Automating Finance

& Accounting
How robotic process
automation (RPA) will
transform F&A
CONTENTS

Contents Section 1 03 Introduction

Section 2 04 F & A: a changing function

04 The challenges of digital F&A transformation
04 The impact of F&A legacy systems
05 Extracting data is still very manual
05 Business process management: not the complete solution we hoped for

Section 3 06 Robotic Process Automation: lightweight, flexible automation

Section 4 07 Picking processes and people

Section 5 08 Finance and Accounting process automation entry points

09 Considerations for automation
09 The results of RPA can be dramatic
10 RPA: The onramp for artificial intelligence in the enterprise
10 Case in point: cash applications

Section 6 11 How UiPath RPA works

11 Make automation a priority

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SECTION 01 | INTRODUCTION

Introduction
Innovation is the name of the Having spent over a decade
game for businesses trying to developing the technology,
stay one step ahead of their UiPath is a leading provider of
competitors. Regardless of RPA software.
the type of business you run,
accounting and finance is a In the pages below, we will
critical source of operational build the argument for why
innovation and competitive businesses should rethink the
differentiation in sectors as way they currently execute
diverse as consumer electronics processes and explore how the
and automotive manufacturing. role of finance professionals
is changing, the challenges
Unfortunately, in many with legacy systems and how
organizations, legacy processes RPA offers the opportunity for
are hindering the digital businesses to become leaders
transformation of basic in digital transformation.
accounting operations. Robotic
Process Automation can be
a powerful on-ramp to the
digital transformation of these
processes.

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SECTION 02 | F&A: A CHANGING FUNCTION

F&A: a changing function

As a result of the 2008 global financial crash, businesses across the world place a higher premium on
financial health, starting with cost control and risk management. To improve the financial health of the
business, accounting departments have been under pressure to deliver greater performance against
budgets. Greater scrutiny has been placed on all areas of accounting operations, reporting
and management support.

As a result, business models accounting professionals have shift to undertake digital The impact of F&A decades investing heavily
and accounting roles are struggled to meet the volume transformation initiatives to in modules and add-ons to
changing. Chief Financial and variety of the existing improve efficiency, minimize
legacy systems these ERP systems, assigning
Officers (CFOs) and their operational transactions their business risk and improve much of their workforce to
The introduction of enterprise
representatives increasingly job encompasses. In many transparency within the using and maintaining them.
resource planning (ERP)
drive more informed cases, financial professionals organization. However, this Accounting processes have
software in the early 1990s set
strategic decisions across would rather be spending less transformation has come been engineered to fit around
a precedent for multinational
business disciplines. Finance time on routine accounting with its own set of challenges applications such as Oracle®
businesses to fundamentally
professionals now also occupy operations and more on higher including legacy systems, E-Business Suite, SAP®, Oracle®
change the way they interact
seats at the highest levels of value work that drives more paper-based documents, JD Edwards EnterpriseOne,
with accounting and finance
the organization where they strategic outcomes. unstructured formats, and Oracle® PeopleSoft
data.
are expected to use their natural language interactions Applications.
commercial and technical The challenges and fragmentation. These
“In many cases [ERP systems]
skills to advise senior
business leaders.
of digital F&A challenges must be addressed
if an organization is to truly
force companies to re-engineer
This has made large
organizations sluggish
transformation make the most of digital
their business processes
in responding to digital
to accommodate the logic
CFOs are now a crucial partner technologies in its accounting transformation. In comparison,
To this end, there has of the software modules
in enabling the growth of function. newer, born-in-the-cloud
been an industry-wide for streamlining data flow
the business, providing the businesses have a much easier
throughout the organization,”
appropriate financial data and journey because they don’t
(The Evolution of ERP Systems:
insights. They also ensure that rely on cumbersome legacy
In many cases [ERP systems] force A Historical Perspective.)
the business complies with applications, they were born
companies to re-engineer their business As well as re-engineering
the relevant regulations while digital.
processes to accommodate the logic of their processes, many large
mitigating its risk exposure.
the software modules for streamlining organizations have spent
However, as this strategic
focus has grown, finance and data flow throughout the organization.

