Top Online Tools to Automate Your Business Finances

No matter how exciting or innovative a business may seem, its success or failure is ultimately largely dependent on its leadership practicing sound financial planning.

Unsurprisingly, this can be easier said than done. In fact, research indicates that 82% of businesses that go under experience cash flow problems as a contributing factor to their failure. While focusing on the bottom line may not be the most enjoyable aspect of running a business, it is vital if you wish to avoid bankruptcy and other issues.

Fortunately, as with so many other aspects of running a business, financial planning and management are becoming increasingly automated. Through the proper use of online tools to automate your business finances, your company can take greater control of its finances and make better-informed decisions to ensure a more stable future.

Financial automation has already begun

In reality, financial automation has already been implemented for several years. Paychecks are deposited automatically into employee bank accounts; people enroll in autopay for utilities, phone bills, and subscription services so they don’t have to worry about missing a payment.

Similar processes also exist for businesses. In fact, a study from the McKinsey Global Institute estimates 42% of finance activities could be fully automated, while an additional 19% could be “mostly” automated. That represents well over half of the current activities performed by finance teams.

Much of this automation can be achieved through robotic process automation, which allows repetitive tasks (such as transferring money from one account to another) to be performed by software.

However, the implementation of machine learning and artificial intelligence has opened up even more possibilities in the world of finance. Evaluating financial data allows these tools to forecast future trends and offer data-backed recommendations on everything from pricing strategy to market expansion options.

While many businesses are still lagging behind in AI, the vast majority have already adopted some form of basic financial automation—even if they don’t realize it.

How businesses stand poised to benefit from future financial automation

Eliminating rote busywork is an obvious benefit of automation in financial planning. Processing accounts payable or following through with regulatory reporting can be extremely time consuming when performed manually. Turning these processes over to an automated system reduces the risk for errors, while also freeing up more time for staff to engage in higher-level tasks.

When AI is involved, however, the benefits to financial planning and analysis can expand significantly. Using a set of controls or algorithms, these tools are able to draw upon a constant flow of real-time financial information. Machine learning enables these tools to identify patterns that might be overlooked by a living, breathing person.

For example, the Association of Certified Fraud Examiners (ACFE) found that on average, organizations lose 5% of their revenue because of fraud—and more than half of these instances result from poor internal controls. AI analysis provides a powerful internal control that instantly alerts businesses to irregularities, allowing for a swift response to mitigate the damage.

AI integration also enables businesses to make smarter decisions, faster. For example, IBM reports that manual financial planning causes businesses to “spend as much as 20% of their ‘planning and analysis’ time collecting data and as much as 30% validating that information.”

With AI, the data is collected and validated automatically, while also eliminating the information silos that often appear in large companies. This gives financial planning staff a more transparent view of the company’s financial health, enabling more accurate forecasting and a better understanding of underlying factors. More time spent on analysis enables deeper insights that will improve performance and financial stability.

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How to get started with automating your business finances

To automate your business finances successfully, it is essential that you start by adopting the right tools to guide your efforts.

DataRails is an excellent choice for businesses that are reluctant to leave behind the familiarity of Excel spreadsheets. This tool provides a centralized database for financial information, automatically consolidating data from across desperate systems. On-demand data collection and the ability to report on specific variables enables the delivery of accurate and useful information to a company’s decision makers.

Creating and tracking invoices can be a time-consuming process for service businesses. Fortunately, this is a task that can also be easily automated. Tools like Wave help companies save time and get paid faster with automated invoicing services. Features include the ability to set up recurring billing and automatic payments for subscription services or ongoing projects, as well as automating reminder emails so that clients don’t forget about delivered invoices.

Taxes can be a source of significant headaches for business owners, and fortunately, tools like Taxify can automate these as well. In this case, automation helps ensure that businesses remain compliant with sales tax regulations. The tool keeps up to date on changing regulations that could put a business at risk of an audit. This even helps businesses that are expanding operations into multiple states, ensuring compliance with areas that may have different laws.

Ready to automate your business finances?

These tools to automate your business finances are just the tip of the iceberg as far as how automation can transform your business’s financial planning, and analysis operations. Automation can assist with everything from payroll and expense management to sales forecasting, enabling more efficient and informed outcomes.

The cost of such tools should always be evaluated in regard to the increase in productivity, decreased risk, and ability to make improved financial decisions. As with so many other aspects of business, tools to automate your business finances can serve as an investment with much greater returns that far exceed the cost of implementing them.

The benefits of automating key components of your business’s financial planning and analysis cannot be understated. Quite simply, companies that take advantage of automation tools stand poised to become more productive and efficient, eliminating manual busywork while also improving the accuracy of their data.

Financial automation is something that no business should put off for much longer. With reliable data and analytics in place, you can make better decisions regarding your cash flow and ensure your company’s stability in the long run.

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