Financial Processes: Your Easy Guide to Handle Finance Business Processes in 2019
December 19th, 2018 • Finance
Every department has a central focus. Sales tries to close new deals. Marketing works on brand awareness and new leads. R&D examines how to build a better product. Finance makes sure that all monetary transactions are recorded accurately and in line with the budget.
But how does each department stay on top of its work? Processes. Perhaps 90 percent of any department’s work can be seen as performing the same sequence of tasks over and over again.
What are you looking for?
What is a Finance Business Process?
A finance business process is a sequential set of tasks that takes a set of data to a finished state. For example, travel reimbursement is a common finance business process. The process involves collecting employee expenses, passing that information to managers and finance teams for review, and getting it approved until the employees get reimbursed.
Create Streamlined Finance Business Process in Minutes
A finance process automation tool like Kissflow can help you design, map, and implement the approval workflow with ease. With the easy to use drag-and-drop functionalities, create workflows and streamline your finance approvals.
Here’s how you do it in Kissflow:
Define Your Goals
Identify the purpose of the finance process and figure out what your goals are with it. Find if you want to cut back on time, improve efficiency, or make the process transparent. Also, consider the cost of implementing such a process.
Plan and Map Your Process
Come up with strategies needed to achieve the goals and have a broad roadmap for the finance process. Identify the individual tasks your teams and systems need to do in order to execute the plan.
Test the Process
Start with a test environment and run the process on a small scale to see how it performs. Measure your results against your goals. Identify the gaps and make adjustments.
Implement the Process
Start running the process in a company-wide or team-wide environment. Properly communicate and train all employees to use these finance processes.
Monitor and Optimize
Review the finance process regularly and analyze its patterns. Document the process history. If the process is able to achieve its goals, replicate it for other financial processes.
Automate Finance Business Processes in Minutes
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Benefits of Having Well-defined Financial Business Processes
Businesses that are heavily reliant on manual methods like paper forms, spreadsheets, and emails do not take advantage of the predictability of the finance processes. Once you’ve identified the finance process flow, you can easily identify areas where tasks are hung up. Employees no longer have to pass on information manually.
Here are some of the advantages of having automated finance processes:
1. More Transparency
A well-defined finance workflow ensures that everyone involved in the process knows what the next step is. Every change is documented and everyone stays informed.
2. Increased Compliance
When you define guidelines clearly and communicate that with all employees, there’s little chance that they stray from the organization’s policies. This can save you a lot of time in approvals.
3. Improved Efficiency
The overall efficiency of the organization increases because everyone knows what the next step is. Tasks are not stalled or identified promptly when stalled.
What Finance Business Processes Can You Automate?
There is a list of finance processes that can be automated to run everything smoothly and efficiently.
If you’re still managing your finance department the old-fashioned, manual way, then you’re way behind the times. Manually managing financial processes are a bottleneck for your organization. They take up an incredible amount of time, leading to long work hours and a whole lot of frustration for your team.
Finance process automation is key to ensuring that your organization is up to the task of growing and scaling for the future. Here are some of the key areas where having a process in place helps:
- Budget Approval – Get yearly or quarterly budgets approved and applied to spend
- Capital Expenditure – Get approval, financing, and funds to make a capital investment
- Travel Reimbursement – Approve and release funds quickly for any qualified travel requests
- Employee Timesheets – Quickly review and approve timesheets to release payment faster
- Purchase Order – Give the procurement team the documentation to make a purchase
- Cheque Requests – Arrange a payment to a vendor, supplier, or business partners
Challenges of NOT Automating Finance Processes?
With so many predictable processes, why is it that typical finance business processes take so much effort to complete?
Most companies handle any financial business process manually. This means a human is responsible for collecting/entering data, knowing whom to pass it onto next, pasting the data into the financial management tool, sending an email to get finance approval, and giving notifications to the initiator when that instance of the finance process is complete.
This means a lot of work and it often leads to sluggish finance processes, errors in transferring data to multiple systems, and miscommunication. When you automate a financial process, you separate the process into those tasks best done by humans and those best done by a system.
For example, humans might need to initially populate a form with data, and offer finance approvals. However, sending emails, data entry, and taking care of notifications are all things that a system can easily do.
⋙ You’re just a click away from creating your own customizable finance forms in just 15 Minutes!
The Best Way to Streamline Finance Business Processes
A workflow automation tool like KiSSFLOW can help you set up and implement your finance process automation. Once you’ve identified the processes you need to streamline, you can choose from 50+ preinstalled apps or create one that suits your exact requirements. With simple drag-and-drop functionalities, you can customize your forms to capture all the necessary information.
Set up an approval hierarchy and give access to all the people who are involved in a process. They can initiate tasks, enter information, and give approvals. The repetitive parts like sending emails, notifications, and logic-based decisions can be automated.
If you’re looking to implement financial process automation, options like KiSSFLOW can help. Take it for a spin and see your team’s efficiency soaring.
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