In the evolving landscape of accounting, Robotic Process Automation (RPA) has emerged as a game-changer. But what exactly is RPA, and how can accountants harness its power? This guide breaks down the essentials, offering a deep dive into how RPA works, its benefits, costs, and the top software options available.
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What is Robotic Process Automation (RPA)?
RPA might sound futuristic, like a robot typing away at your desk, but it’s more about software efficiency. RPA allows a computer to mimic human interactions with software programs, executing a series of steps such as opening applications, navigating menus, and downloading reports. It’s about making routine tasks faster and error-free.
Attended vs. Unattended Bots
RPA comes in two main types that depend on how the automation is being setup and utilized throughout the day.
Attended Bots – These bots need human interaction. For example, an accountant might click a button to start the bot’s process. Similar to pressing start a macro button in Excel but for complex processes that can span multiple software systems.
Unattended Bots – These bots run automatically, triggered by specific events like receiving an email or scheduled at particular times. This is what many people are looking for, a bot that downloads invoices, extracts text and uploads expenses directly into an ERP without intervention.
There are also cases where you will see a hybrid approach. An unattended bot may automatically take care of 80% of incoming invoices, but need human interaction for the remaining 20%.
Key Considerations for RPA Implementation
Ideally bots will run unattended and run 24 hours a day 7 days a week. However, this can be more difficult than you would think because of a few key factors.
- Process Complexity: RPA bots navigate software like humans, but they require precise instructions. Processes with frequent changes or numerous steps add complexity.
- Exception Handling: RPA setup isn’t just about recording a workflow. Handling exceptions (like software crashes or unexpected error messages) is crucial for reliable automation.
- Human Judgement: Are there points in a process where a human has to determine the next step? If so, approval routings can be setup but processes with many judgement calls may not be good candidates for automation.
Not all tasks are worth automating. Consider the frequency and duration of tasks. Highly repetitive tasks or those taking significant time are prime candidates for RPA. For instance, automating a monthly report that takes hours can yield substantial time savings.
RPA for Document Processing
RPA can automate document processing, a major time-saver for transactional accounting tasks. A typical process might involve:
- Receiving an invoice via email.
- Saving the attachment to cloud storage.
- Running the document through an OCR model.
- Extracting key information (invoice number, date, vendor, amount).
- Summarizing the data in an Excel spreadsheet.
- Sending the spreadsheet for review.
Training RPA Bots for Document Recognition
Training RPA bots involves uploading sample documents and highlighting key fields. Over time, the bot learns to recognize and process documents with increasing accuracy. Major tech companies offer pre-made datasets to speed up this training process.
Limitations of Invoice Automation
Even the best-trained bots achieve around 75% accuracy, necessitating human oversight. Automation reduces workload but doesn’t eliminate the need for human involvement, especially for managing exceptions.
RPA for Approval Routings and Workflows
Some RPA software now includes process management features, allowing for automated approval flows and routing process exceptions to managers. This expands RPA’s utility beyond document management to broader business process automation.
The Cost of RPA
RPA costs are influenced by two main factors, software and development costs. Development costs and the cost to maintain bots are by far the most expensive. Once an automation is setup, the environment or business needs can change requiring someone to make changes to it.
- Software Costs: Licensing fees can range from affordable options like Microsoft Power Automate Desktop to more expensive enterprise solutions.
- Development Costs: The complexity of the automation process impacts development costs, which can range from a few hundred dollars to tens of thousands.
When evaluating the cost effectiveness of an RPA program, make sure to take into account the cost of development and maintenance. Organizations with lots of automations will need multiple developers on staff to protect themselves from what could happen if a single person leaves the company.
There are additional risks of automating people’s jobs away to the point that important institutional knowledge leaves the organization. Make sure to take into account the human cost of a highly automated organization.
Top RPA Software Companies
Microsoft Power Automate Desktop is a cost-effective, feature-rich option ideal for small and mid-sized companies. It’s free to download and run unattended bots, making it a great starting point for evaluating RPA’s potential.
For large-scale deployments, consider Automation Anywhere, Blue Prism, or UiPath. These mature RPA solutions offer granular control over automations but can be more complex and costly to implement.