??Cost-Saving Ideas for CFOs

Before we jump into the meat of the matter which is cost saving ideas for Chief Financial Officers (CFOs), let’s take a moment and imagine a scenario that will help us better understand the concept.

What would you do?

Let’s say you’re lost in a vast, thick forest, with no clear paths or signs to lead you out. You’ve got two choices: either battle your way through it with a machete or use a GPS that guides you out without breaking a sweat.

Choose the GPS? High five! You’ve just made a decision that saves you a ton of time and potentially a lot of trouble.        

So now let’s convert this scenario to our business world. What would you prefer – spending endless hours filling spreadsheets, fixing errors, and hiring more staff to duplicate data from one system to another? Or, would you choose a bot that copies data across the system in a few minutes, doing so accurately, and saving you valuable time and resources?

The decision between manual processes and automation is quite like choosing between the machete and the GPS.

Now, manual processes are like our old friend the machete. They’ve been around forever and might seem cost-effective and convenient at first glance. But on a closer look, they often lead to inefficiencies, much like hacking through the forest with a machete can be slow and prone to mistakes.

??There are Hidden costs to your business' manual tasks.

Cost savings are like the Holy Grail for CFOs. However, the ongoing expenses of manual tasks can often slip under the radar, leading to costs that pile up.

Spotting and reducing the hidden costs that come from manual tasks is a key challenge CFOs face. Manual processes not only gobble up resources but also slow down efficiency and innovation, acting as roadblocks on the path of progress.

Let’s uncover a few hidden costs that come from manual tasks, and see how they can affect your business.

? Poor Productivity -

If your employees are spending time copying data from one system to another, it’s time to rethink your strategy.

A study by IDC shows that employees spend 22% of their time on repetitive and manual tasks. They waste a ton of time every week dealing with manual documentation, costing organizations an average of $19,732 per knowledge worker per year in wasted time.

? Fraud & Security Risks -

Manual processes often lack strong security measures, making them targets for fraud. This weakness comes from the absence of high-level security protocols to safeguard sensitive data and transactions. Therefore, these processes attract fraudulent activities, causing significant financial losses for businesses.

According to the?Association of Certified Fraud Examiners, businesses worldwide lose about 5% of their annual revenue to fraud. This equals over $3.6 billion lost globally each year. This high figure highlights the pressing need for businesses to rethink their use of manual processes and explore safer options.

??Audit Trail Gaps -

An audit trail or audit log is a sequential record of every step performed to carry out a process. Its purpose is to have a record of all activities to identify or trace the source of errors.

Gaps in the audit trail can make it hard to trace the source of errors and reduce the accountability and transparency of business processes and transactions.

Gartner?reports that businesses incur an average of $12.9 million costs every year due to poor data quality, which can stem from gaps in the audit trail.

Now that we’ve shed light on these hidden expenses, it’s time to focus on potential solutions.

Cost-Saving Ideas for CFOs -

Automation can create significant cost savings, improve efficiency, and increase the accuracy of financial operations. It’s not just about completing tasks quicker, but also about reducing human errors that occur with manual processes.

Your team can be freed from repetitive tasks and move into strategic roles that directly impact the growth and success of your business. Automation can change everything from data entry to report generation.

Check out cost-saving strategies for CFOs to optimize their operations.

Did you know? ??

A study by McKinsey & Company found companies that have integrated AI into their operations are seeing up to 20% of their earnings before interest and taxes (EBIT) contributed by AI-related activities.

This significant contribution to profitability underscores the transformative effect that AI and automation technologies can have on an organization’s financial performance.

RPATech is offering up to 50% cost savings for organizations as part of their "Automate Quicker. Operate Smoother" campaign providing automation bundles.

Learn more here.