Accountants are now equipped with more efficient ways than ever to handle their work and simplify their day-to-day responsibilities with the advent of emerging technologies. Even still, keeping up with everything can be quite overwhelming. That’s why it’s always prudent to keep your eyes peeled for new trends in the accounting world and practically assess how they can be applied to your own work.
In this piece Head of Automation at The Missing Link, Matt Dunn, explores how robotic process automation (RPA) is transforming accounting practices – now and in the future.
The iPad. Beds in boxes. Netflix. Air fryers. Facial recognition technology. All new inventions of the last 15 years or so, and all normal parts of our lives, which enrich, entertain, and support us today. So, what’s the next big thing?
Automation and artificial intelligence are both buzzwords that have been thrown around for what seems like ages – but their capabilities are far from a fad, and we’re starting to reap the benefits in our professional and personal lives. Accountants are no exception. Recent developments in artificial intelligence and RPA have opened new opportunities for accountants and bookkeepers. Accounting practitioners now have access to tools that automate monotonous tasks and free up their time to focus on more strategic tasks.
What is RPA?
For those not already familiar, RPA is a form of automation that replaces the need for employees to go through complicated (and often straight up mind-numbing) point-and-click procedures to execute tasks. It's designed to automate the most tedious or error-prone processes in your business.
RPA is different from AI (Artificial Intelligence) in that its focus is to automate the execution of tasks using low code software, allowing your computer system to act like a human employee. It’s programmed to interact with your computer system just like a human does. For example, it can log in to an application, select choices from menus, enter data, and click buttons just as humans would do. AI, on the other hand, focuses on the logic and rules that govern the information that’s being processed.
The benefits of RPA for accountants
So, what’s in it for you as an accountant when it comes to RPA? Automation is transforming accountancy in 10 key ways...
1. Throw out your filing cabinet
In this digital age, accounting practices have seen a steady shift towards online platforms and away from traditional paper-based processes. It is now possible to track client information, run reports, and generate invoices online instead of storing them in filing cabinets – and you can train an RPA bot to do so.
2. Make data entry a thing of the past
Accountants can now automate the process of data entry by using intelligent optical character recognition (OCR). We have clients who can upload a PDF to an online portal and download a CSV file which is easily filtered and analysed within seconds! Of course, there’s limitless potential here to connect your data entry bot with key systems or platforms via an API, too.
3. Generate reports rapidly
RPA can be used by accountants to automate the process of generating reports on a regular basis. In fact, RPA makes it possible to prepare current financial statements daily and simplify reports like financial reconciliations that often take weeks, so they’re completed in just a few minutes. This way, you’re equipped with the most up-to-date information and can make well-informed decisions for your clients.
4. Investigate areas ripe for innovation
Deep, discerning insights require large amounts of data which often reside in both new and legacy systems. RPA can be trained to pull information from all the above, helping you connect the dots more easily and make better business decisions.
5. Focus on revenue generation
Using RPA, accountants can save time by automating routine tasks such as data entry and data retrieval. Removing these monotonous tasks allows you to focus more on generating revenue by providing higher-value services such as investment advice or financial planning.
6. Increase accuracy & maintain compliance
Finance requires next-level attention to detail and even a single error can leave businesses vulnerable to regulatory consequences. Automation has been proven to increase accuracy in various fields, including accounting. By using RPA, accountants can achieve higher levels of accuracy in their work and make their reports more reliable, and compliant.
7. Improve productivity
RPA systems don’t require salaries and they don’t need breaks, vacations, or health insurance. That means it’s a reliable resource with potential to improve productivity among accountants by allowing them to complete tasks in less time and with fewer resources. To this end, Ernst & Young found RPA adopters in the financial services industry have seen 20%-60% savings in baseline full-time employee costs since implementing their solutions.
8. Scale efficiently as your business grows
As your client base and transaction volume grows, so does the workload of your valuable employees. When dealing with rapid growth, it can be difficult to find enough skilled people at a reasonable price to manage the tasks at hand. With RPA, it’s easier and quicker to scale up operations when needed.
9. Make a bespoke solution
The best thing about RPA is that it’s completely customisable according to your document requirements, the type of data you’re looking at, the systems already in place in your organisation, and the specific processes you’d like to automate. What works for one company may not necessarily work for another company, so automation providers can quickly build solutions which are the perfect fit for your requirements, giving you a competitive edge.
The writing is on the wall: RPA helps businesses achieve operational excellence by reducing costs and improving decision making. Businesses who have begun their automation journey are already seeing concrete impacts and proof of concept. In a recent survey by Deloitte, 78% of these pioneers have stated they will continue to invest in it over the next three years.
You could be one of them. Learn more about RPA and explore the benefits with us in further depth by reaching out to our team.
