In the Total Economic Impact of Microsoft Dynamics 365 Finance article by Microsoft, they examine a study conducted by Forrester Consulting on the cost-savings and economic benefits of implementing the Dynamics 365 Finance Enterprise Resource Planning (ERP) System. The report assesses the potential return on investment (ROI) that companies may discover through implementing Microsoft Dynamics 365 Finance.

Businesses can choose to further maximize the ROI they receive from Dynamics 365 Finance through leveraging the additional automation offerings provided by Microsoft Independent Software Vendors (ISV). Microsoft ISVs offer solutions that further enhance the automation offered within Dynamics ERP systems. SKsoft is one of the top selling ISVs for banking, finance, and treasury automation in the Microsoft Dynamics space.

Key Results from the Forrester Study

Forrester interviewed four businesses utilizing Dynamics 365 ERP system for the Total Economic Impact of Microsoft Dynamics study. The companies’ experiences and interview results were compiled to create a composite business for the purpose of the study.

The companies interviewed in the Forrester Study faced common challenges such as using old solutions with excessive maintenance costs, extensive customization of solutions, lack of uniform financial processes, dependance on manual procedures and common knowledge, and the absence of real-time visibility. These pain points led the organizations to seek out and purchase Microsoft Dynamics Finance to resolve these challenges.

The Total Economic Impact of Dynamics 365 study exposed the following benefits of implementing D365:

  • Finance and IT staff efficiency improvements
  • Legacy financial savings
  • Real-time visibility and data which improved decision-making agility
  • Improved regulatory compliance
  • Greater system availability
  • Integration with the Microsoft ecosystem
  • Improved work life balance for finance employees

Considering all the results of the study, it was concluded that Dynamics 365 Finance brought a total economic impact of $3.41 million in cost-savings over three years. The total initial investment was $2.8 million and resulted in an ROI of 122 percent.

How SKsoft can Maximize these Benefits

Businesses can maximize the benefits of their Microsoft Dynamics Finance ERP , through leveraging additional built-in automation. Through robust banking and treasury functionality, SKsoft takes the financial automation provided in D365 Finance a step further. Our solutions are fully embedded into the Microsoft Dynamics 365 ERP System, preventing users from having to use disparate systems. Our  software has the same look and feel as the D365 ERP system and are Microsoft certified. Our solutions are the preferred offerings by our partners and Microsoft. ISV solutions like our Banking and Treasury Automation Suite can deliver out-of-the-box functionality that would otherwise require extensive customizations.

Configuration vs. Customization

Our Treasury Automation Suite is designed to handle a variety of business types. By having robust and flexible configuration options, businesses can run their processes the way they want to through configuration versus expensive and time-consuming customization.

Vast Bank Format Library

Our Treasury Automation Suite has an extensive and ever-growing format library for Positive Pay, direct debits, vendor payments, customer reimbursements or bank to bank transfers. This allows our users to be able to send data to their bank in the exact format required by each banking institution, without having to build and maintain customizations of transforms.

Functionality Specific Pain-Points

Through seamless and secure automation our banking, finance, and treasury solutions works to resolve the following key pain-points directly in the F&O ERP system:

  • Banking Integration

Through secure host-to-host connection and direct SFTP and API connectivity with over 140 banks, our BankFabric solution seamlessly transfers payment information to and from the ERP to the bank. This prevents the user from having to download files to their desktop or log onto a banking portal.

  • Bank Reconciliation

Through advanced matching and mapping rules, our bank reconciliation solution resolves the challenge of being able to automate daily or monthly reconciliations.

  • Vendor Payment Automation

Our APEFT solution resolves the pain-point of processing outbound vendor payments. When making payments globally, many times bank/payment methods require custom data fields not found in D365 F&O. To avoid the need to build custom extensions, our product provides data driven forms specifically designed for each payment method. These are all contained and packaged within each format. Validation rules within the solution provide payment method-specific rules to ensure that all the data needed by the bank format is verified before being sent to the bank. With APEFT you can streamline the process of building and uploading your payment files to the bank, sending response files to reject or approve payment lines, remit advice emails, and journal posting based on email or electronic bank response.

  • Check Fraud Prevention

Our Positive Pay solution protects organizations against fraudulent checks. Through seamless automation, Positive Pay sends an outbound file to your bank to protect checks printed out of the ERP.

SKsoft is the North American Distributor for SignUp Software’s ExFlow. ExFlow and ExFlow Data Capture resolve the pain point of capturing, validating, and processing AP invoices. When paired with SKsoft’s APEFT and Positive Pay solutions, you can achieve a fully automated AP process in your D365 ERP system.

  • Cash Application & Settlement Automation

Our AReSettlement module resolves the challenge of creating payments, settlements, processing lockbox files and other types of customer payment files and applying payments automatically to customer invoices.

  • Direct Debit & Mandate Automation

For companies that can directly debit customer bank accounts, our solution automates the procedure through sending an outbound file to the bank with instructions to directly debit their account.

  • Credit Card Processing

Our touchless PCI-Compliant credit card processing solution processes credit card information without exposing the credit card number to back-office personnel and automatically applies credit card payments to settle invoices.

  • Taking Customer Payments

Our PCI-Compliant ePay Advantage solution is a customer-facing online bill pay portal where they can manage their own wallet and pay their bills through credit card or eCheck payments.

  • Reconciling Credit Card Statements

Our Credit Card Reconciliation solution automates the process of ensuring that each settlement transaction on your credit card statement matches up with a recorded customer payment in the ERP.

  • Centralize and Consolidate Complex Banking Footprints

Our In-House Banking solution centralizes cash and bank balances for all legal entities into one entity, preventing subsidiaries from having to deal with a separate bank.  

  • Reimbursing Customers

Customer reimbursement automation resolves the pain point of having to create a vendor record to reimburse your customer.

  • Transferring funds between banks

Bank-to-Bank Transfer allows you to execute intra-bank or inter-bank transfers from within your ERP system. It streamlines the process significantly and resolves the challenge of having to log onto a bank portal to move your funds around.

