How Modern Finance Leaders Are Redefining the Back Office Playbook with Automation

In today’s fast-evolving financial landscape, modern finance leaders are increasingly turning to automation to redefine back-office operations, streamline workflows, and enhance efficiency. A recent webinar, hosted by SSON and sponsored by OnPhase, explored how automation is transforming financial management. Industry experts John Titel, Senior VP of Product at OnPhase, and Ashley Felts, a former AP specialist, shared insights into how businesses are leveraging automation to improve accounts payable (AP) processes and redefine traditional finance operations. 

The Need for Automation in Back-Office Finance 

Finance departments are constantly under pressure to manage complex workflows, ensure compliance, and enhance efficiency while dealing with limited resources. As Ashley Felts shared from her experience at Thompson Truck, outdated manual processes often lead to inefficiencies. "We were constantly ordering pallets of paper, spending money on ink for every printer at every location and printing the same invoice multiple times just to get approvals," she recalled. This reliance on paper created unnecessary expenses and delays, leading to a reevaluation of their financial operations. Her company faced significant challenges due to paper-based approvals and time-consuming workflows. Transitioning to automation not only streamlined their processes but also reduced dependency on manual tasks, allowing employees to focus on higher-value work. 

The Current State of Back-Office Automation 

The webinar featured a live poll where attendees assessed their level of automation. The results reflected a broad spectrum of adoption levels: 

• 10% reported struggling with fully manual processes.
• 20% had basic technology in place but not comprehensive automation.
• 51% had implemented some level of automation in their workflows.
• 20% were highly automated and leading the charge in finance transformation. 

These statistics align with broader industry trends. According to a recent AP Automation Summit survey, 62% of finance teams utilize some level of technology in their processes. However, 10% still operate with no automation, highlighting the ongoing gap between aspiration and implementation. 

Overcoming Barriers to Automation 

One of the most significant hurdles companies face when adopting automation is resistance to change. As Felts noted, fear of change was a major barrier at Thompson Truck before transitioning to an automated system. "We were worried about the pushback, but once we saw the real-time benefits, faster approvals, better visibility, and reduced paper usage; it was clear this was the best decision," she explained. 

In another poll, webinar attendees identified the biggest barriers to automation in their departments: 

• 41% cited competing priorities as the main challenge.
• 20% mentioned fear of change as a roadblock.
• 10% admitted to sticking with the status quo, despite knowing automation could drive efficiencies. 

To overcome these hurdles, Titel emphasized the importance of starting small and demonstrating value through pilot programs. "You don’t have to automate everything at once. Start with a single process, maybe invoice approvals or vendor onboarding, then scale up as you gain confidence," he advised. 

The Role of AI and Advanced Automation 

Artificial intelligence (AI) is poised to play a significant role in finance automation. Citing industry research, Titel noted that 58% of CFOs are dedicating more time to business performance management, a shift enabled by automation and AI-driven insights. 
AI-powered automation can enhance financial workflows in several ways: 

• Invoice Processing: AI-powered OCR (Optical Character Recognition) extracts data with high accuracy, reducing manual data entry.
• Workflow Automation: Smart algorithms can route invoices to the correct approvers, eliminating bottlenecks.
• Fraud Detection: AI can flag suspicious transactions and detect anomalies in payment patterns.
• Predictive Analytics: AI-driven insights help finance teams forecast cash flow and optimize payment schedules. 

Titel cautioned, however, that while AI is powerful, it is not a silver bullet. "AI is magical, but it’s not going to replace humans. Instead, it enables finance teams to focus on strategic decision-making rather than mundane tasks," he explained, emphasizing that AI should be seen as a tool to enhance, not replace, human expertise. 

The Future of Finance Automation 

Looking ahead, finance teams will need to stay agile and embrace continuous improvement. According to a recent CFO survey, 78% of finance departments report a skills gap, highlighting the need for upskilling employees in automation and digital tools. 

Felts emphasized that automation is not just about AP, it impacts the entire business. "AP touches everything; managers’ approval processes, IT resources, and vendor relationships. Automating finance functions benefits the whole organization," she pointed out, illustrating the broad impact of automation on business operations. 

Titel echoed this sentiment, encouraging finance leaders to think holistically. "It’s not just about processing invoices faster, it’s about creating a more efficient, transparent, and strategic finance function," he added, reinforcing the idea that finance automation contributes to overall business efficiency and effectiveness. 

Five Key Takeaways 

1. Finance automation is a necessity, not a luxury. Organizations still relying on manual processes risk inefficiency, higher costs, and increased errors.
2. Start small and scale up. Companies should identify pain points, automate a single process, and expand over time.
3. AI is a powerful enabler but requires strategic implementation. It can streamline operations, enhance security, and provide real-time insights.
4. Automation impacts the entire organization. AP automation improves visibility, reduces fraud, and strengthens supplier relationships.
5. Change management is critical. Overcoming resistance requires clear communication, executive buy-in, and employee training. 

As automation continues to evolve, finance leaders must stay ahead of the curve to remain competitive. By leveraging AI, automating key workflows, and adopting a strategic approach, businesses can redefine their back-office playbook and drive long-term financial success. 

However, automation is not simply about technology, it’s about transforming the way finance teams operate. Businesses that embrace automation gain a competitive advantage by reducing costs, improving efficiency, and enabling finance teams to focus on strategic initiatives rather than repetitive tasks. 

Moreover, adopting automation is an investment in the future. Companies that fail to modernize their finance functions risk falling behind as industry leaders optimize processes and adopt new technologies. The key is to take a step-by-step approach, ensuring smooth implementation and employee buy-in. As Titel advised, "Don’t be afraid to start small. Focus on one problem at a time, show results, and build from there." 

To explore how automation can transform your finance operations, consider booking a demo with OnPhase today and receive a $50 gift card exclusive to webinar attendees. The future of finance is automated. Are you ready...?

To gain more insight from OnPhase join us for their next webinar 'Maximize Margins & Minimize Mistakes with onPhase’s Financial Management Platform.'