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Financial reporting is one of the biggest bottlenecks in the business space. It is among the most time-consuming tasks companies must engage with. It involves gathering data from multiple sources, reconciling it, and standardizing it, a task that can tie up finance personnel for weeks at a time.
To add to the frustration, even the slightest error can derail the whole process. Miskeying a number, misplacing a decimal point, or misunderstanding the information on an expense report can result in misleading calculations.
“Financial reporting can often feel like a relentless battle against human error,” says Swapnil Shinde, co-founder and chief executive officer at Zeni. “Each misstep in data entry or calculation chips away at your precious time. It also risks shaking the confidence of investors and stakeholders. When it comes to financial reporting, accuracy is everything, especially if you’re striving to secure funding with limited resources.”
Shinde is an expert at achieving the type of efficiency and accuracy needed to make a business succeed, having built and sold two startups before launching Zeni. Shinde is also a pioneer in finance automation. The AI bookkeeping and AI accounting software Zeni provides to businesses empowers them to supercharge their finances for speed and reliability.
Businesses that embrace automation fix finance bottlenecks by addressing both the time-consuming nature of financial reporting and the threat of errors. With the rapid advance of artificial intelligence in the finance space, adding automation to the financial reporting process has become easier than ever before.
The following are some key strategies businesses can use to streamline finance by integrating automation into their processes.
Streamlining data collection with AI-driven automation
Data collection lays the groundwork for sound financial reporting. If data quality issues are allowed to creep in, it can make the whole process unstable. AI bookkeeping empowers automation that dramatically enhances a company’s ability to maintain consistency, completeness, and accuracy.
“You can leverage an AI tool’s intelligent algorithms to automate data gathering from various sources such as bank accounts, credit card statements, invoices, and receipts,” reports Shinde. “The tool can then thoughtfully categorize and organize your information. That way, it’s readily accessible, considerably simplifying your financial reporting process.”
Optimizing data validation with AI-driven automation
Data validation is another critical piece of the financial reporting puzzle. Reporting systems can grind to a halt if data formats are inconsistent, specified data ranges are violated, or data duplications are not caught.
“Using machine learning algorithms, AI meticulously scans through financial reports, identifying and flagging errors, inconsistencies, and gaps,” Shinde explains. “This doesn’t just save valuable time that you’d otherwise spend on manual processes. It also enhances the reliability of your financial data. Over time, AI bookkeeping platforms learn from their discoveries and hone their skills, allowing your financial data to become cleaner, more accurate, and more trustworthy.”
Improving financial risk assessment and mitigation with AI-driven automation
Financial reporting serves a variety of business purposes, but few are as important as empowering risk assessments. Sound financial reporting gives companies what they need to identify credit risk, market risk, liquidity risk, and more.
“When you use machine learning algorithms, you can identify and evaluate financial risks in real time,” Shinde shares. “This gives you the necessary insights to proactively mitigate potential issues. And when you need a quick pivot or corrective action, AI accounting software can suggest the best course of action based on advanced predictive models or even autonomously execute actions.”
Accelerating financial statement reconciliation with AI-driven automation
Reconciling financial statements plays a key role in the financial reporting process, improving consistency, ensuring compliance, and providing an accurate picture of the company’s financial health. It’s also, however, a process that can bog down the flow of financial reporting.
“By using AI accounting software to automatically reconcile financial statements, companies can revolutionize the efficiency and accuracy of their financial operations,” Shinde says. “AI-integrated systems engage with various financial platforms, such as enterprise resource planning systems and banking portals. They then collect and match up your financial data so you get up-to-date and error-free information.”
Enabling real-time financial reporting with AI-driven automation
The decisions that drive business success largely depend on quarterly financial reports. When companies rely on manual processes to produce those reports, they often lag behind, leaving leaders without the intel to keep pace with competitors by making intelligent, informed decisions. AI bookkeeping provides AI-driven automation that ensures leaders have the intel they need when needed.
“AI changes this narrative by bringing real-time financial reporting and analysis to the mix,” Shinde says. “Imagine having a financial radar that continuously scans and analyzes your data, offering up-to-the-minute insights on your startup’s financial pulse. You can then stay informed on key indicators like cash flow, revenue, expenses, and more.”
Without a deep understanding of their financial standing, companies can’t move forward confidently or attract the type of investor support needed to drive growth. AI-driven automation delivers deep understanding developed with speed and accuracy, giving companies valuable insights and a key competitive edge.
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