2024 Yooz Survey: The Cost of Finance’s Paper Dependence

74% of Finance Teams Caught in Outdated Paper Processes, New Yooz Survey Shows  

New study from Yooz reveals the impact of shifting business priorities on finance professionals, highlighting increased stress levels and workload challenges with the potential of automation to alleviate these pressures.

Purpose of the Study

Across industries, businesses are grappling with set-backs and inefficiencies tied to paper-based processes. In an era where sustainability and efficiency dominate strategic discussions, reliance on physical documentation still persists, hindering progress in cost reduction, operational agility, and environmental goals. This report examines the behaviors and trends associated with digital versus paper processes, highlighting industry-specific challenges, inefficiencies, and opportunities for digital transformation.

To uncover these insights, the cloud-based E-invoicing and Purchase-to-Pay (P2P) automation solution, Yooz, partnered with the third-party survey platform Pollfish. The 2024 Yooz Survey The Cost of Finance’s Paper Dependence was conducted in November 2024, surveying 500 U.S. professionals in finance, aged 18 and older across various industries.

Key Findings

Key findings from the 2024 Yooz Report: Unveiling the Cost of Finance’s Paper Dependence include:

• Paper dependency persists despite digital advances: Nearly half of finance professionals (49%) rely on mixed paper and digital processes, with 47% printing daily. Generational resistance and trust in tangible documents drive this persistence, highlighting a deep-rooted operational attachment to paper. These habits impede progress toward efficiency and sustainability, underscoring the urgent need for businesses to modernize workflows.
• Outdated processes dominate finance teams: A staggering 74% of finance teams remain caught in outdated paper processes, relying heavily on physical documents to complete critical tasks. This widespread dependence slows operations and prevents organizations from fully capitalizing on the benefits of digital transformation, creating a significant barrier to growth.
• The high cost of paper reliance: Paper-based processes consume significant time and resources, with some workers losing more than 6 weeks of work a year to manual paper tasks. Operational inefficiencies, such as misplaced invoices, lead to missed payments and strained vendor relationships. This highlights paper's hidden costs as a major operational risk, stifling innovation and resource optimization.
• Barriers to digital adoption stall transformation: Resistance to change (43%), insufficient training (18%), and organizational red tape (15%) obstruct digital transformation efforts. With 35% feeling unprepared to phase out paper, businesses face organizational cultural and structural challenges in adopting digital workflows. Overcoming these barriers requires robust change management strategies and clear communication of digital transformation benefits.
• The untapped potential of automation and sustainability: While automation promises significant operational and environmental gains, only 21% of businesses describe their processes as highly automated. With 73% of respondents agreeing that reducing paper waste could improve their organizations’ sustainability efforts, green initiatives can boost support and excitement for automation and modern systems.

These findings highlight a persistent reliance on paper-based processes despite clear inefficiencies and the availability of digital alternatives. Employee resistance, insufficient training, and operational barriers continue to hinder digital adoption, while businesses miss opportunities to leverage automation and sustainability as drivers for transformation. Embracing digital workflows and addressing these challenges is critical for businesses who want to enhance efficiency, reduce costs, and stay competitive.

Paper's Not Dead Yet, But It's Gasping

Despite advances in digital technology, paper remains a staple in many industries.

• Nearly half (49%) of respondents use a mix of paper and digital formats, while 47% print daily.
• Habit and familiarity drive 50% of paper use, while 40% express greater trust in tangible documents. Surprisingly, 10% cite professional appearance as a reason for paper reliance.
• Almost three out of four (74%) of respondents noted that whole departments in their places of work remain dominated by paper processes
• Generational resistance plays a significant role, with 32% reporting disagreements over paper workflows between age groups.

The persistence of paper habits, even in a digital-first era, show how deeply ingrained these practices remain across industries. This reliance raises timely questions about the long-term costs of clinging to outdated workflows.

