Financial industry leaders say increased manual processes are holding back economic recovery, but are reluctant to automate
foster city california, April 24, 2024 /PRNewswire/ — tipalti, the world's leading financial automation company, today announced that the majority of finance leaders (82%) admit that excessive manual finance processes are hindering their organization's growth plans for the year ahead. I made it clear. Two-thirds (66%) say that AP (Accounts Payable) is the most time-consuming manual process in finance. This research Insight Avenuereveals the challenges that financial leaders in the US, UK, and Europe currently face with inefficient AP processes and highlights how modernized workflows can open up new growth opportunities .
Gaining visibility into a company's spending is essential as companies seek to figure out how to best operate in a challenging macroeconomic environment. However, it appears that the finance team has been slow to respond. In fact, 79% report feeling like they are not keeping up with other parts of their business due to AP inefficiency and continued reliance on manual processes.
With fewer resources and time and an increased amount of invoices to process, financial inefficiencies became more apparent. More than three-quarters (79%) of finance leaders say the time they spend on manual data entry has increased by 24% in the last year, and it now takes an average of 41 minutes to process an individual supplier invoice. Masu.
Manual financial processes are holding back economic recovery
While recovering from continued macroeconomic challenges is a priority for many leaders and businesses around the world, 78% believe that growth in the current economy is only possible if they can maximize cost-saving opportunities across their businesses. I recognize that this is only possible.
However, inefficiencies within the finance department are impacting the rest of the business, and leaders can no longer ignore or tolerate these AP inefficiencies. Almost half (44%) said it was due to financial instability and the need to offset higher costs related to inflation, 42% said it was due to increased business complexity, and a further 39% said they were not open to criticism or change. from other parts of the business.
“Leaders in the financial industry know that navigating the waves of uncertainty requires more than manual inefficiencies in business,” said Rob Islak, president of Tipalti. “Automation does not provide businesses with the visibility and control they need to fully steer their business direction and thereby contribute to growth. The general lack of this means that finance leaders are still only scratching the surface of what's possible.
“In this economic climate, businesses need to consider where they can drive efficiencies and automate the entire end-to-end process for accounts payable. Although partial solutions may provide temporary relief, , the real transformation lies in embracing automation throughout the AP cycle, which will contribute to their economic recovery and help uncover opportunities for growth,'' he continued.
Barriers around skills, tools and aptitude still exist
On average, more than half (51%) of AP time is spent on manual tasks, but there is little appetite among many finance leaders to reduce this time. is only 45%. However, they recognize the benefits of termination. Automation to the end. Of those who are hesitant, more than a third (37%) cite required skills and training as the main barrier to investing in financial automation, followed by finding the right tools/vendors. (35%) cited good fit to the business model. Concerns about complexity (34%).
In addition to hindering organizational growth, continued negativity prevents finance teams from delivering strategic value to the organization in other ways. With the time freed up by finance automation, finance teams want to explore growth or efficiency opportunities (39%) and become more strategic and proactive when it comes to compliance. scam (38%) and make strategic recommendations to the business based on financial insights (36%).
AP inefficiency increases staff dissatisfaction, stress, and turnover.
In addition to this, AP inefficiencies impact on human resources, leading to difficulties in recruiting staff, increased staff dissatisfaction and turnover. More than half (59%) say they have considered quitting their job due to the stress associated with using manual AP processes.
Companies cannot escape these problems, especially when they are contending with an already shrinking talent pool. 84 on average% AP inefficiencies and continued reliance on manual processes may be contributing to financial or AP staff acquisition challenges. 83% linked this to increased turnover of finance staff, 83% cited personal stress and decreased motivation, and 77% cited dissatisfaction and low morale among employees.
“To counter the lack of inspiration and motivation in today's finance teams, we need to take steps to inspire the next generation of talent.” steve hunt, Chief Human Resources Officer at Tipalti. “This includes creating a more dynamic environment that embraces technological modernization to make career paths more attractive and enjoyable while promoting employee retention. , there is great potential to evolve and shape strategic decisions, but only if you are not stuck with tasks of low managerial value. ”
To access the full report, please visit: here.
methodology
Tipalti, in collaboration with Insight Avenue, conducted 600 interviews with finance and AP leaders in the US, UK, and US. Netherlands and Belgium. The necessary criteria is that the target is a high-growth company (he expects revenue growth of more than 20% in the next 12 months) with 50 to 1,000 employees. The interviews were conducted during the following period. March 2024.
About Tipalti
Tipalti is a global finance automation company that helps finance teams drive business growth by automating and streamlining accounts payable, bulk payments, procurement, and employee expenses in one connected suite. I am. Tipalti removes complexity, cost, and risk from time-consuming financial workflows, making it easy for finance teams to collaborate with employees and suppliers. Tipalti partners with leading banks and financial institutions such as Citi, Wells Fargo, JPMorgan, and Visa to help global companies efficiently and securely connect millions of suppliers across 196 countries, six payment methods, and 120 currencies. I'm ready to pay. More than 4,000 growth-oriented companies worldwide use Tipalti's suite of solutions to reduce manual treasury workloads by 80% and accelerate closings by 25% while gaining greater control over their finances and expenses. Masu. For more information, please visit: tipalti.com.
Source: Tipalti
