Let’s go back to the year 2000: Nokia launches the Nokia 3310. Compare this mobile phone with today's smartphones. A mobile phone has now become a small computer with possibilities that go much further than just making calls; the functionalities are almost endless.
We are seeing an equally significant change in finance. Where in the past paper was the norm, today it is all about automation and data. The more data, the better we could almost say. Or rather, the more relevant and correct data, the better.
Furthermore, the accounting tool of the past is quite different from that of today or tomorrow.
Finance without borders
We are in a new world where the Internet and rapid digitisation has revolutionised the way we communicate, exchange information and do business.
We need to think no longer only locally, but globally. The Internet has blurred all borders. With the opportunities opened up by e-commerce, for example, we can go further than we ever dreamed of. The competition is no longer just around the corner, but is now on the other side of the world as well.
In today’s market, businesses must keep innovating to remain profitable. Finance departments need to keep up with this trend and keep reinventing themselves in order to stay ahead of rapidly changing markets and the risks that lie ahead. This means that a faster and more accurate view of the figures becomes more important by the day.
Fortunately, today we already have some off-the-shelf automation solutions to match this speed. Most software suppliers already offer functionalities such as e-invoicing, automation based on recognition, processing of electronic invoices, automatic processing of bank files in electronic format (CODA or CAMT files), etc.
New technologies are constantly being introduced to the market, bringing us another step closer to full automation on the input side with an even more accurate result.
Do not be put off by these technologies. They are an asset when you consider how things used to be before. The first mobile banking applications were developed 10 years ago. For many of us, they have become a normal part of everyday life. Anywhere and any time, you can now check your accounts and loans, make payments, etc.
Until recently, you had to go to your bank for all these things. It’s becoming hard to remember what it was like.
The future of finance is AI & BI
Where is finance going? What added value can innovation bring us in the short and medium term? Think, for example, of Robotic Process Automation, AI, predictive forecasting, etc.
Systems become self-learning and make our lives easier. Which in turn gives you more time to look at the core: the (financial) health of your company.
“Hello, I’m your new colleague”
Robotic Process Automation (RPA) will become the norm in the near future. RPA is a technology that makes it possible to mimic human actions within digital systems. It will make people less needed for those specific tasks. Tasks that often provide less added value.
But where RPA comes up against its limits is when it comes to reasoning. This is where Artificial Intelligence (AI) comes in. AI is a technology that is capable of mimicking human intelligence. It opens the door to reasoning and learning. A collaboration between RPA & AI ultimately creates a more efficient system that can enrich itself. It also reduces (financial) risks, prevents human error and enhances quality.
So what now?
Finance departments no longer just look at the financial figures, but more and more at the product or service behind the figures. Business drivers are examined to provide a 360° analysis. We want to know why we are making a profit or a loss, whether there is room to adjust one of our business drivers, to see what the future (possibly) has in store... The list is endless.
Data warehouses & BI tools are increasingly used to capture all our data and provide us with the necessary insights. For many businesses it is no longer practicable and efficient to keep doing this in MS Excel. Dashboards are set up in such a way that everyone can easily find the information and KPIs that are important to them: finance, business, management, etc.
This is already available today, not just for large corporates, but something that all businesses can do, regardless of their size and activity.
“Size doesn’t matter”
Within the needs of every type and size of business and for every budget, there are already sufficient possibilities on the market that allow you to jump on this digital and technological rocket.
- Do you have questions about automation in your company?
- Would you like to see if your tools and processes are still future-proof?
- Does your reporting no longer meet your needs or do you lack relevant information and insights?
If so, please contact the BDO Smart Business Solutions Team.