5 areas the finance department should prioritise over other areas

With their insights into company figures, accounting departments are ideally positioned to improve operations and increase revenue. Here’s a few ways they can do that.

It would be interesting to know the last time someone said, “You know, I really miss doing the accounts manually in a good old-fashioned T-account book!” with the expectation of being taken seriously.

Thus far, the vast majority of modernisation programmes that have affected finance departments have reduced the number of boring tasks, while also paving the way for the accounting department to do more in less time. They have sometimes taken the opportunity to spend more time on tasks that can really improve business operations, strengthen the company’s solvency and enhance competitiveness. Now this is more relevant than ever.

New technology has the potential to do much of the work automatically.

Exactly how much of the work can be done automatically not only varies from industry to industry and from company to company, but also between different tasks.

- With SEMINE, customers usually achieve 70–90% automation rate quite quickly (achieving an even higher automation rate for some tasks), and then they continue to improve from this point onwards.

But long before the company achieves fully automated processes, the finance department will have freed up a lot of time to tackle many new tasks. Everyone already expects accounting departments to keep control of costs and the bottom line, but with Accounts Payable automation and other tools, finance professionals can contribute just as much to strengthening the top line.

READ MORE: Reduce costs and gain better control with AI-driven accounting

Either way, here are 5 areas you can focus on:

1) Optimize Supplier Relationships

A natural place to start might be to take a closer look at your company’s suppliers. It might be an idea to prepare a comprehensive and up-to-date overview of the effect of incoming invoices on the company’s cash flow and liquidity. Another factor is that automatic data collection from incoming invoices at line level will, over time, provide the numerical basis for more in-depth analyses. These analyses can provide answers to several interesting questions: 

• Do all parts of the organisation have equally good terms?
• Do different units purchase the same goods from multiple suppliers, and could those purchases possibly be consolidated with one supplier to leverage increased bargaining power to achieve lower prices?
• Could your company benchmark your terms against other players in the market (either with non-competing companies using the same goods, or perhaps with other players in the same industry)?

When we say “terms”, it does not just have to be about money – it could just as easily be about credit time, discounts for earlier payments or for high volume purchases.

You should also note that this does not have to be limited to external conditions. Are there any suppliers/invoices that always attract late fees for your company? And is it then the internal approval process that needs to be improved, or could it be necessary to enter into dialogue with the supplier in order to transfer the invoices to electronic formats like PEPPOL or have the supplier specify details in a more transparent and appropriate way?

2) Analyze Customer Payment Behavior

Another useful exercise is to look closely at the company’s customers. It is natural to consider how payment terms and outstanding receivables will impact liquidity—ideally in conjunction with the overview of payment flows to suppliers. Would it be beneficial, for example, to incentivize some customers to pay earlier? What can they be offered? And in this context, could it reduce capital strain if all invoicing is aligned with VAT deadlines 

3) Review Product Portfolio

Most businesses can benefit from a more in-depth analysis of their product portfolio. It is not usually difficult to identify best-sellers, but are these the products that generate the most profit?

Analyze sales trends: Are there seasonal fluctuations that you could capitalize on? It may be wise to increase sales or reduce inventory before new items are purchased. Can you adjust prices, contract models, or packaging when demand is high, or adapt sales activity in quieter periods?

4) Optimize Pricing Strategies

Setting the right price is crucial for business success. If the price is too high, customers might opt for a cheaper alternative. If it’s too low, the company loses potential profit. In some industries (e.g., legal and consulting), price is critical for attracting the “right” clients, while in others (e.g., airlines and retail), it’s used to maximize volume.

Consider the interplay between your pricing strategy, products, and customer segments—what does it reveal about your market position? For example, if your prices haven’t changed in a while or haven't been reviewed thoroughly, it’s a good idea to reevaluate. Many businesses set prices based on cost-plus pricing (raw materials + labor + markup), but this may not reflect the true value to customers, leaving potential revenue untapped.

A starting point could be the customer analysis from earlier. Could profitability vary based on how different groups use your products? Perhaps some products provide more value to specific segments. In this case, consider adjusting your products and pricing to better suit these groups, which could lead to a more advantageous price structure.

What other factors play a role—credit terms, delivery conditions, product quality, or features? Adjusting these elements can enhance customer value, allowing you to justify higher prices.

Using Automated Analytics Tools can help you identify the best pricing strategy by analyzing customer behavior and market trends, ultimately increasing profitability and competitive advantage.

5) Streamline Processes and Workflows

We have discussed some simple steps, but it is also possible to be more expansive and challenge the way the department works—both internally and with the rest of the organization.

- One important task is to identify manual activities that can be automated with Accounts Payable (AP) software. Are there systems that can be connected—internally within the organization, with suppliers, customers, or partners, or even with the public sector?

Another area is to look at the efficiency of reconciliations (e.g., bank, VAT, subledger, or balance) or reduction of discrepancies—all time-wasters that create significant manual work should be targeted for elimination!

READ MORE: Unlock new insights to help your finance team thrive

Leverage Data Analytics

Whatever you decide to focus on, data analytics is crucial. The better you know your suppliers, what is purchased, and how, the more robust your supply chain can be. The more you understand your customers and how they use your products, the more confident you can be about sales levels and pricing. And the better you know your costs and needs, the more control you will have over your product portfolio.

The finance department should not handle all of this alone, but the analysis, systematics, and numerical understanding you possess are invaluable in any project that aims to address these issues.

Such initiatives should also strengthen the finance department’s standing with management and owners, showcasing how valuable your expertise is to the company.

Furthermore, a proactive and forward-looking finance department is a much more engaging and interesting place to work!