Deciding What Processes to Automate: A Strategic Guide for CFOs

Deciding What Processes to Automate: A Strategic Guide for CFOs

Automation promises cost reduction, improved accuracy, and faster decision-making—transforming the finance function into a more strategic partner in the business. But with myriad processes to choose from, how should CFOs decide what to automate?

Here’s a structured approach for CFOs to consider when deciding which processes in finance—and beyond—are best suited for automation.

Assess Business Value

The first criterion for determining whether a process should be automated is the potential business value it can unlock. Automation is not just about reducing headcount but enhancing the speed and accuracy of financial operations. Processes that directly impact profitability, decision-making, or customer satisfaction should be high on the priority list.

For example:

• Accounts Payable/Receivable: Automating these can reduce cycle times, improve cash flow, and eliminate errors.
• Expense Management: Streamlining this ensures timely approvals, policy compliance, and reduced overhead in tracking.

Key question: Does automating this process deliver a tangible return on investment?

Identify Repetitive and Manual Tasks

The best candidates for automation are processes that are repetitive, rule-based, and time-consuming. These tasks often involve manual data entry, reconciliation, or approvals that follow a consistent logic. Automating these processes can free up valuable time for finance teams to focus on higher-value work such as financial analysis and strategic planning.

Some examples include:

• Invoice processing
• Data reconciliation across systems
• Generating routine reports and dashboards

Key question: Is this process repetitive and prone to human error?

Evaluate Process Stability and Standardisation

Processes that are standardised and well-documented are much easier to automate. CFOs should look for processes that have been consistently executed the same way over time, where clear rules and procedures are already in place.

If a process is highly variable or dependent on subjective decisions, it may not be the best candidate for automation, or it may require additional effort to standardise before automating.

Key question: Is this process well-structured with little variability?

Analyse Error Rates and Risk Factors

Human error is a significant cost driver in many finance departments, particularly in areas such as data entry, reconciliations, or regulatory compliance. CFOs should analyse processes that have high error rates or where errors can lead to significant financial loss or compliance risks.

For example:

• Tax filings: Automating tax calculations and filing processes can mitigate the risk of penalties due to inaccuracies.
• Compliance reporting: Automation can ensure accurate and timely submissions, reducing the risk of non-compliance fines.

Key question: Would automating this process significantly reduce errors and associated risks?

Consider Integration with Existing Systems

One critical factor often overlooked is how well an automation solution can integrate with existing systems such as enterprise resource planning (ERP) software, customer relationship management (CRM) systems, and other financial tools. Seamless integration ensures that automated processes can pull and push data across systems without the need for manual intervention.

CFOs should prioritise automating processes that involve frequent data handoffs between systems to eliminate bottlenecks and improve efficiency.

Key question: Can this process be integrated with our existing tech stack?

Prioritise High-Volume Processes

High-volume processes—those that are performed frequently or involve large amounts of data—are often the most time-consuming. Automating these can yield significant time savings. Processes such as expense reporting, vendor management, or payroll can become overwhelming when handled manually, especially as a company grows.

Automating these tasks ensures that the finance team can handle increased workloads without the need to scale headcount proportionately.

Key question: Is this process high-volume, and will automating it save significant time?

Focus on Processes with Growth and Scalability Potential

As businesses expand, so too do the demands on their finance departments. CFOs should prioritise automating processes that are likely to grow in complexity or volume as the company scales. By automating these tasks early, finance departments can maintain operational efficiency and avoid disruptions during periods of rapid growth.

For example, as companies expand into new markets, managing multiple currencies and tax jurisdictions can become cumbersome. Automation tools can simplify exchange rate management, tax calculations, and compliance with local regulations.

Key question: Will automating this process prepare us for growth and scalability?

Factor in Employee Experience

Lastly, CFOs should consider the human element. Automating low-value, repetitive tasks can increase job satisfaction by allowing employees to focus on more meaningful work. Employees who are engaged in higher-level tasks, such as financial analysis, forecasting, and strategic planning, are more likely to contribute to the organisation’s long-term success.

When evaluating processes for automation, engage the finance team to understand their pain points and identify tasks they feel should be automated. This can also improve buy-in and ease the transition to automation.

Charles Haward

Search Partner

FD Recruit

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