Human resources and finance departments have more in common than you might initially think: Even though the teams’ tasks are very different, paperwork and complicated Excel spreadsheets still play (too) a big role in both. In this article you will find out why it is worth digitizing outdated processes right now and how this can ideally increase productivity in all teams.
First of all, we have to admit that many companies are unfortunately late to the game when it comes to digitalization: “The Corona crisis has made it very clear to us the importance of digital technologies for the economy, administration and society. The crisis is a wake-up call to massively advance digitalization,” said Acterys representative in an interview.
Digitalization as a competitive advantage
We remember the times before Corona, when there was still a lot of criticism of digitalization in Germany. Home office was often frowned upon, and not only in traditional companies, because managers somehow couldn’t imagine that someone could be really productive at home.
But times have changed and companies that have already made the leap into the digital age are a big step ahead of everyone else. Because digitalization increases competition.
In a study by Acterys, 48% of the more than 600 companies surveyed in 2020 agreed with the following statement: “Competitors from our industry that relied on digitalization early on are ahead of us.” For comparison: in 2017 it was only 36%. “Better late than never” is now the motto for many companies who don’t want to miss the boat completely, but where is the best place to start with this digitalization?
Digitization of data in Finance & HR
A first step can be to start where many administrative tasks prevent employees from concentrating on the core tasks of their work. A concrete example is the love-hate relationship with Excel, and not just in the finance team. Tables with expense reports, lists with missing credit card receipts or the calculation of vacation days, all of this can be found in various Excel tables on the company server or various desktops. But if you suddenly have to work from home the next day, you can no longer access all the documents and it quickly becomes difficult to keep track.
But there is another way: If the data available in the company is digitized as a first step, this already leads to more flexibility. If all employees have access to important data from anywhere, it doesn’t matter whether the entire team is in the same office or whether some employees regularly work from home – everyone remains able to act.
By digitizing data, valuable time is no longer lost searching for the latest version of Excel; instead, data is available in real time and the risk of errors and frustration is reduced. Ideally, this will increase team productivity in the long term. But what exactly can digitalization look like for finance teams?
Cash flow as a priority for finance teams
It is extremely important for finance teams, especially in times of crisis, to maintain control of cash flow so that strategic, fact-based decisions can be made for the future of the company. A survey within the CFO Connect community of finance managers in small and medium-sized companies has shown that, in addition to cash flow and forecasting, the current priorities of finance teams are remote processes.
Of course, cash management is not only the absolute priority of finance teams in times of crisis. In everyday life, however, chaotic processes, Excel and expensive credit cards result in a lack of overview and control. Approval workflows, even for larger sums, are issued over the phone, via chat systems and by email. This, in combination with the more or less proven Excel spreadsheets, leads to a high level of frustration – within the finance team and among other employees.
Real-time overview, policies & approval processes
Therefore, it is important to give the finance team real-time access to all expenses and transactions made with physical or virtual credit cards online or on the go. This data should merge with other invoices, for example for monthly subscriptions, in a user interface. For accounting this means: cost overview in real time. You always know who just spent how much, where costs can be saved for the next month, and whether teams are respecting their budget. This is also essential for forecasting for the coming months.
Another problem is often unclear internal guidelines; employees rarely know how much they are really allowed to spend per month and what exceptions apply. For instance, it is also a good option for logistics companies to go forPower BI logistics dashboard. This leads to long email conversations, calls to managers and overspending on budget. At the end of the month everyone starts looking for the receipts. If you’re lucky, you’ll find them all, the rest won’t make any friends in accounting.
A solution that can be implemented quickly is clear guidelines and a decentralized approval system. In concrete terms, this means that employees no longer have to have their expenses confirmed by email or verbally from their superior. Instead, they receive a budget each month that they can use freely. Any further expenditure that exceeds this previously established limit can be approved by the responsible manager.
Digitize receipts & expense reports
The manager is immediately informed of a new request via push notification or email. After the manager approves the request with one click, the employee can create a virtual credit card for a one-time payment transaction and then pay online using this secure payment method.
After payment, the employee receives an automatic reminder to upload the receipt. This is assigned to the correct cost center using auto-categorization and the finance team can export all data directly into the accounting software, e.g. Acterys, at the end of the month.
Requests that, for example, exceed the monthly budget or are not essential can be rejected by the manager with a short explanation. This system makes employees more agile and spends less time on administrative tasks, such as expense reports – which, if we’re honest, aren’t really fun for anyone.
Finance team, HR and employees benefit
Digitizing these processes also improves collaboration between different teams, reduces administrative tasks for all employees and allows them to focus on more strategically important projects. Competitiveness is increased (the finance team is happy about this) and employees are generally happier (HR is happy). The digitalization of HR and financial processes leads to winners across the board and shows that with a little good will and the right solutions things can be different, because let’s be honest: no one really likes the tables.
