Business process automation: Automate tasks and boost efficiency

Published Friday 2 January 2026

Table of contents

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

Key takeaways

• Prioritize automating repetitive, rule-based tasks that occur frequently and require minimal decision-making, such as data entry, invoice processing, and report generation, as these offer the highest return on investment and quickest implementation success.
• Implement automation in phases starting with a pilot project in a controlled environment to test integration with existing systems and train employees, rather than attempting to automate everything at once.
• Calculate the potential return on investment before automating by factoring in labour savings, time efficiency gains, and error reduction costs to ensure the upfront investment delivers measurable financial benefits.
• Monitor key performance indicators like processing time, error rates, and cost savings regularly after implementation to identify areas for improvement and ensure your automated processes continue delivering value as your business evolves.

What is business process automation (BPA)?

Business Process Automation (BPA) is technology that automatically handles repetitive business tasks without human intervention. BPA reduces manual workloads, cuts operational costs, and eliminates human errors, as tasks like data collection and processing are the two activities most likely to be automated, according to McKinsey.

This approach transforms how businesses operate by streamlining workflows and freeing up employees for higher-value work.

How business process automation (BPA) relates to robotic process automation (RPA) and business process management (BPM)

Business Process Automation (BPA) is the umbrella term for automating entire business processes. Robotic Process Automation (RPA) focuses on automating specific tasks using software bots. Business Process Management (BPM) designs and optimises processes before automation.

Key differences:

• BPA: Automates complete end-to-end processes
• RPA: Automates individual, rule-based tasks
• BPM: Maps and improves processes first, then automates

Where can BPA be applied?

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

BPA is widely used across industries to enhance efficiency:

• Finance: Automating bank reconciliation and invoice processing. For example, after implementing RPA, Australia Post was able to audit 100% of all transactions, a significant increase from its previous 1.5% spot-auditing protocol.
• Retail: Tracking inventory in real time and reordering stock automatically
• Healthcare: Managing records and scheduling appointments
• Manufacturing: Automating the supply chain and monitoring quality control.

Examples of BPA in action

• 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. In fact, one study found that when customer support agents used an AI conversational tool, their productivity was boosted by 14%.

Ways to identify processes to automate

Process selection determines automation success. Repetitive, rule-based, and time-consuming tasks offer the best automation opportunities.

Ideal processes share these characteristics: predictable steps, minimal decision-making, and high frequency of execution.

Recognise 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
• Tasks involving calculations: Processing payroll or invoicing

Assess the return on investment (ROI) of automation

Before automating, calculate the potential return on investment (ROI) to justify the upfront costs. Factor in savings on labour, time efficiency, and fewer errors to ensure you generate a positive return.

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 see the most impact – automation that delivers strong 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 labor-intensive tasks frees up staff.
• Complexity: Simpler processes give quick wins.

Customer service automation is a good place to start because:

• agents handle hundreds of daily interactions
• inconsistent responses create confusion
• manual handling takes significant staff time
• chatbots can automate common questions, making the switch easier

Benefits of business process automation for your business

Business process automation delivers measurable benefits that directly impact your bottom line. BPA transforms operations by eliminating bottlenecks, reducing costs, and improving accuracy.

The key advantages include faster task completion, fewer errors, and increased operational efficiency.

Saves time

Time savings occur when automation handles repetitive tasks faster than manual processes.

Benefits include:

• Data entry: Reduces hours of manual work to minutes
• Report generation: Automatically compiles data from multiple sources
• Invoice processing: Eliminates manual approval workflows
• Employee productivity: Frees staff for strategic, high-value activities

Reduces errors

Business automation eliminates human error, like typos or miscalculations, which is especially important in areas where accuracy matters, like accounts payable. 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. Learn more in this article from McKinsey Insights.

Cut costs with automation

By reducing the need for manual labour, BPA can lower operational costs. While implementing automated solutions requires an upfront investment, the long-term operating costs are significantly lower than hiring employees, so you see a faster return on investment (ROI).

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

How much could you save? According to Deloitte, companies who implement intelligent automation beyond initial testing phases save an average of 32%.

