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Insights from Zone & Co's 2024 State of Finance Automation Survey

Zone & Co has recently released the results of its 2024 State of Finance Automation Survey, shedding light on the significant impact of automation on financial operations, particularly within order-to-cash (OTC) processes. This comprehensive survey sampled over 200 financial leaders and unveiled key findings that highlight the revenue inefficiencies caused by outdated manual systems.

Key Findings of the Survey

The survey results indicate that many finance teams are grappling with revenue losses due to manual OTC tasks. Specifically, finance leaders reported that 5% of their annual revenue is lost in these processes, a staggering reality that calls for immediate attention to automation solutions.

Importance of Digital Transformation

Interestingly, 74% of respondents emphasized the necessity of digital transformation for their companies' survival, but nearly 70% admitted that their OTC systems are only partially integrated. This disconnect between the recognition of digital needs and the implementation of effective solutions is a concerning trend.

Revenue Leakage

A significant number of companies experience revenue leakage, with a common finding being that manual processes contribute to losses exceeding 5% annually for one in five organizations surveyed. This persistent problem indicates a need for companies to overhaul their manual processes to protect their revenue streams.

Automation Maturity Matters

One of the standout revelations from the survey is that organizations with advanced automation in their OTC workflows are 21% less likely to experience revenue leakage above the 5% threshold compared to those relying on manual methods. This points to a critical need for investing in automation technology.

Challenges Faced by Financial Teams

Despite the push for automation, challenges do persist. A notable 64% of financial leaders cited manual workloads as their top challenge, with issues in payment collections and data management cited as particular pain points. This highlights the dual need for improving processes as well as investing in technology that alleviates these burdens.

Efficiency Gains Through Automation

The survey also showcases that companies employing Zone & Co solutions, such as ZoneBilling, experience significant operational enhancements. For instance, a renewable energy software provider reported a 94% reduction in revenue booking time, while a telecommunications firm in New Zealand saw an 80% decrease in manual billing workload. These efficiency gains allow finance teams to focus more on strategic goals instead of repetitive tasks.

Rethinking Finance Operations

Today's financial leaders are beginning to reassess how they approach OTC automation. The survey indicates that those embracing automation are not merely addressing revenue leakage but are also positioning themselves for transformative operational changes. Integrated automation can lead to quicker cash conversion cycles, improved data insights, and scalable operations without losing precision.

A New Role for Finance

This shift redefines the role of finance within organizations, transforming it from a back-office function into a key strategic driver of growth. As CFOs and controllers prioritize automation, they aim to reclaim lost revenue and enhance their overall business strategies.

Quotes from Industry Leaders

Chad Wonderling, CFO at Zone & Co, stated, "The conversation is shifting. It's no longer just about cutting down on manual effort. Digital transformation equips finance leaders to reclaim lost revenue and drive growth through smarter operations."

Thomas Kim, CEO at Zone & Co, added, "Automation must be rooted in end-to-end workflows designed for seamless operations. When finance leaders embrace a unified software platform, they can deliver higher value across their organizations with automated processes and connected data for effective decision-making."

Conclusion

The 2024 State of Finance Automation Survey serves as a wake-up call for organizations still relying on manual OTC processes. With compelling evidence linking automation to increased revenue efficiency, businesses must prioritize digital transformation in order to thrive in a competitive landscape. For more detailed findings and actionable insights, visit Zone & Co's website.

Zone & Co continues to empower finance leaders and their teams in achieving operational excellence, ensuring they can navigate today's dynamic business environment effectively.