The ROI of Automation: How Modern CFOs are Justifying Investments in Technology 

CFOs are increasingly focused on automation as a strategic investment to drive efficiency, accuracy, and growth. In a recent discussion, Mani Ramaswami, CTO of Auritas, and Vertex tax experts Mike Bernard and Chris Hall explored trends in artificial intelligence, practical use cases for financial automation, and strategies for calculating return on investment (ROI) for these technologies.  

From automating tax processes to integrating AI in forecasting and transactional workflows, their insights provide CFOs with actionable approaches to harnessing automation for measurable impact. Here’s a comprehensive recap of the key topics, trends, and takeaways from the webinar that can help finance leaders make informed automation investments. 

Emerging Trends in AI for Financial Automation 

As AI continues to mature, Finance leaders are recognizing its transformative potential in financial automation. The panelists highlighted that companies are heavily investing in large language models (LLMs) and other AI-driven tools, manifesting in applications like content lifecycle and management.  

A common example is leveraging ML for the rapid assembly of reports, such as those needed for R&D credit reporting at both federal or state levels. AI helps teams gather necessary statistics, drastically reducing the time and effort involved. By removing “busy work,” AI enables finance professionals to concentrate on strategic tasks, enhancing their overall impact on the business. 

Higher up, in the office of the CFO, Mani Ramaswamy highlighted that AI solutions generally serve two critical functions: 

1. Predictive Insights, supporting forecasting for cash flow, revenue, and other financial metrics, providing finance teams with the ability to anticipate trends and allocate resources strategically. 

2. Productivity Enhancements, helping to streamline transactional processes like accounts receivable and payable (AR/AP) and accruals. By automating these repetitive tasks, finance teams are freed to focus on high-value activities that require strategic thinking. 

The Benefits of Automation Investments 

In finance, the value of automation extends beyond task efficiency—it’s fundamentally about accuracy, speed, and compliance. Automation transforms routine processes, such as credits, chargebacks, and refunds, making them seamless, accurate, and easily manageable.  

CFOs and finance teams see multiple benefits, including: 

• Accelerated Close Processes: Monthly and yearly financial closes become faster and more accurate, allowing companies to report financials with confidence. This streamlining is particularly valuable during the year-end close, where speed and accuracy are paramount. 

• Enhanced Recruitment and Retention: Companies that adopt advanced technology often have a recruitment advantage, as top finance talent seeks roles where they can work with cutting-edge tools. This focus on technology not only aids retention but also attracts high-caliber professionals to the organization. 

• Global Compliance and Unified Reporting: For multinational organizations, automation offers the ability to establish a “single source of truth,” creating consistency across regions. Automation ensures that local tax regulations are met, enabling CFOs to confidently manage regulatory compliance across all territories. 

• KPI Tracking and Process Improvement: Automated systems simplify the tracking of key performance indicators (KPIs) and help companies continuously improve processes by providing real-time insights.  

Challenges in Justifying Automation Investments 

Justifying the initial investment in automation can present challenges, especially as organizations grow. A common issue is the risk of implementing siloed automations, where departments pursue separate automation solutions that may not communicate well with one another. This fragmentation can lead to inefficiencies and missed opportunities for synergy. 

To address these issues, Mani Ramaswami recommended that companies view automation investments through a holistic lens, selecting platform solutions capable of addressing multiple automation needs across the organization rather than only solving isolated problems. He also acknowledged, however, the need to occasionally consider best-in-class solutions that provide significant advantages within specific areas. 

A governance council, Mani added, can oversee automation efforts across departments. This council can ensure that any software investments align with broader company goals and avoid creating internal competition between different departments’ technologies.  

Making a strong business case for automation requires a combination of professional judgment and thorough data analysis. Comparing competitive solutions helps justify the chosen option, and a balanced approach to measuring ROI is key. 

Measuring ROI: Separating Hard and Soft Benefits 

Determining ROI in automation projects requires accounting for both hard and soft benefits. Hard ROI covers direct financial gains, such as reduced labor costs, while soft ROI encompasses improved timelines, higher compliance standards, and greater employee satisfaction. 

For example, in accounts payable, ROI is not solely about transaction volume. Cycle time improvements, early payment discounts, and overall efficiency gains are equally important metrics. Mani advised CFOs to conduct thorough discovery to gather the right data for calculating ROI and suggested maintaining a conservative outlook to avoid overpromising outcomes. 

Tax Automation: Process Improvement & Compliance Gains 

The topic of tax automation emerged as a major focus in the discussion, as CFOs increasingly turn to technology to improve process accuracy, completeness, and timeliness. Automation streamlines both upstream and downstream tax functions, supporting not only internal compliance but also enhancing the company’s reputation with external stakeholders like government authorities, vendors, and suppliers. Let’s dive deep into these benefits: 

• Single Source of Truth: Chris Hall emphasized the importance of creating a single source of truth for tax data. By consolidating this data, companies can ensure that tax-related reporting is both accurate and comprehensive. This consolidated approach greatly simplifies audit preparation, reducing the time and resources needed for external reviews. 

• Efficiency Gains and Scalability: The efficiency gains from automating tax processes are significant. By reducing manual intervention, especially around complex tax rates and regulatory rules, automation allowing companies to manage larger volumes of transactions without adding personnel. This makes companies more agile and better equipped to handle growth. 

• Data Visualization and Insights: Tax automation enables CFOs to gain a clearer picture of their compliance status through data visualization tools and insights. This transparency helps identify areas for improvement, ensuring that companies stay compliant and competitive. 

By integrating these capabilities, companies gain a unique competitive edge, achieving both compliance and enhanced strategic insights. 

Integrating Tax Automation with SAP 

When it comes to tax automation, integration within an organization’s SAP ecosystem is crucial. Mike Bernard emphasized that while SAP is a powerful ERP, it lacks the capability to keep up with the rapid changes in tax regulations and complexities. This is where integrating a robust tax engine becomes invaluable. 

Vertex’s platform provides the latest tax updates and a scalable architecture tailored to each organization’s unique needs, creating a comprehensive tax solution that aligns seamlessly with SAP. By leveraging this integration, companies can ensure that their tax documentation and processes are accurate, up-to-date, and compliant. 

Key Takeaways  

In wrapping up the discussion, each expert shared their top takeaways on how finance leaders can approach automation investments strategically. 

• Mike Bernard emphasized that the most mature tax departments benefit from a “tax technology roadmap.” This roadmap not only shows where current strengths lie but also identifies areas for improvement. Documenting this roadmap helps teams secure resources—both financial and human—and builds leadership support. Companies can also benefit from periodic health checks by external experts to refine their technology use. 

• Chris Hall recommended that companies invest in “tax technology people” who can bridge communication between tax, finance, IT, and business teams. When starting automation initiatives, identifying team pain points is crucial for determining the highest-value automation targets. 

• Mani Ramaswami highlighted the importance of seeking “glocal” solutions, those that support global needs but can address unique local requirements. He urged finance leaders to evaluate the role of AI in their automation journey, including its implementation and ROI potential, and encouraged adaptability in the face of rapidly changing technology landscapes. 

As modern CFOs drive digital transformation, automation offers a unique opportunity to reimagine financial processes, improve compliance, and unlock strategic insights. From tax automation to AI-driven data analysis, automation empower finance leaders to streamline operations and scale efficiently.  

Want to hear the full discussion and dive deeper into the insights from Mani, Mike and Chris? Watch the on-demand webinar now. 

Ready to assess your current process and see where you can add automations? Talk to our process optimization experts and get started today.