Regardless of widespread COVID-era digitization, finance departments proceed to depend on paper-based methods to the detriment of their enterprise
MIDDLETON, Wis., November 18, 2021–(BUSINESS WIRE)–Esker, a world cloud platform and chief in AI-driven course of automation options for finance and customer support capabilities, in the present day launched a nationwide examine, “2021 State of Finance Report: Digital Transformation & Enterprise Disruption.” The survey reveals that the majority finance and accounting professionals have undergone no less than partial digital transformation, nevertheless, the trade continues to be closely missing the following step: a complete automation overhaul of enterprise processes.
The survey polled 1,000 respondents, consisting of 109 C-level executives, 92 VPs, 49 administrators and 750 practitioner-level finance and accounting professionals, and was performed from September 20 – 24, 2021.
When COVID-19 compelled American companies to undertake work-from-home insurance policies, firms shortly realized their reliance on paper-based processes may not assist day-to-day operations. Because of this, 83% of firms needed to digitize no less than some paper-based processes. Right this moment, practically 18 months later, nearly all of finance professionals (64-69%) nonetheless report that lack of course of automation negatively impacts their group. The results cited embrace gradual shopper service/processing occasions, lack of oversight, worker frustration, and, in the end, poor retention of division workers.
Digitization was do-or-die for companies when the pandemic hit. Nonetheless, failing to automate these digital processes can depart room for human error and will nonetheless be a burden for workers. In truth, seventy eight % of finance professionals imagine workers make errors when utilizing guide processes, together with misplaced paperwork (69%), compliance breaches (68%) and discount in worker productiveness (65%). The findings additionally revealed widespread doubt for a profitable future if one other drastic state of affairs arose, with 76% of respondents reporting that they don’t seem to be assured their enterprise has the expertise wanted to take care of efficiency requirements ought to one thing (reminiscent of one other pandemic) pressure folks to work remotely once more.
“We needed to conduct this survey to make clear how damaging paper-based methods will be on enterprise effectivity, efficiency and even workers morale,” stated Emmanuel Olivier, Esker Worldwide COO. “This information exhibits that finance professionals at each degree clearly see the obtrusive issues spurred by lack of digitization of their organizations and wish to automate their methods to keep away from the doubtless devastating results of errors, however there’s a considerable disconnect between want and deployment.”
For individuals who reported having already absolutely automated their money conversion cycle, greater than 80% stated it made their enterprise extra environment friendly/profitable. Alternately, 96% of these whose firm has not automated their money conversion cycle imagine that automating money software — a vital a part of the money conversion cycle — would improve their group’s effectivity and success.
Regardless of nearly all of respondents who automated a part of their money cycle seeing success, and people who haven’t acknowledging the advantages of doing so, the survey nonetheless exhibits low charges of automation adoption throughout all processes, with solely 20-23% of respondents reporting that they’ve automated core methods, together with:
With finance and account professionals understanding the advantages of automation and having uncertainty for the long run, it’s shocking that solely 17-24% intend to automate enterprise processes within the subsequent two years. For instance, 96% of respondents whose firm has not automated their money conversion cycle imagine that automating money software would make their enterprise extra environment friendly and profitable. Nonetheless, solely 18% plan to automate their money software earlier than 2024.
Why are firms and decision-makers nonetheless refusing to automate quite a lot of processes? The reply could also be budgetary restraints, as greater than half of finance and accounting professionals report that they exceeded their allotted funds for digital transformation. Respondents cited hidden prices, objective submit adjustments in the course of the challenge and a scarcity of clear targets as simply a number of the elements that derailed their goal budgets. Needlessly lengthy timelines may additionally play a task in pushing automation to the again burner, as practically 70% report that it took greater than two years to see any ROI from their most up-to-date digital transformation initiative.
“Esker prospects usually begin to see ROI round 6 months after the answer is deployed,” stated Steve Smith, Esker U.S. COO. “Companies turned to Esker in the course of the pandemic with a necessity for digitization and automation. We’re delighted to shortly rework their money conversion cycle and in the end strengthen the corporate’s backside line.”
One other operational hurdle addressed within the survey is how fragmented todays’ ERP panorama is, with respondents nearly evenly break up throughout 14 ERPs, which factors to how ERP-agnostic expertise is vital to success. In truth, 94% reported that their firm failed no less than one initiative with one other enterprise resulting from ERP misalignment. At a time when mergers and acquisitions are their highest since 1995, guaranteeing seamless transitions could make or break newly acquired or merged organizations.
“Corporations can inherit disparate ERP methods by way of mergers and acquisitions, however they need to function as a cohesive group in a short time. As a substitute of present process expensive ERP overhauls, ERP-agnostic automation options combine to seemingly present one system throughout essential enterprise processes,” stated Olivier.
The advantages of automation and course of alignment transcend elevated effectivity and cost-cutting. Esker believes that by automating tedious, guide duties, firms can create a greater enterprise expertise and spur positive-sum progress for all events concerned. Staff can give attention to strategic facets of their job with a way of function. Prospects obtain increased high quality service from workers which have the correct data and the time to assist. Suppliers are paid quicker to extend money circulation and strengthen firm relationships.
To entry the complete report, go to: https://quitpaper.esker.com/2021-State-of-Finance-Survey-report.html
Esker is a world cloud platform constructed to unlock strategic worth for finance and customer support professionals, and strengthen collaboration between firms by automating the money conversion cycle. Esker’s options incorporate applied sciences like Synthetic Intelligence (AI) to drive elevated productiveness, enhanced visibility, lowered fraud danger, and improved collaboration with prospects, suppliers and internally. Esker operates in North America, Latin America, Europe and Asia Pacific with world headquarters in Lyon, France, and U.S. headquarters in Madison, Wisconsin. For extra data on Esker and its options, go to www.esker.com. Comply with Esker on LinkedIn and be part of the dialog on the Esker weblog at weblog.esker.com.
View supply model on businesswire.com: https://www.businesswire.com/information/house/20211118005407/en/
Press Contact: Nick Wilson
Tel: (972) 235-3439 – [email protected]
Investor Relations Contact: Emmanuel Olivier
Tel: +33 (0)4 72 83 46 46 – [email protected]