Safebooks, a company focused on enhancing corporate finance operations, has secured $15 million in seed funding to tackle what its CEO, Ahikam Kaufman, describes as the CFO’s “data plumbing” problem. The funding round, which concluded on December 9, 2023, positions Safebooks to leverage artificial intelligence (AI) in streamlining financial data management, addressing the growing disconnect between the speed of business operations and the slow, manual processes traditionally employed in finance.
Challenges in Financial Data Management
Corporate finance faces a significant challenge as businesses increasingly demand rapid decision-making capabilities. Despite advancements in automation for sales, marketing, and customer service, finance teams continue to rely on outdated methods such as spreadsheets and manual data reconciliation. This reliance often leads to slow and error-prone workflows, creating a gap between business needs and financial realities.
The office of the CFO is characterized by fragmented technology, where finance teams must integrate information from various systems, including Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), and billing platforms, among others. Kaufman emphasizes that this fragmentation complicates data validation and slows down the overall process, leaving accountants overwhelmed by the sheer volume of data they must manage.
Safebooks’ Innovative Solution
Safebooks aims to bridge this gap by providing a platform that sits atop existing financial systems, unifying data to facilitate a quicker and more accurate Time to Cash. According to Kaufman, the solution automates reconciliation processes, reduces risks associated with data handling, and enables real-time insights without necessitating a larger workforce.
The real breakthrough is not replacing humans, but combining human judgment with powerful tools.
This innovative platform processes both structured and unstructured data, mapping various financial records into a cohesive financial data graph. By doing so, Safebooks can identify anomalies and discrepancies across thousands of transactions, which can significantly enhance operational efficiency. One customer reported a remarkable reduction in contract processing time from approximately 22 minutes to just 22 seconds.
As finance teams handle thousands of transactions monthly, the ability to deliver real-time answers regarding cash flow and financial status is critical. Kaufman notes that traditional finance operations are increasingly challenged by the complexity of managing multiple systems, leading to a pressing need for automation.
The Future of Finance Automation
During discussions with Karen Webster, CEO of PYMNTS, Kaufman highlighted the persistent challenges in finance automation, particularly timing mismatches between different systems. While some platforms offer real-time updates, others, especially ERPs, operate on batch processes. These discrepancies can create vulnerabilities in financial operations.
Safebooks specifically targets the order-to-cash process, a critical area for compliance and customer visibility. Kaufman explains that errors in this realm are often quickly noticed by customers, necessitating a reliable and efficient system. He points out the unrealistic nature of manual oversight as transaction volumes increase, making automated solutions essential for scalable growth.
AI agents enable finance teams to enhance their output without significantly expanding their workforce. By continuously monitoring data and flagging issues in real-time, these agents help reduce operational risks and compliance exposures. Kaufman underscores that for rapidly growing companies, especially those in the technology sector experiencing year-on-year growth rates of 25%, 50%, or even 100%, relying on manual processes is no longer feasible.
As Safebooks implements its advanced solutions, Kaufman believes that finance teams will undergo a transformative experience. The integration of automation into financial processes not only enhances accuracy and speed but also reshapes expectations within the office of the CFO, aligning it with the pace of modern business demands.
Safebooks’ approach represents a promising shift in finance automation, paving the way for a more efficient and responsive financial landscape.