Automating Finance

"Why can't I just automate all these processes with software?"

While giving a lecture to a group of startups last month, I got this question from the youngest entrepreneur in the room.

I was describing the way a Finance team works,

With its four main functions

(Bookkeeping, Accounting/Compliance, FP&A, and Strategy),

In order to teach these CEO attendees how to hire their team and buy essential FinOps tech.

"Why can't I just automate all these processes with software?"

Well, there are certain tasks that are increasingly automated by software:

• Bookkeeping

  • Categorization of expenses

  • AR reminders

  • AP timers

  • Suggested bank transaction matching

• Accounting/Compliance

  • Data capture & checks

  • Controller reminders & checklists

• FP&A

  • API-enabled reports

  • AI-enabled analysis

• Strategy

  • AI-supported meeting minutes, footnotes, external research & more

"Why can't I just automate ALL these processes with software?"

Because

1. You simply can’t.​
   Like most technical processes run by highly educated professionals, a lot of financial operations is a blend of art and science. Yes, there’s low-hanging fruit to automate — but a huge portion of the work requires sophisticated, nuanced, and context-specific judgment. That’s hard to replicate. And in this function, 80% often isn’t good enough.

2. You probably shouldn’t.​
   Half of the finance functions — Bookkeeping & Accounting — aren’t specifically designed for speed; They’re built to create a high-assurance system of record. Having checks, slower processing, and a human in the loop is a feature, not a bug.

3. Your systems will need to evolve constantly.​
   Startups change fast — and every time your business changes, your finance stack needs to adapt. So your #1 priority shouldn’t be 100% automation. It should be flexibility.

So if you can't automate away the finance function, what's the right approach to handling it efficiently?

Talk to a tech-enabled CFO or Finance pro about setting up the best systems.

Now I know what you might be thinking,

"Ummm... Lauren, aren't you a little biased making this recommendation?"

And maybe yes.

But here's why it's still the right advice:

Startup teams get in the most trouble when they try to automate this stuff themselves.

They only optimize for the actions they care most immediately about:

• Convert a customer

• Collect the money

• Hire the employee

And they fail to capture essential data they'll need for:

• Taxes

• Payroll

• Forecasting

• Etc.

So if you're bent on automating us away,

Sure - go ahead and try.

Just don't go it alone.

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