Working in the finance industry requires keen attention to detail. Although many individuals display this quality, you cannot depend on them to always get it right. Certain things can affect their accuracy and lead to expensive errors. This is why automated financial statements are an investment many finance industry players are committing to. But it is more than just avoidance of errors, there are more reasons why the industry is embracing automation. Here are some of them.
The finance industry depends on financial reports to make vital decisions and forecasts. Usually, these reports need extensive research and auditing to present the right figures and facts. Automating this process, however, can make the process quick and painless. Financial reporting automation tools link to several sources of financial data and with a simple command or click, the right data is pulled from particular sources to populate financial reports.
This information is updated and accurate so the decisions made based on such data are indeed the best. The great thing about this is that you don’t need so many people running around searching files and spending sleepless nights trying to compile such basic financial statements like a balance sheet. Everything can be availed in a matter of minutes at the click of a button. This gives accounts departments more time to focus on other core issues. The CFO also can easily refer to important financial reports as and when they need to and at times they do not have to give advance notice to accounts to have the document prepared.
One of the challenges faced by financial institutions is collecting accurate data for tax assessment. Sometimes receipts may be misplaced and certain deductible expenses may not be recorded. The entire process of putting together all the necessary documents for tax assessment may take hours or even days and most of this work involves going through stacks of paper and then arranging the records according to dates.
All this can be done in a much simpler way when these institutions use financial reporting software. With an automated document process, everything gets recorded by technology so finding the records is a quick process and the data is entered into a standard document according to the template set. There is usually no risk of omission and the information provided can be trusted both by the institution and the taxman. What would have been a tiresome project becomes very easy when automation is part of the process.
It is hard for humans to be completely free of bias. When dealing with underwriting documents, this can be a problem. The problem can however be solved by using automated financial statement analysis. It is much easier to follow the guidelines for determining whether an applicant is deserving of a loan or if their insurance claim is valid if you automate the document approval process. These systems will stick to the criteria for approval and that leads to transparent approval processes and the institution will gain more since only eligible applicants will be approved.
For insurance companies, this is one of the biggest benefits. A lot of time and money is usually spent on getting the signatures of customers as well as authorizing officers. With automation software, however, that is not the case. Electronic signatures make it possible for a new policyholder to pen their signature from anywhere as long as they have access to the document. The policy agreement can be emailed to the customer and they can append their signature to it without having to be physically present at the insurance company. The same can be done for signatures of authorizing officials. This cuts down the time spent attending to a single client.
This means insurance companies can sign up more clients and give them a seamless experience. In the long run, it is a win for both the organization and its clients and there’s even more to gain from automating financial documents.
Automated financial statements are created using data from a trusted source. It is very hard for this data to be compromised either intentionally or due to human error. The automation software comes with features that ensure data stored is only accessed by authorized persons and even when such people access the data and make changes, it is all recorded and notifications can be sent whenever sensitive data has been edited. In financial institutions where fraud is a constant threat, automation offers the reassurance of added safety against this and means less time is spent investigating fraud. The reputation of the organization also remains intact the more it can avoid cases of fraud. Banks, insurance companies, brokerage firms, and others find this an effective advantage of automation.
Financial advisers are usually looking for deeper insights into the figures. This may take hours to read if you have to manually find patterns within the data. That doesn’t have to be the case when you use a financial reporting system. These can quickly identify patterns and provide tabulated data to enable quicker financial decisions. With access to several datasources, the system will provide better insight than you might be able to collect even with the smartest financial wizards. This means that smart brains can be put to use in the process of making financial decisions based on the insight provided by the automated documents.
Automated financial statements give better visibility of the processes within the industry. It builds trust between the organization and customers as well as internally. The company will eventually recover much more than what it invested in the technology as it considerably reduces the cost of doing business. Many employees feel that this kind of technology improves their productivity and this makes them motivated and satisfied with their employment. Everyone can be happy with the introduction of automated document solutions in financial institutions.