Is your company ready for finance automation?
Many companies already have finance technology in place, such as an Enterprise Resource Planning (ERP) program. But when you start hitting the limits of your existing technology, it’s time to think about where you’ll go next.
An automation-ready finance stack isn’t necessarily the one with the most software. It’s the one in which the right systems share data, workflows are standardized, and finance can maintain appropriate control over what happens between systems. It’s not even all about tech; it’s also about the people who will use the tech.
Start With the Finance Processes
Before adding new software, CFOs should map the processes they want to improve. This includes purchasing, T&E, budgeting, financial close, vendor management, capital expenditure approvals, and invoice intake, processing, and payment.
One thing to look for when mapping financial processes is places where employees are manually entering, transferring, approving, or reconciling information between systems. These handoffs are often good candidates for business process automation (BPA).
It’s important that you understand the current technology landscape in your company before adding new technology. Current gaps and future requirements help you identify what’s missing. Thinking about what you want future workflow to look like helps prevent the common problem of implementing new software that automates only one isolated step rather than improving the end-to-end process.
Make the ERP the Foundation
For many companies, the ERP will remain the core financial system of record, while BPA tools extend its capabilities into processes that require specialized workflows or cross-department collaboration. BPA and ERP systems overlap, but they have different workflows and different functions. If you get BPA software that integrates with your ERP system, then they’ll work together to provide much more robust business management tools than you’d get using ERPs alone.
CFOs should determine what their existing ERP already handles effectively. ERPs are great for managing processes at a high level, functioning like a “nerve center” for companies. They have limits, though. However, ERPs do have limits, and they weren’t designed for handling smaller-scale but vital tasks like generating purchase orders, tracking goods received, and processing invoices for payment.
BPA software can fill in where the ERP has gaps. BPA software can connect procurement, expense management, project management, accounts payable, and other operational systems to create an end-to-end automation solution without requiring your organization to replace its core system. This is particularly useful if your company is using a legacy ERP system and wants to improve its functionality without completely replacing it.
Prioritize Integration and Data Flow
An automated tech stack needs reliable connections between systems so that information can move smoothly between programs rather than being exported and re-entered manually. You likely won’t achieve all of this before automation, since the BPA software will enable connections to achieve full end-to-end automation, but you can lay the foundation for it early on.
Before automating, CFOs should evaluate Application Programming Interfaces (APIs), prebuilt integrations, data-import capabilities, and compatibility with their existing ERP and other critical systems. Ideally, you’ll want to prioritize platforms with open APIs, strong security protocols, and robust analytics capabilities. Interoperability and connectivity are key to an adaptable finance tech stack.
When selecting BPA software, make sure the software supports integrations with your existing programs. Not all BPA systems can integrate seamlessly with every ERP. NetSuite, for example, is notoriously difficult to integrate with other software. However, NextProcess has a 100% NetSuite integration success rate, and we provide ongoing support to keep all your software working together perfectly as NetSuite rolls out automated updates. We have similar success rates with all major ERPs.
Build In Data Quality and Governance
Automation is only as reliable as the data moving through the process. Inconsistent vendor records, account classifications, or departmental data can undermine otherwise well-designed workflows. It’s important to establish ownership for important finance data and standardize definitions before connecting multiple systems.
BPA systems support data governance efforts and help ensure that data is accurate, standardized, complete, timely, accessible, and secure. NextProcess’s BPA system, for example, automatically creates audit trails. You can also customize the settings to maintain data quality and reinforce financial controls as transactions move between systems.
Design for Scalability, Security, and Change
As your company begins moving toward implementation for BPA software, make sure you select a platform that is scalable and secure. The system you’re implementing should be able to accommodate additional departments, higher transaction volumes, and new workflows in the future without requiring the finance team to rebuild its technology architecture.
During implementation, build security and customized controls into the system rather than adding them afterwards. Your software supplier should work closely with your company during implementation to customize the software to your company’s exact needs. That’s what NextProcess does. We also continue to support your software integrations and customized processes the entire time you use our software.
Scalability is also important when automating your finance tech stack. CFOs should consider how easily the new BPA technology can accommodate future integrations, acquisitions, system upgrades, and changes in business processes. Cloud-based software-as-a-service (SaaS) BPA solutions are highly flexible and easily scale to match your company’s changing needs.
Measure Improvements in Finance
Before implementing new automation software, establish baseline measurements on key performance indicators (KPIs) such as processing time, manual hours, error rates, approval times, reconciliation effort, and the number of systems or spreadsheets involved.
After BPA implementation, compare those measurements against the new process to determine whether automation is delivering its expected financial and operational benefits. You should see labor savings, improved visibility, more reliable data, faster processes, stronger controls, fewer errors, and the ability to scale. Most of NextProcess’s clients start seeing return on their BPA investment quickly and typically break even in 9-12 months.
Ready to start the conversation about automating your finance tech stack? Contact us today and share your current process, ERP stack, and automation goals. We’ll set up a call based on your company’s needs and share an interactive, customized demo so you can see our software in action.
