In the digital age, businesses increasingly leverage data to transform their financial operations. Modern data technologies such as artificial intelligence (AI), machine learning (ML), automation, and big data analytics have revolutionized traditional financial functions, increasing speed, accuracy, and efficiency. Financial operations have always relied on data and repeatable rules-based processes, which benefit most from modern data services.
Group Financial Reporting
Group financial reporting consolidates the financial statements of subsidiaries into a single set of financial statements for the parent company. This process can be complex and time-consuming, especially for businesses with many subsidiaries.
Hyperautomation can help to streamline the group financial reporting process by automating manual tasks, such as data entry and reconciliation. Hyperautomation will free finance teams to focus on more strategic tasks, such as analyzing financial performance and identifying trends.
Business Performance Reporting
Business performance reporting is the process of generating reports that track and measure a company's financial performance. Companies use these reports to identify improvement areas and make better business decisions.
Hyperautomation can improve the quality and accuracy of business performance reporting. For example, businesses can use analytics and AIML to create dashboards that provide real-time insights into their performance. Hyperautomation can help make quick and informed decisions about improving profitability or reducing costs.
In taxation, data analytics can help businesses optimize their tax strategies. By analyzing financial data, businesses can identify tax-saving opportunities, ensure compliance with tax laws, and avoid penalties. Moreover, predictive analytics can forecast tax liabilities, enabling proactive tax planning.Global Tax Management, a corporate tax services firm, reduced the manual processing of client tax preparation by 50% by implementing analytics automation. Additional information is available here.
Financial Planning & Analysis (FP&A)
Financial planning and analysis (FP&A) is a set of activities – including planning, forecasting, and budgeting – intended to support a company's critical business decisions and overall financial health. FP&A professionals use information to assist businesses in making better-informed financial decisions. Better data can help FP&A professionals improve their economic models' accuracy and sophistication. For example, businesses can use data analytics to create predictive models forecasting future financial performance. Data analytics makes better budgeting, investment, and pricing decisions.
Audit & Accounting
Data analytics is transforming Audit and Accounting by automating routine tasks such as data entry and reconciliation, reducing the risk of errors. It enables continuous auditing and real-time risk assessment, improving the efficiency and effectiveness of audit processes. In accounting, data analytics facilitates accurate record-keeping and financial statement preparation.
In treasury functions, data analytics aids in cash management, risk management, and investment decisions. It provides visibility into cash flows, enabling optimal cash utilization. Moreover, it helps in assessing financial risks and determining effective hedging strategies.
Increased speed and accuracy in financial operations have many positive impacts, including:
Improved decision-making: Businesses can make more informed and timely decisions with access to accurate and up-to-date financial information.
Reduced costs: Businesses can save money by automating manual tasks and reducing errors.
Increased compliance: Businesses can improve their compliance with financial regulations by automating reporting processes and identifying potential risks.
Improved customer service: Businesses can provide better customer service by better understanding their financial performance and customer needs.
Here are a few examples of how businesses are using data to transform their financial operations:
Netflix uses data to improve its financial forecasting and decision-making. For example, Netflix uses data to predict how many new subscribers it will acquire each quarter and how much money it will spend on content.
Walmart uses data to improve its supply chain management and inventory forecasting. For example, Walmart uses data to predict the demand for each product in each store on any given day.
Amazon uses data to improve its product recommendations and pricing. For example, Amazon uses data to recommend products to customers based on their past purchase history and browsing behavior.
How to get started
Suppose you want to use data to transform your financial operations. In that case, the first step is to assess your current data landscape. Identify the sources of data that you have and how you are currently using it. Once you understand your current data landscape, you can start to identify opportunities to use data to improve your financial operations. It is essential to prioritize the opportunities by the return on investment for your business and the cost of accessing and preparing the data for use. Hyperautomation using AI, Analytics, and RPA technology will accelerate the time to value while minimizing operational costs. Without disciplined prioritization of opportunities, you will not maximize the value of hyperautomation for your business. The final step is democratizing using AI and modern Analytics in your daily business operations. In order to maximize your business benefit, it is critical to provide the tools and knowledge to your business analysts. Lydonia Technologies helps customers with all phases of this methodology, resulting in 4-7x ROI in the first year.
In conclusion, using Hyperautomation in financial operations is proving to be a game-changer for businesses. It increases business process speed and accuracy and provides valuable insights for strategic decision-making. As businesses continue to embrace this digital transformation, the future of finance looks promising.
As a result of the success of using Hyperautomation in financial operations, financial leaders are often driving the deployment of these services across their businesses. Financial leaders deeply understand the business, including performance and key drivers, are responsible for driving business results, and are skilled in implementing change. These are all critical skills for driving successful digital transformation and business success.