AI to Save the Office of the CFO

Entering the Age of Spiritual ERP 

Today, we are incredibly fortunate to witness what is likely to be one of the most exciting technological revolutions in human history—the AI revolution. We are standing at the forefront of a moment where this technology is rapidly surpassing human intelligence at an unprecedented pace, and this is only the beginning. 

AI already making such advancements as detecting early signs of cancer, and delivering analysis on complex financial data. One of the areas it is for sure to make a prominent impact is the ERP. 

With AI, ERPs will exceed human intelligence in the near future. NetSuite already release AI-powered Redwood UI and Ask Oracle that help users to find the right data, tasks, 

If now it’s hard to imagine the world running without the Internet, soon enough, you will have trouble imagining life without AI. AI will be everywhere. It will be faster, smarter, more efficient. 

Now, if you’re thinking, “Well yeah, obviously computers are already more efficient at tasks than humans, so what?”. No, we are talking about different level of intelligence. The level of intelligence that is beyond automation and compex calculations. The AI of the future will understand human behavior to such extent that it will know your next action way before you even think about it. What we call it at Kolleno is the upcoming “Age of Spiritual ERP”. But what do we mean by that? 

Spirituality involves the recognition of a feeling, a sense of connection to something bigger than ourselves, typically searching for meaning in life. It is knowing that our lives have significance beyond a mundane everyday existence. AI is on the path to become something way bigger that optimisation of everyday tasks. It is becoming the literal extension of our mind and body, unlocking incomprehensible opportunities and new possibilities of human existence. AI-powered ERP systems will be there to contribute to more significant and meaningful purpose that simply making financial reports for compliance. In the Age of The Spiritual ERP, the AI will be there to help you make your wildests thoughts and ideas a reality. 

It will know when and how your next invoice will be paid. It will create and execute the collection strategy making sure that your cash flow is always healthy. You will simply put 80% of current tasks on autopilot and finally have the time to do what you wanted for such a long time – to be involved in strategic, more meaningful and impactful work. The kind of work that is done to not simply sustain existence but to contribute to something bigger and greater. This is how we envision Kolleno in the age of Spiritual ERP.

Kolleno’s vision is to fix what is broken in the Office of the CFO with the latest technology and driven people behind it.  But what is actually broken? 

Right now, the picture is not so bright and happy and one of the reasons is the completely outdated software stuck in dinosaur age that have not kept up with the needs modern Office of the CFO. 

If you look at what finance teams are doing day-to-day, you would be surprised but it mostly would be transactioning and record keeping activities, such as issuing checks, sending payments, reconciling and so on. Then, a team spends the rest of the time on reporting and compliance. But what about financial planning and strategic finance? The modern CFOs today have such little time for product planning, capital structure, M&A. According to the recent survey of financial leaders, 98% agree that they are putting off important strategic work due to low-value tasks such as administration, data collection, or reporting.

All energy and resources go to tasks that simply in this age should be automated and run by AI. 

So, let’s take a closer look at the problems:

Payments 

The current state of payment behavior in many firms is outdated and problematic, particularly when it comes to the continued reliance on cheques rather than adopting more modern, efficient methods like direct debit. The statistics tells us that staggering 81% of businesses in US,  the world’s leading economy are still using cheques. Cheques, once a standard in business transactions, have increasingly become an anachronism in today’s fast-paced digital economy. The manual process of issuing, mailing, and cashing cheques is slow, prone to errors, and costly in terms of both time and resources. Moreover, the reliance on cheques creates unnecessary delays in the payment process, which can disrupt cash flow, strain supplier relationships, and hinder overall business efficiency.

The persistence of cheque usage reflects a reluctance to embrace change and modernization, often rooted in a preference for familiar processes or a lack of awareness of the benefits of automation. However, as the business landscape becomes increasingly digital, firms that continue to rely on outdated payment methods risk falling behind their more technologically adept competitors. Embracing direct debit and other modern payment systems is not just a matter of convenience; it is essential for staying competitive in a market that demands speed, efficiency, and reliability.

