A friend in finance: Why automation isn't the enemy

With the advent of automation, it made sense for businesses to be hesitant regarding fully adopting automated tools. Suddenly, many companies were asked to let go of their tight grip on traditional processes and to make space for solutions to problems they may not have been aware of.

But that was then, and we've come a long way since.

With automation tools becoming more of a necessity than a novelty, it's essential to acknowledge the impact of automation, realising that the narrative around "whether automation is a friend or foe" has been wrapped up - it's the former.

But like any good friendship, getting to know who you're welcoming into your business takes some time. Sure, you've heard of all the advantages, but that doesn't mean the trust has been built yet.

Since we've been old friends with automation for quite some time, we're always vouching for it. Here's why automation in finance isn't a rival. In fact, it's a respite.

Before automation: What are we working with?

Often, when discussing companies that have not implemented automation, the first picture that comes to mind is of processes that rely on thousands of documents, paper-trails, and filing cabinets.

This is not the case.

A lack of automation can still mean there is a presence of digital tools such as spreadsheets, databases, and email. Let's take the example of 'traditional' AR and AP processes without automation. Their manual processes cause significant bottlenecks, and digital data entry still requires substantial human intervention (time and resources that could have been better allocated).

Take PDFs, for example. Many companies solely rely on PDFs for their AR and AP processes. However, without noticing it, it can significantly drain capacity. We explore this in our article, 'Five ways your PDFs are costing you money.'

Enter automation: The helping hand.

Automation (especially in finance) doesn't reinvent your wheel. Instead, it strengthens your team and empowers them to navigate the financial landscape more efficiently without snags.

Automation within AP and AR processes helps streamline the entire workflow. AP does this by quickly extracting data from invoices, matching them against purchase orders and other supporting documentation, and routing them through approval workflows. For the AR teams, this includes automatically sending all required documentation, and other routine tasks such as distributing statements, invoices, credit notes and various additional supporting documents automatically. This significantly reduces the order-to-cash cycle length, which is probably why order to cash accounts for 57% of finance automations.

Additionally, as with any helping hand, it helps teams avoid costly errors. Historically, errors within the AR and AP department were considered somewhat inevitable. As a company scales, and without automation tools at your disposal, this reality becomes even more costly (and unavoidable). However, by automating AR processes, teams can benefit from consistently error-free workflows, building trust and transparency across the organisation and with customers.
The power of people

Ultimately, it's essential to realise that automated tools aren't replacing your people. Instead, they allow them to focus on more strategic and value-driven tasks. You hired your team for a reason; they're brilliant at what they do. However, more often than not, they're incapacitated due to day-to-day admin tasks that carry little value, and that can easily be automated and improved - which is what System1A is all about.

We focus on the power of personalisation and human intervention. A hands-on approach to strategic tasks within the AR and AP processes. However, that's hard to do when your hands are tied behind your back.

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