Transactional Finance Automation

The bedrock of every Finance Transformation program are the Transactional Finance teams, and the Automation of their processes is a strategic priority for the CFO. Whether you are implementing Finance Automation enabled by Robotic Process Automation (RPA) or Artificial Intelligence with Machine Learning (AI&ML) the Transactional Finance teams will be the centre of the Transformation.

What is a Transactional Finance team and what do they do? In straightforward terms, Finance can be effectively divided between the Transactional teams who process supplier and customer invoices and the Accounting teams who provide Financial Accounting, Management Reporting, Decision Support and Business Partnering.

Transactional Finance Automation teams include Accounts Payable, Accounts Receivable, Billing, Credit Control, Master Data Management, and any other Finance team engaged in a high volume, low value repetitive task that is based on following a process. They are therefore the ideal processes for Finance Automation.

In contrast the Accounting teams will typically be populated by Qualified Accountants who want a career in Finance. They will have less structured processes and much of their work is based on data analysis, interpretation, and application of their business knowledge and professional skills.

The Finance Pyramid of activity effectively moves upwards from a base of invoice processing activities to activities based on knowledge and judgement. Consequently, irrespective of Finance Automation that Finance Pyramid should always have a larger base than summit. If a Finance team has a higher staffing level at the summit and it has not been subjected to high levels of Finance Automation, then there is something fundamentally wrong with the Finance team structure.

Why is Finance Automation a CFO strategic priority? Every Business will buy, make and sell a product or service. The buying and selling generate the highest volume of accounting documents, the invoices. In simple terms that's cash in and payments out and they are the processes that can make or break a Business.

Cashflow problems stem through the Order to Cash (O2C) process through to ineffective cash collection and credit control. Payment issues can cause supply chain disruption and reputational damage if the Purchase to Pay (P2P) process is ineffective.

The Finance Automation of the Transactional Finance processes are therefore a strategic priority to any CFO who wants to protect cash and avoid going out of Business, so that is every CFO!

At Finance Transformation UK we Partner with Kanbina to deliver Finance Automation with Artificial Intelligence and Machine Learning. We harness our Consulting skills and Finance Leadership experience to identify the most important process or part of the process to automate.

We take a holistic approach by performing a thorough review of the structure, performance and effectiveness of your current Transactional Finance teams before we recommend where the technology is best deployed.

Why is Finance Transformation UK best to assess Transactional Finance? Experience, experience and experience. Our Consultants have managed all the Transactional Finance teams, we know where the risks, inefficiencies and opportunities are to be found.

Deliver effective Finance Automation with Finance Transformation UK!

Author: Michael Ryan

With 25 years' experience Transforming Finance across multiple Sectors as a Consultant and as a Finance Transformation Leader, Michael Ryan is uniquely placed to advise Clients on creating a World Class Finance Team. Call him now on 0203 1466878