Business process automation: Automate tasks and boost efficiency

Published Friday 19 December 2025

Table of contents

• What is business process automation(BPA)?
• How BPA relates to RPA and BPM
• Benefits of business process automation for your business
• Ways to identify processes to automate
• How to automate your workflows for better efficiency
• Common business automation challenges and solutions
• Measure the success of business process automation
• Streamline your operations with Xero's automation tools
• FAQs on business process automation

Key takeaways

• Start by identifying repetitive, rule-based tasks that consume significant employee time, such as data entry, invoice processing, or payroll calculations, as these offer the highest automation potential and quickest return on investment.
• Implement automation gradually through pilot projects rather than company-wide rollouts, beginning with simple processes to test integration with existing systems and build employee confidence before scaling up.
• Choose automation tools that integrate seamlessly with your current software, offer intuitive interfaces requiring minimal training, and can scale as your business grows to maximise long-term value.
• Track key performance indicators including time saved, error reduction rates, and cost savings to measure automation success and identify areas for continuous improvement.

What is business process automation (BPA)?

Business Process Automation (BPA) uses technology to automate repetitive tasks, reducing errors across business operations.

BPA delivers three core benefits:

• Reduced manual workloads: Frees employees from routine tasks
• Lower costs: Cuts operational expenses through efficiency gains
• Increased productivity: Streamlines workflows for faster completion

Where can BPA be applied?

BPA fits into two key areas: Robotic Process Automation (RPA) and Workflow Automation.

• Robotic Process Automation (RPA): Uses bots to handle simple, rule-based tasks like data entry and invoice processing.
• Workflow Automation: Streamlines multi-step processes, ensuring tasks move smoothly between teams. This can be tasks like processing new hires or approving orders.

BPA is widely used across industries to enhance efficiency:

• Finance: Automating bank reconciliation and invoice processing
• Retail: Tracking inventory in real-time and automatic reordering
• Healthcare: Managing records and scheduling appointments
• Manufacturing: Automating the supply chain and monitoring quality control

Examples of BPA in action

BPA is used in various ways throughout businesses:

• Payroll processing: Automates wage calculations and taxes and makes timely payments
• Inventory management: Tracks stock levels and reorders products automatically
• Customer support: Uses AI chatbots to handle routine inquiries, improving response times

How BPA relates to RPA and BPM

It's easy to get tangled in the jargon of automation. Business process automation (BPA), robotic process automation (RPA), and business process management (BPM) all aim to improve efficiency, but they work in different ways.

BPA vs RPA

Think of BPA as the overall strategy and RPA as one of the tools. BPA looks at the entire end-to-end process and redesigns it for automation. RPA, on the other hand, uses software 'bots' to perform specific, repetitive, rule-based tasks within a process, like copying and pasting data between systems (a market that is projected to reach USD 30.85 billion by 2030).

BPA vs BPM

BPM is a broader discipline focused on discovering, modelling, analysing, measuring, and optimising all business processes, and its global market is projected to grow to USD 70.93 billion by 2032. While automation is a key part of BPM, its main goal is continuous improvement across the entire organisation. BPA is the specific part of BPM that focuses on using technology to automate those processes once they've been optimised.

Benefits of business process automation for your business

Business process automation benefits include measurable improvements to efficiency, accuracy, and profitability. BPA transforms operations by eliminating bottlenecks, reducing errors, and freeing resources for strategic work.

Saves time

Automation completes repetitive tasks in minutes instead of hours. Data entry that once required three hours of manual work can be automated to finish in 15 minutes, freeing employees for strategic activities.

Reduces errors

Business automation can significantly reduce human error, like typos or miscalculations, which is especially important in areas like accounts payable. A Forrester study found that companies using intelligent automation reported a 90% reduction in errors. It also helps reduce issues like missed payments or duplicate invoices.

Boost productivity and efficiency

Automation streamlines workflows, allowing teams to work quicker and smoother. It reduces manual tasks, improves coordination, and frees up capacity, creating the opportunity to expand your operations.

Workflow automation tools enhance collaboration by routing documents, notifying teams of pending approvals, and providing real-time status updates. This eliminates delays from manual handoffs and ensures nothing falls through the cracks.

Still not convinced? A global consumer goods company invested in automated food-processing and packaging lines, increasing productivity by over 70% in processing and 280% in packaging, while consolidating production into a single facility.

Cut costs with automation

By reducing the need for manual labour, BPA can lower operational costs. While implementing automated solutions requires an upfront investment, research shows it delivers a quick ROI, with companies seeing an average return of $8.76 for every dollar invested.

For example, automated payroll systems handle everything from salary calculations to direct deposits, cutting down on admin work and reducing costly mistakes.

Ways to identify processes to automate

Identifying automation opportunities starts with recognising processes that are repetitive, time-consuming, and rule-based. These characteristics make tasks ideal candidates for successful automation.

Recognize repetitive tasks

Repetitive, time-consuming tasks are ideal for automation. They often follow the same steps, need little thinking, and take up valuable employee time.

Common examples include:

• Regular reporting: Compiling data for monthly reports
• Data entry: Adding customer details, invoices, or transactions to a system. Automating this can reduce the cost of manual data entry by up to 80%
• Tasks involving calculations: Processing payroll or invoicing

Assess the ROI of automation

ROI assessment determines automation value by calculating:

• Labour savings: Reduced staff hours on manual tasks
• Error reduction: Fewer costly mistakes and rework
• Time efficiency: Faster process completion rates
• Implementation costs: Software, training, and setup expenses

For example:

• Accounts payable automation speeds up processing, reduces errors, and prevents late payment fees.
• Inventory management automation tracks stock in real time, prevents overstocking or shortages, and reduces carrying costs.

Prioritise tasks for automation

Once you've identified areas to automate, decide where to start. Determine where you'll get the biggest bang for your buck: automation that delivers the most value with the least disruption. Consider:

• Frequency: Automating regular tasks makes a bigger impact than rare ones.
• Error rate: High-risk processes benefit most from automation.
• Resource demand: Automating labour-intensive tasks frees up staff.
• Complexity: Simpler processes give quick wins.

How to automate your workflows for better efficiency

Successful automation implementation requires systematic planning and phased rollout to minimise disruption and maximise benefits. Follow these four steps:

1. Assess current processes

Process assessment identifies automation opportunities through workflow analysis:

• Map current workflows: Document each step and decision point
• Measure task duration: Record time spent on each activity
• Identify bottlenecks: Find delays and inefficiencies
• Note error patterns: Track where mistakes commonly occur

Use process mapping tools like Miro to create flowcharts. This makes it easier to visualize workflows and spot the best automation opportunities.

The better you understand your processes, the more confident you can be that automation will enhance efficiency rather than reinforce existing issues.

2. Choose the right automation tools

Choosing the right tools is key to getting the most from automation. Look for solutions that streamline entire processes, not just isolated tasks.

When choosing productivity tools, consider:

• Usability: Pick an intuitive tool that requires minimal training.
• Integration: Select a tool that connects seamlessly with your existing software.
• Scalability: Find a solution that grows with your business.
• Cost: weigh upfront costs against long-term savings and efficiency gains

For example, Xero automates accounting processes while integrating with specialist tools like Hubdoc, which automatically captures and organizes financial data.

3. Implement automation systems

Roll out business automation in phases rather than all at once to reduce risks and keep the transition smooth.

Start with a pilot project in a small, controlled environment to catch any issues early. This lets you test the system and check it works with existing workflows, preventing disruptions.

Prepare employees by communicating changes early, addressing concerns, and offering training. This builds confidence in the new tool and helps them get the best results.

4. Monitor and improve automated processes

You need to keep reviewing your automated processes. Regular monitoring helps them adapt to your changing business needs.

