Enhancing efficiency in Finance operations: Bridging the “Automation Gap”
In today's rapidly evolving business landscape, automation is a crucial driver of efficiency and productivity. However, our "Automation Across Nations" research has revealed a significant challenge within Finance departments, and specifically in Accounts Payable systems, of an “Automation Gap”.
Below are some of the impacts this gap is having on the efficiency of Finance teams, and the opportunities for mid-market organisations to optimise their operations through the power of automation.
The impact of the “Automation Gap”:
85% of organisations indicated that the use of some form of automation in their finance processes, however, the study has uncovered a considerable disparity between automated and manual processes. Procurement and Finance professionals spend over a day each month reconciling supplier invoices, dedicating an average of 8.8 hours to this critical task. Surprisingly, they allocate only a fraction of their time, approximately 9.9%, to assess new technologies, suggesting a pressing need to bridge the automation gap.
The dominance of manual processes:
Adding to the challenge is the continuation of paper-based invoicing, with more than a fifth of invoices (21.6%) still being processed in physical form. This over-reliance on manual processes introduces a host of inefficiencies, including time-consuming workflows, heightened cash flow risks, and increased potential for human errors. It is essential for organisations to recognise the significant advantages that automation offers in terms of mitigating delays, reducing errors and avoiding financial penalties.