Digitalization of the finance function: Automation, analytics, and finance function effectiveness

Bedford, DS; Derichs, D; Hoozée, S; Malmi, T; Messner, M; Sinha, VK; Van der Kolk, B; Verbeeten, F

Digitalization of the finance function: Automation, analytics, and finance function effectiveness

Bedford, DS Derichs, D Hoozée, S Malmi, T Messner, M Sinha, VK Van der Kolk, B Verbeeten, F

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Publisher:: Elsevier
Publication Type:: Journal Article
Citation:: Management Accounting Research, 2025, 67, pp. 100942
Issue Date:: 2025-12

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Field	Value	Language
dc.contributor.author	Bedford, DS
dc.contributor.author	Derichs, D
dc.contributor.author	Hoozée, S
dc.contributor.author	Malmi, T
dc.contributor.author	Messner, M
dc.contributor.author	Sinha, VK
dc.contributor.author	Van der Kolk, B
dc.contributor.author	Verbeeten, F
dc.date.accessioned	2025-07-28T01:29:23Z
dc.date.available	2025-07-28T01:29:23Z
dc.date.issued	2025-12
dc.identifier.citation	Management Accounting Research, 2025, 67, pp. 100942
dc.identifier.issn	1044-5005
dc.identifier.uri	http://hdl.handle.net/10453/188860
dc.description.abstract	Contemporary digital technologies provide new opportunities for organizing work within the finance function. In this study, we examine two digital technologies that are particularly relevant to the operation of finance functions – automation and analytics. We argue that variation in the use of these technologies is related to the interplay between firm-level digitalization strategy and the objectives of the finance function. Drawing on prior literature, we distinguish between two finance function objectives: an efficiency objective and a business partnering objective. Based on survey responses from 137 finance function professionals and complementary insights from 11 interviews, we show that the use of digital technologies within the finance function is associated with both firm-level digitalization strategy and the specific objectives of the finance function. Specifically, we find a positive interaction between an emphasis on firm digitalization strategy and an efficiency objective on the use of both automation and analytics. In contrast, digitalization strategy and a business partnering objective have positive but independent effects on the use of analytics. We also find that finance functions that simultaneously use automation and analytics have lower effectiveness, which might be a result of resource constraints. Overall, our paper adds to our understanding of the drivers and consequences of digitalization in the finance function.
dc.language	en
dc.publisher	Elsevier
dc.relation.ispartof	Management Accounting Research
dc.relation.isbasedon	10.1016/j.mar.2025.100942
dc.rights	info:eu-repo/semantics/openAccess
dc.subject	1402 Applied Economics, 1501 Accounting, Auditing and Accountability, 1608 Sociology
dc.subject.classification	Accounting
dc.subject.classification	3501 Accounting, auditing and accountability
dc.title	Digitalization of the finance function: Automation, analytics, and finance function effectiveness
dc.type	Journal Article
utslib.citation.volume	67
utslib.for	1402 Applied Economics
utslib.for	1501 Accounting, Auditing and Accountability
utslib.for	1608 Sociology
pubs.organisational-group	University of Technology Sydney
pubs.organisational-group	University of Technology Sydney/Business School
pubs.organisational-group	University of Technology Sydney/Business School/Accounting Discipline
pubs.organisational-group	University of Technology Sydney/UTS Groups
pubs.organisational-group	University of Technology Sydney/UTS Groups/Centre for Business Intelligence and Data Analytics (BIDA)
pubs.organisational-group	University of Technology Sydney/UTS Groups/Centre for Business Intelligence and Data Analytics (BIDA)/Centre for Business Intelligence and Data Analytics (BIDA) Associate Members
pubs.organisational-group	University of Technology Sydney/UTS Groups/Stroke Research Collaborative
utslib.copyright.status	open_access	*
dc.rights.license	This work is licensed under a Creative Commons Attribution 4.0 International License (CC BY 4.0). To view a copy of this license, visit https://creativecommons.org/licenses/by/4.0/
dc.date.updated	2025-07-28T01:29:22Z
pubs.publication-status	Accepted
pubs.volume	67

Abstract:

Contemporary digital technologies provide new opportunities for organizing work within the finance function. In this study, we examine two digital technologies that are particularly relevant to the operation of finance functions – automation and analytics. We argue that variation in the use of these technologies is related to the interplay between firm-level digitalization strategy and the objectives of the finance function. Drawing on prior literature, we distinguish between two finance function objectives: an efficiency objective and a business partnering objective. Based on survey responses from 137 finance function professionals and complementary insights from 11 interviews, we show that the use of digital technologies within the finance function is associated with both firm-level digitalization strategy and the specific objectives of the finance function. Specifically, we find a positive interaction between an emphasis on firm digitalization strategy and an efficiency objective on the use of both automation and analytics. In contrast, digitalization strategy and a business partnering objective have positive but independent effects on the use of analytics. We also find that finance functions that simultaneously use automation and analytics have lower effectiveness, which might be a result of resource constraints. Overall, our paper adds to our understanding of the drivers and consequences of digitalization in the finance function.

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http://hdl.handle.net/10453/188860