#USA #Vienna #Finance Automation #Redwood Software #R2R Efficiency

The CFO Automation Blind Spot: A Call for Change

Recent research from Redwood Software highlights a staggering insight into the finance operations of organizations: a vast majority, about 92%, still heavily rely on manual processes to close their financial records. This phenomenon, referred to as an 'automation mirage,' showcases a critical gap between the tools that are meant to facilitate automation and the reality of execution in finance departments.

Understanding the Research Findings

The key findings from the 2026 R2R Efficiency Mirage report reveal that, notwithstanding major investments in automation tools, only a meager 2% of companies have managed to implement a fully automated end-to-end financial closing process. Instead of achieving true automation, organizations have settled for digitized oversight — dashboards and approval processes might be automated, but the core tasks remain labor-intensive. It indicates a heavy dependence on personnel for critical tasks like preparing journals, calculating accruals, and reconciling accounts.

Statistics at a Glance

• - 97% of organizations still rely on human resources to finalize the financial close.
• - 92% of organizations face significant manual workload within their record-to-report cycle.
• - A notable 63% report that more than half of their closing processes remain manual even after recent automation advancements.
• - An overwhelming 86% are still utilizing spreadsheets for reconciliation tasks, despite the installation of close management platforms.
• - A staggering 93% coordinate closing activities manually or via basic tracking tools, which often lack true orchestration and efficiency.

Misalignment Between Leadership and Operations

The perception from the executive level does not correspond with the operational ground realities of financial teams. The confidence leaders have in their automation maturity is often rooted in their access to comprehensive dashboards rather than an understanding of day-to-day execution challenges. Research indicates that 51% of executives underestimate the volume of manual work still required during the closing period, posing challenges for Global Process Owners and Finance Operations leaders as they strive to improve performance sans adequate automation.

The Heavy Burden of Manual Work

Finance teams cite journal entries as the most significant source of manual workload, with 84% of organizations reporting this. Not far behind in terms of manual effort are reconciliations at 69% and accruals at 67%. Unfortunately, the automation tools that leaders assume are managing these tasks effectively are still largely dependent on human input, generating not only frustration but also burnout among finance teams.

The Impact of Sticking With Manual Processes

When automation is lacking, finance operations become fragile and challenging to scale. Reports show that 80% of finance personnel experience late nights during closing cycles, leading to burnout and stress among teams. Moreover, work bottlenecks arise when key team members are not available, resulting in significant downtime and inefficiencies.

A Pathway to Reducing Manual Efforts

Despite the broad reliance on manual efforts, Redwood provides solutions for organizations looking to maximize efficiency through automation. Users of Redwood’s Finance Automation have experienced remarkable improvements in their closing processes. For instance:

• - 90%+ automation coverage in Record-to-Report processes.
• - Companies like Forvia have automated 32,000 journal entries monthly, which accounts for 80% of their overall entries.
• - Energy Transfer recovered an impressive 45,000 hours annually by transitioning to an end-to-end R2R automation model.

Max Schultz, Group General Manager at Redwood Software, articulates the critical paradigm shift needed: "The future of finance isn't just about speeding up manual processes; it's about realizing a truly touchless operation." By fundamentally transforming the way finance teams manage their workflows, organizations will not only alleviate the burdens placed on their personnel but also leverage resources for insight generation rather than correcting manual errors.

The Need for Change

The full 2026 R2R Efficiency Mirage report is available for download, providing benchmarks that highlight the apparent disparity between executive leadership’s views and the actual manual workloads in finance teams. As organizations navigate the changing finance landscape, addressing this automation blind spot is crucial. Redwood Software stands at the forefront, offering pathways toward a more orchestrated and autonomous financial future. Organizations cannot afford to delay this transformation any longer.

About Redwood Software

Redwood Software is recognized as a leading orchestration platform that drives business transformation while optimizing costs. With over 30 years of experience, Redwood empowers organizations through intelligent automation across a variety of business processes, enabling them to concentrate on innovation and growth.