Technology is transforming business processes at a rapid pace including accounting. Technological advancement has led to the emergence of many digital tools such that the accounting profession is embracing the use of Robotic Process Automation (RPA) also called software robots or bots to streamline many activities. Robotic Process Automation (RPA) is the use of software programs to automate repetitive and routine accounting processes where it imitates the actions of a human being using digital systems to complete tasks.
Thus, the Robotic Process Automation software can be used in a variety of tasks which will result in eliminating error-prone manual data entry, improving account reconciliation and processing business transactions. It can even generate responses and interact with human beings via emails or other digital systems. It does so more tirelessly thereby allowing them time to focus on strategic analysis and other higher-value pursuits that call for human judgement and experience.
For example, a bot can be programmed to validate the data being entered against a set of pre-defined rules and by design, flag any discrepancies. This helps to eliminate errors and irregularities in a data, and improve the overall quality of data being entered into an accounting system. Indeed, robot software can be implemented across a variety of accounting processes to improve efficiency and accuracy, increase productivity and control overall cost of operations.
Demand for Robotic Process Automation
Robotic Process Automation is a relatively new technology which organizations and accountants can use to improve internal business processes and ensure compliance as well. In an audit firm, for instance, it can be used to streamline taxation, assurance, and advisory professional services. Regarding tax function, it is an established knowledge that many of the tasks are rule-based and require strict compliance and reporting. In that regard, bots can be used to gather tax information from clients and prepare tax returns for them accordingly.
Aside from that, revenue audits can also be automated by software robots to run reconciliations, analytical and dual-purpose procedures such as internal control tests and tests of details. Indeed, revenue is generally a high-risk area in audit engagements, hence, automating the tasks that do not require auditor judgement with the software robots has the potential to improve audit quality.
Similar to accounting firms, audit clients could go directly to licensed third-party vendors to acquire software robots. However, advisory practices create value for clients by identifying the processes in their business operations that can be automated. But in doing so, there is the need to understand a client’s specific business requirements and processes which will enable the software robots to function properly after the automation exercise. Third-party vendors are already starting to add more artificial intelligence to the traditional rule-based bots to improve their quality and functions so that they can perform more sophisticated tasks than those which require human judgments.
Implement Robotics Process Automation
When implementing software robots, it is very important to develop a detailed plan of action, constitute a team to oversee the project, and ensure you focus or give attention to all details in the course of project. To incorporate Robotic Process Automation, the following steps can be considered. These steps are not cast in stone but provide an insight into the implementation processes.
–Identify manual processes
The first step requires organizations to identify the manual accounting processes which experience operational lag and can be resolved through automation. Some of the identifiable areas for automation include financial reporting, planning and forecasting, accounts receivables and payables. Other examples are expense reporting, payroll management, intercompany reconciliations, tax compliance and inventory management and accounting. The least complex processes must be prioritized and start with, during the automation process.
–Document requirements and standards
It is always advisable to start the implementation process with the end in mind by considering all the necessary requirements and standards. Robotic Process Automation (RPA) solutions require that standards be established. Also, this step provides an opportunity to critically scrutinize the entire processes of a business to establish areas that should be merged together or eliminated. It is imperative that you identify all functionalities and capabilities of the Robotic Process Automation satisfy your unique business needs for the automation to be considered successful into the future.
-Prepare the data
Software robots relies on stable data to function effectively. It is, therefore, imperative to remove complexities and consolidate data from multiple sources to a single location. A centralized data store will allow for creation of a consistent data structure and format. This strategy can help organizations to optimize accounting processes for continuous improvement.
–Design and implement a process
Design a complete process map and highlight the critical areas of operations which requires automation. The design should include specific instructions on what is expected from the software robots and how the software will fit into the overall solution. During the development phase, establish project tollgates or team review sessions. This will afford key stakeholders the time to meet and review the automation process in terms of deliverables and the expected outcomes. Finally, avoid hard-coding any external settings and provide methods of changing settings without requiring code changes.
-Test the output
Before relying on your solution, compressive testing of the output should be completed. The reality is that most Robotic Process Automation (RPA) scenarios are complicated and require attention to details. As considered previously, the completeness of your data can play an enormous determination of success. Also, Robotic Process Automation (RPA) development should not be an individual pursuit. In an ideal scenario, all members of the team should be part of the testing process. This means that the developer, the peer reviewer, and the business testers should all be different individuals.
Conclusion
Robotic Process Automation (RPA) is transforming the way accounting functions operate, and businesses of all sizes can reap the benefits of this software application because it can be integrated with artificial intelligence. Robotic Process Automation (RPA) provides a paradigm shift from the use of discrete set of software systems for recurrent tasks. In effect, recurrent tasks are solely suitable for automation through software bots.
Bernard is a Chartered Accountant with over 14 years of professional and industry experience in Financial Services Sector and Management Consultancy. He is the Managing Partner of J.S Morlu (Ghana) an international consulting firm providing Accounting, Tax, Auditing, IT Solutions and Business Advisory Services to both private businesses and government.
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