risk, and enhanced financial decision-making.
Tools to automate your business finances, like so many other elements of business, may be an investment with considerably higher returns than the cost of implementation. The advantages of automating critical aspects of your company’s financial planning and analysis are invaluable. Businesses that use automation technologies will be more productive and efficient, reducing manual labor and boosting data accuracy.
Financial automation is something that no company can afford to put off any longer. With accurate data and analytics in place, you can make smarter cash-flow choices and protect your company’s long-term viability.