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SECTION 02 | F&A: A CHANGING FUNCTION

Extracting data is language needs to be reads it, verifies the approvals

reworked into a structured and extracts the data, inputting
still very manual format that can be easily it directly into the accounting
processed by computer package — or for large firms
Another challenge is that many
systems. Once it’s extracted that receive hundreds of
accounting documents such
and structured, the data still invoices a day, this may be
as invoices, purchase orders,
often needs to be manually extracted into a spreadsheet
expense statements, and
recorded into the system to first and then imported into
even checks, to name just a
be processed digitally. accounting software.
few, are still processed on
physical paper.
Business process Once it’s in the accounting
software, the invoice is ready
They’re often scanned in as management: for payment and processed
images to create a digital copy not the complete for payment disbursement
and they’re then archived
in physical storage. This
solution we based on the payment terms

compounds the problem; data hoped for and the frequency of payment
batch runs. AP professionals
from the scanned image is not
To date, many of the process perform these payment runs
electronically readable unless
management methods that manually by batching up invoices
a specialized optical character
businesses have used to for payments, checking and
recognition (OCR) software is
overcome these challenges have removing duplicates and finally
employed and, secondly, the
not been ideal. One method disbursing either for physical
physical paper-copy still needs
that businesses have tried in check prints or electronic funds
to be stored, adding an extra
the past is to create programs transfer (EFT) to banks.
cost to the process.
that improve efficiency of some
of the repetitive accounting Prior to robotic process
Even once the data has been
processes that humans do. automation, IT programs and
extracted, it often takes
their processes revolved around
the form of unstructured
A typical Accounts Payable (AP) making the process efficient and
information or consists of
invoice processing workflow visible through business process
natural language that is
for a human might be as management methods. They
understood by humans but
follows. First, they receive a streamlined the flow, but at a
is not easily used by most
paper invoice or an invoice heavy development cost, and
software. Contracts and
by e-mail, which is approved even then, it cannot be said to
customer interactions that
manually or over email, printed have truly automated the process.
are audio-recorded are a
and then submitted to AP. An This is where robotic process
good example of this. Natural
AP clerk takes this invoice, automation (RPA) comes in.

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SECTION 03 | ROBOTIC PROCESS AUTOMATION: LIGHTWEIGHT, FLEXIBLE AUTOMATION

Robotic Process Automation:

lightweight, flexible automation
The institute for Robotic these robots can use native and traditional approach of full- outstanding (DSO) value.
Process Automation (IRPA) add-on Artificial Intelligence time-equivalent (FTE) revenue Robots free up your expensive
defines RPA as, “the application and Machine Learning models models, where revenue is F&A resources to work
of technology that allows to enhance overall capability determined by individual on higher value activities
employees in a company to and learn from experience. time-based productivity, and focus on outcomes,
configure computer software towards outcome-based which not only improves
or a ‘robot’ to capture and For accountants and finance revenue models that consider employee engagement but
interpret existing applications professionals, RPA can play a value-add versus traditional competitiveness and customer
for processing a transaction, crucial role in transforming your transactional metrics. experience as well.
manipulating data, triggering operations. Where, in the past,
responses and communicating organizations have off-shored The robots used in RPA are
with other digital systems”. many of their transaction- much more cost effective at
heavy accounting processes to processing large volumes of Because digital labor in the form of RPA
Rather than hard-code labor arbitrage regions such as recurring tasks. The robots can can supplement and augment the human
automation workflows and India, South East Asia and the work around the clock without workforce, it allows people to achieve
Application Programming Middle East, RPA can improve fatigue and, although there are more with fewer resources in less time.
Interfaces (APIs) into software efficiency and effectiveness, initial setup costs and ongoing
programs, RPA mimics a without the increased risks, maintenance costs, the return
person’s actions on top of degraded customer experience, on investment (ROI) with RPA is
existing systems. RPA works and increasingly vanishing low much higher.
in the same way that a human labor arbitrage benefits from
worker reads and interprets traditional outsourcing or off- However, for many accounting
data from a physical document shoring key business processes. departments, ROI may not be
and transfers this to multiple the only driving factor. Here,
applications on their computer. Because digital labor in the form RPA also provides better risk
of RPA can supplement and management and compliance,
Robots can seamlessly move augment the human workforce, higher accuracy, better
data across boundaries, from it allows people to achieve cycle times and improved
one application to another, more with fewer resources in throughput. This is essential
mimicking activities such as less time. Accounting firms for end-of-month reporting
clicking, typing, and moving and service providers can and for accounts receivable,
between windows. In addition, begin to move away from the lowering the days sales

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SECTION 04 | PICKING PROCESSES AND PEOPLE

Picking Processes and People

With the use of RPA, for the first time, accounting
departments can reliably automate many of the
processes they were previously unable to.