The Hidden Cost of Paper

Paper-based processes create a significant drain on time, resources, and efficiency. Managing stacks of documents and dealing with misplaced or damaged paperwork can create bottlenecks that ripple across entire organizations.

• Workers spend significant time managing paper, with 30% clocking 1-3 hours weekly and 13% exceeding five hours. This equates to 260 hours annually for some—roughly six and a half workweeks.
• 22% of respondents have missed payments due to misplaced paper invoices, damaging vendor relationships and underscoring operational inefficiencies.
• Paper piles accumulate everywhere: desks (54%), communal areas (20%), and even at home (10%).

Lost in the Shuffle

The operational hassles of dealing with paper are a real headache for businesses, slowing down workflows and adding unnecessary risk. From lost or damaged documents to frustratingly slow retrieval times, these challenges eat away at efficiency and momentum.

• Over half (56%) of respondents fear losing or damaging paper documents.
• Retrieval times are slow for 44%, exacerbating inefficiencies.
• Paper-based workflows limit strategic operations for 66% of respondents.

Resistance to Change Stalls Digital Upgrades

Resistance to change, high costs, and operational hurdles continue to hold businesses back from fully embracing digital transformation. Many organizations face challenges such as inadequate training, insufficient IT resources, and complex internal processes that make the shift away from paper feel overwhelming.

• 43% cite resistance to change as a key barrier.
• Additional challenges include lack of training/knowledge (18%), organizational red tape (15%), and insufficient IT resources (19%), emphasizing the need for streamlined operations.
• 35% feel unprepared to operate without paper if it were phased out immediately.

Automation Isn't the Future - It's Now

Delaying adoption of automation only widens the gap between those who take the plunge to embrace innovation and those who fall behind, leaving missed opportunities in its wake.

• 77% of departments report only minimal or moderate use of automation, with 21% describing their document management processes as highly automated.
• Only 24% of respondents believe their organization is likely to go fully digital within two years.
  
  

Sustainability Could be the Wake-up Call

Sustainability has taken center stage for businesses, fueling the trend toward comprehensive digital transformation. Transitioning away from paper-based processes offers a clear opportunity to reduce environmental impact while making operations more efficient. Digital workflows allow companies to make meaningful progress toward sustainability goals and foster greater alignment across departments. Here’s how sustainability is influencing digital adoption.

• 73% agree that eliminating paper would enhance sustainability efforts.
• 75% report that reducing paper-usage and embracing a more sustainable, digital-first workplace is important to their organization.

Finance teams eager to embrace automation could leverage sustainability as a rallying point for cross-departmental support.

Key Areas for Improvement 

To overcome these challenges and begin the process of embracing the best elements of digital transformation, organizations can take certain steps.

• Invest in automation: Adopt tools that reduce manual workflows, streamline document management, and enhance operational efficiency.
• Enhance training and change management: Provide comprehensive training programs to reduce resistance and improve digital proficiency.
• Streamline processes: Address organizational red tape and align IT resources with departmental goals.
• Tap into sustainability goals: Use green initiatives to build excitement and momentum for digital transformation.

The 2024 Yooz Report Unveiling the Cost of Paper Dependence highlights the toll that paper dependence takes on businesses in cost, time, and overall growth. Embracing automation and addressing the business cultural and operational barriers to change allows organizations to unlock new efficiencies, reduce costs, and position themselves for long-term success.

Laurent Charpentier, CEO of Yooz, reflects on the findings: “The reliance on paper is a legacy of the past that no longer serves the fast-paced needs of modern businesses. Organizations that prioritize digital transformation set themselves up for a competitive edge while contributing to a more sustainable future. At Yooz, we’re committed to helping businesses navigate this journey with solutions that empower them to work smarter, not harder.”

“The time to act is now,” Charpentier concluded. “Businesses have an incredible opportunity to redefine their operations, reduce costs, and make meaningful strides in sustainability. Let’s not waste another moment clinging to outdated practices. The future is digital and it’s waiting for us to embrace it.”