Published on the 03/12/2015 | Written by Todd Hunt
For some reason, when it comes to finance and accounting, dated approaches persist, writes Todd Hunt – and he says it is time for Modern Finance…
As recently as 2013, most companies were still primarily using spreadsheets to conduct core finance processes. Given that spreadsheets are not secure and are vulnerable to human error, this is puzzling. While other departments reap the benefits of cloud technologies, finance and accounting has been left lagging, becoming not just out of touch, but a risk to the overall business. While an increase in companies looking to automate their financial processes is underway, in line with other areas of the business, there are still many CFOs left to convince. Why automate now? Why not wait until an automated close becomes the mainstream before making that switch? Fair questions, and ones which have ready answers. No business should wait for an error before considering automation. Spreadsheets are not a fool-proof solution for keeping track of financial statements, regardless of how on-the-ball the accounting team may be. Manual data entry in any circumstance is hugely time-consuming and, in an increasingly fast-paced corporate environment, time is everything. Time pressures on accounts teams to get the job done by month end often means mistakes as accountants work to meet tight deadlines. A recent survey by BlackLine found that only a quarter of financial decision makers have complete trust in the accuracy and security of their company’s financial data. That shows a genuine need for change, and there is no better time to do so than before your competitors. The ‘Modern Finance’ approach means using automation solutions for finance and accounting processes, in order to make them more efficient, accurate and secure. As 2015 draws to a close, the concept of a Modern Finance approach is increasingly recognised by finance departments in the quest for accuracy and simplicity. The benefits speak for themselves: an automated process saves huge amounts of time in reconciling accounts each month, allowing staff to focus on other tasks. Staff can see jobs being completed in real-time and are alerted if anything is left outstanding as the deadline approaches. Many automated solutions integrate with a company’s existing ERP system, whether on premise or on demand, and are secure, protecting sensitive data. To summarise, it is difficult to know when automation will become the norm for all finance and accounting functions worldwide – however, it is certainly the most logical next step for companies looking to be more sustainable, cost-effective and efficient. More than that, there’s no time like the present to gain a competitive advantage. Todd Hunt is VP and GM APAC at BlackLine
ABOUT TODD HUNT//