When the focus is solely placed on just getting the payment but not the actual process, this is where the problem is rooted. The attention of many finance teams is concentrated on merely securing payments rather than optimizing the payment process which is a common problem across various organizations. This approach often results in inefficiencies and missed opportunities for strategic improvement. Finance departments frequently find themselves bogged down by manual, time-consuming tasks such as data entry and approval processes, which diverts attention from higher-value activities like strategic planning and process improvement. However, many businesses do not recognise this as a problem. Using old and familiar spreadsheets gets the job done in one way or another. 

The problem is in the actual behavouir and outlook of businesses when it comes to payments. Everyone is so focused on the payments that they overlook the underlying issue, which is the workflows and data that must be properly managed and optimized before the payment can even be made.The issue of B2B payments presents a significant challenge for the Office of the CFO, because the root of the problem isn’t just about the transfer of funds but the intricate workflows that accompany these transactions.

In the realm of B2B payments, processes such as invoice validation, approval hierarchies, tax calculations, and compliance checks are essential yet often very time-consuming. These steps are necessary to ensure accuracy and legal adherence but can lead to bottlenecks, delayed payments, and strained relationships with vendors.

For the CFO, this creates a twofold problem: managing cash flow effectively and maintaining operational efficiency. When payments are delayed or errors occur due to complex workflows, it can disrupt the financial stability of the company. The inefficiencies in these processes lead to lost opportunities, as financial resources are tied up in a convoluted system rather than being utilized for strategic investments or growth initiatives.

Additionally, the rise of digital payments has added another layer of complexity. While digital tools offer opportunities for automation and streamlined processes, they also require integration with existing financial systems and adherence to evolving regulatory standards. For CFOs, this means not only managing the transition to digital payments but also ensuring that the entire workflow—from purchase order to final payment—is seamless and error-free. 

So, how to fix this broken part?  Instead of treating payments as isolated events, view them as the final step in a broader B2B workflow that can be managed from start to finish. This approach makes the process much more manageable. The focus should be always on that workflow first instead of the payments which is only the tip of an iceberg.

On-premises vs Cloud

Throughout history, people have used various accounting tools,  from the abacus and the Incan quipu knot system to written ledgers, adding machines, and calculators.

Today, most businesses use some sort of software to manage invoices, orders, accounts receivable, and accounts payable. The technological capabilties of this software can vary significantly, depending on the business’s complexity and customer needs. For instance, many small businesses manage their finances simply using an old friend Excel. However, as these businesses grow, they often still continue relying on Excel spreadhseets, leading to scattered data across multiple decentralized systems, that causes outdated or conflicting information.  

This situation results in wasted time as teams try to reconcile discrepancies and validate their data. Eventually, businesses must invest in a more robust accounting software package, and as they expand, they may need to adopt a comprehensive ERP system. When it comes to managing accounting, businesses have several options. Some choose to outsource their accounting to an agency, but this approach places critical business data and the potential for insights in the hands of a third party. For those who opt for accounting software, they can choose between on-premise solutions or cloud-based platforms.

Traditionally, accounting software has been hosted on-premise, with the software and database stored on a local server accessible only to people within the organization. Cloud computing initially started with basic functions like email, but has since expanded to encompass nearly every type of software application.

There isn’t really any advantage to choosing on-premise software over cloud to manage finances. Some on-premise vendors may argue that storing accounting data locally offers security benefits. However, the security measures taken by cloud accounting software providers—both physical and cyber—are typically far more advanced and sophisticated than what an individual business can implement. While certain organizations are legally required to keep data within specific geographic boundaries, most cloud accounting software vendors have already established, or are in the process of building, data centers in those regions to comply with such regulations. Today, the choice should be always the cloud. 

However, it isn’t in many cases. Many business still rely on outdated legacy systems to manage their finances.  These systems, while once effective, are now inefficient, inflexible, and unable to keep pace with the demands of modern business environments. As technology evolves, the need for more agile, scalable, and automated financial management solutions becomes critical. Relying on legacy systems not only limits a company’s ability to innovate but also introduces higher risks, such as security vulnerabilities and operational inefficiencies. Transitioning to more advanced, cloud-based or AI-driven platforms can unlock new opportunities for growth and streamline operations.

