Importance of AL, ML and Automation

Importance of AI and ML in Auto Reconciliations

Artificial Intelligence (AI) and Machine Learning (ML) are present technological trends. In this digital age, forward-looking organizations are adopting AI, ML, and other technologies on a continuous basis. According to Mckinsey’s The State of AI in 2021 report, 56% of businesses are working to incorporate AI in at least one business function, be it finance, operations, marketing, or others.

As AI and ML are in the infancy stages, they are often confused as same. AI is a technology that uses math and logic to simulate computers to mimic human behavior. In contrast, ML is the application of AI through mathematical models to enable continuous learning and improvement in computers. For instance, Google Assistant is an example of AI and Google’s Search Algorithm is an ML.

The use of AI and ML is not limited to the IT operations of companies but rather beneficial in all other business operations – accounting, finance, supply chains, etc.

Why Automation, AI & ML is useful for the finance & accounts department?

 One of the most monotonous and tedious tasks in accounting is reconciliations.  Traditional reconciliation involves the collection of ledgers manually by the accounts team & reconciliation with the support of excel & spreadsheet formulas. Imagine the following scenario

Automation /AI and ML can provide an opportunity to customize various complex transactions in simple rules which can be processed by the system in seconds. For example, TDS and GST reconciliations can be simplify by coding computers to learn the method of identification and application of different rates without any human intervention.

AI and ML will save employees time and effort and lower the scope of human errors. Accenture’s CFO Reimagined suggests 60-80% of accounting activities can be automated. Automation will enhance data integrity, prevent high unidentified differences, and reallocate employee hours to analysis. With AI and ML, companies can enjoy the added advantage of automated communication, automated reconciliation, identifying the losses earlier leading to speedy settlements

Firmway is one such SaaS-based interactive platform that simplifies reconciliations. It automates all the steps involved in reconciliations (communication with third parties, obtaining accounting records, reconciling, and generating summary reports) and strives for minimal human intervention. Businesses are rapidly transforming with technology, but there is still room for improvement, especially in accounting and reconciliations. As artificial intelligence and machine learning are anticipated to revolutionize the world, Firmway aims to opt for AI and ML to make accounting and auditing technologically advanced in the coming years. Utilizing AI and ML, it strives to streamline and expedite reconciliation processes, saving users time and money. It is developing tech-savvy solutions for clients by sincerely putting innovations to work.

Account Confirmation and Reconciliation Automation Software

CFO’s Guide to Integrated Finance Operations Transformation: Strategies for Business Growth

As the role of the CFO continues to evolve, finance leaders are increasingly taking on a more strategic role in their organizations. The shift is important considering the fact that CFOs are core to the finance of any organization. The strategic role includes not only managing the financial health of the company, but also driving operational improvements and delivering business growth. One of the key ways that CFOs can achieve these goals is through an integrated finance operations transformation approach.

An integrated finance operations transformation involves taking a holistic view of the finance function and identifying key areas for improvement. The improvements can include streamlining processes, implementing new technologies and automating manual tasks. By aligning finance operations with business goals and objectives, CFOs can drive significant value for their organizations. But how can an organization adopt an integrated finance operations transformation approach?

Adopting Integrated Finance Operations Transformation Approach

The following are some of the key steps that CFOs can take to implement an integrated finance operations transformation in their organization:

1. Identify Areas For Improvement:

The first step in any transformation is to assess the current state of operations. Before bringing transformation, we need to know the current status and lacunas. This includes identifying bottlenecks, inefficiencies, and areas where the finance function is not in tandem with business objectives.

2. Develop A Roadmap:

Once areas for improvement have been identified, CFOs should develop a roadmap for transformation. This step involves strategizing the future path. This should include clear goals, timelines, and metrics for measuring progress.

3. Implement New Technologies:

Adapting latest technologies is more of a necessity than a choice. One of the key ways to drive operational improvements is to implement new technologies. This can include implementing automated accounting systems, adopting cloud based solutions or implementing business intelligence tools.

4. Streamline Processes:

Another key aspect of an integrated finance operations transformation is streamlining the existing processes within the organization. This can include standardizing processes across the organization, eliminating unnecessary steps, and implementing process automation wherever appropriate.

5. Enhance Reporting And Analysis:

Top level executives are often disassociated with the ground level operations. Reporting is the way through which crucial information reaches top executives in any organization. Improving the quality and timeliness of financial reporting and analysis is critical for CFOs to drive business growth. This can involve implementing new reporting systems, adopting advanced analytics techniques and improving data quality.

In a Nutshell:

By following these steps, CFOs can drive significant improvements in finance operations and position their organizations for success. An integrated finance operations transformation approach is key for CFOs who want to step out of their conventional roles and take a more strategic role in their organizations to deliver business growth.