Digitisation: Why finance departments need to start now
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25 Sep, 2024
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4 min read
The term 'digitisation', has created quite a stir regarding its relevance within finance departments - and rightfully so. But this seemingly new buzzword on the block may be the key to 'working smarter, not harder.' Here's why.
What does digitisation mean?
We get it, 'digitisation' has been so overused in business language nowadays that it can quickly feel as if it's lost its meaning. Yet, regardless of the many interpretations, it's still a necessary consideration for any finance head. How could it not be, especially given its potential to reduce costs, shorten processing times and boost productivity? But within finance, it's important to establish the playing field. While some are venturing into more advanced tech, such as artificial intelligence, others have only begun their digitisation journey.
That being said, digitisation in finance, regardless of the stage you're at, involves transforming (ergo, improving) finance and accounting functions via technology to recreate efficient operating systems and processes.
Finance and digitisation
The short of it? Finance departments are already playing catch-up when it comes to digitisation, especially when it comes to automation. Now, while this is a bold, but true statement - it doesn't offer much help in terms of what next. Let's unpack.
Although finance processes have had a history of being neglected/ignored in the digitisation space, businesses are quickly realising the need to do away with long-held manual processes. Especially if they want to maintain positive relationships with their suppliers/customers, maintain healthy cash flow and remain relevant as a serious commercial partner. In fact, recent research published by McKinsey has estimated that 40% of financial activities can be automated. As the tools and solutions become more tailored towards the niche needs of financial departments, expediting this process is becoming more of a priority for many finance heads.
Why digitisation is essential
Before we can dive into why digitisation in finance is essential, we must recap one fundamental truth: automation isn't the enemy. It's a helping hand for finance teams that are overworked and under pressure. At the crux of the matter, digitisation aims to grant finance teams a much-needed change of pace, freeing them up to focus on purpose-filled and strategic tasks instead of simply putting out day-to-day fires. But that's not all, folks. The business use case for digitisation in finance is staggering. Here's a look at some of the most significant reasons digitisation in finance is a necessity.
Ready to dive into the nitty-gritty benefits and details around not just the why but the how? We cover everything you need to know here in what CFOs need to know about AR automation software and what CFOs need to know about AP Automation.
The bottom line
Digitisation and automation isn't going anywhere - it's a reality that businesses have to embrace. But we've got you covered! With System1A's host of solutions such as AR Automation, AP Automation and e-invoicing, businesses receive the applications and tools to digitise their finance departments and make a seamless transition to automated processes.
For more insight on what finance departments need to consider regarding digitisation, check out our episode on the Digital Transformation podcast, where we unpack this in depth.
What does digitisation mean?
We get it, 'digitisation' has been so overused in business language nowadays that it can quickly feel as if it's lost its meaning. Yet, regardless of the many interpretations, it's still a necessary consideration for any finance head. How could it not be, especially given its potential to reduce costs, shorten processing times and boost productivity? But within finance, it's important to establish the playing field. While some are venturing into more advanced tech, such as artificial intelligence, others have only begun their digitisation journey.
That being said, digitisation in finance, regardless of the stage you're at, involves transforming (ergo, improving) finance and accounting functions via technology to recreate efficient operating systems and processes.
Finance and digitisation
The short of it? Finance departments are already playing catch-up when it comes to digitisation, especially when it comes to automation. Now, while this is a bold, but true statement - it doesn't offer much help in terms of what next. Let's unpack.
Although finance processes have had a history of being neglected/ignored in the digitisation space, businesses are quickly realising the need to do away with long-held manual processes. Especially if they want to maintain positive relationships with their suppliers/customers, maintain healthy cash flow and remain relevant as a serious commercial partner. In fact, recent research published by McKinsey has estimated that 40% of financial activities can be automated. As the tools and solutions become more tailored towards the niche needs of financial departments, expediting this process is becoming more of a priority for many finance heads.
Why digitisation is essential
Before we can dive into why digitisation in finance is essential, we must recap one fundamental truth: automation isn't the enemy. It's a helping hand for finance teams that are overworked and under pressure. At the crux of the matter, digitisation aims to grant finance teams a much-needed change of pace, freeing them up to focus on purpose-filled and strategic tasks instead of simply putting out day-to-day fires. But that's not all, folks. The business use case for digitisation in finance is staggering. Here's a look at some of the most significant reasons digitisation in finance is a necessity.
- Improved efficiency and productivity. Did you know that a recent survey highlighted that finance teams spend up to 5,000 hours per year on spreadsheets? Imagine eliminating that with a click of a button (if that even).
- Increased employee satisfaction and reduced frustration. How? Well, there is a direct link between automation and client experience. Due to the inherent traits of an e-invoice, the customer experience naturally becomes enhanced, empowering them with the ability to navigate the invoicing process with ease.
- Increased visibility into AR/AP processes, allowing you to monitor and take action more effectively
Ready to dive into the nitty-gritty benefits and details around not just the why but the how? We cover everything you need to know here in what CFOs need to know about AR automation software and what CFOs need to know about AP Automation.
The bottom line
Digitisation and automation isn't going anywhere - it's a reality that businesses have to embrace. But we've got you covered! With System1A's host of solutions such as AR Automation, AP Automation and e-invoicing, businesses receive the applications and tools to digitise their finance departments and make a seamless transition to automated processes.
For more insight on what finance departments need to consider regarding digitisation, check out our episode on the Digital Transformation podcast, where we unpack this in depth.
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