How to automate your workflows for better efficiency

Workflow automation implementation follows a structured four-phase approach that minimises disruption while maximising efficiency gains.

This approach helps you roll out automation smoothly, get your team using it confidently, and see a clear return on your investment.

1. Assess current processes

Process mapping identifies automation opportunities by documenting current workflows and pinpointing inefficiencies:

• Document workflows: Record each step, decision point, and handoff
• Measure timing: Track how long each task takes to complete
• Identify bottlenecks: Locate delays, redundancies, and manual interventions
• Assess complexity: Determine which processes are rule-based vs require judgment

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 you choose productivity tools, consider the following:

• 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

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

Automation isn't a set-and-forget solution; even automated processes can be improved. Regular monitoring helps it adapt to your changing business needs.

Track key performance indicators (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

Business automation implementation presents three main challenges that require strategic planning. Cost management, employee resistance, and tool selection are the primary obstacles businesses face.

Addressing these challenges early ensures successful automation deployment and faster ROI.

Manage costs and budgeting for automation

Cost-effective automation requires strategic planning to maximise ROI while minimising financial risk.

Here are some ways you can manage costs:

• Start small: Focus on high-impact, low-cost automation opportunities
• Use subscription models: Choose monthly pricing over large upfront investments
• Measure ROI: Track labour savings and efficiency gains to justify expansion

Overcome employee resistance to automation

Employee buy-in is essential for successful automation implementation. Clear communication and training address job security concerns and workflow changes.

Effective approaches:

• Communicate benefits: Explain how automation eliminates tedious tasks, not jobs. Research from McKinsey confirms that roles requiring human strengths like applying expertise, communicating with stakeholders, and managing teams are unlikely to be automated anytime soon.
• Provide training: Offer hands-on learning to build confidence with new systems
• Include feedback: Involve employees in selecting and refining automated processes

Select suitable tools

Choosing the right tools makes automation easier. The tools you pick should work well with your existing systems, have the features you need, and be simple for your team to use.

To ensure the right fit:

• Define your business needs first: List the problems you want to solve and what you want automation to achieve
• 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

Automation success is measured through specific KPIs that demonstrate operational improvements and ROI.

Track these key metrics:

• Efficiency: Process completion time and output volume
• Accuracy: Error rates in automated vs manual processes
• Cost savings: Reduced labour and operational expenses
• Compliance: Meeting regulatory requirements consistently
• Customer satisfaction: Faster response times and service quality
• Employee satisfaction: Reduced workload stress and job satisfaction

Transform your business with Xero's automation tools

Xero's automation platform eliminates manual accounting tasks while providing real-time financial insights. Just Ask Xero (JAX) uses AI to handle routine processes automatically.

Key automation features:

• Bank reconciliation: Automatically matches transactions and categorises expenses
• Payment reminders: Sends customised follow-ups for overdue invoices
• Rule-based processing: Learns from your patterns to automate recurring tasks
• Real-time reporting: Provides instant access to financial performance data

Try Xero for free to experience automated accounting that saves time and improves accuracy.

FAQs on business process automation

Implementing business process automation can bring up a few questions. Here are answers to some common ones.

What's the difference between BPA and workflow automation?

Think of BPA as the big picture strategy to make your whole business more efficient. Workflow automation is a key part of that, focusing on streamlining a specific series of tasks from start to finish, like approving an invoice.

How long does it take to see results from business process automation?

You can see benefits like time savings almost immediately with simple automations. For bigger changes, the return on investment grows over a few months as your team gets used to the new, more efficient workflows.

What's the typical cost of implementing BPA for small businesses?

Costs vary, but many tools like Xero use a subscription model that makes it affordable to start. You can begin by automating a few key tasks and expand as your business sees the savings and benefits.

Can BPA integrate with my existing business software?

Yes, many automation platforms are designed to connect with other tools you already use. For example, Xero integrates with over 1,000 apps, so you can build an automated system that fits your business perfectly.

What happens if automated processes break down?

Good automation tools come with support to help you fix any issues. It's also wise to have a simple backup plan for critical tasks, just in case. Regular monitoring helps you catch and fix small problems before they become big ones.