Provided by Goodwill Accounting
In digital transformation, business processes are integrated with digital technologies. The development of digital technologies has provided organizations with the tools to embark on a wide range of digital transformations. With the enhancement of tech capabilities and how we store and access financial information, we may be in a perfect storm where accounting and finance are undergoing digital transformation at a rapid pace.
“Globally, the COVID-19 pandemic has accelerated digital transformation in the finance and accounting industry. In many organizations, digital adoption and transformation are key to survival and long-term growth.” – Karl Hilzinger, Founder & Chief Executive Officer at Ctrl Digital ZA.
Automating Accounting Tasks with Machines
Financial leaders who embrace automation are developing expertise that will be useful in future business process transformations:
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Accounts Payable/ Receivable Processing. Thanks to digital workflows that are implemented, AI-powered invoice management systems are already available to streamline invoice processing. Each invoice can be coded with the appropriate accounting code.
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Supplier Take-On. By checking credit scores and tax information, machines can vet new suppliers and set them up in the system without human intervention. Users can even query portals to get all the information they need.
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Procurement. Purchasing and procurement processes for most organizations are filled with paperwork and use incompatible systems and files. The procurement system will eventually become paperless by integrating machines and processing unstructured data through APIs. Tracking price changes among multiple suppliers is an ideal application for robots.
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Audits. By digitizing the audit process, a digital trail will be left of when and by whom each file was accessed, increasing its security. The digital files will allow auditors to leverage the documentation they need rather than digging through file cabinets during an audit. Rather than auditing just a sample of a company’s financial transactions, a digital audit increases audit efficiency and accuracy.
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Monthly/ Quarterly Close Process. If you can get the numbers faster, your organization has more time to think strategically about how to use them. Machines can consolidate and reconcile data from multiple sources. Through the use of machines, your monthly/quarterly close process will not only be faster but also more accurate.
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Expense Management. It is time-consuming for your accounting team to review and approve expenses to ensure they comply with your organization’s policies. Using machines, receipts can be read, expenses can be audited, and possible infractions can be flagged.
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AI Chatbots. With chatbots, customers can easily find their account balances, when specific bills are due, and how their accounts perform.
Streamline Workflows with Goodwill Accounting
Combining people and machines is the key to transforming accounting and finance through digital technologies, allowing each to contribute to their area of expertise. However, human intelligence is still required to oversee and verify allocations. An example would be an invoice from an IT store may be automatically allocated as an Expense for computer consumables rather than to Capex for a new asset and VAT Input Tax my then be claimed incorrectly.
Considering streamlining your accounting and financial management workflows? Book a meeting with Goodwill Accounting today to find out more.