  • Supply Chain Financing

For companies using supply chain financing, our module allows you to automate communication with your supply chain finance provider through seamless payment instructions between D365 and the provider.

Key Results SKsoft Customers Have Discovered:

Our expertise in developing banking and treasury automation solutions embedded into the Dynamics 365 Finance Operations and Supply Chain ERP system, has led to substantial positive business results for our clients. Here’s some of the key results you can expect when you implement SKsoft’s robust banking and treasury functionality:

  • Improvements in risk management procedures enabled through fully compliant processes
  • Centralized financial processes allowing real-time visibility and reducing initial employee training time
  • Substantial increases in efficiency and accuracy through touchless automation
  • Significant cost-savings through more efficient and accurate procedures
  • Efficiency increases allowing finance teams to focus on value-added activities
  • Increased business agility and scalability

SKsoft is proud to have robust software that can scale and work globally across any industry regardless of company size. Contact us today at sales@sksoft.com to see how we can enhance your Microsoft Dynamics ERP system.

SKsoft is excited to announce that we will be sponsoring the Directions Conference as an exhibitor. As one of the top-selling Microsoft Business Applications Partners, SKsoft is looking forward to attending the event with other Microsoft partners. Our team of banking and treasury experts and even our C-Suite executives will be at the annual Directions North America conference in full force.

As a reputable and award-winning Dynamics solution vendor since 1995, SKsoft is excited to interact with other developers, implementers, technical experts, sales representatives, and executive owner representatives from across the country and beyond. The conference will be an excellent way to build new relationships, exchange ideas, and discover different ways to maximize the benefits of the Dynamics ERP systems.

Stop by Expo F6 to see the SKsoft!

Visit our booth Expo F6 to meet our team ranging from C-Suite Executives, technical experts, sales directors, and marketing managers. Our team will be ready to network, discuss ideas, or answer any questions. Here’s a list of who you can expect to see at the conference:

  • Scott Caudle, Chief Executive Officer
  • Tim Kahne, Chief Technology Officer, Co-Founder
  • Rick Sandler, Chief Sales Officer, Co-Founder
  • Aynsley Keller, Director of Sales & Operations
  • Kevin Casselman, Software Development Manager
  • Steve Locke, Senior Business Consultant
  • Nathan Strong, Marketing Manager
  • Morgan Peterson, Marketing Associate

Follow us on our LinkedIn and Twitter platforms for updates throughout the conference!

What to Expect from SKsoft at Expo F6

Although we have an extensive product line for Dynamics 365 F&O and Dynamics SL, for the Directions Conference, our focus will be on our banking and vendor payment automation solutions for Business Central. New to the market this year, we released our Vendor Payment Automation and Bank Statement Integration modules for Business Central. These solutions are powered by our Banking Integration and Connectivity solution BankFabric.

BankFabric

BankFabric is our banking communications solution that works in conjunction with both our Vendor Payment Automation and Bank Statement Integration solutions to securely transfer payments to your bank. Through SFTP, API, or Web Services connection, BankFabric allows you to achieve seamless communication with the bank to prevent you from ever having to download payment files or log on to a banking portal.

Vendor Payment Automation for Business Central

Our new Vendor Payment Automation module for Business Central enhances standard payment journal processing by allowing you to process multiple types of electronic payments from a single payment journal. With flexible data driven banking entry fields, our solution eliminates the need to customize bank specific format requirements.

Bank Statement Integration for Business Central

Through embedded automation, our bank statement integration module allows you to easily map reconciliation fields for the bank statement data to support an efficient and precise bank reconciliation. Once the initial mapping is complete, you will not need to remap fields for future bank statements. The next time bank transaction data is imported the existing mapping will be utilized and the data will seamlessly appear in your ERP.

Coming soon Settlement Automation!

Ask us about our upcoming roadmap item for Business Central, Settlement Automation!

Visit our booth, Expo F6, to learn more about how our new banking and payment automation modules can achieve a more efficient automation process in Business Central.

Join us for our live presentation at Directions on Secure Bank Integration for Business Central!

ISV 708 – Tuesday April 18, 4:15 PM – 4:45 PM, Poincina A,B & C Secure Bank Integration for Business Central (Powered by BankFabric)

Presenters: Rick Sandler, Chief Sales Officer, Co-Founder & Steve Locke, Senior Business Consultant

Join us for our presentation at Directions on Secure Banking Integration for Business Central. Mark your calendars for Tuesday April 18th from 4:15 PM – 4:45 PM at Poincina A, B, & C. Our banking integration experts Rick Sandler and Steve Locke will be presenting on our new banking integration and payment automation solutions designed for Business Central. Find out how our solutions achieve secure and seamless bank communications to ease reconciliation and protect vendor payments.

As companies are continuing to experience accelerated growth, it is more important than ever that they have the tools to optimize their working capital and their financial processes. That’s why SKsoft is excited to share that we have been ranked as one of the top AR automation providers by Emergen Research. This is a huge accomplishment and testament to the amazing team at SKsoft. Here’s what you need to know about this incredible news. 

Breaking Down the Numbers

To determine the leading AR automation solution providers, Emergen Research’s research methodology focused on interviewing subject matter experts and industry professionals such as AR managers. Coupled with qualitative analysis, they analyzed secondary sources such as industry reports, annual company reports, databases, and more. Together, their analysis outlined the top 9 industry leaders in AR automation based on the reputation, quality of the solution, and their market share proportion of the overall AR automation market.  

They also provided valuable information on recent market trends and future growth opportunities for adopters of such solutions – offering an invaluable resource for financial tech professionals interested in exploring more about the current developments within this space. For more information on these areas of the report, check out the Emergen Research study here.  

What Makes SKsoft Stand Out Among AR Providers

SKsoft has succeeded in the AR automation industry, shining amidst prominent competitors such as Blackline, Bottomline Technologies, Kofax, Quadient, Oracle, and more. Being a small company featured alongside these large competitors has clearly shown that SKsoft has succeeded in providing design excellence and technology innovation to our customers. Being recognized in this manner means SKsoft is at the forefront of AR automation with our Treasury Automation Suite – a sophisticated suite with features like automated direct debit with mandate automation, robotic-process powered matching of customer payments to outstanding invoices, deduction handling, invoice presentment and credit card payment handling. 

