What is Robotic Process Automation and how can finance teams benefit?

What is Robotic Process Automation?

Accountants should look at RPA as automation in its simplest form – it’s a fundamental part of our today and tomorrow. In fact, many of us already work with various forms of it, whether storing documents online, automating bank recs or working from one interactive platform to control payroll, RPA has been a constant companion, especially in the last 18 months.

External changes like the pandemic and skills shortages, the landscape of ‘immediacy’ and preparing for future crises have all hurtled us so much closer to automation.

That much can be said for RPA, mainly because the pandemic made business leaders acutely aware of every costly and time-consuming process that could impact the business’ bottom line. Manual processes were switched in favour of digital technologies, like Robotic Process Automation tools, that could save time and money.

According to Datagraphic, some businesses in the UK have reported up to 75% savings since adopting RPA for their payroll process.

Even though RPA has been around for a good while, the pandemic has placed a spotlight on it. But with recovery at the forefront of many minds, the determination to get back to pre-Covid normality and familiar processes has some wanting to ditch the technologies they adopted. So much so, just 34% of business owners believed the changes they needed to make in response to the pandemic were long-term, according to an ACCA survey (March 2021).

We believe RPA is firmly here to stay and a new generation of accountants now filtering into the sector will be demanding this investment. Accountants, new and old, need to be able to feel comfortable embracing RPA.

How can RPA help the future accountant to thrive?

The modern accountant, whether new to finance or a veteran, doesn’t want to spend their days perpetually ‘box ticking’; they want to contribute to the bigger picture and RPA tools will give them quicker, real-time access to useful insights.

Generation Z have grown up surrounded by technology and have a natural affinity with its functions.

A PwC report from 2020, said “… this is the first generation to enter the workplace with a better grasp of a key business tool than more senior workers.” And businesses should be taking advantage of this.

If you’re the leader of a finance division and are looking to bolster your team, it’s worth considering what the new generation of accountants are looking for:

• Support for personal development. They’ll want to join a business who invests in their talent.
• Wellbeing and mental health guidance. With hybrid working in full-flow, the boundaries between the average 9-5 can be easily blurred.
• A positive culture. Newly-qualified accountants will be on the hunt for companies that stand-out.
• Technology. While a well-stocked bar and games room are welcome additions to any workplace of the 21st Century, the way to really grab their attention is demonstrating how ‘switched-on’ your organisation is to the evolving landscape.

While not all these fall under the remit of a finance professional, it’s important to work with other divisions across the business to ensure a holistic approach to development and progression.

An ACCA survey, ‘Gen-Z and the future of accountancy’, revealed that 91% of 18 – 25 year old respondents expect to update their capabilities continually to remain employable in the future, and technology can play a fundamental role in doing so.

Ideally, no one wants to be using outdated and disparate systems - especially since an integral part of finance today relies heavily on forward-thinking and influencing future financial strategy. It’s important that the technology finance pros use on a day-to-day basis encompasses this vision.

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The business benefits of Robotic Process Automation

For years, we’ve been discussing the relationship between automation and humans, and the part each play in the future workplace. For many finance pros, this has been a stumbling block on the road to RPA adoption.

However, RPA is not replacing the knowledge that accountants like yourself have spent years developing. Instead, it’s bolstering your capabilities, supplementing your skills and freeing up your days by removing repetitive administrative processes.

RPA will streamline activities across the board and enable finance pros to spend more time on value-adding jobs, rather than lengthy reporting, procurement and invoicing. It could even allow them the time to work on their personal development; another important factor for many young accountants wanting to climb the ladder, or simply evolve in their role.

A survey from Protiviti in 2020 of 450 executives revealed a 73% increase in employee engagement thanks to RPA – so it could also create a more driven and focused workforce.

RPA technology will help businesses, of all sizes, achieve greater and faster ROI. Studies by the National Association of Software and Services Companies found that RPA has decreased costs for onshore process operations by 65% - savings that could translate to increased profit margins, all of which could have a bigger impact on the company’s ability to scale up and manage growth.

It’s up to leaders of finance teams to embrace these technologies in order to remain agile – in the long-run, RPA tools will empower employees. While it might seem daunting, it’s important to consider just how beneficial it has been in stabilising business throughout the pandemic.