How Updated Finance Processes Help Growing Companies Thrive
Scaling businesses could be defined as those in a state of growth. They don’t just provide a lot of jobs; they’re providing more jobs all the time.
As these companies grow, gaps appear in their departments, which are then sustainably filled with new job titles. It’s not just increasing job numbers: Even in this murky, post-pandemic economy, growing companies’ topline revenue is above average.
Why Is an Evolving Finance Department Especially Important for Growing Businesses?
Because of the nature of these types of companies and the fact that they’re in a steady state of growth, the finance department’s efficiency can significantly impact how the business runs.
A finance department transformation can streamline processes so that relationships and transactions with vendors, contractors, and other payees are friction-free and efficient.
Efficiency can lower the need for employees to work on tedious, time-costly tasks, reduce risk & fraud, and other errors, and allow a company to scale quickly and sustainably.
How Can Growing Businesses Achieve Their Goals Through Financial and Digital Transformation?
Digital finance tools can transform growing and scaling businesses: bring your finance department into the future, align it with your business goals, and unlock strong collaboration between the finance team and other departments in the organization.
Here are some digital finance strategies you can use to do more of what works for your company.
1. Reduce Human Error and Grunt Work with Automation
Automating simple and repetitive tasks (which can make up 84% of a finance team’s daily workload) can give the whole business a much-needed productivity boost, not to mention increased morale.
Automation technology can assist with all kinds of mundane and repetitive tasks in the finance department—from invoicing to bill pay to expense management—and adding this layer of efficiency helps the team steer clear of human error and make financial records more accurate. It also frees up the members of your finance team so that they can interact more with other departments and use their expertise to help make business decisions.
2. Make Better Real-Time Decisions
Timely decision-making is the bread and butter of a successful finance department, and digital finance aids quicker, more intelligent business decisions because it connects your team to real-time data.
Take competitive analysis, for example. Intelligence about similar companies will help you change your positioning according to what consumers need next. For the finance department, real-time cash flow data can help the whole company predict when stock needs replenishing, when new customers need to be acquired, and how to handle debt and asset management; all this insight leads to a business with more capacity to grow.
3. Boost Growth and Scalability
With digital transformation, it’s not just immediate tasks and projects that can get an uplift from automation and data. Digital finance tools can also impact the long-term future of your business. They give your team members a greater ability to forecast, use data to make predictions and estimations, and have a higher confidence level about the outcomes of different decisions. Make faster, better decisions that you know will effectively grow and scale your business and help you achieve your goals.
Automation tools can help you take control over mundane tasks, reduce errors, and increase efficiency, but more than that, they can connect your finance department to the kinds of insights that will help your business grow. Growing and maturing companies may be the least talked about, but digital transformation can put them on the map.
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