The vast majority of companies, from big enterprises to small startups, are looking for ways to get more out of every dollar. Using financial process re-engineering, the current workflows should be analyzed and re-thought to avoid any activities that do not directly add value. A few ways the business process re-engineering financial services might look include:
Cutting Costs
Businesses should focus on what makes them different and isn’t replicated easily by the competition. While these key areas will cost more due to complexity, they are also going to gain more due to market differentiation. The areas where businesses are operating in a common way across the industry (no real opportunity for competitive advantage) should be streamlined and guided by best practices to reduce the unpredictability and time spent. So, a social marketing strategy may take a lot more time or resources than the order entry process. While the first task is going to define your company to your audience, the second task should be a routine part of doing business.
Improve Financial Speed
By changing out employee checks for direct deposit (ACH electronic payments) or payroll cards, you can eliminate the sluggishness of the process that has employees waiting on delayed payments, getting signatures and sending reminders to employees that didn’t cash their checks within a certain time frame.
Nimble and Accurate Book-keeping
Other companies switch to single-day financial close goals—aiming to keep real-time finances that conclude daily. This requires a simplified and streamlined finance and accounting (F&A) platform that can provide key financial insights quickly.
Reducing Redundancies
When supplier invoices are only paid after a rigorous three-way matching process, a lot of time and effort is wasted over time. Re-engineering would eliminate those supplier invoices by paying with the authorization of the purchase order.
Robotic Process Automation (RPA)
Companies are utilizing RPA software to automate internal business processes and cut down on the employees needed to do those jobs. A bank was able to use an RPA to automate audit reports, direct debit cancellation, account closures, internet applications, card/pin pulls, CHAPS payments and more.
While the need for better F&A operations may be clear, taking the time for in-depth process mapping and re-engineering financial services is another matter that may companies don’t get around to accomplishing. It can be difficult to move away from practices that are embedded in the workflow of a company—even when they are costing the company important time and resources.