Digitalization – a new paradigm

Significant increases in the efficiency of financial management

Financial management is currently in a period of disruptive change as a result of digitalization. The adoption of digital processes not only automates several phases in financial management processes, it also reduces their overall number. Our experience, gained from the digitalization of financial management systems in hundreds of companies, indicates that efficiency increases of more than 50% are usually achieved.

60-80% of manual work becomes unnecessary

The key source of such efficiency gains lies in automation and the consequent removal of phases in financial management processes. For example, traditional processing of a purchase invoice typically includes at least 11 phases from opening of the invoice to archiving of a payment receipt and usually takes 7-40 minutes. Once digitalized, our experience is that this process takes just 4-6 minutes.

How is this possible? In the digitalized purchase invoicing process, the first phase is scanning of the paper invoice into the circulation system. Paper documents are destroyed after they have been scanned. Next, accounting receives the purchase invoice in electronic form and it is automatically booked. Should the supplier have an electronic invoicing system, the process starts from this stage. This is, however, currently the case in only 5 % of all the invoices in Finland, for example.

The person or persons who must approve the invoice are sent a notification via e-mail which includes a link that enables them to view and approve the invoice online. Once approved, the payment is automatically made and this event is posted. The system also maintains archives that allow users to view incoming, approved, paid and unpaid invoices online at any time. This means there is no need to seek and circulate paper documents or to copy and store individual paper copies of invoices. We estimate that this makes 60-80% of the traditional manual tasks redundant.

Flexible online coordination

The digitalization procedures just described increase transparency in processing. Work can also be coordinated via the Internet, with reports that present status in real time available online. This makes it possible for employees involved in the processing and accessing of reports to work in different locations and access the system to conduct their part of the work at a suitable time.

Practical aspects of making the change

The significant number of positive outcomes means that an increasing number of enterprises and public organisations are deciding to digitalize their processes. Not only does this require considerable changes in both the routines and tools employed, personnel must also acquire new competences.

Since each organization’s financial management system has different needs and objectives, moves towards digitalization should be carefully planned and must start with a clear understanding of these targets. In practice, digitalization can be implemented in a variety of ways and both the solutions chosen and decisions concerning the division of work and processes are important factors in success. Rather than recruiting a specialist in such considerations to manage the change process, it can be beneficial to turn to experienced experts who are able to provide the required support.

Having already digitalized financial management processes for hundreds of companies, the Accountor Group is a forerunner in digitalization. We have accumulated a wealth of experience in defining the new processes and technology required to meet specific needs, as well as in how to manage the change process and encourage people’s full commitment. To benefit our clients, we feel it is our obligation to maintain the leading position we have achieved - and to make sure that the expertise we offer is the best in the industry.

Asko Schrey, CEO, The Accountor Group