In today’s competitive business environment, companies are feeling the heat and looking for ways to discover their edge over rivals. Organizations worldwide are looking for technologies to streamline workflows so that a lot of work can be done in little time thereby saving time, space and money.
One answer to the several questions raised by them is provided by automation technologies. After the runaway success of automation technologies in several fields, every department is looking for the tasks that can be assigned to these technologies so that the manpower can be put to those tasks where humans have an advantage over robots and risks are high.
One such technology is Robotic Process Automation which is a technology which takes care of tasks that are defined by pre-determined rules, are repetitive in nature and have a standard operating procedure. When humans perform these tasks there are chances of errors, reduced speed and lower accuracy. Enter RPA and the tables turn much to the delight of organizations.
For years now the finance functions have been performed by humans and involve paperwork. The reports generated take time and often decisions need to be taken in real time. Delays can cost the organization lucrative amounts. Errors can prove to be dangerous. Left to humans alone, these tasks consume time, involve paper works and can be repetitive. This is where automation technologies come in the picture as a savior.
Case for Automation
A study by Boston Consulting Group stated that by 2020, automation will take control of over twenty five percent of the processes in business which are currently being performed manually. The positive impacts of automation technologies such as Robotic Process Automation and Artificial Intelligence has been hailed across the industry by decision makers at all levels. These disruptive technologies will help businesses extract value but a decision needs to be made on the processes that require automation.
[bctt tweet=”The positive impacts of automation technologies such as RPA and AI has been hailed across the industry by decision makers at all levels.” username=”@UInsights”]
A clear cut idea is needed of how they wish to transform finance processes using such automation technologies. Automation technologies have been implemented in several departments such as accounts payable, claims processing in Insurance companies, retail management, healthcare and business process outsourcing. CFOs are exploring the areas that need such technologies so that costs can be cut down and decisions can be taken in real time.
CFOs of organizations are looking for better ways to manage funds and enable faster decision making when it comes to finance and accounting departments. Robotic Process Automation might just provide them the solution to the prevailing problems.
There have been numerous benefits which automation technologies have given to organizations such as:
- Error reduction:
When tasks that are performed by humans are handed over to software robots, the possibility to human error is eradicated.
- Better efficiency:
Software robots perform tasks at a faster pace than humans who are assigned the same type of work in similar working conditions because robots are not bored of doing repetitive work.
- Higher Productivity:
Humans cannot put in work at continuous stretches without scheduled breaks in between due to boredom, loss of concentration and fatigue. On handing such mundane tasks to software robots, idle time is reduced thereby improving productivity in the organization.
- Better Accuracy:
Robots have a higher accuracy during the execution of tasks compared to humans.
- Drives down costs:
When manpower is reduced due to software robots performing those tasks, the costs of maintenance, space rent and other costs are significantly reduced.
Benefits of Automating Accounts Receivables
Accounts Receivable brings a few challenges for organizations of different sizes and structures. There is continuous pressure to get better at fund management and keeping track of accounts receivables will keep the organization in good shape financially. This can be taken care of by adopting automation technologies.
The following are benefits of automating accounts receivables:
- Fast-track Payments:
There may be customers who transact with your organization and take a long time to make payments thereby causing inconvenience to you. Automating accounts receivables will help in this regard. Automation will help to make invoices available to the customers who can then pay promptly which will help reduce delays in payment. Automation will bring speed to invoicing.
[bctt tweet=”Automation will help to make invoices available to the customers who can then pay promptly which will help reduce delays in payment. Automation will bring speed to invoicing. ” username=”@UInsights”]
- Saves Time:
An old adage says Time is money. Therefore if time is saved in automating your accounting procedures then money is definitely saved. If workers are too burdened then automating these tasks will surely save time. It allows the employees to focus on work that is more important.
- Reduced Incidence of Errors:
Since ages the accounting and financial departments of organizations have been people oriented. Where there are humans handling operations, human error is bound to occur. This comes at a certain cost. Automation can help to bring down such errors leading to lowering costs and happier customers.
- Customer Service Improves:
Your customers will not only bring revenue but also spread word about your company. If your customers are unhappy with the glitches that occur from your end thereby affecting them, they will spread negative word of mouth which can damage your company’s reputation. On the other hand if by automation, your customers receive better service it will spread good word about your company and draw more customers. Your brand reputation will definitely be boosted.
- Cost of Processing Payments decreases:
When you automate workflows the costs associated with processing of payments goes down. The company can then invest this money saved into other areas that require attention and financial injection. Productivity definitely improves. The workers that once looked after mundane tasks can now put their brains to strategic tasks.
- Standardize Processes:
When you transact with a customer you can receive the payment immediately or agree on credit where the payment is made at a future date. As soon as credit comes into the picture we incur an accounts receivable. The date of collection is based on the terms and conditions as agreed upon by both parties. Members of your workforce need to understand these terms thoroughly and maintain records against many such customers that avail credit facilities. Automating the accounts receivables process will surely standardize the entire process thereby making work simpler. The collection manager’s work becomes easier and collections are streamlined.
Therefore it doesn’t take much effort to realize that it is a wise decision for organizations to automate their workflows when it comes to accounts receivable. An important decision is to ascertain to what extent and identify the tasks that need to be automated. It will bring numerous benefits that will help organizations to compete better.