MEDIA RELEASE
Australian SMEs under pressure as market challenges accelerate shift to digital tools
Australia’s small and medium-sized enterprises (SMEs) are battling rising costs, cash flow strain and tighter credit conditions, with new research showing 80% of SMEs are still using manual processes for expenses.
An OFX (IPSOS) survey of more than 500 SME accountants and finance decision makers reveals that manual processes, security concerns and late payments are among the biggest barriers to efficient financial management. Technology adoption is now seen as critical to business resilience and sustainable future growth as finance leaders turn to digital tools and automation to stay afloat.
“SMEs are the backbone of the Australian economy, but too many are being held back by systems that no longer serve their needs,” says OFX CEO, Skander Malcolm.
“Finance leaders are telling us they want technology that simplifies the complex, helps them act with confidence, and ultimately gives them back the time they need to focus on growth,” he says.
The OFX (ISPSOS) survey reveals manual, labour-intensive finance processes continue to drain time and resources, while concerns around data security and privacy weigh heavily, with more than half (52%) saying these are the most important features they consider when selecting a spend management solution.
Payments are another weak spot. Many SMEs still rely on manual invoice processing, creating bottlenecks and inefficiencies. Over a third (38%) of accountants and finance leaders report errors from manual data entry as their most common inefficiency, while another 36% cite delays caused by lengthy approval workflows. Late payments and disputes also disrupt cash flow, adding further stress to already stretched finance teams.
Against this backdrop, SMEs are demonstrating a strong appetite for modernization as they turn to digital tools, automation and integrated platforms to eliminate manual processes and enable faster decision making. Nearly half (46%) see the increased use of generative AI tools and support as a top trend in payment and expense management.
This will continue to be a key theme into the future, as more businesses look to automated solutions to better manage employee and client compliance with company policies. More than a quarter (26%) of those surveyed say one of the biggest challenges when managing expenses in the next 2 – 3 years will be employees or clients not following expense policies.
Trust is also a significant factor, with 31% of respondents identifying the need to build trust and expertise in new software as a major challenge in managing expenses over the next 2–3 years. A quarter of respondents (25%) cited the same concern in relation to managing client payments in the future.
Real-time visibility is also a top priority. More than seven in ten (71%) say real-time oversight of transactions is essential, while virtually all respondents (94%) reported tangible benefits from automated processes, such as faster reconciliations (51%) and improved accuracy (49%).
“For many SMEs, adopting digital tools and automation is no longer just about efficiency – it’s about survival,” says Malcolm.
“Finance functions are shifting from a back-office compliance role to a more strategic, technology-enabled partner at the heart of the business.”
The survey findings make clear that future resilience and growth will rely on sharper cash management, tighter expense control, and smarter adoption of digital tools. While SME growth ambitions remain, margins are under strain, and businesses must adapt to survive and thrive.
Methodology
This study was conducted by Ipsos Research on behalf of OFX in October 2025. Among the 500 participants, are Australian business leaders, financial decision makers and accountants from small-to-medium businesses with up to 250 employees, across a wide range of industries.
About OFX:
OFX is a leading financial operations company providing businesses and accounting firms with real-time financial control and visibility to do business anywhere in the world. With an innovative platform and 24/7 human support, OFX automates and simplifies doing business across borders, reducing risk and eliminating routine operational tasks. Offering global business accounts, payments to 180 countries in 30+ currencies and currency risk management solutions to simplify global payments. OFX further enhances business operations by providing corporate cards with spend management, bill payments, vendor management, and integrations with popular accounting and HRIS software, to help achieve better business solutions so accounting firms and businesses thrive.
Headquartered in Sydney, Australia, with offices globally, in the United States, Canada, United Kingdom, Ireland, New Zealand, Singapore and Hong Kong. ISO/IEC 27001:2022 certified globally, 700+ employees, listed on the ASX since 2013, licensed in 50 jurisdictions and regulated by over 50 regulators globally. OFX has been a trusted innovator in global money movement for over 25 years.
For more information about OFX and its financial automation solutions, visit www.ofx.com