Robotic Process Automation (RPA) is automation software that handles tedious manual tasks by mimicking human actions and will make daily processes simpler, error free and more cost effective.
Before robots were used in the industries that involve massive manufacturing processes like heavy automobiles, assembly packing industries mainly focused on mechanical outcomes.
Today, we are using software robots to automate business processes and day to day repetitive nature of office work like filling the same information in multiple places, fetching the data every day, re-entering the data and it can work around the clock without any fatigue.
Why Robotic Process Automation (RPA)
In addition to the hard code automation workflows and Application Programming Interfaces (APIs) robots using native AI & ML models to enhance the overall capability and learn from experience.
Some of the criteria for a work to be identified to be a RPA candidate is it should be highly manual, repetitive and should involve high volume process, should be a rule based, the system should be stable.
Even though if it is not, we will generally handle the scenario by using exceptions.
Since the financial and accounting process involves the many transactional processes which are repetitive and time taking.
Do you know that RPA is used in capital/financial markets as well? Check it out here.
Use Cases of RPA in Finance and Accounting
Some of the use cases of RPA in accounting and finance are:
1. Invoice Processing
We can use RPA to automate invoice processing, receiving, verifying and paying invoices.
RPA with the aid of OCR (Optical Character Recognition) extracts data from different sources, matches with invoice and will indication of mismatched data.
Will gather data from the multiple sources like emails and CRM.
It will help to collect the invoice data, prepare invoice and will help to email to end users using the RPA on monthly basis.
2. Financial Reporting
Financial reporting includes income statements, balance sheets, and financial close process.
The complex calculations of profit and loss report can be done by using RPA computing. This time-consuming process can be automated by RPA.
RPA tools will support the excel activities thus RPA bots can create balance sheets and income statements.
3. Accounting and Tax
Automate the finance, accounting and taxation related tasks. RPA can record daily transactions, expenses, profit and loss.
4. Data Gathering
Reconciliation of data that is downloaded from emails and bank websites.
RPA enables companies to gather large amount of data error free and with complete accuracy.
By using the OCR, RPA software can feed the client information from documents and reports can be generated if required same can be mailed to the concern management person, where they can give their inputs.
KYC can be done, and validations can be handled by using the BOTs.
Many data gathering will be required at the time of mortgage lending, loan processing.
5. Intercompany Reconciliations (ICR)
This is an accounting practice of reconciling payments between the subsidiaries of the parent company.
During this time RPA helps to balance accounts and produce the statements.
6. Payroll Management
For the employee payroll management, we can use RPA effectively, which leverages the time-consuming task like employee timesheet validation, information verification, payments calculations.
7. Inventory Management
Inventory calculations can be performed by RPA that involves the data extraction and entering data to the records, ERP management (database management can be done efficiently with RPA).
8. Credit Card Processing
The main tiring task that involved is the process of validation of customer information and approving the credit cards accordingly.
This will grab the time of both the customer and validator.
RPA can be used to decide effectively whether the cards can be approved or not.
Credit assessment reports can be fetched by using the RPA solution.
9. Fraud Detection
It can be used to reduce the forgery and other kinds of frauds since the validation of the credit card forms and processing will be done by RPA bots.
10. Notification to the Customers
Notification to the customers can be handled by using the BOTs in the month end or the scheduled time. We are receiving the monthly statements of our accounts with the balance statements.
Benefits of Using RPA in Finance and Accounting
1. Cut Down Costs
RPA helps the finance and accounting industry to reduce labor costs.
Infrastructure costs will be again reduced in case we are depending on the cloud servers.
Since RPA reduces the transactional data processing, accountants can focus on delivering valued financial analysis to the end users.
Insurance is another sector where RPA can help in cutting down costs.
2. Time Efficiency
With the time saved from the day-to-day mundane tasks, people can use their saved hours on other revenue generating activity.
Will help to fetch data from the multiple sources with greater accuracy and in the short time.
RPA will help to boost the efficiency of the team by automatically fetching the data and analyzing the same in a similar fashion the human beings will do.
3. Error Free
Since manual interventions will be less also the finance process involves lots of calculations, using RPA ensures the output data will be error free.
Also, in case of payment time security of the same can be ensured.
Any potential issues detected will be flagged for the review. Procedures must ensure that the RPA will be aligned with the enterprise’s goals
4. Fraud Detection
RPA bots will be useful in stopping the transactional frauds by detecting certain patterns.
5. Customer Queries
It can be easily handled using the structured chatbots will definitely save the time of your team.
RPA is transforming different departments in companies. We can use RPA in many services like invoice processing, expense reporting, payroll management, account book entries, cash reconciliation etc.
The several gaps in the financial and accounting automation can be closed with RPA.
If you need to help with automating finance and accounting related activities in your organization, then approach RPA experts at Perfomatix.
You can drop us a note to setup a meeting our team.