Glossary

Exception-based finance review is an operational model where finance teams focus only on transactions or data points that deviate from expected rules, rather than reviewing every item manually. Instead of systematic checks, validation is automated for standard cases, and human attention is reserved for anomalies.

‍

In finance operations, this approach dramatically reduces workload while improving control quality. Invoices, bank transactions, and accounting entries are continuously validated against contracts, historical patterns, or reconciliation rules. When data matches expectations, it flows through automatically. When it does not, the exception is flagged for investigation.

‍

This model shifts finance teams from a volume-driven review process to a risk-driven one. Time is no longer spent validating compliant transactions, but on understanding discrepancies that could indicate errors, overbilling, or fraud. As a result, teams gain speed without compromising accountability.

‍

Exception-based finance review is enabled by AI agents that can evaluate large volumes of financial data in real time and surface only meaningful deviations. At Phacet, this approach is embedded into processes such as supplier billing control, allowing finance teams to secure margins while scaling operations.