Today, automation is a common trend across many industries, but there is still some anxiety about the influence of emerging technologies like AI and Machine Learning.
The truth is that, when used effectively, automated processes may provide real-world business benefits, particularly when those needs are related to time-consuming accounts payable, payroll and human operations.
Enterprise Resource Planning (ERP) suites have become an integral part of the operational model of businesses all over the world in recent decades. Previously only available to the larger companies, the rise of the Software-as-a-Service provider has made ERP systems available to mid-sized businesses as well.
However, while ERPs provide the necessary functionality to track and manage all of the activities that go into running a business of any size—from sales to accounts receivable and payable, and so on—they still have one critical flaw that necessitates manual intervention on a regular basis: your ERP can’t close the books for you. So, you have to get the vendor payment proposal automation d365 to regulate these steps better.
Let's be honest your ERP can't do it all!
So now, how can you get the most out of your ERP investment by automating activities, standardizing procedures, and ensuring the accuracy of financial data? The causes of gaps outside of a firm’s ERP are explored in this article, as well as methods that a company can take to help bridge these gaps and streamline the financial closing process. Dynamics 365 seems to be ideal. But before you go diving into dynamics 365 finance and operations features, let’s start with some of the most serious problems that might arise from a faulty foundation.
Causes of Gaps in Most ERP Solutions
Multiple Different ERPs
Many businesses have multiple ERP systems as a result of mergers, acquisitions, and legacy systems. Using numerous ERP instances while navigating the financial close overcomplicates the process, delays important deadlines, and leaves financial leaders and C-suite executives with a lack of visibility. The pandemonium of the close is exacerbated by the extraction of data from multiple sources. As a result, finance and accounting teams spend more time handling many documents, emails, and meetings in order to fulfill crucial deadlines.
Manual Migration of Data
Even when navigating the financial close with a single ERP instance, F&A teams must manually extract data and match transactions outside of the ERP. While ERP systems save a lot of operational data, they can’t always automate labor-intensive operations and improve the financial closure. Furthermore, the majority of close tasks and activities continue to take place outside of the ERP instance. The amount of manual labor required to upload and manipulate raw data has a direct impact on the accuracy of the financial reporting that results.
The completion of the closing is hampered by manual operations, which results in a loss of efficiency. Additionally, emails, status meetings, and numerous communications are required to keep up with the progress of the close, adding to accountants’ time constraints and overtime work.
Lack of A Centralized Process
Various divisions of the business often have different requirements while navigating ERP instances without a centralized solution and process. Inefficiencies, a lack of visibility, weak internal controls, and higher expenses are the results. Due to the juggling of many systems and older tools, key departments participating in the financial close may struggle to meet time-sensitive deadlines. Due to the lack of a consistent approach, firms are forced to navigate the close with repeated backtracking and hazy visibility. As many as 62 percent of F&A team members struggle to achieve deadlines due to the use of old systems in addition to specialized processes.
BENEFITS OF AUTOMATION IN YOUR ERP
There is a greater need to automate manual-heavy procedures in the age of digital acceleration and developing financial solutions, especially in the context of a fragmented ERP landscape. Approximately 38% of mid-market professionals are already automating manual labor to unlock new opportunities, with the number expected to climb as the year progresses. Financial automation, without a doubt, gives chances for mid-market companies to expand. Countless businesses have begun to use or are contemplating using financial automation because of the numerous advantages it provides:
- Organizational visibility into financial closing tasks has improved.
- Integrated data from ERP systems in a more efficient manner.
- Processes of the status quo are precisely repeated.
- Operational performance and quality have improved.
- Overall expenditures associated with the closing are lower.
- Time for strategic, value-added initiatives has been increased.
Identify Which Processes Sit Outside of Your ERP
It’s critical to figure out which problems you can solve on your own and which problems require financial technology to solve. Financial automation software can help with repetitive operations that are outside of your ERP system and rely on spreadsheets to accomplish.
Establish Key Priorities and ROI for The Close
Establish the major priorities for the closure after you’ve assessed your issues. This isn’t a one-size-fits-all solution; instead, it’s tailored to your company’s individual requirements. These top criteria are then translated into capabilities that a financial automation solution must-have.
Align Business And Technology Initiatives
Communicate objectives amongst company leaders and IT department personnel after defining key priorities for the financial close. IT leaders should always be consulted before implementing a new software solution in your firm, especially when it comes to data security and hosting options.
Invest in a Solution that Seamlessly Integrates
Organizations can efficiently decrease risk and speed the data upload process by selecting a suitable vendor invoice automation dynamics 365 that interacts easily with many ERP providers, rather than starting from scratch or combining current ERP systems. Investing in a solution that can overcome ERP gaps and interface with other systems is an important step toward aligning your business and IT strategies.
DHRP AP automation solution
Implementing a financial automation solution like dynamics 365 automation for your financial close provides an abundance of benefits to your organization. Organizations can effectively optimize and streamline their existing processes by integrating ERP systems with automation software.
To help you get on the journey of financial automation, we at DHRP are offering a complete process of implementation dynamics 365 Finance and operations system administration. Our experts will guide you on every step of using Microsoft Dynamics 365 for finance and operations in your organization.