What We Can Expect From SKsoft in the Future

As SKsoft endeavors to continue to be an industry leader, we are looking to add even more advanced functionality to our AR automation solutions. To help accounting teams automate their processes better than ever, we are developing innovative ways to increase invoice-to-payment matching rates and to streamline the customer settlement process. For our Direct Debit functionality, we continue to release new formats regularly so our customers can easily have access to payment files that work for their specific banks. 

The Benefits of AR Automation for Businesses and Consumers Alike 

Automating your Accounts Receivable process will not only increase the efficiency of your AR team but drive down operating costs significantly. For your accounting team, automated AR processing can give your team the tools to better track your cash flow since your team will have a clear view of who is paying on time and who is not. Most importantly, your team can even increase cash flow by completing incoming payments faster with the help of RPA-powered AR automation tools.  

Teams are also no longer bogged down by processing errors since the top AR automation solutions like SKsoft have robust matching logic and rules for high payment-to-invoice matching. Compliance and security are also automatically embedded in all of SKsoft solutions. 

 SKsoft is a top innovator in AR automation and we are always looking for ways to streamline the AR process for accounting teams. As we have seen in the Emergen Research study, SKsoft is a leader in this area and is the chosen solution provider for global accounting teams in Microsoft Dynamics 365 Finance. If your team is currently looking to automate your accounts receivable process, book a meeting with our team at sales@sksoft.com and discover ways that your company can elevate your AR process. 

If it is a manual process, can files/data be tampered with? With BankFabric, your business can select between three options to automate and secure the process; SFTP, APIs or, through Web Services.  

SFTP

SFTP (SSH File Transfer Protocol) is a proven communications technology. It is supported by most banks, enabling automated communications. With SKsoft’s solution you can initiate payments from within either Microsoft Dynamics 365 Finance and Supply Chain or Business Central to the bank. BankFabric eliminates the need to login to a bank’s website. Our solution ensures validation and secure file transfer to any bank and enables automated import of bank data for auto-reconciliation. BankFabric will allocate bank files correctly within your Dynamics F&SC or BC environment, across any number of legal entities. SFTP functionality is built directly into BankFabric which allows you to enjoy a direct Host2Host communication line with the bank. 

APIs

While not yet supported by all banks, this will likely prove to be the future means of communication to/from banks!  APIs do not rely on files to transmit banking data, but rather just a stream of relevant information. They are highly secure since there is no file that might be left in an unprotected location.  APIs are very easily setup and administration is minor. Once the API has been developed between the ERP and the bank, it’s smooth sailing. 

Web Services

Web services have been used for a number of years. They do not have widespread adoption and generally have only been supported by banks in Northern Europe.  Just as with APIs, Web Services allow for fully automated communications between you and your bank. You will have a tighter integration as Web Services contain both a security certificate exchange, and the exchange of files in the same process. Web Services require more extensive coding to initially develop but are easy to set up and administer.  

Manual Communication 

If you prefer to upload/download bank files manually, this is also supported. You can drop files into BankFabric and still enjoy all the added automation and features within our Banking and Treasury Suite, within Microsoft Dynamics 365 for Finance and Supply Chain. 

BankFabric

In a Microsoft Dynamics 365 for Finance and Supply Chain production system there is no access to the underlying virtual machine and external data transfer. With this pain-point in mind, we created the BankFabric solution to provide direct bank communications, file encryption and APIs between your Microsoft Dynamics 365 system and your banks. With BankFabric, you can automatically and securely connect directly to any bank in the world to process and match payments, reconcile statements, handle Direct Debits, and more. BankFabric can be configured for automated bank communications across all legal entities within your Microsoft Dynamics 365 Finance and Supply Chain ERP system, to as many banks as you are working with, globally. 

Secure and automate your bank communications and start optimizing essential financial operations activities today! 

Call our experts today and hear how you can empower your Accounting Team! 

SKsoft Software

We are the leading Microsoft Dynamics ISV, providing solutions and expertise around Banking, Treasury, and Payment Automation for Microsoft Dynamics 365 for Finance and Supply Chain. Our Microsoft Dynamics 365 solutions and services help organizations worldwide save time and money by automating key processes, increasing efficiency, and reducing risks. 

 – Microsoft Dynamics Certified ISV 

 –  Our software serves an extensive customer base world-wide  

– Scalable solutions that automate financial processes in any industry 

 – Our solutions are used in more than 80 countries 

 – Providing global bank communication  

Contact us today to learn why companies, small to global enterprises, choose SK soft Software. Call our experts today and hear how you can empower your Accounting Team! 

 SKsoft Software EMEA +45.20.61.45.75 US +1.301.963.7300 Sales@sksoft.com www.sksoft.com 

Before implementing a Microsoft Dynamics 365 F&SC Enterprise Resource Planning (ERP) system, there’s a lot of planning your organization should do to ensure a smooth implementation. An important consideration is whether your business will need to add additional automation.

How to Identify if you Need Further Automation

Determining your Software Requirements

Before deciding whether you will need to add software aside from what’s included in the standard version of Dynamics, it is recommended to first determine your teams’ requirements or expectations from the ERP system. Pinpointing the specific features, functionality, and performance that your stakeholders expect can be a challenging process. The most efficient way to determine your key requirements is through conducting a requirement analysis. To administer a requirement analysis, we recommend following these five steps:

1. Identify your Key Stakeholders

To verify that you receive all the important input needed you must first ensure you distinguish all key decision makers and users.

2. Record Requirements

Once you have determined who the essential stakeholders are, we recommend deciding how you would like to collect the requirements. Whether you decide to hold one-on-one interviews, use focus groups, leverage use cases, or build prototypes you should ensure that each important stakeholder and end user provides feedback. Axia Consulting provides a great guide in their article: Requirement Gathering Techniques.

3. Sort the Requirements Into Categories

To achieve an organized overview of the requirements we recommend categorizing them. Starting with two major categories of functional and non-functional then further organizing the requirements into smaller sub-categories.

