Accounting is an essential function in any business as it’s the backbone that records financial transactions and maintains information for tax purposes. The accounting process often includes repetitive tasks that are not creative, however. Fortunately, with the rise of technology, accounting work can be done more efficiently by robotic process automation software. It saves time, money and reduces human error in data entry. In addition, task automation allows for accounting to be completed without human interference, which is more efficient and accurate.
There are several ways to automate tasks, including:
- Robotic process automation (RPA): Commonly used for enterprise-level companies
- Automated AR: Used primarily for small businesses or startups
How can you leverage the latest technology to improve your business’s accounting? Read on to learn more about how RPA and automated AR are shaking up industries and how you can take advantage of all that RPA and AR innovations have to offer!
What is RPA, and how does it work?
Robotic process automation (RPA), a fast-growing technology pioneered by UiPath, is the latest software that helps eliminate the need for manual, repetitive tasks, such as data entry, compliance checks and order processing. Instead, RPA automates your business's IT processes by using software robots. It promises to bring efficiency and productivity to businesses while also providing cost-saving features like eliminating repetitive tasks and increasing the speed of transactions.
How?
Robotic process automation uses AI to automate (or semi-automate) and streamline mundane, repetitive office tasks. The goal of this type of automation is to reduce the need for humans in the workplace and increase efficiency. RPA accomplishes this with AI software robots to perform everything from entering data into a computer to analyzing data. It can also perform the same task repeatedly, including formatting data for analysis, generating emails and processing documents with information from one system to another system. In short, RPA systems can also do anything humans can do on a computer – accessing applications or websites, filling out web forms, updating records in databases and more.
RPA is the next big thing for businesses as it’s transforming the way companies operate. Automation of workflows using software robots, sometimes called bots or process workers, can execute tasks that humans would typically complete. RPA was designed to handle low-level functions that are repetitive and mundane automatically. Many industries embrace this technology because it reduces operational costs and increases efficiency. Industries such as finance, healthcare and education already use RPA.
How is robotic process automation used in accounting?
Robotic process automation is a new, innovative way to handle the day-to-day tasks of accounting. For example, the software can produce accurate financial statements, reconcile bank accounts and send invoices to clients. RPA software also handles the repetitive actions that accountants complete every day. They can focus on more complex tasks by automating the process of data input. RPA does this by replicating tasks traditionally performed by employees, such as data input and document processing. You can program robots to replicate specific tasks more efficiently than humans, saving companies time and resources.
Is coding required in RPA?
Robotic process automation uses artificial intelligence to perform tasks that typically require human input and rules and algorithms to complete repetitive processes. Nevertheless, you do not need coding. Instead, RPA software simply requires a human to create a list of instructions in a programming language or select existing instructions from a library.
While you don't need coding for RPA, it can be advantageous. For instance, if a company wants to create a new process using the interface of their existing platform, they would need to have someone with programming skills. In fact, in recent years, many firms have introduced coding to RPA. This is because the older model of RPA was never designed for programming, and it is difficult to find a programmer who knows the company's business processes and how to code for them.
Thinking of integrating coding into your RPA process?
Though coding can be very time-consuming and costly for companies that do not know the right programmers, it pays to find a programmer who understands your company's needs if you’re thinking of altering your existing platform. When you integrate coding, RPA only requires a few simple languages to automate routine tasks in enterprises. For example, if a person has to move from one screen to another and enter some data filling the empty fields on the screen, this can be automated by RPA with a few lines of code.
What is AR automation?
Accounts receivable automation aims to remove human error in the collections and recovery process and replace it with increased accuracy and less effort. AR automation streamlines the routine, monotonous tasks associated with invoicing and collections. It can also eliminate human errors or biases in the collections and recovery process, saving companies time and effort.
How does it work?
Accounts receivable automation is a cloud-based solution that integrates AR automation software with accounting and payroll applications to provide a one-stop-shop for managing collections. AR automation has been a significant contributor to the success of many businesses and assists with:
- E-invoicing
- More accurate information for auditing
- Controlling costs
- Improving cash flow
- Managing collections
- Bill payments
- And more!
AR automation and a solid accounts receivable strategy frees accountants from financial tasks that take time away from other, more valuable business operations.
What do you need?
AR typically involves a software system designed to automate the invoicing and accounts receivable collections processes. The robust workflows and easy-to-use interface save valuable time and money for business owners by helping them collect money from their customers more quickly. Automation software also generates reports detailing the amount of money owed. With these technologies in tow, no more burdensome and time-consuming tasks such as customer data management or invoice processing will be required. Instead, automated processes will increase with the use of AI.
Why robotic process automation and automated accounts receivable?
Accounting is a time-consuming and repetitive task. Automating these processes is a great way to save time, money and resources. With the help of robotic process automation tools, accountants can automate their routine tasks such as reconciliations, budgets, and financial statements in no time. How? By having robots perform any human activity that a computer program can simulate. As a result, they don’t need breaks and can work 24/7 without ever getting tired, meaning your team can focus on more critical tasks.
Robotic process automation (RPA) and automated accounts receivable software are on the rise as automating repetitive tasks is a cost-effective way to increase productivity. RPA and automated AR improve process efficiency, reduce human error, and cut costs in finance, process management, customer service, data processing and more by automating these tasks customarily carried out by humans.
Why consider RPA and AR automation?
Sectors from banking to healthcare use RPA and automated AR software at least partially replace human labor. The benefits of these two technologies are driving their growth, making them an essential part of any company's process.
Some of these benefits include:
- Leveraged power of artificial intelligence to monitor and manage entire enterprises
- No need for human supervision
- Both offer a popular, low-cost solution to streamlining operations
- Automated AR is an enhancement of RPA, so the two work hand in hand
- Improved accuracy
- Increased operational efficiency
- Time, money, and resource savings
- Reduced risk of human error
The bottom line?
Both robotic process automation and automated AR are being swiftly adopted by companies in different sectors to automate their business processes.
And the best part?
RPA and automated AR software are the next steps in the AI evolution for many organizations of every size to harness complete automation of the digitized workflow, with little to no human intervention!