Finance leaders across the United States, United Kingdom, and Europe are facing significant barriers to growth due to the continued reliance on manual accounts payable (AP) processes, according to a recent study by global finance automation company Tipalti. The report, which is the result of interviews with finance and AP leaders in high-growth businesses, underscores a critical challenge in the finance industry: excessive manual financial procedures are hindering economic recovery and growth at a time when efficiency could define market leadership.

The study indicates that an overwhelming 82% of finance leaders acknowledge that their growth plans are being negatively affected by manual finance processes, with AP identified as the most time-consuming of these. Despite the clear impact on operational efficiency, there remains a significant trepidation around moving towards automation. Many leaders expressed concern over the necessary skills, finding suitable automation tools, and fitting these new systems into complex business models.

In today’s economic environment, where businesses are navigating high inflation and financial uncertainties, the cost of maintaining manual systems is becoming increasingly untenable. Finance departments report spending an average of 41 minutes to process a single supplier invoice, with manual data entry time having escalated by 24% over the past year. This not only puts a strain on resources but also diverts attention from strategic tasks that could drive business growth.

The reluctance to adopt comprehensive automation solutions in finance departments is not just a lost opportunity in terms of growth. It also significantly impacts the corporate culture within finance teams. According to the survey, a staggering 59% of staff in finance roles have considered leaving their jobs due to the stress and dissatisfaction caused by outdated, manual processes. This discontent is contributing to difficulties in attracting new staff and retaining existing employees, intensifying the challenges faced by these departments.

Tipalti’s President, Rob Israch, suggests that the solution lies in embracing automation across the entire accounts payable cycle, rather than implementing piecemeal or partial solutions. He argues that a holistic approach to automating finance workflows can provide the control and visibility necessary to steer company-wide growth and resilience.

Moreover, automation could free finance teams from repetitive administrative tasks, allowing them to focus on more strategic objectives like compliance, fraud prevention, and financial planning. Steve Hunt, Chief People Officer at Tipalti, amplifies this sentiment by highlighting the potential for finance roles to evolve into strategic positions that can significantly influence business trajectories, provided that they are not weighed down by manual inefficiencies.

Tipalti’s findings offer a clear call to action for business leaders: in order to foster a responsive, efficient, and strategically focused finance department, embracing automation is no longer just an option—it’s an imperative. As industries continue to battle economic pressures and competitive challenges, businesses that effectively integrate technology into their finance operations are likely to find themselves at a competitive advantage, both in financial performance and workforce satisfaction.