Finance Process Transformation: Pillars & Best Practices

By the end of 2023, 65% of finance executives plan to adopt automation. The finance process transformation at the hands of technology has been wildly successful and efficient for business around the globe.

We’re going to see how having a finance transformation strategy and implementing finance automation software (i.e. SolveXia) can benefit your business.

Coming Up

What is Finance Transformation?

What are the Pillars of Finance Transformation?

What are the Benefits of Finance Transformation?

What Technology Drives Finance Transformation?

What are the Roadblocks to Finance Transformation?

What are Finance Transformation Best Practices?

Closing Thoughts

What is Finance Transformation?

Finance transformation is the combination of systems, processes, and technologies that a business implements in an effort to streamline its operations.

If you take a look at what happened during the COVID-19 pandemic, you can easily see how many organizations had to quickly pivot their operations, especially to work remotely as business-as-usual shifted on the spot.

The overall approach to how organizations handled business during these times is a good example that can help understand what financial transformation looks like in practice, too.  

Financial transformation is an overall approach to a business’ vision, processes, systems, and even mindset that all go hand-in-hand to help achieve the overall business goals.

When it comes to finance teams, the center of finance transformation lies in finance automation software that removes siloed data, optimizes workflows, improves accuracy and increases transparency, to name a few benefits.

What are the Pillars of Finance Transformation?

While finance process transformation isn’t a one-size-fits-all situation, it does consist of some main pillars (and a roadmap) of sorts to implement it.

The end-to-end augmentation of operations, process, and business practices all combine for tangible results.

Here’s a look at what foundational elements are involved.

1. Finance strategy

Finance transformation strategy sets the stage for finance transformation. It is where businesses can assess their current weaknesses and move forward to prioritize what updates should be made.

2. Finance operations

Finance teams exist to both execute finance functions, as well as provide guidance, support, and an overall strategy to business leaders. With finance automation software, finance professionals are no longer bogged down handling manual and repetitive tasks.

Instead, they can allocate more time to overall finance operations and information-sharing, rather than data entry.

3. Finance processes

Finance processes refer to sequential tasks that require datasets to execute. With finance transformation in play, these day-to-day tasks get optimized and streamlined to improve accuracy, while saving time.

4. Organizational change and talent

To complete finance strategy, operations, and processes, people are needed! Finance teams develop their talent, and at the same time, upon implementation of technologies, they must take the time to train and develop their team to properly utilize automation software.

What are the Benefits of Finance Transformation?

If we look back at the statistics we opened this article with, the majority of finance professionals are deploying automation software. When we look at the advantages of finance process transformation, it becomes very clear as to why it’s such a priority right now.

1. Lower Costs

When you streamline business functions, you will witness cost-saving opportunities. Not only will you be able to save time (and therefore money), but you’ll also be able to conduct business with teams operating anywhere.

2. Expedite Business Processes

Finance automation software like SolveXia is equipped to complete business processes from start to finish, with little to no need for human intervention. So, while your finance team focuses on high level responsibilities, daily tasks still get completed in the background.

3. Reduce Mistakes

Automation software makes it easy to standardize your finance processes and removes the need for manual data entry and migration. This results in less human errors.

4. Improve Data Accuracy

The volume of data grows on a daily basis, which can make it increasingly difficult for organizations to manage. Since data enters businesses from various sources, it’s paramount to protect its integrity and keep it up-to-date.

Finance automation software like SolveXia connects your data sources, collects all data in its raw form, and transforms it without error for use.

5. Remove Bottlenecks and Key Person Dependencies

Last but not least, when you implement automation software, all your processes are standardized and flow seamlessly.

That means that if a key person is out of office, the process will still take place without delay. Additionally, with notifications and alerts, automation software helps to move processes through each step without bottlenecks or stoppages.

What Technology Drives Finance Transformation?

Finance process transformation starts with connecting data, but it is much bigger than that. There are different technologies at work, along with the overall mental paradigm shift of human resources to be aligned and on board with the use of tools.

Some of the most imperative technologies required to achieve finance transformation include:

1. Robotic Process Automation

Robotic process automation (RPA) uses bots to execute finite tasks with ultimate precision. Humans train the bots (or software) to run through set processes. RPA is best intended for duties that require a high volume of data, involve many people, and take place repetitively.

2. Advanced Analytics

Advanced analytics derive insights from raw data after transforming the data from an input into the intended output.

Software like SolveXia not only combines your data, but it can also transform raw data and apply advanced analytics so business owners, leaders, and stakeholders can access the information they need to make informed decisions in real-time.

With customizable dashboards and reports, everyone gets exactly what they need, when they need it!

3. The Cloud

Cloud-based software makes it possible for operations to be scalable, accessible and transparent. Cloud-based software is also more cost efficient than requiring on-premise solutions with a dedicated IT team to run. For example, SolveXia is a cloud-based finance automation platform.

What are the Roadblocks to Finance Transformation?

As you can see, achieving finance process transformation is as direct as selecting the right automation software and tools, as well as overseeing change management to get everyone aligned with the plan.

That being said, it does require planning and research. Successful transformation tends to be thwarted by specific roadblocks, namely:

1. Misalignment between Leaders

For finance process transformation to work, everyone has to be aware of the intentions and reasoning behind the adoption of new tools. It flows from the top down, so it’s optimal to involve business partners, finance leaders, and key stakeholders to spread the same message with the rest of the team.

2. Lack of Updated Technology

Technology is constantly being updated. CFOs should be ready to implement new technologies and continuously learn about what’s upcoming.

To make the entire process easier, you can select a tool like SolveXia, which is a robust platform solution that scales with your business, maintains the most recent security updates, and can execute multiple finance processes, including: reconciliation, regulatory reporting, expense analytics, rebate management, and more.

3. Hesitant Employees

Naturally, employees have to be willing to use the technologies, rather than being scared of technology. To ensure this is the case, management and executives should communicate the benefits of the software and showcase how it will augment employees’ lives for the better.

What are Finance Transformation Best Practices?

In a world filled with finance transformation trends, where is the right place to get started and continue achieving finance transformation?

Here are a few best practices to keep in mind:

• Define business goals at the start
• Assess current processes and analyze where inefficiencies exist
• Prioritize processes
• Research and select the best tools for the job
• Involve key stakeholders and employees in the process
• Oversee finance transformation projects to keep them on track and on budget

There are so many different software solutions that exist, so when you are looking for the right one to implement, it may feel overwhelming at the start. Break down your finance transformation into steps and keep it aligned with your business goals.

It’s effective to select a solution that is scalable, cost effective, and easy-to-use. SolveXia offers a low-code platform to automate spreadsheet-driven data preparation and run processes 100x faster with 90% fewer errors.

Closing Thoughts

Finance process transformation applies digital solutions so finance teams can achieve more in less time with fewer errors. As you automate finance processes, you will reap tangible results almost immediately.

To get started with a tool like SolveXia, we invite you to request a demo from our team to see how our solution can help transform your business for the better!