4 Ways Finance Leaders Benefit From Business Process Automation

Under normal conditions, it’s complex to effectively manage restaurant administration and operations. Yet, industry-wide, franchised businesses are experiencing pressures that put operational health and profit margin at risk.

Here are three examples of changing market dynamics that have made day-to-day decisions difficult for franchisees and their finance leaders.

Inflation. Along with strong demand and supply constraints, we’ve seen a surge in inflation. Government data shows US annual inflation at 6.8 percent for the 12 months ending November 2021. That’s the highest level since 1982 and double the rate of the two worst inflationary years of this century (2000 and 2011).

Labor shortages and wage pressures. In February 2022, there were 2.3 million fewer people in the labor force than before the pandemic. Many brands have announced wage increases due to the tight labor market. In fact, this year marked the first time the average wage of restaurant workers rose above $15 an hour, according to the Bureau of Labor Statistics.

Pandemic pressures. The pandemic put pressure on operational health as franchise operators had to redefine how everyone from restaurant workers to back-office administrators got work done.

In this article, we explore four ways business process automation technology provides franchisees and their finance leaders with greater operational flexibility to navigate these challenges along with the tangible opportunity to improve profitability.

Significant financial accuracy and flexibility

For too long, operators have experienced the pain of trying to make strategic financial decisions off spreadsheets. But when you’re managing a multi-location business or trying to scale, the level of complexity combined with the tedium of manual data sourcing makes it nearly impossible to make strong decisions quickly.

Data accuracy plus real-time visibility is a requirement to guide the positive financial direction of the business. Intelligent automation allows for both. That gives franchise operators the opportunity to optimize cash management and improve profitability.

Faster, more accurate P&L & easy reconciliations.

Process automation gives staff the ability to focus on more strategic objectives and finance leaders the power to run lean while effectively scaling up.

Better vendor and cash management.

The combination of inflation, rising labor costs, increased prices at the pump, and general costs associated with vendor services all point to increased costs for the business. In the face of that, it’s more important than ever to take a proactive view of vendor and cash management.

Intelligent automation provides consolidated data on vendors, showing how much the business is paying to each vendor over the course of time. With that data in hand, you can get a better idea of top vendors to help focus supply chain and relationship management efforts. It extends beyond that, though, to financial accuracy. Errors in invoicing can impact your food cost percentage. With visibility into expenditures, including to whom it’s going and when, you’re able to catch issues with vendor pricing.

Taken altogether, process automation gives AP staff the ability to focus on more strategic objectives and franchise owners the power to run lean while effectively scaling up.

Offset expenses when paying expenses.

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