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Let’s get in touch!Financial institutions deal with countless transactions, reports and clients personal information on a daily basis. The high volume of work and processes is time-consuming, and often challenging. Here come RPA in financial and accounting services that can completely transform how the work is done. Robotic process automation was actively used in industrial manufacturing and now started entering other industries too. There are lots of specific areas of a business in which RPA can be useful. In the article, we are investigating the role of RPA in finance and accounting practices:
Let’s proceed to find out more!
RPA is a relatively new technology that impacts Fintech services by increasing its efficiency. It refers to software technology (software robots) that can be programmed to mimic human behavior and actions to carry out business processes. There are many tasks within accounting and finance that you can take part in out of human hands for faster work. Robotic process automation can be used to handle tasks that deal with structured data. It included data processing and communication between systems.
According to research that the revenue from Robotic Process Automation in Fintech is expected to grow by $1 Billion by 2023. Practical process automation applications include risk assessments, security checks, data analysis and reporting, compliance processes as well as most other repetitive administrative activities. This gives financial institutions more time and workforce to perform their core responsibilities.
Despite the fact that there may be some risks related to new technologies employment, there are even more pros of RPA in finance and accounting:
RPA saves finance and accounting departments from 25K hours of work that can be avoided. The application of RPA in accounting is an effective way to boost operational efficiency and spend less time on daily tasks. Use these saved hours on brain-storming or other revenue-generating activities.
Another benefit of robotic process automation in the financial industry is budget optimization. RPA solutions can save up to 40% in labor costs. As it was mentioned above, RPA saves resources by handling repetitive tasks faster than humans.
Accounting includes complex processes and impacts different companies’ departments. Minor human errors in each department can accumulate, leading to significant losses. RPA services for the accounting industry let companies automate manual accounting procedures to eliminate human errors from the equation.
There is always a need to hire a new team member to help manage the workload in case transaction volume gets to a certain point. With RPA if workload increases, the bot’s output can scale as needed.
Let’s talk about RPA use cases in finance and accounting.
To monitor financial performance has to be tracked on a daily basis. Manual reports are time-consuming and require good expertise. RPA makes the business processes more transparent and ensures financial forecasting accuracy by generating reports
Сompanies of all industries, especially in Fintech, manage invoices on a daily basis. It is another complex and time-consuming process and RPA in finance can deal with it in the most efficient way. It automatically processes invoices, stores them, automates the data input, and error reconciliation minimizes potential errors and the need for human intervention.
Finance companies prepare up-to-date financial statements, and provide accurate financial statements to finalize the financial close. With RPA the process it takes a day, instead of weeks.
Companies accumulate expenses from different business activities. Expense reporting is crucial for efficient bookkeeping and finance management. However, this process is tedious and costly when performed manually. According to statistics, producing one expense report costs about $27. Automation can reduce this cost to $5/report. You can automate expense reporting using RPA. Robust RPA bots can aggregate data into expense reports, attach receipts to corresponding entries, verify existing expense logs, and flag policy violations or data discrepancies. Automating this process using RPA can reduce errors, improve employee experience, and enhance adherence to company policies and legislation.
Financial statements and data must be properly input to predict the future accurately. Robots collect, store data, and transform it for the purpose of forecasting. By using historical data automation solutions can put together a complete picture of what you can expect the future to hold. With this information, you can create a financial forecast and then also benefit from conducting variance analysis seamlessly.
Inoxoft is a custom fintech software development services and banking software development services company with 7+ years of experience in the Fintech sector. If you want to resolve automation challenges, leverage trading success, and digitize banking services. Contact us to get
