Miriam Hanna, CPA, CFO/Controller.
As we head through new technologies, the accounting world is shifting gears and building resilient walls for the future.
I’ve been hearing more and more lately about automation, system alignment and accounting transformation. Accountants are learning to live in a new environment, and their focus is much more on operational efficiency and data integrity.
With the arrival of new technologies and AI tools that facilitate reporting and accelerate the data entry time allocated, accounting and finance professionals are adapting accordingly. Fifty years ago, who would have thought that accountants would step away from a physical paper register and opt for paperless options?
It’s no longer the struggle of a debit or a credit entry; it’s how to get it right and get it on the books quickly.
So when is the right time to react? The answer is: It is never too early! While your team prepares to face a new reality, the competition is also fierce. The catch-up game starts now, and the winner must adapt early and adapt fast.
Automation Robots And Redefining Productivity
When I was first approached to analyze an accounting flow and collaborate with a third party to execute an “automation,” I was astonished! As they were explaining the process to me, they said: “So we will hit enter here and the back-end robot will execute a search and come up with the results in a few seconds.”
That was years ago already, and back then, it was hard to believe. My brain was trying to understand the fact that invisible robots were executing work for us in the background. Quite intriguing!
This is our reality now on a much larger scale. If your team is spending a tremendous amount of time on data entry, they’re not being effective. Your team should focus more on analytical analysis (such as KPI) and strategic plans.
And with the arrival of generative AI, whole business models and accounting processes are under review. When should we draw a line between team members’ tasks and AI-related tasks has not yet been fully clarified.
Leaders should step up and lead that change by example. Take the time to understand new models. Data accuracy and data ownership will remain an end goal.
Questions And First Steps For Accounting Leaders
Here are a few questions that every industry leader in this field should keep in mind:
1. Is our process efficient?
Defining efficiency might be the real question here. In other words, if you expect your invoicing cycle to take two days and in reality it takes four days, you will need to adjust accordingly. I recommend taking a deep dive into your step-by-step process and analyzing any weaknesses or bottleneck areas to improve.
2. Did we engage the right team members to evaluate this?
Managers or top leaders might not always have visibility into the finer details. Engaging the right team is essential at this step. Additionally, direct users will often have more details to share and see weaknesses you might miss.
3. Are we ready to invest in new tools?
Establishing a clear budget for such tools and a realistic timeline is a good place to start if you are ready to invest. The timeline should also include approaching different vendors/suppliers, communicating your needs, testing the tools and implementing them.
4. Did we test and understand these tools?
Your users need to get a task done. When testing a new tool, evaluate if the task is properly done and validate data integrity and accuracy. The testing phase is an important phase for any successful project, and it’s commonly rushed toward the end, which should never be the case.
5. Did we engage the right partners or third parties to implement new processes or procedures?
At this stage, it is important to make sure your process is fully aligned and efficient. This is when partnering with an external firm or party can be helpful. These firms are normally working with multiple clients and have already seen what works well and what doesn’t.
Engaging with the right partner is an investment in the long run. At a minimum, look into a firm’s years of experience, proven successful clients, accreditation and professional exposure on the market.
6. Are we training our team accordingly?
New tools mean new ways of working. They also mean facing a new change and adapting to it. I recommend clearly communicating that with your team members.
Often, suppliers will provide initial training for using their tool. I highly recommend following up internally with your team with additional training to discuss new changes and how to adapt easily. Gathering team feedback and comments is also a good practice to improve ongoing functionality and fluidity with the supplier.
7. Do we have a short-term and long-term strategy?
A short-term strategy is often tied to a specific need and a budget. A long-term strategy might be harder to evaluate, but it is also important to address.
For example, a large client looking to optimize their accounting enterprise resource planning (ERP) system might also be anticipating a future acquisition that uses a specific system. In this case, the potential synergy of using the same tool at the time of acquisition could be interesting and worth exploring.
Embrace The Wave
Investing in new advanced tools and exploring AI is becoming a new need in the accounting world. Planning each step accordingly and respecting your company’s main strategic goal while getting the right support is an important focus.
Embrace the wave, it’s the beginning of a new era.
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