4. Evaluating and Reviewing Requirements

For each requirement on the list, we recommend the following:

  • Describing the requirement in detail
  • Ranking each requirement on level of importance
  • Discussing the effect of the change
  • Highlight conflicting issues and resolving them with the stakeholders
  • Consider feasibility
  • Specify test scenarios

5. Stakeholders Give a Final Approval of Requirements

Before moving forward with a finalized list of requirements, it is important that all key decision makers can come to an agreement. It is suggested to have a final meeting to decide on this as a team.

6. Conducting a Gap Analysis

After finalizing your requirements, you should conduct a gap analysis comparing the features included with the ERP with what’s on your requirements list. If there are gaps you must decide how important they are to your business.

Custom Software, Bolt-On, or Built-in (Embedded) Automation

For gaps between the ERP and your automation requirements, you must decide whether you want to resolve them with an embedded solution, bolt-on solution, or paying a developer to build custom automation.

Custom Software

When considering the cost of developing something custom, there are some hidden costs that also need to be factored in. For instance, as Microsoft keeps making changes to the base software, what will be the cost of maintaining customization to keep up with these changes? For packaged solutions, it is the responsibility of the author (ISV) to keep up with those changes. Project delays are also very common. According to KPMG Information Technology, 85% of software development projects go over schedule. Most of the time, you can find the needed functionality within a built-in or bolt-on solution. However, on the rare occasion that you have a very specific automation requirement that is not offered by a software vendor, hiring a developer to build a custom solution would likely be your best option.

Bolt-On Automation

Bolt-on automations are separate systems from the main ERP system. In other words, these bolt-on’s sit outside of the main ERP system and frequently require custom integrations to be created and maintained. These bolt-on solutions have a different user interface, resulting in a different overall look and feel from the ERP.  There are three main downsides to bolt-on solutions. For one, they are difficult to integrate with the ERP at times and may have connectivity issues with the ERP. Second, the software sits outside of the ERP requiring employees to learn two different interfaces. This often leads to additional employee training time. Lastly, they often have duplicated features that are already included in D365, leading to a higher price point with no real benefits.

Built-in or Embedded Automation

Embedded automation is built-in and designed specifically for the ERP. Opting for this type of automation allows for robust data synchronization, reduced employee training time, and centralized finance and accounting procedures. For more information in our recent article Bolt-on vs Embedded, we provide a detailed comparison between these two types of automation.

Robust Financial Automation for D365

Whether you’re in the midst of an implementation, shopping around for the right ERP, or have already implemented Microsoft Dynamics 365 Finance and Supply Chain, it is important to continually evaluate and weigh your options for adding further financial automation. To extend upon the capabilities included in the Enterprise Resource Planning (ERP) system, many companies turn to Microsoft Independent Software Vendors (ISV) to meet their additional automation needs.  . From the top selling electric car manufacturer to the number one tech media company in the world, we have worked with a wide variety of companies in all different industries. With over 30 years of experience building and selling embedded add-ons for Microsoft ERP market, we have assisted Dynamics customers worldwide in further automating their financial processes. Below are some of the most common enhancement needs, we see year after year:

  • Secure Banking Integration
  • Accounts Receivable Cash Application
  • Accounts Payable Invoicing & OCR Scanning
  • Bank Reconciliation
  • Credit Card Reconciliation
  • Credit Card Processing
  • Online Bill Pay
  • Direct Debit
  • Supply Chain Financing
  • In-House Banking

Are you looking to further automate your financial processes within your D365 ERP? Join us on our weekly interactive demos to learn more about our most popular embedded solutions.

When Kayne Capital, the leading alternative to investment management firm, decided to move forward with a Microsoft Dynamics 365 Finance & Operations implementation they turned to SK Global’s Treasury Automation Suite to take their financial automation a step further. Prior to their implementation, Kayne Capital struggled with the following pain-points:

  • Their accounting department would spend excessive time and resources setting up entities – they have over 270+ fund entities and 80+ management companies in play at any given time, and entities were formed and liquidated all the time.
  • Complex processes around allocating income and expenses to various management companies, making ownership structure complicated. Unique equity allocation methodologies among management companies resulted in manual and high-maintenance Excel spreadsheet.
  • Lack of a fully integrated robust ERP system, caused processes like closing, financial controls, audit logs, routing of approvals to be increasingly complex.
  • Due to the absence of a consistent account structure, they did not have the transparency needed to get a complete picture of financial performance without a separate analysis.
  • The reporting system did not provide the ability to analyze real-time data, resulting in manual efforts to produce materials.

Download the full case study to see how SK Global’s Treasury Automation Suite for D365 F&O resolved these pain-points directly in their ERP system.

Complex banking structures can make it incredibly difficult for large multinational companies to control their cash and manage affiliate relationships. For large global companies, in-house banking is an ideal solution to that problem. In-house banking is a way to centralize treasury functions into one entity, which minimizes subsidiaries from having to deal with their own bank.  

As the Association of Finance Professionals notes, the benefits advantages of an in-house bank are immense. Companies that leverage in-house banking have discovered benefits like centralized control of cash, cash visibility, less reliance on external funding, and more. With the use of a shared services arrangement and in-house banking software, a company can have complete control over their bank accounts, handle netting of funds between business units, minimize FX costs, lower wire fees and other bank transaction fees, and track cash and balances all in one centralized place.  

In-house banking has never been easier with the rise of in-house banking technology, which can significantly streamline IHB management. There is a plethora of solutions to choose from. However, it is very important your treasury team knows what to look for when shopping around. 

What to look for in IHB technology

1. ERP integration or embeddedness

To implement in-house banking, your company must choose a tech solution that will execute the functions of the bank. Having an in-house banking solution within the ERP centralizes intercompany payment process where in one place, your company can clear accounts and automate clearing of intra-company and inter-company payments and loans. Most importantly, when you automate these activities all in one place, your team can view data relevant to in-house banking in one place, helping your team highlight problem areas.

