iscoverNew research shows that four in five small and medium-sized enterprises still use manual processes for expenses – too many such businesses, a financial operations provider has said, are “being held back by systems that no longer serve their needs”.
Automation, new digital tools now ‘about survival’ for SMEs
20 November 2025
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9 minute read
Financial operations provider for businesses and accounting firms, OFX, has released a new survey of more than 500 SME accountants and finance decision makers, showing that manual processes, security concerns, and late payments are among the biggest barriers to efficient financial management.
Technology adoption, the provider said in a statement, is now viewed as being critical to business resilience and sustainable future growth, as finance leaders turn to digital tools and automation to stay afloat.
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According to the survey, manual, labour-intensive finance processes continue to drain time and resources, while concerns around data security and privacy weigh heavily, with just over one in two (52 per cent) saying that these are the most important features they consider when selecting a spend management solution.
Payments, OFX noted, “are another weak spot”, with many SME still relying on manual invoice processing, creating bottlenecks and inefficiencies.
Nearly two in five (38 per cent) accountants and finance leaders report errors from manual data entry as their most common inefficiency, while another 36 per cent cite delays caused by lengthy approval workflows.
“Against this backdrop, SMEs are demonstrating a strong appetite for modernisation as they turn to digital tools, automation, and integrated platforms to eliminate manual processes and enable faster decision making,” OFX said, with almost half (46 per cent) seeing the increased use of generative AI tools and support as a top trend in payment and expense management.
Trust is also a significant factor, the provider continued, with 31 per cent of respondents identifying the need to build trust and expertise in new software as a major challenge in managing expenses over the next 2–3 years, while a quarter of respondents (25 per cent) cited the same concern in relation to managing client payments in the future.
Real-time visibility is also a top priority, OFX added.
“More than seven in ten (71 per cent) say real-time oversight of transactions is essential, while virtually all respondents (94 per cent) reported tangible benefits from automated processes, such as faster reconciliations (51 per cent) and improved accuracy (49 per cent),” it said.
Speaking about the research, OFX chief executive Skander Malcolm (pictured) said: “SMEs are the backbone of the Australian economy, but too many are being held back by systems that no longer serve their needs.”
“Finance leaders are telling us they want technology that simplifies the complex, helps them act with confidence, and ultimately gives them back the time they need to focus on growth,” he said.
For many SMEs, Malcolm said, adopting digital tools and automation is “no longer just about efficiency – it’s about survival”.
“Finance functions are shifting from a back-office compliance role to a more strategic, technology-enabled partner at the heart of the business.”
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