Automation is redefining the finance function, yet too many teams are missing out on its full potential. Rob Israch, President of Tipalti, explains why success lies not in isolated tools, but in fully integrated systems that deliver real operational impact.
As automation becomes a standard part of the way businesses operate, the new opportunity for finance leaders lies in implementing it thoughtfully to unlock meaningful, sustainable efficiency. Yet with such a wide range of finance automation solutions on the market, one of the biggest hurdles is simply knowing where to begin.
In fact, a recent report highlights that nearly half (44%) of finance teams still spend most of their time on repetitive tasks. Meanwhile, full automation and AI adoption remains low, averaging just 5% adoption across core financial activities, underscoring the urgent need for change.
However, unlocking the true gains of automation in this way doesn’t stop with adoption, it’s about improving the way the finance function uses it – ensuring it integrates with legacy systems, scales effectively and delivers measurable value. What we’re seeing now is automation being poorly integrated, leading to limited capabilities and only superficial workflow improvements. This ultimately sets the stage for costly redeployments of new technologies to replace these partial systems in the future.
As we’ve already seen with AI, where only 4% of organisations have advanced capabilities, it’s not about hype or one-off integrations. The bigger picture is assessing your end-to-end finance operation and identifying the pain points within that workflow that are holding your team back. Then you can look for the right suite of automation tools that spans and modernises your operation. These tools alone aren’t silver bullets, but when used properly and together, they can deliver multiple benefits to finance teams.
Unravelling the automation myths in finance
Many finance teams declare they’ve automated their processes, but scratch beneath the surface, and what you often find is digitisation – not true automation. And the data backs it up: while nearly 98% of CFOs say they’ve invested in automation technologies, nearly half (41%) admit that just a quarter or less of their finance processes are actually truly automated.
What’s the difference? Well, there is one, and it’s important to understand the nuances. Digitisation is about converting manual, paper-based processes into digital ones – a necessary step but not automation. Automation involves eliminating the majority of manual effort through intelligent systems that manage workflows end-to-end.
Take Optimal Character Recognition (OCR), for example. These tools are used by many finance teams to free up time that would have been spent keying in data. But using that as your entire automation strategy can only take you so far. OCR is typically only accurate 75% of the time, and it only automates a sliver of the range of AP tasks completed by finance departments. It’s helpful – but far from the full picture and won’t help your organisation scale properly.
Defining end-to-end automation in modern finance
There’s still a lot of confusion around what true end-to-end automation really means, which isn’t surprising given the vast number of tools available. Our research shows less than half of businesses (40%) realise that full AP automation should include both invoice processing and payment execution, at a minimum. In fact, 29% think it only means automating supplier invoice processing.
Just 5% of mid-sized firms have fully automated account payable (AP) or accounts receivable (AR) functions. When only parts of the AP process are automated, finance teams are left to fill the gaps manually, which opens the door to errors, creates inefficiencies that drain time and resources down the line, introduces risk to the business, and damages business visibility.
End-to-end automation should feel seamless. What businesses don’t want is extra layers of complexity, they need a straightforward and unified platform that solves real problems. It needs to cover the entire AP lifecycle; from the moment a supplier is onboarded to the final reconciliation of payments. The best AP automation platforms make this easy by connecting directly to ERP and accounting software, so data flows smoothly across every stage.
The truth is finance teams don’t have time to juggle multiple tools each month. What they really need is a single, purpose-built platform that brings everything together – giving them visibility, control and efficiency across teams, processes and systems.
‘Doing more with less’ demands smarter technology
Amid rising costs, demands to increase productivity and streamline operations, finance teams are expected to do more with less – maximising value while minimising resources. Achieving this isn’t just about working harder or faster, it requires working smarter with intelligent systems.
As the cost control centre of the business, finance teams have a crucial role to play in driving efficiency from the core. By streamlining finance operations, businesses can reduce payment errors and bank fees, while gaining real-time visibility into their spend. This not only improves the timeliness of financial reporting and helps prevent potential fraud, but also frees up finance talent to help the business achieve its strategic objectives.
To make that happen, finance leaders need smart systems that take care of the mundane, repetitive tasks so they can focus on more exciting, high-value tasks like driving growth.
End-to-end solutions save finance teams time managing suppliers, as well as enhancing those relationships. Instead of sending countless emails chasing payments, suppliers get regular automated updates and real-time visibility on the payment status of their invoices.
Time for finance leaders to rethink their automation approach
Many believe that AP automation only consists of speeding up invoice processing, but, in reality, true automation covers the entire finance operations lifecycle. Finance teams that lack the real-time visibility to make strategic spend and cash flow decisions may be relying on tools that fall short.
CFOs should use end-to-end AP automation if they want to achieve streamlined processes and cost reductions. When finance leaders take a fully integrated approach, AP automation can deliver its full benefits, driving greater efficiency, accuracy and long-term impact.
