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CFO Research Points out how Organizations Utilize Additional Time made Available by Automation

CFO Tech Outlook | Tuesday, August 04, 2020

Censuswide, the global insight-driven research company, and Tipalti, the leading global payables automation platform, announced the findings from a survey of over 250 CFOs at medium-to-large enterprises in their finance departments concerning the present state of automation amidst the global coronavirus (COVID 19) outbreak

FREMONT, CA: Today Censuswide, the global insight-driven research company, and Tipalti, the leading global payables automation platform, announced the findings from a survey of over 250 CFOs at medium-to-large enterprises in their finance departments concerning the present state of automation amidst the global coronavirus (COVID 19) outbreak. It analyses how organizations plan to benefit from the additional time made available by automating processes.

The survey found that over seven in ten finance teams (72percent) spend up to 10 people-hours per week, or 520 hours per year on AP-related tasks like invoice processing, supplier inquiries, supplier payments execution, PO matching, new supplier registration, and payment reconciliation that can be automated.

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More than a quarter (28 percent) of respondents said their teams dedicate up to 20 hours a week on AP tasks, amounting to possibly 1,040 hours annually. However, only 4 percent of CFOs said their teams spend fewer than 12 hours on these tasks per month.

Amid COVID-19, 75 percent of CFOs said their finance teams have been able to function and complete all processes in time while working remotely but only after making significant changes. And just 14 percent of finance teams were ready to work from home without making changes to existing processes.

Among the forward-looking CFOs who have automated some or all of their finance processes, 47 percent saw an improvement in the customer experience, and more than 40 percent benefited by offering an improved supplier experience. Thirty-seven percent reported a reduction in their level risk (fraud, audits compliance, etc.), 34 percent experienced better visibility and faster financial reporting, and 29 percent said automation improved morale. Finally, 17 percent of respondents have already successfully moved team members into more strategic roles within the organization, likely to the elimination of manual, repetitive tasks.

"We could see that Accounts Payable was becoming a burden. Vendor count and international payments were going to increase, and we needed to make sure the right processes were in place before it hindered cash flow management," said Kevin Crowley, Accounting Manager at Therabody. "Now, we have time to find ways to reduce costs and enhance revenues. We're focused on strategy, not just making sure that people are getting paid on time. We started making payments in more countries over the past year, and before automation, we still had to log into numerous bank accounts to pay vendors and lost track of invoices. Automating payables accelerates our monthly close, gives us confidence in the numbers every month, frees up time to analyze results, and enables us to focus on the things that matter like working with executives to drive the business forward."

When asked about the anxiety around the automation of processes, 98 percent of CFO respondents had some difficulties among their finance team about automation on their finance operations. The majority (77 percent) of respondents said their teams are concerned about not having the right skills to manage increased automation. More than half (57 percent) are worried that automated solutions could replace their jobs. However, 62 percent of CFOs stated they plan to switch the focus of their employees that currently handle manual finance tasks to higher-value work. If there is full elimination of a job due to automation, 77 percent of respondents said they plan to transfer those workers to a different department, and 50 percent of respondents said they would retrain their team members to develop new skills.

"As the economy slowly recovers and the new normal settles in, many challenges still lie ahead for business leaders as they navigate beyond this difficult period," says Chen Amit, CEO, and Co-Founder of Tipalti. "Corporate Finance is expected to do much more than traditional accounting. Automation of the financial operation is a critical enabler for the finance organization to make this transition. CFOs and finance leaders at modern, high-velocity companies play a critical role in guiding their companies through this challenging time, ensuring they're coming out the other side stronger while setting up their organization for long term success."

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