Solving Capital Expenditure Workflow Challenges
All too often accounting and finance work is accomplished either through the movement of paper through the organization, or the sharing of spreadsheets and files through email. Add a complex, business rule-based process like Capital Expenditure workflow, and now you have an error prone process with reduced efficiency, a lack of transparency and one plagued with constant delays. The traditional CapEx process has a number of core challenges:
- Lack of Standardization – implementing a process without a guiding framework can lead to a non-standardized workflow. The process can routinely breakdown, and result in a non-repeatable and non-transparent business process.
- Inaccurate Request Routing – manual routing of requests can lead to unplanned delays, and can impact project timelines, as well as core business operations.
- Missing Data and Errors – Enforcement of required data and calculation errors are common in most environments, leading to further delays and accounting issues.
- Lack of Productivity – utilizing email as the primary means of communication can cause additional delays, and lead to a total lack of visibility into the process. This can result in hours of lost time tracking down a process, or researching issues.
Implementing a Capital Expenditure process within the confines of a Business Process Management (BPM) suite can produce many benefits:
- Standardization – standardizing the CapEx request workflow across company departments and divisions can lead to a predictable and timely outcome. BPM tools can provide visual aids, like K2’s ViewFlow, to always provide a status on the standardized process.
- Automation – automating the entry of data, as well as its validation, minimizes errors and ensures the accuracy of any request. BPM forms can provides the ability to perform automatic calculations, summarize information, and check all the entered data for accuracy.
- Improved Collaboration – with any Business Process Automation (BPA) tool, communications are automated to keep key personnel informed throughout the process. A centralized location for comments, as well as a communication log for each request, can help involved stakeholders make quick adjustments and minimize any delays.
- Reduction in Approval Time – the standardization and centralized communication leads to reduced processing time. In addition, automated escalation can be put in place that enforce approvals and ensure process flow.
- Transparency – BPM systems provide fantastic reporting to give full visibility and transparency to any process. Management can view the process in real-time, identify bottlenecks and make incremental improvements to improve efficiency and increase overall productivity.
These are just a few of the benefits from automating your finance processes with a BPM tool. Want to see a CapEx process in action? See the video below: