Accounting Automation & Beyond

Navigating Trade Turmoil in 2025: Why Automation Is Your Competitive Edge

Written by DocuPhase | Apr 25, 2025 7:42:17 PM

The headlines are unpredictable, but the pressure on finance teams is constant. Whether it’s new tariffs, rising supplier costs, or shifting policy decisions, back-office teams are being asked to stay agile, efficient, and in control. 

One moment, it’s cautious optimism. The next, it’s headlines about new tariffs, rising costs, or another shakeup in global trade policy. The only thing that seems predictable lately is the unpredictability. And if you're running accounts payable or managing cash flow in a back-office role, you're likely caught in the middle, trying to keep things moving while the market keeps shifting. 

The question on everyone’s mind: Do we wait this out, or double down on efficiency now? 

Let’s talk about why uncertainty isn’t a reason to stand still, and how automation is helping businesses not just survive, but lead with confidence, no matter what the economy throws their way. 

 

The Current Economic Picture: Cloudy with a Chance of Disruption

2025 has been a confusing year for operators and CFOs alike. After years of supply chain disruptions and labor shortages, many were hoping for calmer waters. But recent economic policy shifts and global trade tensions have brought new waves of unpredictability. 

As of today, the U.S. has once again ramped up tariffs on Chinese imports, with rates reaching as high as 145% on certain goods. This raises the cost of everything from steel to microchips to finished equipment. In industries like manufacturing and heavy truck dealerships, that kind of spike can wreak havoc on procurement, staffing, and budgeting. One part cost increase can throw off an entire invoice cycle. 

At the same time, inflation has cooled, but not evenly. While energy and shipping have stabilized in some sectors, labor costs are still rising, especially in skilled roles. In healthcare, for example, hospital systems are struggling with rising overtime pay, contract labor expenses, and burnout-related attrition, making financial planning more complex than ever. 

And all of this is happening alongside fluctuating consumer demand, cautious capital spending, and interest rate uncertainty. For many organizations, that means pausing big investments while still expecting back-office teams to hit aggressive performance targets with fewer people and more complexity. 

Sound familiar? 

What Uncertainty Looks Like in the Back Office

For AP managers, controllers, and operations leaders, this economic instability shows up in very specific and very frustrating ways: 

  • Supplier costs changing mid-cycle, requiring urgent PO and invoice revisions 
  • Late or partial shipments that complicate 3-way matching and delay payment approvals 
  • Tightened payment terms from suppliers trying to protect their own margins 
  • Leadership asking for real-time cash flow visibility, but getting outdated spreadsheets instead 
  • Manual processes getting slower, just when the business needs agility most 

 And while finance teams are tasked with maintaining control and accuracy, they’re often stuck using disconnected systems, paper-based workflows, or legacy tools that weren’t built for this kind of pace or pressure. 

Why Automation is the Calm in the Chaos

While tariffs are one headline, what they represent is bigger: a rising need for finance agility in unpredictable conditions.

This is where automation comes in. Not as a shiny tech upgrade, but as a foundational strategy for staying steady when everything around you is in flux.

When your AP and payments processes are automated, you’re not relying on tribal knowledge, sticky notes, or email approvals. You’re operating with visibility, consistency, and control, even when external conditions are anything but predictable.

Here’s how:

  1. Faster, More Flexible Workflows
    With automation, invoice routing, approvals, and payments no longer hinge on who’s in the office or who saw what email. Smart workflows adapt to shifting business needs, whether you’re rerouting invoices impacted by tariffs or accelerating approvals to capture early pay discounts.
    That kind of responsiveness is critical in fast-paced environments like manufacturing, where raw material prices and supplier availability can change by the week.
  2. Built-In Accuracy and Controls 
    Manual entry invites errors, and errors lead to delays, missed discounts, and rework. Automation captures and validates data at the start, matching it against purchase orders and receipts and flagging issues before they escalate. 
    For healthcare AP teams handling hundreds of invoices for temporary labor and specialized equipment, built-in controls help prevent billing errors and protect cash flow.
  3. Real-Time Visibility When It Matters Most 
    When cash is tight or volatility is high, leaders need answers quickly. Automated systems provide real-time dashboards and reporting, so you can track liabilities, monitor payments, and spot bottlenecks as they happen. 
    That visibility is just as critical in industries like education and logistics, where reimbursement cycles, funding flows, or freight costs can shift unexpectedly.
  4. Scale Without Burnout 
    Even with limited headcount, automation helps your team manage higher volumes without added stress. Instead of chasing approvals or triple-checking spreadsheets, they can focus on managing exceptions, optimizing supplier terms, and delivering strategic value. 
    It’s not about replacing people. It’s about freeing them from the manual tasks that slow them down.

Turning Uncertainty into Opportunity

It might feel counterintuitive to invest in automation during a period of economic unpredictability. But the reality is, companies that act now are putting themselves in a position of strength while others hesitate. 

And it’s not just theory. According to Goldman Sachs, organizations that automate AP processes see 70 to 80 percent time savings and up to 50% lower processing costs, creating more capacity, greater accuracy, and better spend control without needing to scale headcount. 

Plus, automation is no longer a multi-year transformation project. With modern platforms like onPhase, teams can implement and start seeing value in a matter of weeks, not months. 

If recent events have made anything clear, it’s that uncertainty isn’t slowing down and neither can finance teams. Whether it's shifting trade policies, rising supplier costs, or broader economic pressures, the ability to move quickly, maintain control, and stay visible is more critical than ever. 

Building that kind of resilience doesn't happen by accident. It happens by rethinking the tools and processes your team relies on when the pressure is highest. 

If you're preparing your back office for what’s ahead, explore the onPhase Platform Overview to see how modern automation can help you stay agile, efficient, and in control, no matter what the market throws your way. 

The landscape may be unpredictable, but with the right foundation, your team doesn't have to be.