Mastering The Art Of Timing: When To Automate Business Processes

Steve Smith is the U.S. COO at Esker.

It’s common knowledge that the role of CFO has expanded exponentially over the past decade, and many who are in the position often find themselves overworked and stressed. The last thing someone in this position wants or needs is to slide back into the days of pouring over spreadsheets and attempting to make sense of the messes occasionally born out of human error.

Fortunately, automation software can solve many pain points created by the manual handling of accounts. Minor inaccuracies, wasted time on zero value-added tasks (like managing multiple spreadsheets) and negatively impacted customer relationships due to inefficiencies or inconsistencies have largely become non-issues thanks to modern technology.

Account automation isn’t a boon just because it makes things go faster and smoother, though. Its greatest advantage is found in how it empowers CFOs to be proactive in providing key insights regarding a business’ cash flow, credit management and customer needs. This is to say, automation helps lay the groundwork necessary for CFOs to embolden their Finance teams to shift into more strategic roles, ultimately enhancing profitability by creating more room for collaboration amongst teams. The goal of automation is not to dehumanize operations but rather to reprioritize them such that the most effective elements of human creativity can shine at all levels of an organization.

Automation: Empowering CFOs To Do Their Jobs Well

Far from replacing the essential human elements of maintaining a successful business, automation can enhance the more personable and creative aspects of an organization’s accounts receivables (AR) process. Here are a few ways automation contributes to creating a strong basic process that is shared across an organization.

Enhances Visibility Across The Organization

CFOs play the role of diagnosticians within the organizations they serve. They are the ones who identify areas of financial malaise or who take note of problem areas before chaos ensues. But without real-time visibility across the AR process, they won’t be able to provide the crucial insights needed for healthy operations. Shuffling through the granular details of invoice management isn’t something most CFOs have the time to do. Automation software can provide immediate access to high-level financial health information, giving CFOs a clear picture of why or where working capital might be struggling and allowing them to provide an informed prognosis.

Encourages Cross-Team Collaboration

Creating a broad range of access points across the AR process ensures that several people can step in, if necessary, at any given time. Thanks to collaborative types of accounts payable (AP) automation software, customer payment timelines and cash applications can be centralized and tracked in real time by team members in sales or customer service. This relieves any single team from the duty of handling urgent customer needs, fostering a broader sense of awareness and care throughout the organization.

Strengthens Customer Relationships

Accounts receivable automation makes customers feel more involved in their payment process by giving them a very easy, unobtrusive way to make payments—all while keeping them aware of payment status. This subtly and effectively encourages more accountability and transparency on their part without the unpleasant sensation of being “in trouble” or like they’re partaking in a cold transaction. This customer-centric approach can be taken a step further with automation thanks to the ability to send personalized reminders that are created based on the unique needs and preferences of each individual customer.

Streamlines Communications And Cash Processes

Automating receivables helps keep teams connected throughout the cash process and streamlines communication. Centralized reports and dashboards provide cross-team communication and collaboration, allowing teams to identify where deals are being closed but are failing to collect customer payments in a timely manner. This level of transparency tightens internal administrative processes while informing external customer communications and ensuring operational effectiveness.

Accounts payable automation effectively makes payment collection more efficient while bolstering the human relationships on either side of the process—music to the ears of any mindful CFO.

Where And When To Keep Things Personal

There’s no substitute for human ingenuity: When given the right tools to flourish—such as an organized and data-backed workflow—this uniquely human trait separates great businesses from excellent ones.

The most impactful work for a CFO is to be able to instantly access important data to effectively strategize how to ensure a company’s health—relationally, financially and operatively. When it comes to maintaining strong customer relationships, strategic decision making, or identifying disruptions in a typical operational or behavioral pattern, there will always be times when good old-fashioned human problem-solving and interaction are the smartest course of action. Certain kinds of critical and creative thinking simply can’t be outsourced to a machine. There are no shortcuts to forging meaningful human connections.

Automation allows CFOs and their teams to keep high-value work as manual and individualized as it needs to be when it needs to be. The goal is to be flexible, not robotic. The businesses that know how, when and what to automate are the ones who find themselves thriving.

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