2. Robust intercompany settlement capabilities 

Within an in-house banking solution embedded into your ERP, your company can execute intercompany payments and auto-settle them against your in-house bank accounts within one solution. Embedded IHB solutions should be able to easily automate the netting of AP and AR invoices across legal entities, which can significantly reduce the transaction fees involved with actual wire or other payments back and forth between those entities. Robust IHB solutions should be able to generate and process IHB statements to decrease the time they spend on reconciliation. Loans can also be managed internally where some embedded in-house banking solutions allow the subsidiary to send loan payments to the parent within the ERP. 

3. Automated payment optimization  

Through the use of payment factory automation, you can automatically pay on behalf of subsidiaries. When done within an embedded in-house banking solution in the ERP, these payments also trigger auto-generation of journal postings. Payment-on-behalf-of and receivables-on-behalf-of services are also a part of many in-house banking tech solutions where some providers can auto-aggregate payments then route them.  

4. Centralized cash pooling  

For those looking to enhance their company’s liquidity management, an embedded in-house banking solution can create a centralized cash pooling center all within the ERP. To reduce gains or losses associated with actual cash settlements across currencies, embedded in-house banking solutions often offer ways to eliminate extra FX exchanges across currencies. From the ERP, treasurers can have complete visibility over their cash, which can guide them to determine if they need to deposit cash or withdraw funds according to their company’s financial health. 

5. Fraud prevention 

Lastly, the most important component of a good in-house banking solution is its fraud prevention framework. Approval processes are incorporated throughout these solutions so that payments are not executed without the approval from the necessary individuals. Since an embedded in-house banking solution is built within the secure ERP which heavily incorporates security roles and permissions, your in-house banking processes will be insulated from potential fraud. For global companies, payment risks are also minimized since cross-border payments can be made within the ERP instead of going through in-country payment processing.  

How do you choose an IHB technology provider?

After educating yourself on the benefits and functions of an in-house banking tech provider, your team now has the difficult job of choosing a provider. A good IHB technology provider should cut the time it takes to manage your in-house bank, aggregate relevant data such as AP and AR data, and automate routine tasks. If your company already uses an ERP, you should consider solution providers that work inside your ERP so your treasury team can have real-time data synchronization and connectivity. This allows for the most-to-date information on your company’s cash and banking activity. To pick a solution that best works for you, it is highly recommended to work with an external consultant that guides the selection process.  

If your company currently uses Microsoft Dynamics 365 Finance and Operations and are looking for an in-house banking solution, SKsoft Software has a best-in-class in-house banking solution with robust features like intercompany netting for invoices, real-time maintenance of bank balances, automatic bank statement generation, reconciliation of external and intracompany transactions within one system, and more.  

If you are interested in learning more about our solution, contact our sales team at sales@sksoft.com. 

As the top-selling Microsoft Independent Software Vendor (ISV) in the Dynamics channel, year after year we continue to perfect our current financial automation solutions and provide valuable built-in enhancements to the D365 Finance ERP. We take pride in delivering the highest quality of fintech automation that is certified and approved by Microsoft. Our solutions possess the capabilities to scale and help companies globally of all sizes and in any industry. With 27+ years of experience, we have been able to develop advanced functionality that works with any bank and any format worldwide. To wrap up another successful year, we wanted to provide a summary of all the new releases we have added to our product offerings in 2022.

At the end of 2021, we introduced four new modules to the market:

Supply Chain Finance

We built the Supply Chain Finance module to give organizations the ability to automate their accounting needs throughout the SCF loan repayment process directly within their D365 F&O ERP. Our SCF management solution allows companies to streamline the process of getting invoices to the provider and settling those invoices with the provider when due, all on embedded in the D365 platform. Either based on invoice due date or a funding file from the SCF provider, our solution resolves the payable to the original provider and automatically generates an invoice payable to the Supply Chain Financing provider. That invoice can then be processed through normal payment processing including our APEFT solution.

Bank-to-Bank Transfer

Another advanced enhancement we introduced to the market this year is our Bank-to-Bank Transfer solution for D365. Specifically designed for companies with complex banking structures, our Bank-to-Bank Transfer module streamlines the manual process of signing onto a bank portal to initiate transactions between multiple bank accounts within the organization. The solution automatically tracks and records the bank transfers into a D365 journal for easy reporting and easy bank statement reconciliation.

Customer Reimbursement

To simplify the procedure of generating customer reimbursements within Microsoft Dynamics 365 Finance, we launched our Customer reimbursement automation solution. With our customer reimbursement solution, you can automate the process of issuing electronic refunds and reimbursement payments to customers with credit balances. The process for customer reimbursements in the Standard D365 ERP is to create a vendor and bank record, linking the vendor and customer accounts, and moving the customer credit balance to the linked vendor and payment of the vendor. During this process, the user must make sure to keep both the customer and vendor bank account in sync when changes are made. To solve this limitation, we built a customer reimbursement solution that fully automates customer reimbursements with inbound and outbound files and journal updates.  This includes enhancements to the proposal process that allows you to select thresholds for amounts and age of credit balance to trigger a reimbursement.

BankFabric

To heighten security and simplify administration over the storage and transmission of banking files, we introduced our hosted BankFabric solution in 2022 to replace the legacy  “FileHub” solution. Seamlessly integrates with D365 Finance, our module provides unparalleled security through eliminating the need to download sensitive banking files to the desktop or to maintain a separate server. BankFabric is a Software as a Service (SaaS) solution that is completely hosted in Azure. Our solution provides a single easy-to-use interface to manage all banking connections including instances, environments, and banks using one URL. BankFabric integrates fully with the most recent Dynamics 365 Finance version as a part of our Treasury Automation Suite.  This solution now supports both API and file-based SFTP connectivity with hundreds of banks, globally.

Introduced Premium Treasury Automation Suite

To support companies with complex banking footprints and advanced automation needs, we introduced our Premium Treasury Automation Suite to the market last year. The Premium Treasury Automation Suite comes with additional banking formats and extends upon the automation provided in the Core Treasury Automation Suite. With the purchase of our Premium suite, the customer can enjoy credit card reconciliation, payment factory, customer reimbursement, multi-company EFT, and Bank-to-Bank transfer automation in addition to the functionality included in our Core Treasury Automation Suite. Additionally, this feature-rich suite includes four bank formats instead of just the two included in the Core Treasury Suite.

