Automation in finance: which tasks to tackle first?
A grid to prioritize finance tasks: collection, reconciliations, reminders and reporting. Measure volume, exceptions and gain after monitoring.
Founding Partner, Iter Advisors
Remember in 30 seconds
The best first task is frequent, measurable and controllable. Start with a representative sample, include exceptions, and measure proofreading time. Automation does not erase errors: it changes the way they are detected.
This guide completes the AI and finance file with a method of choosing the first site. It assumes neither a universal automation rate nor a number of hours saved in advance.
How to choose the first site?
List the tasks from the last reporting cycle. For each, note the volume, frequency, production time, inspection time and errors corrected. Identify the data source and the person who can validate a result.
A frequent task with stable rules is often simpler to test than an exceptional analysis. The priority drops if access is uncertain, if exceptions dominate or if the error could trigger an unauthorized payment.
Which tasks to compare?
| Task | First test | Useful measure |
|---|---|---|
| Invoice collection | Import a batch and spot duplicates | Missing parts, duplicates and correction times |
| Reconciliation | Compare a reading to the corresponding register | Correct matches and unresolved exceptions |
| Parts Requests | Prepare a draft from a validated pattern | Replay time and number of round trips |
| Reporting | Reproduce an already approved month | Reporting deviation and total production time |
| Cash flow forecast | Compare a past projection to the actual one | Deviation per week and undocumented assumptions |
The documented cases donnent des exemples de tâches ciblées. The tool selection comes after defining the success criteria.
How to test for exceptions?
A driver made only of simple parts overestimates quality. Include a credit note, a duplicate, a partial payment, an unusual date format, and a line without a reference. Prepare the expected treatment before running the test.
Fictional educational example: on 100 lines, a tool offers 90 comparisons and leaves 10 to review. The proposal rate is 90%. This does not prove that 90% of the lines were correctly processed: you must check the proposed matches and look for false positives.
Keep the row identifiers and the reason for each reconciliation. A visible exception queue is better than an arbitrary assignment that hides the problem.
How to measure the reliability of a forecast?
Test the model over a past period by giving it only the information available at the forecast date. Then compare the result to the actual flows. Including information known after this date makes the test misleading.
Document recovery assumptions, due dates and exceptional disbursements. The cash flow guide helps organize the model; the assistant can prepare questions about deviations but does not know about a customer delay that is not included in any data.
When to extend, correct or stop?
Extend the scope if the result is controllable, the gain remains after rereading and the team knows how to regain control. Fix the rules if the same exceptions come up. Discontinue if processing and maintenance costs exceed expected benefit or if controls are not tenable.
L’example of ROI calculation includes recurring costs. The roadmap divides the work between finance and IT. A Fractional CFO can coordinate this recipe and relate it to the needs of the manager.
