More than ever, treasury and finance departments globally are needing automated solutions to keep up with the demands of remote work. Based on the Association of Corporate Treasurers’ (ACT) recent Business of Treasury 2022 report, 66% of their survey respondents stated that remote work and the pandemic has increased the adoption of automated technology. With the move to remote work, companies are trying to find ways to streamline their treasury management and overwhelmingly, treasury automation has allowed them to work collaboratively and streamline operational tasks in a cloud-based, integrated platform.
When successfully using a treasury automation solution, your business can oversee the entire banking and payment processes while factoring in your company’s macroeconomic environment. Together, this allows your company to make data-driven decisions, keep up with competitors, and satisfy customers.
If your company is not completely sold on the idea of further automating your treasury functions, consider some of the benefits of using additional automation in your daily business operations.
Advanced Analytics and Reporting
When a business starts using more automated processes, they have an immediate overview of their entire banking and payment landscape. Dashboards and grids showing payment history and outstanding balances built within treasury automation solutions allow companies to gather real-time data on their business processes, which can drive better reporting, analytics, and predictive forecasting. Alongside these reporting capabilities, treasury automation solutions feature robust audit trails by tracking every activity completed. These audit trails can assist teams in identifying KPI performance and can help them complete their financial goals. Together, these built-in capabilities enable a better assessment of a company’s cash position and drive working capital optimization.
Boost in Productivity
By having features like advanced analytics, your team can better anticipate and fix problem areas in your team’s treasury processes. Teams that have utilized RPA-powered solutions, like treasury automation, have seen significant increases in productivity. According to Deloitte, 86% of companies have increased their productivity and have minimized workflow bottlenecks through treasury automation. Most importantly, treasury automation saves teams from countless hours of rework. Gartner found that 25,000 hours of rework were eliminated once financial teams used treasury automation. This reduction of rework creates more opportunities for higher team engagement in more value-added activities.
Eliminate Redundant Costs
In a Deloitte survey, 59% of the companies surveyed had a reduction of costs when they switched to a treasury automation solution. Instead of taking days to reconcile accounts or having manual payment processes, companies who deploy treasury automation solutions can automatically reconcile bank transfers and minimize the costs associated with processing payments. Companies can not only save money, but they can also have better cash flow as a result of treasury automation. Since automated solutions can process accounts receivables faster, companies can lower their DSO and increase their access to cash, which can significantly help the scalability of growing companies.
Reduction of Errors
Through the deployment of RPA in treasury automation solutions, the bots used in RPA can complete financial processes virtually error-free when completing rule-based jobs. Line-item matching becomes more accurate over time as these bots learn your company’s behavior, which reduces errors over time and increases batch job accuracy when processing invoices and transactions.
Cross-currency transactions is one problem area where companies faced higher risk of errors due to it being predominantly processed manually. This tedious process is streamlined with built-in FX settlement modules in many treasury automation solutions. This normally long multi-hour process happens in a matter of seconds with an embedded connection to an FX trading platform.
Greater Control over Treasury Processes
When dealing with manual treasury processing, it can be a hassle trying to manage all processes in disparate systems. With an embedded treasury automation solution, finance teams work in a centralized solution that has many processes in one place, making it easy to overview the health of your cash management system. This solution allows your team to easily delegate tasks and simplify complicated workflows. However, not all automated solutions are alike, and some are bolt-on solutions that are not embedded in an ERP system, which makes it difficult for treasury teams to integrate accounting data directly into these solutions. This problem is the main reason why companies are now looking for embedded solutions that are centralized within ERP systems. Embedded solutions that have the same appearance as your ERP, like SK Global Software’s Treasury Automation Suite, don’t create extra hassle of learning another system or interface and instead integrates and keeps all your accounting data in one place.
Better Risk Management – Integrated Risk Mitigation
One of the biggest worries of a treasury team is the protection of company data. Manual treasury processes increase the chance of a data leak and fraud. A potential data leak is significantly minimized with the use of a treasury management solution that can automate end-to-end processes. Solutions that incorporate features like SFTP, files encryption, secure storage and transfer of payment files, and PCI-compliant process for credit card processes, greatly reduce security risks. These solutions also make it easier than ever to maintain full compliance with the emergence of global and regional data security standards and financial messaging standards like SWIFT, SEPA, and ISO20022.
Finally, embedded treasury automation solutions have a centralized, cloud-based location where treasury teams can work simultaneously on projects and can assign each other tasks. Through the recent move to AI and machine learning, teams can now also set up automatic work processes which can streamline approval flows and daily tasks. Together, this solution minimizes data silos and helps treasury teams achieve higher levels of productivity and integration.
Save Time and Money with SK Global Software’s Treasury Automation Suite
The benefits of treasury automation show the obvious cost-saving and efficiency that companies can achieve when using an automated solution. With SK Global Software’s Treasury Automation Suite, your business will gain all the benefits that treasury automation can offer. With our consultants who have over 20 years of experience in treasury management, your business will improve your treasury management significantly while utilizing our best-in-class, embedded solution in Microsoft Dynamics 365 Finance and Supply Chain.
To learn more about our TAS solution, email firstname.lastname@example.org to schedule a demo with us today.