How Automation Frees Finance Teams To Power E-Commerce Growth

While e-commerce companies embrace automation to streamline fraud prevention and enhance customer experience, many finance teams still rely on outdated manual processes. This disconnect slows growth, increases error risk, and limits visibility into critical financial data.

Commerce protection platform Signifyd solved that problem by implementing NetLease by Netgain, an accounting automation solutions provider.

After an accounting manager left, Signifyd struggled with a convoluted ASC 842 compliance lease accounting spreadsheet. This caused inefficiencies and data inaccuracies, and finance teams spent up to eight hours per month wrestling with lease accounting instead of focusing on strategic growth.

ASC 842 is a lease accounting standard requiring public and private companies to recognize most leases on their balance sheets. It enhances transparency by showing lease obligations and assets.

Eliminating Signifyd’s dependence on spreadsheets, cutting lease accounting time by 50%, and increasing data accuracy removed those obstacles and allowed the company to operate as a true strategic partner in fraud-fighting initiatives.

Chris Miller, Netgain’s SVP of product strategy, offered several key challenges to finance teams relying on manual processes. These include increased error risk, slow transaction processing, and limited visibility into real-time data.

He explained that manual data entry is prone to mistakes. It leads to discrepancies that can take time to resolve, while slow workflows can delay critical financial decisions. Automating financial operations, especially for high-growth e-commerce companies, allows them to scale without being bogged down by manual processes.

“As many e-commerce companies often spend hours a month dealing with these tasks, leveraging automated accounting, invoicing, and reconciliation tools results in reduced errors, quicker transaction processing, and real-time financial insights,” he told the E-Commerce Times.

Financial Automation’s Path to Efficiency and Scalability: Q&A

The E-Commerce Times asked Chris Miller to provide details on implementing that no-spreadsheet strategy to run company operations better.

E-Commerce Times: How does financial automation work for high-growth e-commerce companies?

Chris Miller: It improves cash flow and other management systems and ensures compliance as operations expand across multiple markets. Beyond greater scalability, automation frees finance teams to focus on strategic growth initiatives rather than routine administrative tasks.

What are the biggest challenges finance teams face when relying on manual processes, and how does automation address them?

Miller: Automation addresses these issues by streamlining repetitive tasks, reducing human error, and ensuring faster, more accurate financial reporting. With automated systems, finance teams can access real-time data to make quicker and more informed decisions.

What common pitfalls do companies encounter when managing ASC 842 compliance manually?

Miller: Many companies try to create their ASC 842 spreadsheet in multiple platforms and systems, such as Excel or Google Docs, which do not always translate well into the other.

Lease accounting is incredibly complex, and the ASC 842 document continues this perspective. These complex documents are often created without instruction guides, meaning that what makes sense to one may be complete gibberish to another.

How does NetLease simplify lease accounting, and what measurable impact have you seen in companies like Signifyd?

Miller: NetLease frees up time for team members to focus on high-value projects. It ensures leases comply with easy adjustments, amortization schedules, and right-of-use asset tracking. Comprehensive real-time reports provide companies with visibility for their lease data, streamlining month-end reporting.

With Signifyd, this meant cutting their lease accounting time in half, from eight to four hours, saving them significant time and reducing strain on the team. Additionally, they cut the time the team spent creating a new lease to 15 minutes, which often took hours before the implementation.

What advice would you give to finance leaders transitioning from spreadsheets to an automated lease accounting solution?

Miller: Finance leaders should start by clearly defining their requirements and assessing which automated lease accounting solution aligns best with their business needs. It is also crucial to involve key stakeholders early to ensure smooth integration and user adoption. Finally, consider starting with a phased implementation to minimize disruption while the team adjusts to the new system.

Many companies do not associate finance operations with fraud prevention. How does financial automation strengthen fraud-fighting initiatives?

Miller: Financial automation is critical in preventing fraud by enhancing visibility and control over transactions. Automated systems can quickly detect unusual patterns or discrepancies, triggering alerts for further review by a human.

Additionally, it provides audit trails that ensure accountability. By automating approvals, reconciliations, and compliance checks, companies can proactively identify and prevent fraudulent activity before it impacts the business.

What are some overlooked risks finance teams face when they lack streamlined processes and accurate data?

Miller: When finance teams lack streamlined processes and accurate data, they face several overlooked risks, such as compliance issues, financial misstatements, and inefficiencies that can erode profitability. Decision-making becomes reactive rather than strategic without reliable data, increasing the chances of missed opportunities or costly errors.

Additionally, manual processes can lead to slower reporting, hampering the team’s ability to respond promptly to market changes or regulatory requirements. This can ultimately damage the company’s reputation and financial stability.

What trends do you see in financial automation for e-commerce, and how can companies stay ahead?

Miller: Some trends include the integration of artificial intelligence and machine learning for predictive analytics, enhanced real-time reporting, and more seamless connections between platforms like ERP and payment processors. Beyond company tools, you can expect to see smaller accounting teams and prioritizing a growing emphasis on continuous learning.

At today’s pace in the industry, staying current on trends is no longer an option. E-commerce companies should invest in scalable automation solutions that grow with their business, continually evaluate new tech advancements, and prioritize systems that provide real-time insights to empower their teams to stay competitive.

What lessons can other high-growth e-commerce companies learn from Signifyd’s transformation?

Miller: Signifyd’s transformation stands out as a great example of how automation and smart financial system integration can drive efficiency at scale. It also highlights the importance of integrating financial systems, accuracy, compliance, and the need for automation.

One of the biggest takeaways from their journey is the importance of understanding when a system is not working and making a shift. Many companies are hesitant to change or bring in a new system because there is an intimidation factor around learning a new system. However, once they overcome that fear, a company can see a change in efficiency and staff morale.

What challenges do companies typically face when implementing financial automation solutions, and how can they ensure a smooth transition?

Miller: Companies often face challenges like employee resistance to change, data integration issues, and the complexity of choosing the right automation tools during implementation. For a smooth transition, involve key stakeholders early, provide comprehensive training, and ensure the new system integrates seamlessly with existing platforms.

A phased rollout can help mitigate disruptions while allowing the team to adapt gradually. Maintaining clear communication throughout the process and having strong project management can significantly improve the chances of success.