5 Trends in Corporate Finance Automation to Know in 2022
Updated: Oct 17, 2022
Corporate finance automation is playing a huge role in today’s digital world. If you’re not using robots to enhance your accounting systems, then it’s time to start.
The future of corporate finance is all about using technology to automate and improve tasks. This will ultimately increase productivity and overall efficiency.
Any business looking to introduce a new finance data automation process, or update their current system, will need to make sure that their new system is up to date with current trends.
Implementing the right automation process will help to maximise efficiency and future-proof your business.
Follow this guide to help you understand corporate finance automation and identify key automation trends right now.
Understanding Finance Automation For Business
With digital transformation spreading across industries and departments, corporate finance automation has become a necessity for all types of businesses.
Finance automation tools automatically manage time-consuming tasks. These tools maximise efficiency and accuracy while making accounting tasks a lot easier for anyone to manage.
Manually gathering, verifying, and consolidating data can be a huge burden for financial teams. Today’s business finance automation solutions can cover a wide range of processes, including automating accounts payable, expense tracking, enterprise resource planning (ERP), general ledger automation, and more.
With the development of Robotic Process Automation (RPA), artificial intelligence (AI), and machine learning, digitisation in corporate finance is taking on a whole new meaning. These tools can process transactions, audit processes, monitor compliance, etc.
Five Corporate Finance Automation Trends
The future of finance automation is rapidly changing thanks to advancing tech developments.
Here are five important finance automation trends to be aware of right now.
1. Automation Processes are Growing
RPA has become an essential element in the world of finance and open banking.
Open banking is the term used to describe when open APIs are used, that allow third-party developers to build their own apps and services around what the bank offers. Basically, this practice opens up banking, transaction, and other financial data.
While finance automation is widely deployed across companies and industries, we’re seeing an automation evolution from the tool level to a broader process level. This trend makes use of multiple technologies and instruments.
An example of this would be introducing a new automated financial close system to your business that also triggers other close-related processes in other areas.
This allows for end-to-end automation, where businesses can use a single piece of technology to automate an entire, broader process.
2. Growing Need for Integrations
As finance automation processes expand, the need for integrated automation tools is increasingly important. Businesses in today’s digital world use various software tools to manage a wide range of their processes. Using tools that integrate with each other for a more streamlined system is something that many finance teams prioritise.
One of the major trends in finance data automation is the ability to integrate with different ERPs and third-party applications.
For example, you could use an expense tracking app that integrates with your main accounting software for effortless data access and transfer between platforms.
3. Enhanced Risk Management
When it comes to finance departments, eliminating risk is always a top concern.
Finance automation should reduce risk across the organisation. To achieve this, automation tools should be implemented through a risk-based approach.
Automation tools with built-in risk management features are becoming increasingly popular.
These features decrease risk across the entire financial close cycle while enhancing efficiency.
By applying risk-based automation solutions, companies can improve the risk tolerance of their internal controls in a big way.
4. A Greater Focus On Machine Learning
RPA in finance uses AI to facilitate automatic software processes. Open Banking is an essential factor in this, as open banking enables smarter automation systems that can do more for your business.
AI systems are taken even further by the introduction of machine learning.
Machine learning takes a finance automation system and allows the platform to automatically learn and improve its processes based on the data it uses.
This means finance automation tools aren’t only limited to what they’ve been programmed to do.
A big trend is a rise in finance automation processes that can steadily grow with your business and adapt to its unique requirements. This is facilitated by the widespread use of open banking and AI developments.
5. AI Automation Tools That Assist Decision Making
RPA doesn’t only exist to automate manual processes. These days, it is applied to redesign and enhance existing processes within an organisation.
AI-based systems look at all of the data in your system to help identify trends and assist with smarter financial decision-making.
This can be used to optimise spending, decrease risk, and improve efficiency in the financial department.
AI can be used to find opportunities to improve company policies around financial spending.
It can look at the data from thousands of expense reports to help finance teams understand their spending to make optimised decisions.
In terms of current finance automation trends, the focus is on AI-powered solutions that inform decision-making and offer clear insights into the business.
Instead of just running automated workflows, these tools can be used to enhance various processes within a business.
Automate Your Accounts Payable and Expenses
One of the best ways to apply finance automation to your business is in Accounts Payable (AP).
Businesses can automate their end-to-end AP process to save hours of work and improve accounting accuracy.
This is one of the easiest ways to streamline the way you handle your accounting.
With Sweep, finance teams can empower their AP processes with smart technology. The app provides an easy and fast solution to automate the AP process from invoice to payment.
This is powered by AI and machine learning for better results.
Sweep also offers automated expense management to easily track and categorise transactions in real-time.
Automation has become a critical function in businesses’ financial processes.
No matter the scale the business operates at, applying RPA saves time, improves accuracy, and makes accounting a far easier process.
This can be a game-changer for growing SMEs without a large finance team.
When applying corporate finance automation, it's important to stay ahead of trends.
This will help you get more from your automation processes, and keep your business on top of a rapidly changing digital landscape.
With a tool like Sweep, corporate finance automation is effortless.