This article is published in the TXCPA 2019 December issue. The link is https://www.tscpa.org/docs/default-source/communications/2019-today's-cpa/november-december/robotic-process-automation.pdf?sfvrsn=1b63c5b1_4
Robotic Process Automation (RPA) will be a larger paradigm shift in accounting than Visicalc was. Visicalc (forerunner of Excel) was the first electronic spreadsheet. Out went paper spreadsheets, and accounting changed forever. The effects of RPA on accounting will be even greater. RPA will take over complex repetitive tasks and replace them with computer automation. RPA’s are relatively easy to implement, cost effective, and compliance risks can be minimized by setting appropriate parameters when setup.
RPA’s automate repetitious tasks by mimicking data workflow. It does this by the principle of “monkey see monkey do”. The most advanced RPAs “learn” by monitoring the normal data workflow that is performed on a routine basis by accountants. Learning can by accomplished by simply having a firm’s accountants continue their daily routine and allowing the RPA to monitor the actions of the accountants. Over time an RPA will take over repetitious tasks.
An example of RPA’s being deployed is invoices. An RPA can “learn” what data to read on an invoice, determine if the invoice contains the necessary data, and then pay the invoice. If the invoice does not contain the required data, the RPA can draft and send an email to the vendor requesting the information needed to complete the invoiced transaction.
RPA’s can also be used for more complex repetitive tasks such as tax returns. Deloitte states their RPA system can read tax forms, populate the tax software, complete the workpapers, and be able to email the client if additional information is needed. This can be completed without human intervention.
RPA’s operate as a remote user. This creates some risks regarding data management. Accountants should set parameters to reduce the risks including software security protocols: 1) Strong password management; 2) awareness of the location of where data is stored; and 3) vigilance on how RPAs manage data.
There are three main providers for RPA’s: Automation Anywhere, UI Path, and Blue Prism. UI Path and Automation Anywhere have free trails of their software. UI Path is a 60 day free trail and Automation Anywhere is 30 days.
This technology is in the adoption phase. It appears that the firms are attempting to gather market dominance by offering low pricing. If a user can minimize the risks, the return on investment on an RPA are astonishing.
Comments