Today’s world feels like it is turning faster and faster and the challenges have become extremely diverse and complex. The digital transformation that accompanies all changes does not stop at financial management in companies. Increased globalization has made markets much more volatile and the pressure on budget planning continues to increase. Social perception also influences traditional brand values, new business models harbor opportunities and risks simultaneously and the requirements for the reporting system on which all planning is based are becoming more and more specific and immense.
Digitize carefully instead of hastily
At Litreca we have been following developments in treasury for many years now and know about both the wishes and the stumbling blocks in the digitization and automation of financial management processes.
Digital financial management solutions are designed to optimize and accelerate payment processes in order to save time and therefore money. Data should be transparent, secure and support efficient work across the company. However, it must be taken into account that the desired goal can only be as digital as the current conditions allow.
If they want to go digital, companies have to ask themselves the following questions::
- Is the reporting already automated and does it contain complete data?
- Has the bank structure been optimized and are the payment transactions (internal/external) processed via a central and secure platform? How many electronic banking systems are in use?
- Are the internal processes already straight-through and can the financial status even be created at the push of a button?
- How should you react to further growth?
Only those who know and understand their data can create added value!
Digitization and automation go hand in hand
Digitization is not an end in itself. Digitization for the finance department does not work without carefully considering and optimizing all processes and the methods used. All data must be made fully usable in order to guarantee the quality of digital financial processes and ultimately to improve the overall process results. Such changes can only take place through the increasing use of computer-aided user interfaces and software, i.e. automation.
Automation improves performance and centers data. Liquidity and risks can be monitored, payment transactions and workflows can be controlled and processes such as the posting of incoming payments can be optimized.
The question of technical feasibility always arises. Not every solution creates the same added value in every company. Success depends, among other things, on which technologies and processes are already in use. Added value is created when the technological strategy pursued is specifically tailored to the needs of the finance department and its own use cases are mapped.