Track KPIs to measure your system's effectiveness:

• Error rate: Spot and fix inaccuracies.
• Processing time: Track task speed and catch bottlenecks.
• Cost savings: Ensure automation keeps delivering financial benefits.

Use performance tracking tools to monitor automation. For example, Xero's analytics dashboard provides real-time insights, enabling data-driven refinements to your automated processes.

Common business automation challenges and solutions

Common automation challenges include high upfront costs, employee resistance, and tool selection complexity. Strategic planning addresses these obstacles and ensures successful implementation.

Manage costs and budgeting for automation

Budget management strategies help small businesses implement automation safely:

• Explore pricing models: Subscription services often have lower upfront costs than one-off fees, and tiered pricing lets you start with essentials and expand as savings materialise.
• Start small and scale gradually: Focus on the tasks that will bring the most benefit so you can reinvest the savings and expand automation over time.
• Assess ROI: Identify areas where automation can really pay off, like cutting labour costs, improving accuracy, or boosting efficiency. Track these metrics to measure success.

Overcome employee resistance to automation

Employees may initially resist business automation due to concerns about job security and changes to familiar workflows, which is why 76% of executives agree that organisations must restructure processes to prioritize human needs when integrating new technology. Addressing these fears early helps ease the transition and improve adoption.

Select suitable tools

Choosing the right tools helps you automate smoothly. Tools that integrate with your existing systems, include the features you need, and are easy for your team to use will add the most value.

To ensure the right fit:

• Define your business needs first: List the main problems you want to solve and what you want to achieve before you start looking at solutions. Focus on features that help you reach those goals.
• Do your research: Compare different tools, read reviews, and seek expert recommendations.
• Check system compatibility: Test demos to ensure the tool integrates with your current systems.

Measure the success of business process automation

Measuring automation success requires tracking specific metrics that demonstrate improved performance and ROI. Monitor these key performance indicators to validate your investment:

• Efficiency: Are workflows faster, with increased output?
• Accuracy: Have error rates dropped in key processes?
• Cost savings: Are you spending less on labour and operations?
• Compliance: Is it easier to meet regulatory requirements?
• Customer satisfaction: Are response times and service quality improving?
• Employee satisfaction: Do employees feel their workloads and job satisfaction have improved?

Automation can have a big impact on financial management. Tools like Xero with Hubdoc integration streamline accounting by automatically capturing and organising financial data, boosting efficiency and accuracy.

Streamline your operations with Xero's automation tools

Xero's automation tools streamline financial processes through AI-powered assistance and smart workflows:

• Just Ask Xero (JAX): AI assistant for accounting tasks
• Automated bank reconciliation: Matches transactions instantly
• Smart payment reminders: Reduces late payments
• Rule-based processing: Handles routine tasks automatically

These tools save time, improve accuracy, and let you focus on growing your business. Try Xero for free to experience automated financial management.

FAQs on business process automation

Here are some quick answers to common questions about business process automation.

What are the four types of business processes?

Business processes generally fall into four main categories:

• Operational processes: Core activities that directly create value for your customers, like manufacturing a product or delivering a service.
• Supporting processes: Functions that enable the core operations to run smoothly, such as hiring staff, IT support, or accounting.
• Management processes: Activities that coordinate and oversee the operational and supporting processes, including strategic planning and performance monitoring.
• Strategic processes: High-level processes that define the long-term goals and direction of the business.

What are the five stages of BPM?

The business process management (BPM) lifecycle consists of five key stages to ensure continuous improvement:

1. Design: Identifying existing processes and mapping out how they could be improved.
2. Model: Visualising how the process will work with the proposed changes.
3. Execute: Implementing the improved process, often with the help of automation software.
4. Monitor: Tracking the performance of the new process using key metrics.
5. Optimise: Analysing performance data to make further refinements and improvements.

Is workflow automation the same as BPA?

Not quite. Workflow automation focuses on streamlining a specific sequence of tasks for a single process, like approving an invoice. Business process automation (BPA) is broader; it looks at automating the entire business function from end to end, which might include multiple workflows and systems.