The economic volatilities of the past few years have been challenging for finance teams, with inflation and uncertainty driving efficiency pressures and creating cash flow concerns for some businesses. At the same time, finance executives are being asked to take on more strategic and technical responsibilities.
While they work to ensure their business can thrive, it can come with a different type of cost: two-thirds of small businesses (SMBs) say their finance team is burned out and working too many hours, according to BILL’s recent State of Finance Automation Report. Automation and technology should be alleviating the stress, but too often, teams are juggling multiple apps and chasing clients to get the data they need.
It’s not just about friction and frustration. Accounting and finance teams risk missing strategic opportunities for growth if they don’t have the right technology at their fingertips. In the past, the ‘right’ technology typically meant ‘more’ technology. But as we’ve seen advancements in artificial intelligence (AI)-powered software solutions, less can actually be more.
Here are three ways streamlining your technology can help you supercharge success.
Invest in one platform
From tracking down receipts and tax forms, to digging through multiple disconnected apps, most finance teams spend too much time toggling between analysis and admin. It reflects the reality that finance data often lives on paper or in multiple apps or platforms – from e-commerce to payroll to bill pay. It can be disconnected, delayed and decentralized.
The good news is, we’ve come a long way. In my previous role at GoDaddy, it amazed me that nearly half of SMBs didn’t even have a website in 2017. The pandemic was a major turning point for digital transformation, but many businesses adopted one or more SaaS solutions that turned out to not be a good fit for their business. The average SMB now uses more than seven software solutions to manage their business, not to mention tasks that are not yet digitized.
Investing in technology solutions that are integrated into one platform can really help. It not only helps reduce the number of tools being used, but the right platform that is truly integrated can also connect and automate information across the entire ecosystem – from customers, partners, banks and accountants. Automating key processes and accessing key transactions and data in one platform can help finance teams get the answers they need faster and focus on what matters most.
Build a Cash-Flow Control Tower
Cash flow is like oxygen for a business – essential to function, and extremely stressful if you aren’t sure where your next breath will come from. In theory, what’s coming in and what’s going out in a business is a simple proposition. In reality, it can be much more complex.
The growth of software to manage back-office functions has been a huge time saver for businesses. For SMB finance teams, finding a solution that is optimized for cash flow management can be especially valuable. Having a ‘cash flow control tower’ can unlock significant new potential for finance leaders to make faster and more informed decisions about everything from cash flow to new investments.
Colin King, the CFO of Vermont Flannel, faced this challenge. Before updating and optimizing their financial technology, the Vermont Flannel team was manually tracking invoices. It was a lot of guesswork and not a lot of certainty. As “religious cash flow trackers,” automating and centralizing payments and spend management in a single platform meant they could see a real-time P&L and accurately forecast what their next 90 days would look like. Colin said it was a game changer for the company.
Choose technology that helps uplevel strategic advice
Streamlining tech is not just about reducing the number of tools you use. Choosing solutions that help uplevel strategic advice can help bring more efficiency and productivity to how finance teams supercharge their clients and their business.
For example, finance teams are often relied on for advice about how to position the business for the future. Without tools for analysis or forecasting, it can leave finance leaders feeling underprepared or overwhelmed. Fortunately, the combination of access to better centralized data, advances in AI, and there are great software tools to empower finance leaders to uplevel advice.
Forecasting and cash flow insights solutions provide exciting capabilities for finance leaders to optimize, manage, and forecast cash flow. Real-time analytics help finance teams better manage risk, identify opportunities and offer strategic counsel. This means better business decisions can be made faster.
This technology also cuts down on work that doesn’t require human analysis. Medical professionals think of this as “operating at the top of license” and the same is true for finance professionals who are unburdened from tasks that are administrative or can be automated. They can actually help optimize and grow the business, in addition to reporting on it.
Streamlining for success
In any market condition, the stakes are high in the finance function. Technology doesn’t set the stakes, but it should reduce some burdens and stressors in the workflow and inform key decisions, positioning finance as the trusted right hand for every business owner and leader and opening new opportunities for growth.
Access to integrated, centralized data and simple technology will not just empower finance leaders but also build confidence in strategies to execute quickly, while ensuring the ability to pivot on a dime if conditions change.
Irana Wasti is the Chief Product Officer at BILL.
