Quick digital wins for finance teams

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As staying on top of compliance and data has become more intensive in recent years, technology has lent a hand, providing a way to develop more efficient ways of working and scaling, without necessarily just increasing headcount.

Very large corporate organisations benefit from being able to invest large sums into how they can drive efficiencies through technology. Often involving complex projects and significant cost, these private drives to embed technology right across the organisation are often described as transformative, and link disparate systems and processes with complex digital links and technical infrastructure.

Smaller organisations have also benefited from linking together different processes, not least through the availability of cloud based systems that talk together efficiently through APIs (the keys which one programme can link and share data with another). A very small organisation these days, with only a few employees, can harness sales transactions, payments, customer relationship management, fulfilment, and stock control in a near seamless way without an expensive implementation process.

However, can the same be said for those that sit between the two?

Some businesses have a degree of complexity that could benefit from the efficiencies of a digital transformation, but are often constrained by doing so: cost, the availability of technology, and the time required are seen as significant barriers.

For these mid-market and complex businesses, changing processes and technology can be a challenge.

Mid-market life isn’t digitally easy

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There are few words that make business owners and accountants’ eyes glaze over than ‘digital transformation’, with the possible exception of ‘strategy’.

For most it is an ugly and unclear term, that sounds like a process that will be expensive, difficult and never ending.

And it’s easy to see why. The traditional view of technology for this part of the market has been to encourage software purchases that can require serious implementation and deep change, with outcomes that aim to please the board but have little to endear it to managers and employees. Compromises and complications en route, can also escalate costs and leave key staff members frustrated.

Yet there is also an understanding that manual processes have little value in themselves, except in the outputs created; and anything that can be done to drive efficiencies within processes often has the dual advantage of being both good for business and good for staff satisfaction.

Which is why taking smaller but significant individual steps can lead to a more gradual (and greater acceptance of) wider digital change.

Why digital transformation is so unappealing

“Taking smaller but significant individual steps can lead to a more gradual (and greater acceptance of) wider digital change.”

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The concept of a quick digital win comes from the Boston Consulting Group1, who identified several characteristics of implementing technology that can help mid-market organisations drive improvements without overreaching. These include:

• Adoption at low risk• Inexpensive• Have a big impact• Celebrated by all

The “quick digital win”

In the case of the finance function, these are often achieved by looking at specific processes which are today very time intensive, repetitive, or involve much manual intervention.

By taking the view that technology could be adopted that is sensible, scalable and has immediate impact without large cost or time involved, options can be quickly narrowed down.

1 Source: Boston Consulting Group reference: How to jump start a digital transformation

https://www.bcg.com/publications/2015/digital-transformation-how-to-jump-start-a-

digital-transformation.aspx

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Utilising customisable, but essentially off-the-shelf software, with few barriers in terms of picking up and exploring (a huge benefit of digital subscriptions), the risk is low and implementation has a definite end point.

Given the low risk profile of looking at technology in this way, investigating and trialling software can even be delegated to digitally adept and engaged members of the finance team, who in turn act as ambassadors and a focal point for change.

No long-term commitment means that as processes scale, technology options can be swapped with a more appropriate one when the time is right.

The notion of something that is celebrated by all is a crucial one in the context of quick digital wins. The acid test being as to whether or not the new technology is received with universal approval is a key indicator of likely success.

If the team can tell you that they never want to return to the old way of doing things, then you can be confident the new digital way works.

Celebrated by all

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Accounts payable is an area where most organisations are liable to see the benefit of quick digital wins.

1. Invoice OCR and approval Purchase invoice management typically involves documents coming in from many directions and formats, typically paper, email and PDFs.

Over time this is one area that businesses can fall into the habit of tolerating manual processes, including printing, stamping and physical signing by authorisers. This can mean hours of extra administration for logging, keying in data, tracking, and chasing invoices for authorisation.

Quick digital win - Invoice capture and approval system

• Eliminate keying in of data - OCR extrapolation• Speed up approval process - Including mobile sign off• Create easy to follow audit trail - No email chain, recorded centrally

and automatically

Good for everyone

Automation should be good news for everyone involved here. Accounts Payable are able to see automation in action and benefit from the lack of keying in and chasing sign-off, focusing instead on interjecting where needed and dealing with queries. It also brings in more accountability, making it clear who has current outstanding actions on each and every invoice.

Examples of quick digital wins in finance

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For approvers, the benefit of compartmentalising a function in a very specific channel is clear. Seeing and approving invoices in one place removes desk paper, disparate email chains, and ensures nothing is missed. The value in minimising persistent interruptions is almost enough in itself.