Deep Dive of Each Quarterly Release in 2022

Treasury Automation Suite 11.4 – Quarter 1 2022

In quarter 1 of 2022, we built additional features for our bank reconciliation, AReSettlement, and direct debit modules. To enhance the automation in our Bank Reconciliation solution, we added support for multi-currency bank accounts. We designed this feature to aid our European customers who conduct business internationally. The added automation allows bank accounts to be reconciled while holding multiple currencies.

We extended the functionality within our AReSettlement module to auto-settle AR Payments. Our auto-settlement feature took our AReSettlement solution a step further by automatically matching any unapplied payments and credit memos to invoices within the ERP.

For our direct debit module, we added numerous new features to streamline the process of adding or removing mandate agreements to customer accounts, auto-creating bank accounts, and updating the payment method and cancelled mandates fields.

Also, new to the market in Q1 of 2022 was support for BankFabric Library (BFL) formats. Within this release, we simplified the process for changing and adding formats. No longer does a Microsoft deployment need to be scheduled/executed when adding a new format, nor modifying existing.  To be able to utilize these BankFabric Library formats, the customer must be on the Treasury Automation Suite version 11.4 or higher.  These BFL formats can be used by both our BankFabric and our legacy FileHub customers.

Treasury Automation Suite 11.5 – Quarter 2 2022

For the Treasury Automation Suite 11.5 release, we added additional features to our AP EFT+, Customer Reimbursement, and Bank Reconciliation modules. To the AP EFT+ and Customer Reimbursement solutions, we built a feature that gives the ability to auto-configure bank account detail setup when the payment type does not require a bank account. We added further enhancements to our APEFT solution, like the ability to automate important eBanking details records during processing. To support the matching of multiple payment journals within the same day, we enhanced the journal summary rule within the Q2 release to our Bank Reconciliation solution.

Treasury Automation Suite 11.6 – Quarter 3 2022

Within the Q3 release, we added additional features to our Bank Reconciliation, BankFabric, and AReSettlement modules. For Bank Reconciliation, we built new options for GJ mapping lookup and expanded data capture. In BankFabric, we added API support for our APEFT and Bank Reconciliation modules. Lastly for AResettlement, we added configurable field delimiters.

We hope you enjoyed the recap of our past releases and new modules. We have some exciting new releases in Q4 regarding our API capabilities. Follow our release updates page to get more information on what’s coming up.

 

Choosing a treasury automation solution is a difficult decision. Countless solutions are on the market, making it hard to decide which one is the best for your business needs. Before deciding on a solution, businesses should first ask whether they want a solution that is connected to Microsoft’s ERP, often described as a bolt-on solution, or an embedded solution that is a part of the ERP’s user interface.  

There’s a couple of questions that treasury teams should answer before deciding between a bolt-on solution and an embedded one.

1. Does connectivity to the ERP matter to your team? 

An embedded treasury automation solution in Microsoft Dynamics 365 Finance means everything can be done within the Microsoft Dynamics platform. The look and feel of the solution will be the exact same as the standard Microsoft Dynamics 365 interface. With an embedded solution, you can automate tasks directly within the ERP and centralize accounting processes within one system. Since everything is housed in one place, data transfers are faster, which increases productivity.  

For bolt-on solutions, they typically are connected to Microsoft Dynamics 365 through a series of connectors such as APIs built to send information to and from their solution to the ERP. Bolt-on solutions are not embedded so to connect and use these solutions, you must log into the solution outside of Microsoft Dynamics 365. The connectors to the ERP pull data from the ERP, which is used in the accounting and treasury automation processes that are completed in the bolt-on solution.

2. How will data synchronization be affected by the chosen solution? 

Since the embedded solutions in Microsoft Dynamics 365 are built within the ERP, there is no data to sync between the solution and the ERP. The data store used to run the embedded solution is the same store that is used by the ERP, which means the data is always in sync in real-time. This also means there is not a need for additional connectors, which could be another potential failure point for bolt-on solutions. 

For bolt-on solutions, since they are outside of Microsoft’s ERP, uploading data to the ERP and pulling data from the ERP can be at times tedious. Data synchronization and integration issues may occur since bolt-on solutions do not have the same data store as the ERP. As a result, bolt-on solutions may require extra implementation time and testing so that data flow between the solution and the ERP are without error. When considering a bolt-on solution, it is important to ask the vendor or the partner about this particular issue to ensure your team minimizes unnecessary obstacles in the implementation process. 

3. What are your team’s user experience preferences?

The look and feel of a solution matter when considering bolt-on versus embedded solutions. Preference plays a significant role in this decision where treasury teams must consider whether they like using the ERP for most of their tasks. By doing most tasks inside Microsoft’s ERP, accounting teams have the advantage of automating processes such as bank reconciliation and AR cash application all within the same interface. Opting for an embedded solution allows teams to link multiple processes together and coordinate faster completion of AR and AP tasks within the ERP since built-in solutions can leverage and expand upon the standard workflows. Having an embedded solution with an interface matching the rest of the ERP allows users to learn a single set of procedures for things like personalization, grid behaviors, shortcut keys, and alerts. Embedded solutions take full advantage of the ERP’s functionalities to make an overall robust platform for users. 

If a team decides that the ERP is difficult to navigate, a bolt-on solution may be the way to go since bolt-on solutions have the flexibility to design a user interface that is intuitive and easy to navigate. However, since the bolt-on solution has its own interface, it may duplicate existing features that are in the ERP. These solutions also may appear to be more customizable through their specific functionalities outside the ERP. However, your team will have to weigh the benefits of customization to the additional implementation and testing time required for the data transfers between the solution and the ERP.  

