Drowning in data: why finance teams need to rethink information management

Finance and accounting technology has come a long way in recent years, with rapid advances in financial modelling, predictive models, and automation. Each of these promises huge shifts in productivity within areas such as Accounts Payable (AP). But if you’re one of the 52% of AP professionals still spending over 10 hours a week manually processing invoices¹, you may be wondering when the digital revolution is coming to you.

Because while digital transformation has reshaped many business areas, finance operations – particularly AP – often lag behind. Manual data entry, fragmented approval processes, and poor system integration continue to be significant bottlenecks. Finance leaders recognise the benefits of automation, but implementation remains inconsistent, with many teams only partially automating their workflows.

The latest Accounts Payable Automation Trends Report¹ found that while most businesses recognise the need for automation, 74% still operate with only partially automated AP processes. That needs to change. For finance teams, it can be demoralising to spend large proportions of their working week on admin. And finance leaders need to show that the department isn’t just a cost centre, but is crucial to smart planning, strategy and data-based decision making at the highest levels of a business.

Over a fifth of AP teams are months behind on invoice processing² , and that matters, because in today’s volatile business environment, knowing how much money the business owes – and when it needs to be paid – underpins financial flexibility. In uncertain times, businesses with low cashflow visibility may find themselves unable to react to market changes – and could struggle to access credit on favourable terms³ .

Finance leaders will see far-reaching strategic benefits from moving to a digital-first finance department, such as stronger compliance and reduced costs, while at the same time empowering their highly qualified finance professionals to work on higher value long-term planning instead of manual data entry tasks.

For businesses still managing finance operations manually, inefficiencies appear at every stage. Invoices arrive in multiple formats – some digital, some still on paper – requiring manual data entry before processing. Approval workflows are often slow and fragmented, leading to delays, missed payments, and strained supplier relationships. And these challenges are often just the tip of the iceberg.

According to the AP Trends Report, 60% of invoices are still manually keyed into ERP or accounting systems, and 52% of AP professionals spend more than ten hours per week processing invoices. These inefficiencies waste time and create significant stress for finance teams, with 64% of respondents citing poor processes as their biggest challenge.

Compliance is also becoming more complex. Regulatory fines in areas relating to Know Your Customer (KYC) and Client Lifecycle Management (CLM) have surged by 53% in recent years, according to some research⁴. Without structured information and financial management processes to address the ever-changing regulatory landscape, businesses expose themselves to unnecessary financial and reputational risks.

However, organisations who have adopted modern technology within the finance department are thriving. Research from Ardent Partners⁵ identifies that best-in-class AP automation saves 79.5% on invoice processing costs and requires one-third fewer employees to manage AP workflows than average performers.

Finance leaders know the pain points. But overcoming them requires more than incremental system and process improvements. It requires a fundamental shift in how financial information is managed, accessed, and processed. In short, it requires smarter information management.

Organisations that modernise their approach to information management can reap transformative benefits. But what does this look like in practice?

Businesses need to digitise financial workflows, automate invoice approvals, and centralising financial documents. From that, they’ll gain greater control, reduce costs, and free finance teams from mundane processes to focus on higher-value tasks.

One of the most striking impacts is in invoice processing speed. The Ardent research shows that businesses using AP automation process invoices 81% faster, cutting average invoice cycle times from over 10 to just 3 days for high performing finance departments.

Beyond operational efficiency, a structured information management approach also enhances financial accuracy and visibility. The AP Automation Trends study found that organisations with fully digitised AP workflows reduce processing errors by 73% and experience a 40% improvement in financial reporting accuracy. This level of accurate transparency enables finance leaders to make data-driven decisions, optimise working capital and strengthen financial control.

For many finance teams, the transition to a fully digitised, automated financial workflow can seem like a daunting challenge. The shift away from manual processes and legacy systems requires more than just selecting the right technology – it demands a structured, phased approach that aligns with business goals, mitigates risk, and ensures seamless adoption.

Transitioning to a digitally mature finance function won’t happen in a day. Still, by following a step-by-step roadmap, finance teams can reduce disruption, accelerate ROI, and create a foundation for long-term success.

• Step 1: Identify inefficiencies in finance & AP
Before implementing technology, businesses should audit existing workflows and activities, mapping out inefficiencies such as slow approvals, manual data entry, and poor visibility into financial affairs.

• Step 2: Choose the right solutions and providers
Organisations should prioritise solutions and providers that best map to their internal challenges. Areas such as invoice processing, contract management automation, and digital mailroom solutions are common starting points. Solution providers with experience in these areas not only automate key finance processes but can also typically offer integration with ERP and financial systems to provide critical real-time access to financial data across the business.

• Step 3: Implement in phases
The most successful digital transformations often begin by attacking high-impact areas. Many businesses start by automating invoice capture and approval workflows, then expand to other areas. This phased approach ensures a smooth transition and rapid return on investment.

• Step 4: Train teams and drive change management
The reality is that finance automation is only as effective as the teams using it. The Association for Intelligent Information Management (AIIM)⁶ reports businesses that invest in structured training and change management see a 25% higher success rate in system adoption. Consequently, ensuring that finance teams fully understand and embrace digital workflows is critical to long-term success.

• Step 5: Monitor, optimise, and scale
By leveraging real-time analytics dashboards, finance teams can track improvements in invoice cycle times, error reduction, and compliance levels. This performance data helps further refine workflows, ensuring continuous process improvements over time.

For finance teams, the shift to smarter information management isn’t just about efficiency – it’s about resilience, control, and the ability to adapt to an increasingly complex financial landscape. As businesses continue to scale, manual workflows, scattered financial records, and compliance risks are simply untenable.

It’s time for Finance to take its place at the top table. Wherever an important business decision is being made, forward-thinking finance leaders will be there to offer data-driven insights and strategic counsel, demonstrating that their value goes far beyond providing a simple accounting service.