Business Process as a Service (BPaaS)
Importance of virtual finance operations for your business
Innovative solutions that help enhance efficiency, facilitate accessibility, and meet the ever-evolving demands of the digital era have become the norm in the finance industry. The COVID-19 pandemic and the subsequent disruptions it caused tested these innovations and their ability to be consistent – in terms of visibility and efficiency – in virtual setups. In the midst of this scrutiny, Virtual Finance Operations (VFO) has emerged as a transformative force redefining the traditional finance processes and ensuring efficient risk management, controls, and efficiency in virtual and hybrid setups that followed.
What is virtual finance?
Virtual finance is far from simply using digital solutions like on-premise ERP systems to automate parts of your finance processes while relying on manual operations for others. Although they simplify and automate tedious, repetitive tasks, they cannot offer the true accessibility, visibility, and controls necessary to support remote and hybrid workplaces.
VFO leverage next-gen technologies and digital tools to facilitate virtual collaboration while streamlining day-to-day processes, reducing operational complexities, enhancing performance, and offering the same risk management, governance, controls, and security to remote teams as on-premises teams.
The key elements that define VFO include:
- Digital technologies: Digital tools and technologies, from simple ERP solutions to AI-supported tools, are the backbone of VFO, facilitating speedy, accurate, and scalable finance operations.
- Data analytics: From automating routine tasks to leveraging real-time insights, data analytics are an integral part of VFO. Incorporating advanced analytics to uncover valuable insights can help finance leaders make more data-driven decisions and support strategic financial planning.
- Cybersecurity measures: With data at its core, robust cybersecurity measures are an integral component of VFO to protect sensitive financial information from constantly evolving cyber threats.
- Virtual collaboration: Virtual collaboration is a key defining feature of VFO, promoting flexibility and agility. It simulates a virtual workplace where finance professionals can work, communicate, and collaborate seamlessly without geographical constraints.
Getting started with virtual finance operations
The expectations and demands finance professionals and leaders face are evolving rapidly, making “now” a great time to invest in and get started with virtual finance. However, the focus of VFO cannot be limited to connecting the finance team and allowing them to work from anywhere, anytime. It also has to focus on adding strategic value to the overall business.
Here are six critical steps that can help you move towards VFO:
Digitise
You cannot adopt VFO if you are relying on manual processes and physical paper documents to manage your finance operations. The first step in getting started with virtual business finance is digitising your operations, converting your finance inputs into digital data, and moving your operations to a digital platform.
Move to cloud
The next step is to move from on-premise solutions to the cloud. It can allow you to store and access data remotely, giving your team the flexibility to work from anywhere. When moving to the cloud, be sure to consider all the core ERP and non-core systems you use to ensure seamless end-to-end integration on the cloud.
Integrate
The next step is to integrate and connect different systems you use with the help of an Application Program Interface (API). This can help you create a data universe, setting the stage for advanced analytics capabilities, improved visibility, enhanced controls, and data-driven decision-making.
Automate
Standardising and automating rule-based, repetitive activities, such as invoice processing, reconciliations, or payments, can make finance operations more efficient. Going beyond robotic process automation, intelligent automation can help you leverage machine learning and artificial intelligence solutions to automate parts of knowledge-based processes and automate more complex decisions.
Mobilise
To achieve true accessibility, it is crucial to ensure your VFO is functional across different devices—desktops, laptops, tablets, and smartphones. Ensuring device set-up per company policies surrounding data security and risk control, including VPN access and multi-factor authentication, is crucial to protecting your sensitive and confidential financial information.
Go virtual
The last step is to go virtual, allowing your team to be flexible and collaborative without having to be in the same location. Stringent monitoring and control frameworks are crucial at every stage up to this step to ensure regulatory compliance.
Once you have implemented these steps to embrace virtual business finance, you can get benefits like:
- Enhanced operational efficiency and productivity
- Reduced overhead and operational costs
- Access to real-time performance insights
- Improved financial controls and digital audit trail
- Access to the global talent pool
- Scalability, agility, and adaptability
How can Infosys BPM help?
Virtual business finance is a transformative leap that will shape the future of financial management. Businesses that embrace VFO now can not only enhance operational efficiency but also build a competitive edge in today’s rapidly evolving business landscape. Infosys BPM Business Process as a Service (BPaaS) solutions can help you embrace this digital transformation while offering domain expertise to ensure operational efficiency. Embrace Infosys BPM AI-first digital transformation model to leverage virtual finance and stay ahead of the competition.
