“Automation” describes a process or procedure that’s performed with minimal human assistance.
Early forms were mechanical or, later, electrical. In the age of computer-enabled automation — exciting new forms, enabled by cognitive computing, are on the way. Robotic process automation (RPA) is one of those forms. The term RPA may sound complex or even intimidating, but the technology is quite simple. If you've ever created mail merges or macros in Excel, you've already worked with automation.
RPA is a type of software, or bot, that eliminates boring, repetitive, low-value tasks humans currently perform. RPA “bots” save time, money and make people more productive.
These bots can automate many routine “swivel chair processes,” where people take data from different systems to be combined, analyzed or simply actioned. To be clear: RPA is not about androids taking human jobs. It’s about software bots performing routine, time-consuming processes — such as data entry or invoicing — so that highly skilled knowledge workers, such as CPAs, can focus on adding value.
In short, RPA frees professionals from laborious tasks and allows them to focus on doing things only humans can do, such as developing strategy, offering recommendations and building client relationships.
What is RPA and why should you care?
RPA is straightforward to implement. Because it overlays existing systems and can replicate human (keyboard) input, it’s deployed without re-programming or making any changes to current systems.
In fact, you can complete an RPA project’s proof-of-concept stage within just a couple of weeks, and roll it out soon after.
That means RPA is a relatively inexpensive way of providing workarounds and using data from legacy systems more efficiently.
RPA is sometimes referred to as the “simple form” of automation because it’s relatively easy to implement. That makes RPA a good starting point for those at the beginning of the automation journey.
Bots can follow instructions and perform tasks as instructed by humans, faithfully replicating a human’s actions. But bots are only as good as the humans who program them. Processes and software do change, so a strong partnership between finance and IT is critical to keep the bots working correctly.
The best way to begin is to try not to automate an entire end-to-end process but to start with one task at a time.
And remember: One trait humans have that machines don’t is judgment. Machines do what a human tells them to do. Your ability to analyze, strategize, plan and then advise business partners or clients based on insights you’ve gleaned, is something a machine isn’t capable of.
Why RPA is for everyone
Greater efficiency
Less labor time
Fewer errors
Easier fixes
Ease of implementation
Works with current systems (no need to “rip out and replace”)
Relatively inexpensive
Speed (proof of concept in two weeks, working inside two months)
Caveats
Good governance is vital (you need to know where the bots are buried).
Bots need to be maintained or amended: they work best alongside people who are familiar with the processes.
RPA can delay recognition of the need to replace legacy systems.
This might even be part of your daily tasks. If so, you probably have a deep understanding of the best places to build, amend and maintain bots as processes and accounting rules change, or the underlying software is updated.
RPA allows computer software to capture data from the organization’s applications to complete the steps that form a process. It does this by following a prescribed sequence of steps, much like a person might do to:
Bots can be part of an integrated workforce, working alongside people to take over relatively simple tasks, allowing humans to spend more time on higher-value activities.
At its simplest, RPA software learns how humans carry out a sequence of steps in a process. Then, the software builds a bot to automate the work by following those same steps in a set order. And, because RPA software doesn’t require integration with an organization’s existing software, it can access the same user interfaces that people normally use.
It’s critical for finance and accounting professionals to understand RPA since they are most familiar with the underlying processes and are valuable partners when updates are needed. This means you and your team might need to upskill. Explore professional development opportunities to grow your knowledge of the technology and its uses within the finance function.
AICPA® members : access RPA learning through the free CPE Digital Mindset Pack.
