It used to be that to be successful in finance you just needed a good head for numbers. But just like paper gave way to spreadsheets, digital worksheets are now giving way to autonomous thinking machines that will redefine the finance department forever…
Why is automation so important to building tomorrow’s finance department? According to Accenture, it will be a key component of creating a guaranteed income for a large part of the global economy. The research revealed that AI has the potential to boost average rates of profitability by 38% and lead to an economic boost of $14 trillion across 16 industries and 12 economies by 2035.
And with finance and CFOs being called on more and more by the C-suite and departments like sales, marketing, HR and operations to provide raw data and sophisticated analytics to make sense of what’s going on in the business, finance teams have an increasing role to play in strategic business thinking.
But with all this data swamping finance teams, it can be a struggle to answer the needs of other departments without the help of automation. AI changes this by enabling finance to hand over many routine manual tasks – such as collecting high quality data, prepping reports and processing general analysis – to focus on providing high-value insight that helps drive business growth and performance.
As the role of the CFO evolves, it’s logical that the role of the finance team will evolve with the increasing use of cognitive automation, cloud systems and analytics. Here are a few ways AI can boost the performance of the finance department.
- Rather than reconciliation work, finance teams will be carrying out analysis and insight work. It’s predicted that automation will eliminate up to 40% of the transactional work the finance department does today, opening finance to new tasks they didn’t have the capacity to perform before.
- Finance will have the ability to create more timely reports. Automation will position finance to provide better-quality data, more cost-effectively in real-time so organisations can be more forward-looking.
- Finance will be able to share alternative data that supports business-critical decisions. Incorporating data from other sources, such as social media which complements existing data, will help the board understand how well the company is performing so it can make proactive decisions. This has the potential to be one of the most important competitive advantages.
- Rather than producing static reports, AI will help finance engage investors with reports tailored to their requirements. Structured financial and non-financial data in the form of interactive reports will serve key stakeholders and investors with information that’s fit for their needs.
- AI will maximise efficiency, find patterns across complex data sets and engage other departments. Cognitive automation changes everything by finding trends hidden in complex data to unearth insights in a way that has never been possible before. Self-service dashboards will give other departments access to the data they need instantly without taking up the finance team’s time and resources.
- In the age of AI, financial personnel will need ‘softer’ skills. While there will still be a need for accountants and analysts, new cognitive technology will mean that in addition to needing more strategists, data scientists and IT professionals, financial teams will need to embrace skills like communication, teamwork and conflict resolution.
While the implementation of cognitive automation is still in its early phases, the future is coming faster than you think.
How ERPaaS can help boost your company’s performance
With our cognitive intelligence platform, you can:
- Reconcile data from multiple systems in one central location that instantly validates data and checks for compliance.
- Automatically answer queries and validate payments, invoices and expense claims without human intervention.
- Deal with non-compliant claims before they’re submitted. Our platform automatically flags non-compliant claims, so there’s no need for manual checks.
- Give employees a self-service app to change their personal details (address, bank account information, and additional information that may change their benefits and entitlements). All data is automatically validated and checked for policy compliance via the app to reduce payroll errors.
- Say goodbye to paperwork and the human errors that come with it. Our platform makes filing, data processing and updates more efficient and streamlined.
Contact Colin King on 01463 710 816 or email email@example.com today to find out more.