Business process automation: automate tasks and boost efficiency

Published Thursday 22 January 2026

Table of contents

• What is business process automation (BPA)?
• BPA vs RPA vs 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

• Prioritize automating repetitive, rule-based tasks that occur frequently and consume significant employee time, as these deliver the highest return on investment and are easiest to implement successfully.
• Implement automation in phases starting with a pilot project in a controlled environment to test integration with existing systems and address any issues before full rollout.
• Calculate the potential return on investment before automating by factoring in labor savings, time efficiency gains, and error reduction to ensure positive financial returns within six to 12 months.
• Monitor key performance indicators like processing time, error rates, and cost savings after implementation to continuously optimize automated processes and adapt them to changing business needs.

What is business process automation (BPA)?

Business Process Automation (BPA) uses software to automatically handle repetitive business tasks that would otherwise require manual work. BPA reduces human errors, cuts operational costs, and frees up staff time for strategic work.

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 so tasks move smoothly between teams, such as processing new hires or approving orders.

BPA is widely used across industries to enhance efficiency:

• Finance: Automate bank reconciliation and invoice processing.
• Retail: Track inventory in real time and reorder stock automatically.
• Healthcare: Manage records and schedule appointments.
• Manufacturing: Automate the supply chain and monitor quality control.

Examples of BPA in action

• Payroll processing: Automates wage and tax calculations 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.

BPA vs RPA vs BPM

Business Process Automation (BPA) is the broad strategy of using technology to automate business processes. Robotic Process Automation (RPA) and Business Process Management (BPM) are specific approaches within BPA.

• BPA: Overall strategy to automate any business process using various technologies
• RPA: Uses software bots to handle simple, rule-based tasks like data entry
• BPM: Focuses on analyzing, designing, and optimizing entire business workflows

Benefits of business process automation for your business

BPA reduces manual work and transforms the way your business runs. Implementing BPA brings real benefits, like smoother operations that directly help your bottom line.

Saves time

Automation helps you finish repetitive tasks faster. For example, automating data entry removes the need for manual input. What once took an employee hours can now be done in minutes, freeing them up for more valuable tasks.

Reduces errors

Business automation helps eliminate human error, like typos or miscalculations, with studies showing it can reduce errors by up to 70%. This 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. For example, a Forrester study found that RPA can have a significant impact on repetitive tasks, saving 200 hours per employee annually.

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.

Here is an example of how automation can drive real results. 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 labor, BPA can lower operational costs. Automated solutions require upfront investment but deliver lower long-term operating costs than manual processes.

While many businesses see return on investment within six to 12 months, a Forrester study found that some organizations can achieve a payback period of less than six months.

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%.

Ways to identify processes to automate

Identify automation opportunities by focusing on repetitive, time-consuming tasks with clear rules and measurable outcomes. These processes deliver the highest return on investment and are the simplest to automate.

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.
• 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 labor, 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.

Prioritize 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 labor-intensive tasks frees up staff.
• Complexity: Simpler processes give quick wins.

Customer service automation is a good place to start because:

• Frequency: Agents handle hundreds of daily interactions.
• Error rate: Inconsistent responses create confusion.
• Resource demand: Manual handling takes significant staff time.
• Complexity: Chatbots can automate common questions, making the switch easier.

How to automate your workflows for better efficiency

Workflow automation implementation transforms manual processes into efficient, automated systems. Follow these steps to successfully automate your business operations:

1. Assess current processes

Before automating, map out your current workflows to find inefficiencies, redundancies, and bottlenecks. This step remains a challenge for over half of organizations.

Document key details, including how long tasks take and common delays.

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, as integration issues with legacy systems affect nearly four out of ten companies.
• 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 should not treat automation as set-and-forget. You can keep improving automated processes over time. 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 challenges include high upfront costs, employee resistance, and selecting the right tools. Address these issues early to ensure successful implementation.

Manage costs and budgeting for automation

You need to plan carefully to get the most from automation while still managing costs:

• Explore pricing models: Subscription services often have lower upfront costs than one-off fees. Tiered pricing lets you start with essentials and expand as savings materialize.
• Start small, scale gradually: Focus on the tasks that will bring the most benefit. Quick wins will give you the funds to expand further.
• Assess ROI: Identify areas where automation can really pay off, like cutting labor 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, especially since research shows that about a third of workers have seen a change in their roles due to automation.

Addressing these fears early helps ease the transition and improve adoption.

• Communicate the benefits: Explain how automation frees them from repetitive tasks, giving them more time to work on meaningful projects.
• Invest in training: Provide hands-on training to give them the skills they need to feel confident with new systems. This will show that automation isn't about replacing them, but supporting their work.
• Involve employees in the process: Encourage feedback from the start. Make them feel part of the process and implement their suggestions to foster a sense of ownership.

Measure the success of business process automation

Successful automation does more than reduce workloads. It delivers real benefits. To make sure your automation efforts solve issues like inaccuracy, inefficiency, and high operational costs, track these key performance indicators (KPIs):

• Efficiency: Are workflows faster, with increased output?
• Accuracy: Have error rates dropped in key processes?
• Cost savings: Are you spending less on labor 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? According to McKinsey, it's crucial to redesign workflows around people and technology working together, which can directly influence job satisfaction.

Automation transforms financial management by eliminating manual data entry and reducing errors. Tools like Xero automatically capture and organize financial data, saving hours of bookkeeping work each week.

Streamline your operations with Xero's automation tools

Xero makes business process automation even smarter with Just Ask Xero (JAX), an AI-powered assistant that streamlines accounting. It handles bank reconciliation, payment reminders, and rule-based automation. These features save you time, reduce errors, and keep your finances running smoothly.

Try Xero to boost efficiency, improve accuracy, and stay organized – so you can focus on growing your business. Get one month free.

FAQs on business process automation

Here are answers to common questions about implementing business process automation in your business.

What's the difference between BPA, RPA, and BPM?

BPA is the overall strategy to automate business processes, while RPA uses software bots for simple tasks and BPM focuses on optimizing entire workflows.

How long does it take to implement business process automation?

Implementation typically takes two to eight weeks for simple processes, while complex workflow automation can take three to six months, depending on your business size and requirements.

What size business benefits most from automation?

Any business with repetitive tasks can benefit, but companies processing more than 50 transactions per month or spending more than 10 hours a week on manual tasks see the highest return on investment.

Can I automate processes without technical expertise?

Yes, modern automation tools like Xero offer user-friendly interfaces and pre-built templates that require minimal technical knowledge to implement and manage.