Written By: Chris Holloway | 11/25/2017

Automating processes with robotics (aka Robotic Process Automation or RPA) has become a topic of interest ever since the 1990s and has gained more popularity in the last ten years.

In part, this interest has something to do with the long fascination humans have had with robots. When I was a child, I used to watch re-runs of the Jetsons on TV (circa 1960), where Rosie the robot would run around the house performing various chores. The idea of offloading important but mundane daily tasks to machines has had staying power.

2016 was called the “year of the robot” by The Institute for Robotic Process Automation

 It was a big year for the advancing development and adoption of automation technologies like robotic process automation (RPA). RPA was implemented by companies around the world. A significant number of these companies were Business Process Outsourcing companies.

Truthfully, people have been using robots to automate processes for years.

Many factories have loads of automated machines to turn various materials into finished goods.

Outside the factory floor, computer programming has automated loads and loads of processes both inside and outside of finance departments.

By now, you may be wondering:  With all of the automation taking place in the world already, why is there so much interest in RPA? What makes it so different? 

RPA is a computer application that you can program to interact with your computer through the user interface.

After it has been setup, it interacts exactly as a normal human would. The program actually moves the cursor around the computer screen, points and clicks.

This is much different than other forms of automation where calculations and data transmissions are performed in the background and are built by computer programs. 

The current selling points of using RPA versus other available methods are primarily ones of convenience.

1. RPA can be configured relatively easily compared to other solutions.  Setting up a complex automation is still going to take some time and expertise. But, you do not need to redesign the process from the ground up since it is going through the computer screen.
2. It can also be lower risk than other automation. Because the existing process stays in place, should it fail the processing team can still fall back on doing it manually 
3. In RPA based implementations, the security, quality and data integrity requirements are enforced as per existing standards preventing disruption of any nature
4. Finally, it can work in addition to the processing team. Harder, more logic driven parts of the task can remain manual, others can be automated. 

Any process that requires lots of people and routine work is a prime subject for some sort of automation.

After years and years of IT automation, if there is still a manual process using lots of humans, other solutions have probably not been a good fit for that particular process, and RPA would be something to consider.

In finance and accounting, the most common processes mentioned that could benefit from RPA are the very ones that still require lots of manual labor. T

The potential application of RPA is widespread in both accounting and outside of it.  

Within finance and accounting the initial candidates are procure-to-pay, order-to-cash, and record-to-report processes. Due to a variety of complicating factors, many companies are still struggling to convert these processes to digital solutions.

Hopefully you're starting to get the idea of how RPA works and when it makes sense to use it.

 To help you imagine the potential even further, these three general examples show where you are likely to benefit the most:

1. A large business process that is mostly simple point, click, copy paste type work, but benefits from human expertise for a fraction of it.  You don't want to try to automate the human experience portion because it would be too difficult, but the manual part is routine and costly.
2. Processes where the data is moving from multiple applications such as Excel, to the web to e-mail.  RPA can easily navigate between systems that were not designed to talk easily to each other.
3. It might even be used as a personal productivity tool.For instance, in putting together a regular economic report, a knowledge worker may have to visit several different sources to collect different statistical figures. While automating that through IT wouldn’t be feasible, with access to the RPA he could automate all of the data gathering.

Finance teams will find several compelling advantages in automating processes with RPA.  

1. RPA projects typically do not require deep IT skills or investment in new technical platforms or architecture. Hence the bar for a viable business case for automation is substantially lower compared to other automation projects.
2. RPA improves cost efficiency under growing pressure on costs
3. RPA helps to remain in control in the constantly changing environment
4. RPA allows to focus skilled resources on driving value creation for the business

Although finance executives strongly believe that digital transformation will have a big impact on the function, as of yet, adoption of RPA in accounting and finance is low.

According to Hacket Group, only 34% anticipate adopting advanced analytics or robotic process automation. [Source Key Issue Study Hackett Group]

Also, in a survey conducted by Blackline, it was discovered that 66% of accounting and finance professionals either haven’t heard of RPA or were uncertain of what the term means. [Source Blackline]

Drop us a line and tell us your thoughts on implementing RPA.