Study Reveals 92% of Finance Teams Still Rely on Manual Efforts for Closures Despite Automation Tools
A study by Redwood Software indicates that only 2% of companies have achieved fully automated end-to-end financial closures. Despite significant investment in automation tools, 92% of organizations still perform manual tasks during financial closures, leading to inefficiencies and misalignment between leadership perceptions and operational realities. Key closure activities remain manual, with 80% of finance teams reporting stress during closure cycles. The study highlights the need for improved orchestration to transition to automated financial processes.
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Redwood Software's '2026 R2R Efficiency Mirage' study shows that 92% of organizations still depend on manual efforts for financial closures, despite widespread automation tools. Only 2% of companies achieved fully automated closures.
The study reveals that finance teams are still manually handling key tasks like journal entries (84%), reconciliations (69%), and adjustments (67%), leading to inefficiencies and stress during closure cycles. Furthermore, 93% coordinate closures manually using checklists or spreadsheets. The study emphasizes the importance of structured orchestration to shift from manual to automated processes in finance.
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