What is finance tech stack?

Apr 05, 2024

Today, automation and productivity have become synonymous with business operations.

By automating your company's financial stack, finance teams can experience refined financial processes and streamlined workflows.

However, despite the numerous benefits of financial automation, many companies are hesitant to make the change.

Owing to persistent automation myths, companies are relying on time-consuming manual processes, thereby missing out on expanding their resources and functional capabilities.

By busting these age-old automation myths, businesses can unlock the potential and level of productivity offered by financial automation.

Importance of financial tech stack for businesses

1. Easy data storage and organization

One of the biggest benefits of finance automation is the convenience of storing, organizing, and finding data.

By digitizing and automating your financial stack, finance teams do not have to search through bulky paperwork to find relevant information.

With a centralized virtual storage solution, employees can access the information they need anytime, anywhere. This overall reduces physical storage costs for the company.

2. Minimized data entry errors

Without automating your financial stack, important documents such as invoices and purchase orders need to be digitized manually.

This increases the risk of data entry errors. Even a single misplaced decimal can wreak havoc on your company's finances.

Not only is manual data entry prone to error, but it chews up a lot of your employees' time that could have otherwise been spent doing more meaningful work.

Finance automation software like Volopay helps businesses reduce time and errors on data entry by automating invoice lifecycle from generation to payment processing.

3. Discover growth opportunities

When businesses and employees are not sloughing their time doing mundane tasks manually, it frees up more time for them to explore and discover areas of growth and revenue.

Through financial stack automation, companies can build a reputation for themselves as transparent, forward-thinking enterprises that aims to simplify and streamlines financial processes to reach maximum productivity.

Challenges in finding the right system to adopt finance automation

Irregular adoption of new technology

Change is difficult but necessary. While adopting new technology can bring about numerous benefits for the company and employees, it is quite normal for businesses to face resistance from their employees as new technology can be daunting and complicated to understand.

This can make finance automation implementation particularly difficult. Therefore it is important to ensure that the chosen system for financial stack automation is aligned with business operations and vetted by key stakeholders.

Using a universal automation solution

The problem with implementing a one-size-fits-all automation solution is the assumption that all automation is homogenous in nature.

Automation can differ from department to department, and what may work for the marketing stack will not necessarily work out for the financial stack.

For example, a robust financial automation solution like Volopay uses state-of-the-art automation tools to simplify and streamline your company's expense management processes, from vendor invoice management to subscription management and payment.

Choosing an unscalable solution

While it is important to focus on short-term complications and work on solving them, it is crucial to choose financial stack automation tools that are not only built for long-term use but can also scale along with the company.

As your business grows, so will your workload, and choosing a scalable and flexible solution is what differentiates a good financial stack from a poor one.

Financial stack automation: Myths vs facts

Myth 1: Adopting automation is slow & expensive

Fact: While it is true that initial financial automation processes required companies to build their own software systems that were time-consuming and expensive, the modern age of financial stack automation resources offers a range of cost-effective tools and applications that can streamline your company's accounting processes.

Myth 2: Automation eliminates the human element

Fact: One of the most popular automation myths that prove to be an obstacle in technology implementation is that automation completely eliminates the requirement for human elements in business processes.

The truth is that while finance automation can streamline and schedule repetitive and mundane tasks, businesses still require their accounting and finance teams to operate these automation tools and focus on more strategic processes that technology simply can't replace. 

Myth 3: It is about automating all manual activities

Fact: Most companies aim to automate all manual processes within their business operations.

While it's true that finance automation can tackle many manual processes, it is up to the discretion of the decision-maker to ensure that only necessary activities are automated.

Financial stack automation should not be seen as a one-stop solution; rather, it is a highly specialized tool that should be used strategically.

Myth 4: Automation is only for businesses with big budgets

Fact: Many small-to-medium businesses shy away from using finance automation in the assumption that automation is only affordable by big companies with bigger budgets.

Instead of automating your entire financial stack, companies with small budgets can choose to strategically automate those processes that may benefit the most from finance automation.

Myth 5: Technology change won't be embraced

Fact: One of the most pervasive automation myths is that your clients and employees won't be able to fully embrace this new alien technology.

The transition from manual processes to financial stack automation can be seamlessly achieved when companies take ample time to educate, train, and reaffirm their clients and employees about these new finance automation tools and how they can bring about a positive and productive change in business operations.

Myth 6: Automation reduces headcount

Fact: While most employees view finance automation tools as a means to replace and reduce headcount within the company, the reality is that automation streamlines business operations so much that the need to hire additional employees for repetitive manual processes is reduced.

This means that while companies save on additional employee costs, current employees can dedicate all this freed-up time towards building their skill set and enjoying more meaningful work.

Financial staff automation is a surefire way to fast-track your company's success and growth.

Having a robust finance automation solution in place can help companies save millions of dollars and countless hours every year.

By busting these automation myths, you too can proceed with choosing the ideal finance automation solution for your enterprise.

Automate your business finance operations with Volopay