4. How smoothly will implementation go if we choose embedded versus bolt-on solution?

With an embedded solution, you don’t have to learn another user interface which simplifies the onboarding and training process. For bolt-on solutions, teams typically have to learn how to navigate the interface of the bolt-on solution and the ERP’s interface, which means extra training and onboarding time for treasury teams. In addition, since bolt-ons involve an integration, the integration and synchronization between the ERP and bolt-on solution adds extra testing and verification tasks. 

Implementations for embedded solutions typically go smoother since they are built to work within the ERP while bolt-on solutions may require further customization and extra installations to achieve the desired automation level.  

How to choose the best solution for your business?

Embedded and bolt-on solutions each have their own advantages and disadvantages to them. It is up to the treasury and accounting teams to decide what works best for their needs. For many teams, embedded solutions provide ample advantages with its common interface with the ERP. The ease of use of embedded solutions is a significant highlight. Accounting teams have no need for outside integrations. If your team decides that an embedded solution is not the way to go, then they should work with a reliable vendor and partner that can help them choose a solution that best works for their needs.  

If you are considering an embedded solution in Microsoft Dynamics 365 Finance & Supply Chain, SKsoft has experts in embedded banking and treasury automation that can work with your team to maximize your automation capabilities. To get started, contact SKsoft at sales@sksoft.com. 

Financial technology is estimated to grow over 7 trillion dollars by 2026, according to Bain. That’s a lot of money when looking at how the concept of financial tech wasn’t as popular before the digital transformation boom. Fintech will only continue to grow as an industry due to customer-driven demand for financial products that improve customer experience and increase financial inclusion.  

The pop up of easy-to-use digital financial products hasn’t been an overnight transition but has been a strategic move of tech and financial leaders looking to create a more open, modular financial ecosystem. An integral part of this fintech boom lies in the offering of financial products and services that are accessible, customizable, and cost saving. Many fintech startups began by providing digital banking services and payment facilitation. However, now, some fintech leaders who initiated the boom are looking for ways to achieve the ideal: embedded finance.  

Embedded finance cannot be achieved overnight but there have been conscientious moves towards this idea through automation. Automation of financial processes typically involves the combined use of rules-based robotic process automation (RPA), machine learning (ML), and artificial intelligence (AI) to automate manual financial tasks that are built within a cloud-based infrastructure. Instead, being an on-premises software, financial automation can be accessed and operated from anywhere, allowing businesses the flexibility to work remotely or have hybrid workplaces.  

Many companies already offer financial automation solutions but do not necessarily incorporate embeddedness into their solutions. As a result, companies using these technologies may have to buy multiple types of software and make the effort to synthesize the information from these systems together. As you may think, this task can be quite daunting for a company who may not have the manpower to do this, which is why more and more companies are searching for embedded financial automation solution providers. 

The Business Case for Making Financial Automation Embedded 

Embedded financial automation (EFA) means that the entire user experience happens within one centralized platform where a user can complete multiple automated financial processes. This allows for teams to use different financial products within one application without having to log out and use another application. Working within an EFA solution is a truly personalized experience where the solution is completely branded to the main interface. This experience grabs data from multiple sources, which creates seamless application flow and a friction-less user journey. For centralized access to multiple processes, an EFA solution may employ deep integrations with multiple partners or rely on internal development of financial process automation. As a result, EFA creates a multi-product financial ecosystem.  

Features and Benefits of Embedded Financial Automation

EFA is an investment and can offer companies who effectively deploy it a competitive edge. What makes EFA particularly shine is its robust features: data-driven decision-making capabilities, collaborative cloud-based environments, multi-currency and multi-company flows, embedded risk management, and automation of financial processes. These features provide an array of benefits that drive ROI and increase productivity in the long-term. 

Financial Analytics

Financial automation integrates accounting and treasury data into one centralized location which either could be in an ERP system or a standalone financial automation solution. All accounting and financial data is synthesized into real-time reporting and analytics so your team can understand the health of your cash flow and liquidity rates. Integration of data visualization applications, such as Power BI, have also become common, which has made it even easier for teams to create dashboards and report tracking progress on KPIs and working capital optimization.  

Liquidity Management

Treasurers often struggle with cash flow optimization and effective management of working capital. These problems are solved with a treasury automation solution that is equipped with cash flow forecasting and positioning. With these capabilities treasury teams can optimize their business’ cash resources, predict future fluctuations in asset usage, and engage in scenario-based cash planning. 

Embedded financial automation also makes it easier to access liquidity itself because of the coordinated use of multiple financial processes, which in turn optimizes working capital. For example, when a company uses AR automation and collections management together, they can convert receivables and tied-up debts into cash which increases a company’s cash availability. As a result, companies who effectively use liquidity management to their advantage can cut down debts and fund short-term investments.  

Automation of financial processes

To manage liquidity and optimize working capital, automation of vital financial processes is embedded within EFA solutions such as bank reconciliation, cash application, settlement automation, and vendor payment automation. Particularly, the automation of bank reconciliation and AR cash application have been the steppingstone for treasury teams to first get a taste of what a digital transformation initiative looks like. 

Once acclimated to automation, treasury teams can look further into using automation to its full potential. This expansion has led to a surge in payments automation. According to Bain, payments and lending management will continue to be the most popular embedded financial products. With the rise of payment facilitators such as Square and Plaid , their capacity to underwrite merchants for banks has allowed business-to-consumer (B2C) to become more widespread where merchants have the flexibility to accept payments across a variety of channels. API-based solutions like SKsoft BankFabric solution can send bank data to and from the bank directly into the ERP, allowing for real-time updating of transaction and balance information within the ERP.  

Business-to-business transactions, such as accounts payable and accounts receivable, have been a long-standing integral part of financial automation but have not had the same level of traction as B2C payments. This is mostly due to continued reliance on ACH and checks by many mid-market to large companies in the U.S. However, these same companies have been increasingly rolling out digital transformation initiatives focused on B2B transactions because of the COVID-19 pandemic and the shift to remote and hybrid work. These companies have found that having one centralized solution where a treasury team can manage Accounts Receivables (AR) and Accounts Payable (AP) in one place will save time and costs in the long term.  

