The increasing popularity of RPA technology is having a considerable impact on the accounting profession. Nevertheless, despite the many benefits that RPA offers, some accountants remain hesitant to embrace it, fearing that it will replace them entirely. In reality, however, RPA should be seen as an enhancement to the profession, not a threat. With the right training and support, accountants can make use of RPA technology to improve their productivity and efficiency while still maintaining their role in the organization.
What Is Robotic Process Automation in Accounting?
In accounting, robotic process automation (RPA) refers to the use of software programs to automate repetitive, rules-based tasks typically performed by human accountants. By automating these tasks, RPA can help accounting departments improve efficiency and accuracy while freeing up staff to focus on higher-value work.
For example, an RPA program could be used to automatically generate invoices based on data entered into a company’s accounting system. Alternatively, an RPA program could be used to reconcile differences between two sets of financial data. In both cases, using RPA can help reduce errors and improve efficiency.
Benefits & Use Cases of RPA Technology in Accounting
Unifying Policies, Procedures & Systems
A recent study by PwC found that 58% of the companies currently use one to five bots. But while the benefits of RPA are clear, there are some risks that need to be considered before implementing it in your finance department.
One of the biggest risks is that RPA can accelerate the production of waste if it’s not properly managed. That’s why it’s essential to have unified policies, procedures, and systems in place before utilizing the power of RPA. Otherwise, you could end up automating valuable activities alongside those that are wasteful.
The power of RPA lies in its ability to automate repetitive, error-prone tasks across the entire R2R process. By automating these tasks, RPA can drastically reduce risk while delivering dependable data.
Reducing Cost & Increasing Efficiency
RPA technology is revolutionizing the accounting industry by reducing costs and increasing efficiency. By automating repetitive tasks, RPA can help accounting departments save time and money. In addition, RPA can improve accuracy by eliminating human error.
As a result, RPA is helping accounting departments to become more efficient and effective. In turn, this is leading to lower costs for businesses and better financial outcomes.
Intercompany reconciliations are a critical part of the accounting process, but they can be time-consuming and error-prone. RPA can help to automate the process, making it more efficient and accurate.
The Intercompany Hub is a configurable tool that can automatically perform intercompany reconciliations based on tolerance levels, identifying exceptions. This can help to reduce the risk of financial errors, compliance issues, and fines. In addition, the Intercompany Hub can help to manage growing intercompany transaction volumes, making the accounting process more efficient and effective.
Financial Planning & Forecasting
As technology advances, so too does how businesses operate. In the past, financial planning and forecasting was a time-consuming and manual process, often reliant on spreadsheets and antiquated software.
However, with the advent of RPA technology, accounting is set to become a much simpler and more efficient process. RPA can automate repetitive tasks such as data entry, freeing up accountants to focus on more complex work.
To sum up,
Robotic process automation – RPA technology is growing in popularity for good reasons. It has the potential to automate a wide variety of accounting and financial tasks, making processes more efficient and accurate. If you’re interested in learning more about how RPA can benefit your business or want to start implementing it yourself, contact us today. Our experts would be happy to help you get started on this exciting new technology!