Debunking 8 Finance Automation Myths

A January 2024 article by HowToRobot shares that Australia’s robot and automation industry covers 466 businesses, including integrators, manufacturers and advisors. 

As automation becomes popular, it is often surrounded by misconceptions. From concerns about job elimination to worries about the costs of implementation, finance automation myths can create unnecessary anxiety. But is automation the enemy, or could it be the finance industry's biggest ally? 

Let’s debunk some of the biggest finance automation myths and uncover the truth about how finance automation can improve your workflows without worry.

Myth #1: You will lose your job

Many people are worried about potentially losing jobs to automation. This concern stems from the rapid pace at which software and algorithms are becoming capable of performing tasks that were once exclusively the bread and butter of humans. 

Accounts payable and finance professionals, in particular, fear that finance automation makes humans obsolete. Allow us to debunk this myth and tell you that finance automation is not here to replace you; it’s here to support you. Automation in the world of finance is intended to transform the industry by augmenting the capabilities of finance professionals rather than replacing them. Instead of finance officers focusing on repetitive and time-consuming tasks, such as data entry and transaction processing, they can direct automation to do these so they can focus on more complex and strategic activities that require human judgement, creativity and interpersonal skills.

Myth #2: It will negatively affect your processes

As humans, we know that being successful at work requires understanding your process. That’s where the fear about automation comes in: Automation tools do not have brains of their own, so how can they understand complex processes that require a balance of logic and emotion?

Well, here’s the thing. Automation is not meant to be the next you. Automation is your helping hand. You are expected to direct it; not the other way around. That’s why automation is meant to do the repetitive tasks that it will be able to handle. All the critical and strategic thinking is still up to you.

Myth #3: It takes a long time before automation shows value

We won’t deny that rolling out a new system takes a while, especially when related to finance and accounting. But automating your finance processes doesn’t have to take that long. Finance tools these days are so user-friendly that they don’t need a lot of time-consuming integrations. Look for finance automation software that can be seamlessly integrated into your existing workflows without overhauling your entire process. Again, automation is your helping hand—not your replacement.

Examples of automated processes that won’t be overhauling your processes are:

• • • Travel and expense management
    • Cash flow management when the company has multiple bank accounts
    • Virtual cards for a more visible tracking of work-related expenses

Myth #4: Your manual processes are just fine, and automation is a waste of time

We often hear the automated vs manual process debate, so let’s settle this here: If your business has reached a certain level of scale where there are high volumes of finance tasks, multiple bank accounts and several currencies, you’ll find that automation makes these tasks a hundred times easier.

While manual processes have been the cornerstone of traditional finance, they are often prone to human error and are time-consuming. Automation reduces the margin for error and helps enhance data integrity, ensure compliance with regulatory standards and respond to market changes.

Myth #5: It’s difficult to understand and maintain automation

There’s this misconception that automation tools need a lot of IT resources for maintenance, such as continuous IT support. Otherwise, automation will just be paralysed.

In reality, though, finance automation tools these days are specially made for finance professionals so they can use the tools independently. Modern automation tools offer intuitive interfaces and comprehensive support resources. Many platforms require minimal technical knowledge, allowing finance professionals to implement and manage automated processes with ease.

Myth #6: Automation doesn’t enhance business; it’s just for internal improvement

We often talk about how automation makes processes easier for the finance team, but let’s take a look at how these effective internal processes enhance the business as a whole. Since automation provides insights, it allows the company to develop ideas and strategies that improve customer experience. For instance, automating financial reporting ensures timely, error-free data, which aids in better decision-making and strategic planning. 

Another example of how automation improves customer experience is by enabling faster response times and more reliable service delivery.

Myth #7: Your business can’t keep up with automation solutions 

When you’re accustomed to manual processes, you may think that automation is too advanced and your business won’t be able to keep up. However, as we’ve said, automation tools are user-friendly and are only meant to help you out. Today’s automation technologies are designed to be scalable and adaptable.

Many automation platforms offer modular solutions, allowing businesses to start small and expand as needed, ensuring that the implementation aligns with their growth trajectory.

Myth #8: Automation is expensive

Is automation expensive? Well, while there might be initial costs associated with implementing automation, they offer long-term cost savings and a great return on investment. What some people don’t realise is that manual processes cost more. Automation streamlines processes, leading to faster turnaround times and higher productivity, which translates to cost savings.

Far from being difficult to understand or maintain, these tools are designed for ease of use and adaptability, ensuring that businesses can implement and scale solutions effectively. To those wondering, “Should I get automation for my business?”, we hope this blog eased your worries and answered your questions about automation.