Why Finance Automations Look Great in Year One - and Fail in Year Two
Imagine this: it’s month-end, year two of your finance automation rollout. The dashboards look perfect. The close runs faster. Manual effort has dropped. On paper, everything should be smooth.
Then a familiar feeling creeps in. Exceptions are piling up. Workarounds are sprouting. Reports don’t align the way they used to. Teams are spending more time double-checking numbers than ever before.
The automation isn’t broken. Tt’s just drifting.
Momentum vs Reality
Year one is all build, excitement, and focus. Everyone knows the process. Data is tidy. Volumes are predictable. The people who built the system are still around, invested, and attentive.
By year two, reality hits: new suppliers, new products, staff turnover, minor master data changes, and a handful of “temporary” exceptions that never get fixed. The technology still works. But the conditions around it have shifted.
Where Ownership Fades
Another big factor? Ownership quietly disappears.
During implementation, responsibilities are clear. Post go-live, automation often falls in the grey area between IT, finance, and operations. No one owns exception rates, master data updates, or deciding when the automation needs to evolve.
Without a visible owner, automation becomes something the team works around instead of trusts.
Exceptions Become the New Manual Work
Automation handles the happy path well. The problem is everything outside it.
One-off exceptions turn into recurring issues
Temporary workarounds become standard practice
Manual fixes become the norm
Instead of reducing effort, automation shifts it to less visible, but still very real, work.
Master Data Slowly Erodes Efficiency
Over time, small errors in master data ripple through automated transactions. A single incorrect supplier record or wrong payment term can nullify weeks of efficiency gains. By the time the issue is caught, the system is “working” but the human effort to correct it has ballooned.
Automation Fatigue Sets In
By year two, the team has stopped noticing the wins. Training hasn’t kept pace, confidence in the system is shaky, and manual checks creep back in. The automation is still running, but no one relies on it fully.
How to Prevent Year-Two Drift
Automation isn’t a “set and forget” project. Sustainable automation requires:
Clear ongoing ownership
Active exception management
Strong master data governance
Regular review of assumptions
Willingness to redesign processes, not just patch them
Year one proves the technology works. Year two proves the leadership and operating model around it.
The Bottom Line for Finance Leaders
Finance automation isn’t just about faster closes or fewer headcount hours. Its real long-term value comes from how it’s managed, maintained, and integrated into the way your team works. Treat it as living infrastructure, not a one-off project, and it keeps delivering- well past year one.
