Is back office process automation a thing? If yes, how can you do that?
Maintaining agility, staying competitive despite economic uncertainties – these are no small feats. And yet, enterprises must tackle even more. To add to the mix? Those tedious manual back-office tasks. While some might just put up with the grind, others recognize it for what it really is: drain on time, heavy workload, and incredibly repetitive.
What if we told you that HR, IT, and finance teams within your organization can escape the dull routine? There, you have the answer to your first question! AI, nowadays, isn’t just limited to suggesting your next binge-watch or sending you reminders. It has the potential to transform your back office too. But then again, how?
In this blog, API Connects – famous for AI and ML services – will share 7 essential functions to kick off your back office automation journey. Improving efficiency is just one way to look at it. These can pave the way for growth, allowing you to concentrate on what truly matters.
Let’s start.
How to Get Started With Back Office Process Automation?
Here are some high-impact areas in the back office that businesses can automate to improve efficiency, reduce errors, and save time:
Accounts payable (AP)
Ask your finance and accounting team about manual processing of invoices and they will tell you how much of a headache it is. Not only is it a drain on productivity, but it also keeps AP teams trapped under the spell of paperwork and manually entering data.
This back office function, however, can be easily automated. Certain AI-powered bots can help you extract, validate, and match the invoice information with purchase orders. They can eliminate human errors and delays. Don’t believe us? According to APQC, manually driven teams average 6,488 invoices per FTE. Firms that have been using automated solutions, however, hit 20,934 invoices per FTE per year.
In addition to speed, automating accounts payable also minimizes cost by cutting paper handling, misplaced invoices, and tardiness of payments. Approval workflows can be integrated with the ERPs to ensure real-time visibility. The result? Faster vendor payments, enhanced compliance, and AP departments unencumbered to perform strategic tasks like cash flow.
Accounts receivable (AR)
Since we’ve mentioned AP, it only makes sense to talk about automating AR next. Enterprises having in-house financial teams know how many hours they have to spend entering orders manually, hunting down payments, and reconciling mismatched data. All these factors slow down cash flow.
The whole cycle can be improved by automation. Bots can get your order details, auto-generate invoices, and enter your payment to the respective accounts. Automating this back office process lowers the days sales outstanding (DSO) by accelerating collections and minimizing disputes.
For example, automated reminders improve on-time payments while AI detects anomalies before they become fatal. With less time spent on repetitive tasks, your AR staff members will have more time to work with customers and analyze credit risks. The outcome? Better working capital and fewer write-offs.
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Employee onboarding
The problems with onboarding are widely known. Tax forms, policy sign-offs, system access requests – these get on the nerves of new hires and HR alike. Automating employee onboarding, however, can make things a walk in the park. HR departments can use tools that help with auto-filling forms, triggering IT access, and sending personalised follow-up emails.
Bots will sync data across HRIS, payroll, and security systems. And guess what? There is no need for manual follow-ups to assure compliance. For example, a fully automated onboarding reduces the processing period (which can take days when executed manually) to a few minutes. Thus, improving new hire satisfaction.
HR will get bandwidth to concentrate on engagement and culture. Employees, on the other hand, can start being productive sooner. Effective onboarding in a talent-driven market can make a difference between retaining top performers and experiencing costly turnover for your organization.
Employee data management
HRs have to constantly and endlessly bounce between different systems to update employee addresses, promotions, and benefits enrollments. Manually entering data can lead to blunders (such as wrong payroll deductions) and delays. Automating this back-office function can solve this problem, however. You can sync data in real time between HR platforms, payroll, and compliance tools.
Need an example? A promotion in the HRIS will automatically update pay on the finance system and alert the respective teams. Deloitte, in its findings, has established that organizations investing in HR automation technology have witnessed a 22% increase in efficacy and a 17% decrease in overall costs.
Coupled with accurate, centrally-stored records, HR can shift from admin to strategy. They can monitor trends like attrition risks or skill gaps proactively.
Desk automation
We bet you’ve already guessed from the subheading itself that this back-office function is related to IT. Teams waste countless hours managing redundant, low-value requests such as password resets, software installs, and ticket routing before they finally address critical projects.
Automation has been able to transform this! Hundreds of companies have deployed AI-driven bots to process 40%+ tier-1 requests in an instant, that too without the intervention of a human. As an example, let’s talk about the new forgot password approach. Nowadays, clicking on forgotten password triggers a self-service reset link. Similarly, system alerts are being used to automatically clear typical glitches.
Enterprises can also think about automating IT desk operations. Not only will this slash resolution times from hours to seconds (increasing the satisfaction of employees) but it also allows for predictive IT support (analyzing trends to avoid outages before they happen). By removing the burden of routine operations, IT personnel will be able to work on innovation, security, and digitalisation.
API Connects’ Automation Solutions To Rescue!
The aforementioned back-office functions are just the beginning of what automation can transform. Choosing intelligent automation over manual processes will help you avoid time wastage, cost inflation, and stifle growth. API Connects can help you unlock efficiency, accuracy, and scalability like never before.
Need help with AI-powered AP processing? How about self-service IT support or flawless employee onboarding? Our customized automation solutions will streamline operations, reduce errors, and free your teams to focus on strategic business growth.
Email us at enquiry@apiconnects.co.nz to discuss your automation goals!