What is RPA and How it Can Change the Face of Accounting in the Future?

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What is RPA and How it Can Change the Face of Accounting in the Future?

Robotic Processing Automation or RPA is a technological innovation involving artificial intelligence and automation to replace manual accounting processes related to audit, attest and tax work. RPA simply means programming software ‘bots’ to understand and execute everyday accounting tasks that take up much of an accountant’s time. The working of RPA is similar to a macro in Microsoft Excel, and it can function across multiple applications. Still, RPA is capable of handling larger volumes of data compared to macros.

Leveraging RPA can help accountants handle high-volume transaction processing and increase the operational efficiency of their firm, save costs and deliver a higher quality of service to clients.

Here’s how RPA can change accounting in the future:

  1. RPA in Public Accounting

RPA software has been widely implemented for taxation and advisory activities in public accounting firms. Business owners can successfully automate taxation activities and advisory services with RPA. RPA for auditing services remains in the nascent stages due to complex regulations for audit services in public companies. However, RPA experts see great potential to implement this technology in revenue auditing processes to automate rules-based functions.

  1. Predictive Analysis

RPA can help gain better insights into data from accounting activities. More than understanding cash flow, monitoring product inventory levels and a better understanding of supply data robotic process automation can provide predictive analytics. RPA gathers the data from the various process in the business and systems to present estimates for the immediate future. This data empowers business decision-makers to make informed decisions overall.

  2. Approvals

RPA helps in automating the tedious process of approvals and invoice processing. An RPA enabled software can receive invoices and forward them to the right person. After sign-off, the invoice is automatically moved to the next person in the process. This eliminates any slow-down of invoice processing due to manual processing and/or delay in approvals.

  3. Vendor Management

With robotic processing automation, it is possible to develop smart software for vendor management. Vendors may log in to a portal and upload their invoices, and the software is adept at monitoring the turn-around-time for invoices raised by vendors. This ensures smooth and quick processing of invoices for vendors. This speeds up payments, reduces errors, and eliminates duplicity and redundancy of effort in the whole process.

  4. Machine Learning

A pre-programmed software is limited by its need for human intervention, whenever any improvement or adjustment is required. With machine learning, RPA software can adjust its functioning based on past results. Machine learning is an accurate, sophisticated and reliable technology to help accountants save time on the manual monitoring of accounts, data entry jobs and other time-taking processes.

There is no doubt that Robotic Processing Automation or RPA will result in reducing labour costs, shorter cycle times, increased accuracy and simplified workflows. Because RPA reduces transactional data processing, accountants can focus on delivering higher-value financial analysis to help clients make better business decisions. Auditing and accounting firms will continue to focus on RPA solutions that keep up with the changing accounting landscape and serve as practical tools to manage repetitive tasks that cause operational inefficiencies.