The fitness criteria for choosing

which processes to automate are:

It must be a highly manual, repetitive

and high volume process

It must be a rule-based process

One of the key considerations additional time delivers from managing people to
It must have a low exception rate is variation. For example, if value. This is where the role driving higher value activities
(low variation between processes) 90% of your transactions can of humans alongside RPA from their staff, including
be mapped in ten steps, but will change. As robots take exceptions and decisions that
10% require an additional over the routine, repetitive require human intervention,
The inputs must be electronic or two steps to be completed transactional processing while the orchestration
machine readable after step three, this becomes tasks, finance and accounting engine oversees operational
an exception to the rule that professionals will be expected performance. Finance and
needs to be managed. Here, to become expert exception Accounting professionals
The processes and their underlying exception paths need to be handlers. They will need will move away from data
Applications must be stable built into the workflow to to perform the complex, gathering, data entry and
manage the variation. While judgement-based, transactions book-keeping and instead
these processes can also that the robots are not able take on more advisory roles
be automated, it will take to perform. where their judgement and
time to build workflows consultative skills will see
into the robotic process, so The role of managers in them become business
the business has to make a accounting departments partners.
decision as to whether the of the future will move away

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SECTION 05 | FINANCE AND ACCOUNTING PROCESS AUTOMATION ENTRY POINTS

Finance and Accounting

process automation entry points
Here, we’ve picked out a list of the processes in finance and accounting that are highly suited to RPA. Though the listing is not
comprehensive, it provides a good suggestion of F&A sub-processes that can be explored by any organization that is embarking
into driving RPA-led digital transformation of its F&A function.

Procure Accounts General Tax, treasury Financial planning,

to Pay Receivable accounting and compliance analysis and reporting

Purchase order entry and delivery Sales order entry General ledger and subledger Data aggregation for tax liability Data aggregation for reports
Vendor verification and setup Customer data set up reconciliations Convert data to tax basis Report preparation
Bank reconciliations (including the below)
Vendor master-data management Customer data management Complete tax return workbooks
Inter-company reconciliations
n Trial balance and balance sheet
Vendor queries/helpdesk Billing/invoicing Prepare tax returns
Manual journal entries n Profit and loss
Invoice receipt and classification Collection activities (dunning) File tax returns and payments
Reclassification journal entries n Cashflow
Invoice data extraction Cash application Tax accounting entries
Invoice data entry and interface Credit risk management Fixed asset accounting n Variance analysis

Two and three-way purchase Dispute verification and Inter-company settlements n Management reports
order/invoice/ resolution Financial close activities n Statutory/regulatory reports
receipt matching Chargeback management
Non-purchase-order invoice
coding
Vendor statement reconciliation
Accounts payable accrual
journal entry
Expense compliance audit
Payment processing

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SECTION 05 | FINANCE AND ACCOUNTING PROCESS AUTOMATION ENTRY POINTS

Considerations for automation The results of RPA can be dramatic

A great place to start if you’re periodic and event-driven
activities. Here, the best way Process Client % of Robotization Benefits
considering using RPA is to start
by automating straightforward to automate general accounting
8 months ROI
processes such as invoice data processes is to take a more agile Purchase order entry Global automotive 100% 100% accuracy rate
automation supplier, Germany
entry and cash applications. and iterative approach to realize 78% improved processing time
These are best suited to carry the most value from automating
the process effectively. 3 months ROI
out proof-of-concept studies
Media company, 100% reduction in manual
before beginning your RPA Credit note processing 100%
Switzerland effort and accuracy
journey. You can follow this Another consideration to 60% improved processing time
with other processes such as make for general accounting
activities, such as manual 15% manual effort reduction
billing and invoicing, as well Travel and expense Consumer goods 100% 75% improved processing time
as customer and vendor data journal entries, is to use report processing company, Germany
100% accuracy
set-ups. attended rather than
unattended automation as Accounts payable: 2 months ROI
Medical/pharmaceutical
Moving on to general these processes could require Three-way matching 100% 90% improved processing time
company, Switzerland
automation 10% manual effort reduction
accounting processes, these the need for expert judgement
are often fragmented as a result or a customized computation 15% manual effort reduction
Travel and expense Consumer goods
of being been generated from specific to the event or scenario. report processing company, Germany 100% 75% improved processing time
100% accuracy

GRN-to-Invoice match Building materials 100% compliance on TAT SLA

53%
and release hold supplier, UK 54% FTE reduction

Automate vendor 70% productivity improvement

Global property insurer —
The best way to automate general payments 50% operations cost reduction
accounting processes is to take a 3 months ROI
more agile and iterative approach to Invoicing/billing HR service provider, 70%
10% manual effort reduction
realize the most value from automating automation Germany 75% faster processing
60% cost reduction
the process effectively.
100% accuracy
Cash application Retail company, India 100%
80% volume automated