2. Fixed Asset Register

Keeping on top of the record and value of assets the business has is not high on the list of much loved jobs within the finance team.

Covering everything from computer equipment, plant machinery and office furniture, understanding what assets are available and how they are to be treated for accounting treatments like depreciation can be detailed and time-consuming work.

Without a standalone system in place, it can often fall to one or more spreadsheets to log and record details, with calculations often managed separately, and frequently becoming out of date.

“It’s so refreshing not to have to rely on spreadsheets to track our fixed assets and to be able to post our depreciation automatically.” Pete McKeown, Cernunnos Homes, AccountsIQ client

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Quick digital win - Automated register, document storage, and calculations

• Centralised asset management - All warranties and replacement timings stored and correct

• Automate complex depreciation calculations - No longer done in notoriously unreliable spreadsheets

• Instant reporting - e.g. Show likely amount of spend required, based on age of assets.

Good for everyone

Keeping core data and documentation in one place greatly reduces the risk around incomplete information on insecure systems; and simplifies the process of compiling or even getting hold of warranties.

Where complex calculations can create additional headaches for the finance team, using a modular fixed asset register can ensure that nothing is left out, and no advantage missed in the year end accounts.

For management, being able to plan for capital spend and equipment refresh, puts them on a front foot when considering finance options and timings, as well as cash flow.

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3. Expense capture

Few can claim to enjoy a manual expense process. It is a task that is often very difficult for staff to do easily without taking up considerable time, and where there is a tendency for it to be either ad hoc, or unclear (especially for those that infrequently claim).

The burden on accounts staff time must also be added, especially checking accuracy and completeness, keying in data, and chasing approval by managers.

As it also involves personal money of employees, late, lost or inaccurately recorded expenses can often cause unwelcome stress and tension.

Quick digital win - Expense capture and management

• Compile as you go - Staff log expenses, photograph receipts and calculate mileage in month

• Automate approval - Digital sign off by managers • Manage centrally - Company wide view, incorporate credit cards,

easy payroll reporting

Good for everyone

Expense capture and management usually provides by far the biggest win by virtue of its impact across the business.

Claiming staff benefit from the simplicity and ease of use, and a big reduction in time taken at the end of each month. While increased data accuracy and an integrated workflow pays dividends for finance and payroll who need recognition from managers quickly in order to process.

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Quick digital wins allow you to pick off the processes where the biggest impact can be felt at a much lower risk and cost. By taking this approach you can progressively identify more areas that would benefit from greater automation and linking together of data, building up over time an easier way to manage a complete digital transformation.

Looking for applications that work well together and where there are established APIs is a useful step, however in time moving to a platform such as AccountsIQ will allow a complete integration between discrete modular applications, and the general ledger.

The ultimate end will be to live with a complete system, where individual components can be swapped in and out, but all with the ultimate aim of properly automating month end - regardless of the complexity of your business.

The small, logical steps towards digital

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Specialising in the higher end part of the hotel industry including international hotel groups, accountancy practice French Duncan are able to advise clients on quick digital wins that allow them to streamline their complex finance processes including multi location consolidation, multi-currency accounting, and detailed purchase ledger coding.

Quick digital wins, incorporating AccountsIQ with

• Opera integration• Procurement integration• Fixed Asset Register• AutoEntry invoice management integrations Which in turn provide them with an even quicker month end process for:

• Consolidated reporting across all hotels & legal entities• Consolidated purchases for procurement

French Duncan - Quick digital wins for hotel groups

“We process between 3,000 and 4,000 client invoices per month using AutoEntry integrated with AccountsIQ, freeing up the time of two of our members of staff. Because the system is so simple to use, it saves considerable time and reduces the risk of human error”,

IAN BREMNER, MD, FRENCH DUNCAN

Read Case Study

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The concept of quick digital wins is at the heart AccountsIQ’s strategy to allow complex businesses to benefit from low risk strategies towards technology adoption.

Our Open Platform provides a quick and easy way to connect with other cloud-based business applications without the need for specific development expertise, and further make the reality of digital transformation scalable, affordable, and controllable.

The future is open

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AccountsIQ is a SaaS Cloud-based accountancy and consolidation system for fast-growing, mid-sized businesses. It offers advanced consolidation features, multi-currency accounting and enhanced business analytics. Because of its open integration platform AccountsIQ is easily integrated with other business systems. AccountsIQ is currently used by more than 3,000 companies and 25,000 users in 40+ countries. www.accountsiq.com

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