Recently, Intelligent Process Automation become one piece of the broader spectrum in technology, that of automation as a whole. From driverless cars to drones, automation is leveraging new forms of intelligence, whether it’s a simple automated customer communication in the form of desktop assistants or automating the complete end to end process of an organization. Automation is designing a new way of life we live and the way we work too.
Namely, the accelerating growth of automation is forcing people to adopt the trending technology to survive in the competitive business world.
As estimation, the IPA market was valued at USD6.25 billion in 2017 and is now projected to reach USD 13.75 billion by 2023
Intelligent Process Automation
Intelligent Process Automation (IPA) includes a handful of technologies that is used to manage, automate and integrate the entire digital processes of an organization. Meanwhile, Artificial Intelligence, Digital Process Automation and Robotic Process Automation are the main technologies that make up the IPA.
DPA helps the business by providing insights and the agility needed to enable a suitable approach to automate the business. It helps to identify areas that require agile tweaks and improvements, whereas RPA is used to deploy robots that can imitate human actions to reduce the manual work, like re-keying data. It focuses more on increasing the speed and efficiency of tasks.
AI brings another level of thinking to the automation, it thinks in a spontaneous way that the human brain cannot. It contributes to intelligence and decision making.
According to McKinsey: automation of 50-70% of tasks, has translated annual run-rate cost efficiencies of 20-25%
You may have heard the buzz word hyperautomation; the future of automation belongs to hyperautomation. There is a name flux between hyper automation and IAP. Somehow both are the same in their terms and goals, but here hyperautomation harnesses multiple technologies with both RPA and IAP.
Moreover, hyperautomation made its place in the list of Gartner’s Top 10 strategic trends; for sure the technology will drive disruption, rollouts, and loads of opportunities for the next decade.
Research by Gartner shows that by 2022, almost 65% of the organizations will introduce IPA that leverages Machine Learning (ML) and Natural Language Processing (NLP).
Why should organizations consider RPA?
The wide range of potential in various business processes has led to the popularity of Robotic Process Automation. Many organizations started delegating repetitive, rule-based approaches to RPA. When deploying RPA, the business reported that it accelerated their turnaround time, high accuracy with null errors and higher throughput. RPA and AI together is known as intelligent Process Automation. It provides exciting possibilities for end-end automation of all the time-consuming tasks in an organization.
No more human prone error on Accounting!
When mentioning the time-consuming task, the first thing that pops into our mind is the Accounting Process. Account Payable (AP) and Account Receivable (AR) which is a crucial step in the overall functionality of the companies. The tedious, repetitive, predictable, time-consuming process stands as one of the major pain points for many companies. And the best thing is Accounting process provides an ideal environment and conditions for implementing the Robotic Process Automation System.
How RPA can benefit Accounting and Finance?
Many Large finance implementations which IT provides fell short in terms of straight-through processing, RPA tries to automate and integrate at the very micro-task level where the giant systems fail. Simply we can wrap it as, the result of robotic solutions on accounting and finances reduces labour cost, cycle times, increased accuracy, null errors, and many simplified workflows.
An Economist survey sates that 59% of Finance & Accounting leaders believe RPA will make their business more competitive over the next two years
RPA in finance and accounting is not limited to one part of a process. It is used to multiple processes at a time; accounts payable, accounts receivable, controller work, financial planning, tax management, expense management, and many more. So according to the need, you can do customization.
No day offs
Finance and Accounting RPA has no working hour limitation, it will be serving you until your need gets completed. It can operate 24 x 7 x 365 to increase the productivity of the company which surely no worker can provide.
No space for errors
RPA accounting excels at error-free data outputs. They provide outputs with high accuracy.
No change in the company’s IT infrastructure
Robotic accounting is a Non-invasive application, which acts both as a bridge and a layer. It reduces the reliance on needs to change a company’s IT infrastructure.
RPA Use Case in Accounting and Finance
Robotic Process Automation use cases in Accounting and finance is a set of pre-define document actions, steps of a process that act as a guide for RPA. These steps documents at the front-line employee level by analysing the work steps taken on their device, these are nothing but the information needed for automating the work process.
Now, most of the finance experts struggle to look past their legacy systems and also to find the places where RPA can be implemented; it is where use cases help a person. The below mentioned are few use cases
Accounts Payable RPA
Firstly, when implementing a robot-aided with accountants with the ability to transcribe invoice information from PDFs into a web-based SAP. It uses for reporting and placing a final PDF copy on a local server to maintain SOX, resulted in reduced vendor invoice processing cycle times by 60%.
Financial Close and Reporting RPA
By implementing RPA that automatically processes the tax entries into QuickBooks from spreadsheets received from various business clients reduced the manual copying and data transcribing work of the finance manager almost by 85%.
The review process requires the reconciliation of accounting data from Quickbooks, spreadsheets, PDFs and invoices. Namely, the whole process will roughly take about 30 minutes to complete. But when RPA installed as a bridge between the data sources. And also will automatically compare the discrepancies in less than 1 minute.
The above discussed is a drop from the ocean of benefits. Accordingly, a person can get after implementing RPA in their organization. Finally, there are many service providers available who can help you by providing the best service.
Similarly, you may also like our guiding for selecting the ERP for your Small Business, you can read it here.