5 months ROI
Accounting services 25% manual effort reduction
Month-end accounting 75%
provider, Germany 65% improed processing time
100% accuracy

67% improved processing time

Daily P&L reports Global financial services 100% Faster/earlier report delivery
generation company
100% reporting accuracy

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SECTION 05 | FINANCE AND ACCOUNTING PROCESS AUTOMATION ENTRY POINTS

RPA: the onramp for created by closely monitoring include extracting payment
employee behavior to create information from images of While many organizations using
artificial intelligence robots that can solve complex checks, extracting and curating SAP, Oracle or another modern
in the enterprise exceptions. remittance information from ERP have partially automated
emails and the supporting the cash application process
RPA, artificial intelligence
(AI), machine learning
Case in point: documents and bank using native features of these

(ML) and other advanced cash application transaction messages, as well

as matching the payments to
ERPs and have achieved a
certain degree of automation
cognitive technologies are open receivables using the (typically around 40-50%),
complementary to one Cash applications are a good remittance information. there are still a large amount
another. While pure RPA can example to illustrate how RPA of exceptions or fall-outs that
perform rule-based repetitive can be complemented by In these situations, RPA is used require human effort. This is
tasks, this can be enhanced by cognitive and machine learning to process the open receivable where RPA, combined with AI
embedding AI, ML and technologies. using information from the and ML comes to the rescue
cognitive technologies. accounting system, to fetch to take the percentage of
The inputs to a cash application bank statements and feed automation much further
This acts to not only future- typically involve open or aging them into the accounting (to around 80-90%).
proof RPA, but to be the on- receivables and payments system, and to automate the
ramp for AI into the enterprise. received, which are imported process of matching payments
It often starts with AI computer into suspense accounts from to open invoices and then
vision to allow easier, faster bank statements to be applied closing them.
and more stable automation and cleared.
for virtualized environments.
This is particularly useful for Other inputs into cash
situations where traditional applications include payment Cognitive and machine learning
business process management remittance advice instructions technologies can carry out a variety
methods that use SAP, Flash, from customers in the form of of actions including extracting payment
PDF and images etc. fail or are email notifications, supporting information from images of checks
difficult to use. documents attached to and extracting and curating remittance
checks as well as free-form information from emails.
Exception management is messages or notes within bank
another area of interest. UiPath transactions.
is already using machine
learning to enable robots to self- In these situations, cognitive
recover from simple exceptions. and machine learning
More advanced algorithms for technologies can carry out
exception management can be a variety of actions. These

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SECTION 06 | HOW UIPATH RPA WORKS

How UiPath RPA works

UiPath has spent over a decade developing one of the world’s leading
RPA platforms. Our Enterprise RPA Platform consists of three products:
UiPath Studio, UiPath Robot and UiPath Orchestrator.
Studio is the designer tool used The great thing about Studio is
to create diagrams of business that users don’t need to know
processes. Based on the any coding. They can simply
Microsoft Workflow Foundation, use the record feature and
and visually similar to Microsoft carry out a task and the tool will
Visio, Studio is an advanced automatically create a workflow
visual process modeling tool. that can be amended visually.
It allows users to drag-and-
drop different elements in a UiPath Robot runs the
process to design different processes designed in Studio Make automation
types of workflows, sequences, in the same way that a human a priority
flowcharts and transactional user would. It can work either
business processes. by assisting the human user, Digitalization is the first
or completely autonomously step in preparing modern
Studio contains a built-in library without supervision for virtual organizations for the digital
of over 300 predefined actions or remote environments. world, but once it becomes
such as clicking and typing that the norm, gaining a true
allow it to interact with a variety UiPath Orchestrator is a web- competitive edge will require a
of desktop applications, web based platform that allows lot more. By making automation
browsers and OCR engines. users to manage all the robots a priority, accounting and
they’ve created, using the finance departments can
Studio is also designed to work platform to enable remote position themselves to lead
with all types of e-mail clients control, monitoring, release this transformation.
including SMTP, IMAP and POP3 management and centralized
Server-based ones such as scheduling of the robots.
Gmail, Outlook and Exchange. Contact Us
The predefined activities
are great at reading e-mails,
downloading attachments
and composing and sending
new e-mails. Follow us: Twitter | LinkedIn
UIPAT H.CO M | AUTO MATION F I RST ERA 11