A system that automates the financial management of your company is capable of significantly improving your business. You will see how the number of data available for analysis grows and, if you know how to put them to good use, your competitive advantage will only increase. Do you want to know the benefits of implementing a system that automates the financial management of your company? Here we will tell you everything you need to know.
What is financial management automation?
To understand the most relevant aspects of business finance automation and why it is so important today, you must first understand its definition.
The automation of a company’s financial management refers to the use of software that allows the implementation of technologies that contribute to the performance of financial tasks with greater accuracy and less manual effort.
Automating the company’s finances involves the preparation of financial statements, expense management, graphical data, accounting, bank reconciliation and other departmental activities.
You may also be interested in: Learn the 3 keys to financial digitization
What is a financial management system?
A financial management system is a software with the purpose of managing all the processes and activities of the company’s resources in order to control the budget, expenses, income and assets of the organization. In addition, it is carried out in an automated way to provide greater agility to those responsible for the department.
Furthermore, in addition to supporting day-to-day financial operations, the main goal of process automation in this department is to maximize profits and ensure long-term business sustainability.
It also provides detailed reports with the most reliable and relevant financial information. Thus, in practice, employees can communicate better with each other and, during meetings, decision-making is optimized.
Characteristics of a financial management system
The characteristics of a financial management system should have the purpose of facilitating the visualization of the information corresponding to the department. In this way, greater effectiveness and efficiency will be achieved in the processes of corporate financial control.
In this sense, among the most important characteristics we can highlight: accounts payable and receivable, non-compliance control and cash flow. All basic aspects that must be complied with and that generate the essential information for the correct management of the company’s resources.
However, efficient management exists thanks to other features that favor improvements in the company, as well as provide greater and more complete information to managers responsible for finances.
You may also be interested in: The digitization of sales: use of CRM’s
What are the objectives behind the implementation of a financial management system?
Any implementation of a system like this must have a series of objectives in mind. Here are the 3 most common ones:
Through automation it is possible to optimize the banking position, have greater control of treasury operations, reduce administrative tasks, have greater knowledge of the company’s financial business and more. All through the system.
This is achieved through improved decision making, since it is possible to have a complete knowledge of the expected short-term position and have it updated daily, anticipate future situations, support management in decision making, since they have an overview.
Enhance the company’s image in the eyes of third parties
Among your goals is to negotiate better conditions with financial entities and suppliers.
3 benefits that financial management automation offers your company
When you have access to all the information of your company’s financial activity in detail, it is time to understand what benefits you can gain from implementing a financial management system.
In this sense, we will mention 3 benefits that totally change the way your finance department makes decisions:
Having processes that are increasingly simpler and faster allows for considerable time savings that can be devoted to other more important matters. The automation of financial processes offers a greater amount of information in less time.
Now, with this time available, there is the possibility of having a greater deployment of resources and/or manpower for other projects and thus gaining more space on the job, as a competitive advantage.
Thorough inventory control
Having full control of the company’s inventory is of great importance. If you do not have complete invoices, it can be a high cost or a great risk for the organization, making it more and more obsolete in front of its competitors.
The loss of efficiency combined with increased costs results in an unfavorable and delicate financial situation. Therefore, having a proper inventory control ensures a higher profit from the market and a considerable reduction of the company’s expenses.
Thus, a properly established company finance management system is able to provide important company information to the responsible department managers. This will allow them to know if the company has the potential to improve its financial routines as well as the overall performance of the business.
With a wealth of well-consolidated and distributed information in your possession, the risks of making mistakes in financial processes are reduced. The recording of accounts receivable and payable becomes clearer and more accurate, which facilitates financial planning and allows the entire area to gain efficiency.
Likewise, risk reduction also refers to the company’s status: that it is free of doubts and can have higher revenues in the future.
You may also be interested in: What is the collaborative economy and how to apply it?
Implementing the automation of your company’s financial management processes does not have to be a tedious or complicated process for your company or its employees. If you have a solution that offers rapid adaptation, you can be enjoying the benefits much sooner than you think.
If your financial process is going through a stage where it is highly prone to errors and your profitability is being affected, it’s time to transform it: at Gestion Direct we offer you specialized digital accounting solutions that will help you leave traditional methods behind and replace them with advanced technology. Request our prices and a demo through our contact email@example.com and change the way you work with your financial team, be more effective and efficient.