Platforms that address some of the current challenges faced by finance teams with user-friendly interfaces already exist. But is that enough? Certainly not.

At Kolleno, we believe the Office of the CFO deserves more than just solutions that alleviate pain points. They deserve cutting-edge technology that goes beyond, offering unparalleled tools that open doors to greater, more ambitious projects.

Our vision is to create an intelligent platform that fixes the Office of the CFO entirely.

By 2050, Kolleno envisions the Office of the CFO focusing solely on strategic, high-impact initiatives—the things that truly matter—while AI seamlessly manages the transactional, record-keeping, and reporting tasks that currently consume most of finance teams’ time.

Introducing Kolleno AI Copilot—your trusted ally in AR management. 

Kolleno AI Copilot combines four core features, making it the ultimate AI solution designed to empower you to manage any invoice volume with confidence and precision.

1. Too many clients to chase, too many credit policy steps to follow, to much to remember? Kolleno’s Intelligent AI Workflows is the solution. 

Imagine a world where managing your accounts receivable is no longer a tedious, error-prone process. With Kolleno’s Intelligent AI Workflows, that world is a reality. Gone are the days of manually tracking every client interaction or worrying if you’ve followed the correct steps in your credit policy. Kolleno’s AI automates this entire process, acting as your personal assistant—one that never misses a detail, forgets a task, or sends an invoice to the wrong person.

What truly sets Kolleno’s Intelligent Workflows apart is adaptability. The AI evolves with your business, constantly learning from customer behaviour and optimizing processes. It’s not just about automating tasks; it’s about making smarter decisions. The system analyzes payment patterns, customer response times, and even preferred communication channels, ensuring each client interaction is handled in the most effective way possible. Whether it’s a personalized follow-up email or an escalation for overdue payments, the AI chooses the best approach every time.

And the best part? You can trust that once a workflow is set, it will run flawlessly. No more second-guessing, no more human errors—just a highly efficient, intelligent system working in the background to make sure your AR management is seamless. This isn’t just automation; it’s a smarter, more refined way to handle your finances, giving you peace of mind and more time to focus on growing your business. With Kolleno AI, the future of AR is not just easier—it’s smarter and more powerful than ever before.

2. Tired of the endless cycle of manually reconciling payments over and over again? Kolleno AI reconciliation is here to end it

​​Kolleno offers a transformative solution to the traditionally manual and time-intensive process of payment reconciliation, which often involves the tedious task of manually matching invoices with bank payments and receipts. This manual approach not only consumes significant time but also increases the risk of errors and inefficiencies, which can disrupt the financial operations of businesses.

Powered by advanced AI technologies, Kolleno’s payment reconciliation system leverages machine learning and proprietary algorithms to create an intelligent matching system. This system meticulously analyzes a variety of data points to automatically associate invoices with the corresponding bank payments and receipts. The findings are then seamlessly integrated into the clients’ accounting systems, eliminating the need for manual intervention. This AI-driven approach not only enhances accuracy but also streamlines the entire reconciliation process.

The immediate benefits of this innovation are profound. With Kolleno’s AI-powered reconciliation, clients can update their accounting systems with just a click of a button, drastically reducing the time and effort traditionally required for this process. This automation not only speeds up the reconciliation but also significantly improves the accuracy of financial records. By automatically reconciling within ERP systems, Kolleno ensures that businesses maintain up-to-date and precise financial data, leading to more efficient and effective financial management.

3. Feeling uninspired by spending your days on repetitive, routine tasks? Kolleno AI Assistant will bring the change you’ve been waiting for.

Kolleno introduces its advanced AI Assistant, a groundbreaking feature that exemplifies the seamless collaboration between human expertise and artificial intelligence. In this dynamic partnership, the human user serves as the pilot, guiding the overall financial journey, while the Kolleno Assistant acts as a highly capable co-pilot, providing invaluable support throughout the process. This innovative collaboration ensures that while the human maintains control, the AI Assistant enhances efficiency and decision-making, creating a harmonious blend of human insight and technological prowess.

