What is a Finance Business Process?
Every department has a central focus. Sales tries to close new deals. Marketing works on brand awareness and new leads. R&D examines how to build a better product. And, Finance makes sure that all monetary transactions are recorded accurately and in line with the budget.
But how does a department do this? Processes. Perhaps 90% of any department’s work can be seen as performing the same sequence of tasks over and over again.
For example, travel reimbursements are a common finance business process. The process involves collecting a certain set of data and passing that data on a predefined path of processing and approvals until the objective is finished and the expenses are paid.
There might be more than a dozen separate finance process improvements that the team must complete on a daily, weekly, monthly, quarterly, or annual basis.
With so many predictable processes, why is it that typical finance business processes take so much effort to complete?
There Is No Efficiency in Manual Processes
Most companies handle any finance business process manually. This means a human is responsible for collecting/entering data, knowing whom to pass it onto next, pasting the data into the financial management tool, sending an email to get approval, and giving notifications to the initiator when that instance of the finance business process is complete.
This means a lot of work and it often leads to sluggish processes, errors in transferring data to multiple systems, and miscommunication. When you automate a process, you separate the process into those tasks best done by humans and those best done by a system.
For example, humans might need to initially populate a form with data, and offer approvals. However, sending emails, data entry, and taking care of notifications are all things that a system can easily do.
How to Create a Finance Business Process?
Identify the purpose of the process and figure out what your goals are with it. Find if you want to cut back on time, improve efficiency, or make the process transparent. Also, consider the cost of implementing such a process.
Come up with strategies needed to achieve the goals and have a broad roadmap for the process. Identify the individual tasks your teams and systems need to do in order to execute the plan.
Start with a test environment and run the process on a small scale to see how it performs. Measure your results against your goals. Identify the gaps and make adjustments.
Start running the process in a company-wide or team-wide environment. Properly communicate and train all employees to use these processes.
Review the process regularly and analyze its patterns. Document the process history. If the process is able to achieve its goals, replicate it for other finance processes.
What Finance Business Processes Can You Automate?
Financial process management is full of repetitive processes that can be automated to run everything smoothly and efficiently. Here are some of the key areas where having a process in place helps:
Benefits of Having Well-defined Finance Business Processes
Businesses that are heavily reliant on manual methods like paper forms, spreadsheets, and emails do not take advantage of the predictability of the finance processes. Once you’ve identified the flow of the finance processes, you can easily identify areas where tasks are hung up. Employees no longer have to pass on information manually and
A well-defined finance workflow ensures that everyone involved in the process knows what the next step is. Every change is documented and everyone stays informed.
When you define guidelines clearly and communicate that with all employees, there’s little chance that they stray from the organization’s policies. This can save you a lot of time in approvals.
The overall efficiency of the organization increases because everyone knows what the next step is. Tasks are not stalled or identified promptly when stalled.
How to Implement a Finance Business Process?
A workflow automation tool like KiSSFLOW can help you set up and implement your businesses processes. Once you’ve identified the processes you need to streamline, you can choose from 50+ preinstalled apps or create one that suits your exact requirements. With simple drag-and-drop functionalities, you can customize your forms to capture all the necessary information.
Set up an approval hierarchy and give access to all the people who are involved in a process. They can initiate tasks, enter information, and give approvals. The repetitive parts like sending emails, notifications, and logic-based decisions can be automated.
If you’re looking to implement financial process automation, options like KiSSFLOW can help. Take it for a spin and see your team’s efficiency soaring.
Automate Your Financial Business Processes