A former accountant turned cofounder and CEO, Mike Whitmire is the leader of pre-IPO fintech company FloQast.
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Finance sector employees are burnt out. Between inflexible deadlines, repetitive tasks, and the transition and subsequent adjustment to remote work, almost two-thirds (63%) of managers in the finance sector are experiencing burnout and, as a result, 26% are considering quitting their job, according to Benenden Health. Further, our company, FloQast, has found that 89% of controllers say their job is increasingly stressful, and 87% of organizations have lost staff to stress and burnout.
These on-the-job strains only continue to get worse and are approaching the point of being unsustainable, if they aren’t already. However, with automation, companies have the ability to alleviate many of the finance sector’s pain points, particularly by advancing and redefining processes and empowering organizations to achieve their goals.
Unfortunately, with artificial intelligence and machine learning solutions emerging in countless industries, we’ve also seen speculation around the impact automation has on the job market. The chief concern is that they will put employees out of work. In reality, “robots” aren’t replacing finance teams; instead, they’re helping teams become significantly more efficient and valuable to the organization.
More Automation, More Time For Growth, Success And Well-Being
Tedious and repetitive tasks are one of the biggest issues contributing to burnout within finance and accounting teams. Controllers in the United States spend nearly 70% of their time at work performing manual tasks, like closing the books, instead of focusing on more enriching work.
When automation is introduced, mundane processes can be streamlined and shortened, and employees are given back substantial chunks of time. A recent study from Ventana Research’s Office of Finance found that among those accounting firms that have substantially implemented automation, 88% shortened their month-end close process to less than six business days. Further, SmartSheet even found that if tedious aspects of jobs are automated, workers could get back six or more hours of their time per week.
With this extra time, employees are able to drive strategic decisions, collaborate on new initiatives, pivot to deeper, more purposeful tasks and take on more responsibility and leadership roles. These are all critical steps to not only advance careers but also for the success of the company.
Additionally, automation allows employees to spend more time on growth initiatives like IPOs and mergers and acquisitions. It encourages ideating and bringing new modernizations and innovations to the company.
Lastly, by handling the more menial tasks of the job, automation allows employees to take time for themselves, helping to foster a healthier work-life balance and, ultimately, combat the burnout we’re seeing run rampant through the sector.
Three Steps You Can Take With Automation
With the benefits automation brings to the table, we’re seeing a growing number of employees report that they prefer having automation at work. A recent study from Tradeshift found workers who have incorporated automation into their daily tasks are happier in their jobs, more optimistic about their future career prospects and are more likely to recommend their role to someone entering the job market.
Additionally, a report from DiviPay found that 40% of employees believe automation makes them happier at work, particularly because they have a new ability to engage with more rewarding and strategic tasks.
With burnout increasing across the finance and accounting sector, it’s imperative that companies realize the potential of automation to enhance employees and, beyond that, help employees keep their jobs and improve in their roles. If there’s still hesitation, note that a study done by ADP found that over half of modern employees feel positive about the replacement of repetitive work with automation.
The message is clear: Automation has the ability to help companies when applied properly. As someone who works in accounting automation, I see three key ways companies can introduce automation to their teams rapidly and in an efficient way.
• First, list out every process your team performs, how often the process is run, and how long the process takes. Getting a comprehensive view is critical to understanding where automation can be most effective for your team.
• Next, evaluate the list and decide which processes might benefit from automation most. When deciding, it’s important to also consider several factors, including the data gleaned from the process, impact on business outcomes and ability to scale.
• Once you’ve picked your process—and start with only one process—decide on the automation tool that will best help you achieve your goal. While all automation might seem similar, there are key differences between options like machine learning, robotic process automation and artificial intelligence that can make or break your new automated process.
With these best practices, companies should be able to implement automation quickly and unlock true employee potential. Before we know it, companies will be on track to remedy the issue of burnout and empower teams to be more productive and driven.
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