Task 4 - Resource - Finance Optimization Steps

The document outlines the finance optimization processes employed by EY FAAS during client finance transformations, focusing on assessment, diagnosis, design, and delivery stages. It emphasizes the importance of understanding current processes, identifying gaps, and implementing automation solutions such as robotic process automation (RPA) and artificial intelligence (AI). Additionally, it lists potential optimizations for accounts payable functions, including high-quality scanning, e-banking consolidation, and workflow automation to enhance efficiency and accuracy.

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Task 4 - Resource - Finance Optimization Steps

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bumblebee07903

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Overview of Finance Optimization Processes

This document provides a high-level summary of the steps EY FAAS often takes in
supporting a client through a finance transformation.

EY teams often start with a client’s current state assessment so that tailored services can be
designed to address clients’ specific issues. Understanding the clients’ processes and
related pain points, as well as benchmarking against other organizations with similar
operations, are key components of the assessment. Solutions are focused on steps clients
can take to automate their finance processes, including leveraging robotic process
automation (RPA) and artificial intelligence (AI).

When EY FAAS is engaged to assist and advise a client on their finance transformation,
particularly as it regards optimizing their finance function, the following steps are often
taken:
Assess:
1. Conducting group and individual interviews with stakeholders and C-Suite
executives to develop better a understanding about the existing finance systems,
processes, roles, reporting environment, etc.
2. Conducting sessions to walk through data collection templates and provide
instructions on how to populate.
3. Compiling and reviewing current state documentation.
4. Conducting a high-level maturity assessment based on information collected against
EY’s process maturity framework.
5. Validating current state findings with the stakeholders and C-Suite executives.

Diagnose:
1. Facilitating working sessions with key stakeholders to define client’s target
operating model.
2. Assessing the current maturity of client’s existing processes and controls against
leading practices, peer public and private sector organizations and the target
operating model.
3. Identifying gaps in the target operating model, and performing an assessment of
improvements required to achieve operational excellence.
4. Facilitating a workshop to present and validate findings on the gap analysis and
improvement opportunities identified.

Design:
1. Identifying specific initiatives, including leveraging the use of robotic process
automation and artificial intelligence to address gaps and improvement
opportunities identified to enable the evolution of existing processes to the target
operating model.
2. Validating the reasonability and completeness of the opportunities identified with
the client.
3. Developing a high-level road map to enable the evolution of the target operating
model.
4. Identifying business case inputs for the proposed improvements, including the
internal and external costs of implementation, as well as the quantitative and
qualitative benefits expected upon successful implementation.
5. Conducting an opportunity evaluation session to determine key priorities and
constraints and to objectively sequence and prioritize selected opportunities for
implementation.
6. Facilitating a session with key stakeholders to present and validate the high-level
road map and accompanying business case inputs.

Deliver:
1. Preparing project charters for each of the initiatives on the finance transformation
road map (including the objectives and key activities of the initiatives, along with a
listing of interdependencies, risks, technology enablers, costs, and benefits of
implementation).
2. Developing a detailed business case for presentation to leadership;
3. Defining the detailed steps to execute each initiative.
4. Defining specific future state targets for each initiative (e.g., ideal candidate for
automation pilot, number of days to close the books, organizational structure,
etc.).
5. Executing the key activities per the project charter.
6. Developing documentation for new processes and policies (as applicable) and
ensuring appropriate training is provided to impacted resources.
7. Developing and presenting a final report on total benefits realized, including a
comparison to initial budgeted costs, expected benefits and planned timelines.

Overview of Finance Transformation Optimizations

Below is a list of potential optimizations that EY FAAS has implemented in the past for AP
functions.
• High-Quality Scanning: Invest in high-quality scanning equipment to improve the
clarity and quality of scanned invoices, leading to higher data capture rates.
• Consolidate E-Banking Systems: Consider consolidating multiple e-banking systems into
a single platform to streamline payment management.
• Payment Dashboards: Create dashboards or reporting tools that provide a
comprehensive overview of payment statuses, making it easier to track and manage
payments.
• Supplier Portal: Create a supplier portal for low-volume suppliers to submit
invoices electronically, streamlining the invoicing process.
• Audit Trails: Establish systems to track and document the actions of buyers and
approvers during the approval process, enhancing visibility and accountability.
• PO Improvement: Work on improving the quality of purchase orders (POs) to facilitate
easier matching with invoices and reduce discrepancies.
• Multilingual OCR: Implement OCR technology capable of handling various languages and
alphabets to ensure accurate data extraction from invoices in different languages.
• Standardize I2P Processes: Streamline Invoice-to-Pay (I2P) processes across multiple ERP
systems to reduce complexity and improve efficiency.
• Master Data Quality: Address master data quality issues to prevent duplicate
postings/payments and incorrect rejections. AI can flag duplicate invoices, reducing the
risk of overpayments and preventing errors caused by manual oversight.
• Automated Payment Reviews: Implement automated reviews of payment processes
to reduce manual efforts and errors in the payment process.
• Workflow Automation: Use workflow automation tools to create efficient approval
processes, reducing cycle times and improving transparency. AI can streamline the
approval process by routing invoices to the appropriate individuals based on predefined
rules, reducing delays and bottlenecks.
• Centralized Invoice Receipt: Establish a centralized system or platform for receiving
invoices from various channels, making it easier to track and manage incoming invoices.
AI can automatically categorize invoices based on their content, such as vendor, expense
type, and payment terms, making it easier to manage and prioritize invoices.
• Collector Prioritization: Leverage AI to implement prioritization algorithms for collection
activities to improve collector efficiency.
• Goods Receipts (GR) Automation: Implement systems and AI processes to
automate the registration of goods receipts to expedite invoice posting.
• Legal Compliance Checks: AI can be used to implement automated checks to ensure the
legal compliance of invoices, reducing the risk of non-compliance.
• Digital Invoice Handling: Encourage suppliers to submit invoices electronically, reducing
the reliance on paper invoices and the risk of document loss.