The Kolleno Assistant, your online AI credit controller, goes beyond merely managing routine tasks. It autonomously handles day-to-day communications, such as email inquiries, while offering tailored payment options and plans that align with individual customer profiles. This AI-driven assistant is designed to streamline communication channels, summarizing relevant customer information and providing customized suggestions that enhance response efficiency. By automating these routine aspects of credit control, the Kolleno Assistant allows the human user to focus on more strategic activities, ensuring that the business runs smoothly and effectively.

One of the standout features of the Kolleno Assistant is its ability to adapt its communication style to match each customer’s preferences. It intelligently identifies situations where human intervention is necessary, particularly in cases that might lead to unpaid or disputed invoices. This ensures that potential issues are addressed promptly, maintaining positive customer relationships and reducing the likelihood of financial discrepancies.

Overall, the Kolleno Assistant represents the advanced capabilities of Kolleno’s AI technology, offering businesses a powerful tool to manage their credit control processes with greater precision and efficiency. By acting as a collaborative partner to the human user, this AI assistant helps navigate the complexities of financial management, making it an indispensable asset in the modern business landscape.

4. Need fast and reliable insights? KollenoGPT has it 

In today’s fast-paced and unpredictable business environment, companies must be able to access real-time insights and analytics to swiftly adjust their financial strategies in response to rapidly changing market conditions. However, 89% of financial leaders are making decisions at least monthly that they know are based on inaccurate or incomplete data. Frustrating, right? 

AI-powered financial models developed at Kolleno are capable of analyzing current data and generating real-time insights. This enables CFOs and financial teams to make informed decisions swiftly, allowing businesses to adapt to market shifts with agility and confidence.

This is where Kolleno GPT comes into play, representing the most advanced technology in providing superior access to data and insights with just one click. Developed to revolutionize financial management, Kolleno GPT leverages a secure, organization-specific data model to deliver instant responses to a wide range of inquiries. Whether it’s analyzing financial figures, examining email content, finding customer communication timeline or projecting cash flow, Kolleno GPT empowers users with immediate, accurate insights tailored to their unique business needs.

The development of Kolleno GPT began with a clear objective: to create a proprietary data model that securely integrates a company’s financial data, ensuring that it is both accessible and exclusive to the organization. This robust model forms the backbone of Kolleno GPT, allowing users to effortlessly query vast amounts of data, including invoices, emails, text messages, and phone call logs, and receive instant, precise answers. By harnessing the power of AI and this innovative data model, Kolleno GPT transforms the way businesses manage and interpret their financial data, making real-time insights readily available and enabling companies to stay ahead in an ever-changing market landscape.

How do we envision the world by 2050?

In the world of literature and film, there are numerous depictions of robots taking over human tasks. Remember the Pixar movie WALL-E, where humans, now much larger in size, spend their days lounging by the pool, sipping cocktails, while the ship’s autopilot—a robot—runs the entire spacecraft? You might wonder, is this a glimpse into our future?

It’s a fascinating thought, but in reality, AI isn’t here to replace us or lead to a life of mindless leisure. Instead, AI is designed to free us from the mundane, repetitive tasks that drain our energy and creativity. With tools like Kolleno AI Copilot, the goal is to elevate our daily lives by automating the routine, leaving us with more time to focus on what truly matters—whether that’s innovative problem-solving, creative endeavors, or even just enjoying more time with family and friends. Rather than robots taking over, it’s about working alongside them to enhance our capabilities and empower us to achieve more than we ever could alone.

Instead of a dystopian future where robots run the world, AI offers us the chance to work smarter, not harder. With burnout on the rise and Gen Z embracing “quiet quitting,” AI could be exactly what we need now –  to let people focus on what they truly enjoy.

The goal of AI, like Kolleno’s AI copilot, isn’t to replace us—it’s to empower us. It helps us unlock our potential, giving us more time to focus on what really matters, whether that’s advancing in our careers or pursuing new ideas.

So, while science fiction might show a future of robots ruling the world, the reality is far more exciting: AI is becoming our partner, lifting the weight of routine tasks and allowing us to reach new heights in both our professional and personal lives. 

The future isn’t about machines taking over—it’s about humans and AI working together to create a world where we are simply happier and more spiritually fulfilled.