What are the steps necessary to implement RPA in finance and accounting? This article reviews the key information you need to consider while using this technology. You must follow twelve steps to achieve maximal success with this innovation.
Planning and Preparation
The first thing to do while implementing RPA in finance and accounting is to plan the implementation process and prepare for it. Configuration isn’t as difficult as deciding if certain innovations make sense and should be implemented. Here are the key steps you need:
Assess and plan
Begin by conducting a thorough assessment of your existing financial processes. Identify tasks sharing three characteristics: being repetitive, rule-based, and time-consuming. For example, many types of data entry for loans belong to these activities. They’re the most open to automation because modern RPA tools are notable for their ability to substitute human labor. Once you have a list of tasks to automate, develop a roadmap for RPA implementation, outlining goals and expected outcomes. If you don’t know what tasks are perfect for automation, a good idea is to contact professionals. For instance, specialists at our firm, Keenethics, know how to analyze which tasks require RPA in finance and accounting.
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Choose the Right Processes
Select processes that are well-suited for automation. As mentioned above, they should be rule-based, repetitive, and time-consuming. Common candidates include data entry, invoice processing, reconciliation, and report generation. These tasks can be automated without compromising quality or compliance.
Select the Right RPA Software
Once you know what processes can benefit from full-scale automation, a good idea is to look at the market for solutions to your problems. Ultimately, your goal at this stage is to choose an RPA platform that aligns with your organization’s needs and budget. Ensure it offers user-friendly features and scalability for future growth. Popular RPA tools include UiPath, Automation Anywhere, and Blue Prism.
Design and Development
Upon deciding what software to use, it’s time to configure it. Many development companies deliver services to help with task automation. In this respect, we recommend collaborating with RPA developers to create automation workflows. These workflows should mimic the steps performed by human operators. Focus on designing efficient and error-free processes. To do this, you have to find a business partner with a strong emphasis on testing the solutions. The more you test, the lower the probability of fatal errors ending in financial problems for your firm.
Testing and Validation
As we’ve mentioned above, finding a firm with strong testing capabilities is crucial. Rigorously test the RPA solutions in a controlled environment. Verify that the bots perform tasks accurately and reliably. Ensure they comply with all regulatory requirements. One of the key reasons to use bots is to reduce the probability of errors. It’s impossible to know if they can do this unless you test their capability to perform tasks without major errors.
Integration
Integrate RPA into your existing financial systems seamlessly. Ensure the bots interact with databases, ERPs, and other software used in your finance and accounting processes. The compatibility factor should, in this light, be a major aspect during the choice of RPA software. Some platforms may be advanced and even feature AI but fail regarding integration.
Addressing Job Loss and Staff Training
Yes, RPA decreases the labor time expended on average tasks in finance. Nonetheless, they don’t remove the need for the human workforce completely.
The real impact of RPA
It’s reasonable to compare modern automation tools to large factory machines: they do many things themselves, but they can’t think. You must train your finance and accounting teams to work alongside RPA bots in this situation. They should understand the principles behind this technology and know how to configure it in different situations. Encourage them to monitor the bots’ performance and address any issues promptly. There’s also a psychological component one should tackle to maximize the efficiency of those systems. A vital factor is emphasizing that RPA is a tool for enhancing their productivity, not replacing them.
Training and neo-Luddites
Neo-Luddite (anti-automation) ideas, as Sunil Manghani, Professor of Theory, Practice & Critique at the University of Southampton, notes, are becoming increasingly popular due to the rise of automation tools such as AI. To avoid the sabotage of RPA in finance and accounting, you should outline the new tasks for the workers and show they’re needed and valued. Otherwise, there’s a risk of encountering resistance in the form of distrust toward RPA or even direct attempts to damage the output of those systems.
Execution and Optimization
Once you’ve prepared and installed the RPA bots in your firm, it’s time to monitor them attentively. In this section, we look at the steps you should consider while utilizing this technology:
Monitoring and Maintenance
Continuously monitor the RPA bots to ensure they’re performing optimally. Regularly update and maintain the automation workflows to adapt to evolving business needs. Firstly, this is necessary because compliance processes tend to change significantly. Secondly, constant monitoring is crucial to ensure no malware or random unaccounted errors disrupt the ability of your app to function.
Data Security
A big problem for all technologies centered around computers is their long-term security. Yes, paper-based approaches are slow and require more effort to preserve the information. Nonetheless, the only way to steal the data from a paper archive is to directly access storage. This isn’t so difficult with online data: you only need to enter the right computer server.
Using this vulnerability, some countries, such as North Korea, fund whole armies of hackers to steal funds from Western banks. The damage is tremendous: the Wall Street Journal reports North Korea has stolen 3 billion U.S. dollars in cryptocurrency this way. This means you have to implement robust data security measures to protect sensitive financial information if you want to avoid the massive reputation damage coming from all computerized approaches. Ensure RPA processes comply with data privacy regulations such as GDPR or HIPAA. You should also consider additional methods: installing encryption and utilizing advanced firewalls. Regarding robotic process automation for finance, the more security tools you offer, the better.
Scale Gradually
A big mistake some firms make is simultaneously implementing as many RPA tools as possible. Why is this a bad idea? The implementation process can become overwhelming: you must test too many tools. Our recommendation here is simple. Start with a few automated processes and gradually expand your RPA implementation. Collect feedback from your finance and accounting teams to make improvements. Implementing an RPA within two years but without major errors is better. Remember: there’s no such thing as excessive testing.
Use Performance Metrics
Many firms think RPA in finance and accounting will benefit them by default. In the majority of cases, the assumption is correct. The problem is that firm owners don’t define the exact way to calculate the positive impacts of new technology. This means they can’t know the full influence of robotic process automation in finance and accounting. We recommend you define key performance indicators (KPIs) to measure the impact of RPA. Monitor metrics like cost savings, error reduction, and process efficiency to assess the success of your implementation. The more factors you measure, the higher the probability of succeeding at the long-term reduction of errors.
Go for Continuous Improvement
Technologies tend to change all the time. This means innovations created two or three years ago may already be outdated. In this light, we recommend fostering a culture of continuous improvement. Encourage teams to suggest enhancements to existing RPA workflows and identify new automation opportunities. Don’t forget to upgrade your RPA frameworks to ensure they have the latest security updates.
Generally, this guideline should be sufficient to promote an efficient approach to RPA in finance and accounting. This structured method divides the implementation process into planning and preparation, followed by execution and optimization, ensuring a clear path for successful RPA integration in finance and accounting.