With digital transformation being a strategic imperative, financial and accounting firms have started focussing on larger tasks. For instance, auto-certifying account reconciliations or automating high-volume transaction matching has a very high ROI.
With a wide range of applications, robotic automation is no longer simply science fiction. Although financial firms have begun incorporating digitization into various aspects, journal entry remains for the most part manual.
With technology evolving to meet changing complexities, time-consuming and labor-intensive tasks can be replaced by Robotic Process Automation (“RPA”). It is usually deployed in segments where operators have to perform high volumes of repetitive, rule-based tasks without the requirement of any decision making.
Disadvantages of Manual Journal Entries
- Workflow bottlenecks
- Increased risk of human error
- Limited real-time visibility
- Lack of standardized protocols
- Wasted time and labor
- Increased risk of fraud
What is RPA?
RPA works as a software bot capable of being programmed to do the functions of a human operator such as using computer programs. This improves overall performance and efficiency by a significant degree. RPA in concert with human operators improves the quality and efficacy of end-to-end operations.
How does RPA work?
In most cases, automation replaces human operators. However, RPA does not work by reducing the workforce. Rather, it contributes to an improvement in efficiency and performance by streamlining operational workflows. RPA influences data entry in the following ways:
- Increased accuracy and confidence in the integrity of the balance sheet through differential access, allocation of tasks, standardized workflows, and improved visibility
- Reduces the likelihood of fraud through increased controls and improved transparency
- Accelerates data collation when vast amounts of data from disparate sources need to be compiled into a single format.
- Works in concert with personnel through the data entry process resulting in the elimination of human error, maintenance of data quality and consistency.
- Aids in linking external systems as third party systems are usually connected through digital means.
- Saves money by reducing the need for paperwork, printing, and storage
- Time-consuming, labor-intensive tasks are now processed faster allowing accounting personnel to focus on details such as strategy and analysis.
- RPA is of immense value in data cleansing, data extraction, data enrichment, data deduplication, and data mining. Specialized agencies that undertake data entry for firms, actively employ RPA for the entire data processing cycle.
- Streamlining the end-to-end data processing lifecycle from entry to report generation through access to real-time and historical information.
- Automates various segments of the workflow process, improves accuracy, and enables the practice of Continuous Accounting.
Why CPA Innovations?
CPA Innovations helps CPA firms digitally transform into the world of Modern Finance with improved efficiency and accuracy. We streamline your entire journal entry process by applying automation where it counts. As an agile, adaptable company, we can fit into your clients’ business processes regardless of which systems they use or their maturity level as a business.
Our system frees up more time for accountants, allowing for better analysis, review, and strategy to drive your clients’ businesses forward. We combine expertise with technology, offering high-quality back-office solutions in India, and a mastery of automation technology (RPA).
We ensure all our personnel possess critical thinking skills, extensive experience, and technical proficiency. Scale and grow your CPA firm by partnering with us.
Reach out to us today for a free consultation.