Whether this is a new financial year, or the approach the critical Q4 period, finance leaders face a common challenge on how to allocate budget effectively for process automation projects.
If there is a full year’s budget ahead or leftover funds to spend before fiscal and tax year-end, the decisions made now can set the tone for efficiency, compliance, and cost savings in the months ahead.
Where you are in the budget cycle matters.
With a full year ahead, prioritise a phased roadmap that bakes in process discovery and master data cleanup. In Q4 focus on minimum scope and quick wins that sets you up for the new financial year.
The business case is proven.
Benchmarks show manual invoice processing typically costs more and takes longer than automated operations; best in class teams using modern AP automation have cut costs to low single digits per invoice and reduced cycle time to days, not weeks
Compliance upside is real.
UK requirements including Making Tax Digital for VAT’s digital record keeping, Payment Practices Reporting along with the newly announced commitment to e-invoicing in 2029 mean digitised, well controlled finance processes are essential.
Why Finance Process Automation Should Be a Priority
Manual processes in Accounts Payable (AP) and Purchase-to-Pay (P2P) are costly, error-prone, and slow. Automation delivers:
- Reduced operational costs
- Improved compliance and audit readiness
- Faster invoice processing and supplier payments
- Better visibility and control over cash flow
For organisations entering a new financial year, automation is a strategic investment that compounds benefits over time. For those in Q4, it’s a smart way to utilise remaining budget while preparing for a stronger start next year.
Two Budget Scenarios: How to Approach Each
New Financial Year
Now is the time to plan a phased automation strategy:
- Start with high-impact areas like AP automation or invoice capture.
- Allocate time for process review and master data cleansing now. These steps ensure automation delivers maximum ROI.
- Ensure the solutions are scalable and can grow with the organisation.
- Look for solutions that offer more than the immediate value; purchase the most pressing features now and use an agile implementation process to build automation as the new automation processes are identified
Year-End Crunch – Budget Left to Spend
If you’re in Q4 with fiscal and tax year-end looming:
- Agile implementation is key. Many automation providers offer rapid deployment options that deliver immediate value.
- Use this time to lay the foundation: implement core functionality now, and schedule deeper process optimisation for the new year.
- This buys time for process review, training and stakeholder onboarding without delaying automation benefits.
ROI: early vs late adoption
Use these benchmarks to anchor your chosen implementation
- Average invoice cycle time & cost: Ardent Partners’ 2024 research shows higher average processing time and cost in manual or semi manual environments; best in class AP teams using modern automation cut these significantly.
- Touchless processing & exception rates: Ardent Partners Key metrics for 2025 show the share of invoices processed without human intervention is rising; top performers approach ~50%, reducing labour costs.
Illustrative ROI
Annual invoices: 120,000; current cost £7–£12 per invoice. Benchmarks indicate best in class automation can reduce this, alongside working capital gains from faster approval cycles.
Early adopter starting Automation in Q1):
Assumptions: Deploy core capture + approvals in H1; expand to matching in H2. Achieve 30% touchless by Q2, 50% by Q4. Cycle time drops sufficiently to capture early payment discounts on 10% of eligible spend.
Impact :
- Direct processing savings of 30–50% by year end.
- Working capital benefits and reduced late fees visible from mid year.
- Compliance uplift (MTD digital links; robust payment practice data etc) in time for FY reporting cycles.
Late mover using left over budget in Q4
Assumptions: Short delivery window; minimum scope only (capture and posting for top suppliers). Touchless capture reaches 80% by year end; early payment benefits enabled.
Impact:
- Partial savings realised in Q4; early payment discounts made available and less time spent for team manually inputting and more time solving queries.
- Compliance exposure reduced (no duplicates and all invoices verified prior to capture and posting
End result
Q4 starts to show an ROI with immediate effect, but starting in Q1 typically returns 1.5–2 times more benefit in year because the compounding improvements (touchless rate, exceptions, early payment discount capture) have more time to accrue.
Agile Implementation: A Strategic Advantage
Agile methodologies allow finance teams to:
- Deploy automation in weeks, not months
- Prioritise critical workflows first
- Continuously improve processes as you learn and adapt
This flexibility is crucial for organisations balancing tight timelines and evolving priorities.
Key Takeaways for CFOs and Finance Leaders
- Don’t wait for the “perfect” time! Start small and scale.
- Invest in data quality early to avoid downstream issues.
- Choose vendors with proven agile delivery models for faster ROI.
- Align automation goals with business objectives for measurable impact.
Are you ready to allocate budget to finance process automation? Whether you’re planning for the year ahead or maximising year-end spend why not explore how agile finance automation can transform your processes. Get in touch with the Listening Team and book a conversation now!