Accounts Payable and Accounts Receivables

With AP and AR, treasury teams can become completely paperless since automated solutions require no paper invoicing and billing. The treasury process most affected by automation is AP processing, which is considered one of the most costly and inefficient treasury processes when done manually. Teams that still use a manual AP process will continually have problems paying vendors and lowering their company’s debts. By using an automated treasury management solution that includes AP processing, businesses can decrease DSO and DPO along with minimizing late payments through the automatic uploading and matching of vendor invoices to existing accounts. When AP automation is coupled with AR automation, businesses can optimize their cash conversion cycle and minimize their liquidity risks long term.  

Digital Banking and Virtual Cards

Other facets of finance are also being affected by embedded financial automation solutions. Since fintech startups envision a future where all financial needs are met in one system, fintech leaders have been looking for ways to integrate banking and virtual card solutions within their product roadmaps. Banking products and digital card issuing services will continue to rise as more financial institutions and SaaS companies build APIs. Startups like Marqeta are releasing products that offer businesses the capacity to create their own financial products where businesses can create their own credit cards without having to go through the hurdles of getting bank approval. Growth in this industry will come from continued integration with larger financial institutions and the extension of the connectivity of these products. To achieve this, data fabric technology will assist SaaS and BaaS companies alike to extend their products’ integration with banks across the world. 

Collaborative work environment – remote friendly workspace

In an automated system, users can enjoy seamless coordination with team members where they can work simultaneously within one centralized system that tracks changes and speeds up the approval process through automated email notifications. The integration of approval workflows notifies team members of pressing tasks through email, chat, or text notification. EFA can not only achieve integration internally but externally through connecting to a countless number of banks. These solution providers create robust relationships with banks so that information going to and from the bank is seamlessly exchanged, which can either be done via file transfers or utilizing a bank’s API.  

Multi-currency flows and multi-company capacity

In manual treasury processes, having multiple currencies and subsidiaries causes some significant pain for treasury teams because this means manually converting foreign currencies to domestic currency while simultaneously managing multiple payment journals. On top of this, treasury teams must manage all these processes in an error-free manner, which is extremely difficult to do. These problems are eliminated when using an automated treasury management solution. Instead of manual FX conversions, this type of solution automatically converts foreign currencies and enables trading in multiple currencies so that businesses can work with global suppliers and sell internationally. The payment journal process is also significantly streamlined since payments in foreign currencies are automatically converted to the domestic currency and recorded. This automatic conversion is typically done through an FX settlement module, which analyzes real-time exchange rates and processes payments with the best rate.  

For enterprise businesses that have more complex needs, there are a range of solutions that can offload pressures on their treasury teams. Many teams have chosen in-house banking to manage the complex external banking structures that enterprise businesses typically have. With automated in-house banking, like SKsoft In-House Banking module, intercompany invoices and vendor payments can be completed within a single ERP system and bank account management for each subsidiary can all happen in one system. For treasurers, an in-house banking powered by automation has meant centralized control over all subsidiaries’ accounts, transparency over the entire banking sub-ledger, and better management of cash and balances.  

Risk mitigation

Competitors in EFA will also continue to branch out and continue to automate the financial processes that their solution is currently missing. One key area that EFA solution providers will continue to prioritize is risk management, which is of upmost importance to companies who regularly handle customer data. Risk management is an integral part of these systems where high-quality solutions incorporate tokenization, encryption, and compliance to global security standards. Tokenization ensures secure end to end payments through substituting sensitive data with non-sensitive data. When built into an ERP solution, many solutions leverage the built-in security roles and security levels of this software, which significantly insulates companies from potential fraud and risk. Security regarding EFA will continue to be a key issue particularly for lawmakers who are looking to minimize fraud and data leaks through the implementation of Know-Your-Customer laws.  

How to transition to EFA

Transitioning from manual processes to EFA can be a daunting task for many mid-market and enterprise companies. However, treasury teams are not alone. Consulting firms and fintech providers are readily available to help companies transition from manual to cloud-based processes.  

Before reaching out to an external organization, it’s generally recommended to look internally to assess whether the transition to EFA is needed. As a first step, treasury and accounting teams should consider current work processes, particularly which processes can be automated first, and which processes should be automated later in the digital transformation initiative. Slower adoption of more complex automated solutions may be required, especially when your team is considering automating a sizable number of processes. It’s completely normal for these transitions to take years so treasury teams should not be rushed to immediately implement automation.  

Treasury teams should also thoroughly evaluate their current treasury management software before automation. This exercise will help your team identify which financial automation solutions work for your company and will pinpoint which weaknesses in your current treasury management need to be addressed.  

Here are some additional questions your team should consider: 

  • What is the strength of your data collection – how could it be improved with EFA? 
  • How effective are your current risk management processes?
  • Does your team have access to forecasting?  

After considering these questions yourself, discuss with your treasury team the merits of automation and where they see it being optimized. It’s vital to use your team’s expertise especially when considering a significant digital transformation initiative. After considering the pros and cons of expanding your financial automation capabilities, it is important to identify the internal stakeholders that will drive this initiative and from there, form an ad-hoc team. These stakeholders can come from a wide range of departments such as from your C-Suite to middle managers.  

After forming a team, find a reliable partner or solution provider that can customize financial automation to your needs. You need to work with a team that can be flexible and has the time to educate your team on the software. After putting money into automation, you need to ensure that you are working with a solution provider that has a comprehensive onboarding process so your team can hit the ground running after the software goes live. These steps will help drive ROI once your EFA solution is in operation.  

If your team is currently looking for such a partner, it may be worth it to reach out to your ERP system if your company already uses one. All prominent ERP systems, such as Microsoft Dynamics 365 and SAP, have built formidable networks with consultants who can help your team achieve greater automation. If your team currently employs Microsoft Dynamics 365 Finance & Supply Chain, SKsoft can be a great resource for expanding your financial automation capabilities. Our consultants with over 20 years of treasury automation experience can analyze your current financial processes and can configure an embedded solution based on your team’s pressing needs.  

If your team is interested in enhancing your current automation within your D365 Finance ERP system email sales@sksoft.com to learn more about our current product offerings.