Automating finance

Rob Israch at Tipalti explains how automation in the finance function supports strategic growth

 

UK businesses continue to grit their teeth and show resilience despite one of the most challenging economic periods in UK history. With external pressures such as Reeves’ tax increases and rising inflation, businesses are forced to find ways to navigate uncertainty while maintaining stability.

 

The Bank of England’s decision to lower interest rates to 4.5% offers some relief, yet a downgraded 2025 growth forecast of 0.75% underscores the need for cautious financial planning. In anticipation of further challenges like increasing NI contributions and operational costs, which are set to tighten purse strings further, financial management is crucial for long-term success.

 

For many businesses, stability is the primary focus. However, sustainable growth remains achievable with the right strategies. The finance function plays a crucial role in providing the data and insights needed to determine when and what growth levers to pull. But this is only possible if real-time information is delivered efficiently, enabling confident decision-making and swift course correction where necessary.

 

So, while growth will be challenging this year, there are strategies businesses can adopt to help them along the way.

 

 

Eliminating bottlenecks in the finance function

Growth is the ultimate goal for any business, but it must be managed carefully to ensure long-term sustainability. Uncertain times present an opportunity to eliminate inefficiencies and build a strong foundation for future success.

 

A significant bottleneck for many businesses is the finance function’s reliance on manual processes for invoice processing, reporting and reconciliation. These tasks are not only time-consuming but also introduce errors, delays and inefficiencies. As a result, finance teams become stretched thin. Our recent survey found that, on average, over half (51%) of accounts payable time is spent on manual tasks – severely limiting finance leaders’ ability to drive strategic growth.

 

Repetitive tasks such as data entry, reconciliation, and approvals require considerable time and effort, slowing down decision-making and increasing the risk of inaccuracies. Given the critical role that finance plays in guiding business strategy, these inefficiencies and errors create significant roadblocks to growth.  

 

The pressure on finance leaders is therefore immense and while 71% of UK business leaders believe CFOs should take a central role in corporate growth initiatives, they are simply lost in a sea of manual processes and number crunching. In fact, 82% of finance leaders admit that excessive manual finance processes are hindering their organisation’s growth plans for the year ahead. To remedy this, businesses must embrace automation.

 

 

Automation drives sustainable growth

By replacing manual spreadsheets with automated solutions, finance teams can eliminate administrative burdens and focus on strategic initiatives. Automation simplifies critical finance tasks like bank feeds, coding bookkeeping transactions and invoice matching. Beyond this, it can also help alleviate the strain of more complex and time-intensive responsibilities, including tax filings, invoices and payroll.

 

The benefits of automation extend far beyond time saving, to accuracy, improving business visibility and enabling real-time financial insights. With fewer errors and faster data processing, finance leaders can shift their focus to high-value tasks like driving strategy, identifying risks and opportunities and determining the optimal timing for growth investments.

 

 

The role of efficiency in attracting investment

Once businesses have minimised time spent on administrative tasks, they can focus on the bigger picture: growth and securing investment. With access to cheap capital becoming increasingly difficult, businesses must position themselves wisely to attract funding.  

 

Investors favour lean, efficient companies, so demonstrating that a business can achieve more with fewer resources signals a commitment to financial prudence and sustainability. By embracing automation, companies can showcase their ability to manage operations efficiently, instilling confidence that any new investment will be spent and used wisely.

 

Economic uncertainty provides an opportunity to reassess business foundations and create more agile operations. Refining workflows and eliminating bottlenecks not only improves performance but also strengthens investor confidence by demonstrating a long-term commitment to financial health.

 

Additionally, strong financial reporting and effective cash flow management are crucial to standing out to investors. Clear, real-time insights into financial health demonstrate resilience and highlight a business’s resilience and readiness for growth.

 

 

The next steps for sustainable growth

Despite the economic challenges UK businesses are facing, sustainable growth remains achievable with the right strategic approach. By allowing finance leaders to focus on high-level decision making, businesses can respond with agility to market conditions and pursue growth with confidence.  

 

UK businesses have persevered through tough times for long enough. Now, by adopting smarter, more strategic financial management practices, they can position themselves for long-term, sustainable growth and success, regardless of economic conditions.

 

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Rob Israch is President at Tipalti

 

Main image courtesy of iStockPhoto.com and Supatman