Robotic automation is the latest innovation used by firms across the globe. This tool does not rely on complicated domain knowledge to function. It simply replicates the tasks done by humans without using any cognitive abilities. It handles elementary back office tasks such as data entry, homogenous and repetitive tasks. It can handle such tasks more efficiently than humans. Though it has limitations in capabilities, it produces consistent outcomes and speedy results.

Companies that use robotic automation can immensely improve its processing time, accuracy, efficiency at the same time at a reduced cost.

Also Read: “How accounting firms can benefit from automation (or RPA)”

Why firms choose accounts payable to deploy robotic automation:

Accounts payable on the outset might look like a simple task. Just sending payments to supplier invoices on time. However, if you look deeper, AP influences the entire company and its decision making.

Let us have a look at how AP influences:

• It helps gain insight of cash flow and track finances in real time
• It helps to build trust with suppliers through timely payments, negotiating payment terms, and getting exclusive discounts on purchases.
• Collaboration with other departments such as capital management, payroll, HR to improve the financial process.
• Auditing becomes easier through organized and well-maintained AP records

Also Read: “What is Automated Bookkeeping and How Do I Integrate it into my Accounting Firm?”

Gains achieved through automating accounts payable processes:

The Association of Financial Professionals recently projected U.S. companies will experience $19 billion in fraud losses in 2018. Robotic automation helps in mitigating these in various ways. Here are a few points to understand why there is a need for AP automation by using robots.

1. A sure path to enhanced accuracy and reduced errors
   Accounting errors arise due to manual data entry errors, underpayment or overpayment of invoices due to incorrect retrieval of payment history. Duplication of payment also happens due to improper filing or losing documents. Unaddressed accounting errors in the long run causes disruption to the performance and deliverables of the firm. Backtracking and resolving issues is a time and labour-intensive task. Further, it mars the reputation of the company as it fails to deliver a quality service.
   Robo AP accounting helps to validate the data entries to the accounting software, identifies and red flags for exceptions. Once accuracy of data is ensured, then the margin of error reduces significantly.
2. Efficient and rapid time management:
   The timeline needed from initiating the invoice process till payment to the suppliers is a lengthy manual process. Usually, a minimum of fifteen days duration is required.
   Robotic AP automation helps firms towards reaching timely deliverables. The places where time is reclaimed to productivity are:
   • Elimination of manual entries of invoices.
   • Digital filing system of invoices, helps to retrieve the payment history.
   • Invoices reaching line manager endorsement and approval simultaneously.
   • Instant processing of invoices and prevent backlog of invoices
   
   The AP accountants are saved from doing mundane data entry and related tasks and focus towards ‘cash flow’, budgeting etc. tasks that has more value to their organization.
3. Quickly reaching cost efficiencies:
   Implementing Robotic Automation (RPA) in AP helps a company in streamlining many unnecessarily expensive activities. An early ROI is achieved due to savings achieved through
   • Reducing the processing cost of manual invoicing
   • Eliminating printing cost of sending copies of invoices and receipts etc.
   • Avoid paper storage cost as filing is done digitally.
   • Get alerts on duplicate invoices, due dates, fraudulent payments etc.
4. Adhering to process control and compliance:
   Compliance and process control is required to ensure tracking of invoice processing stages, authorized approval, and payment timelines. Integrating with a reputed software application helps in gaining complete control over the process. Audit trails help in follow-up where there is disruption of activities and helps in resolving issues and discrepancies.
5. Elevating supplier experience:
   The delay encountered in supplier payment projects a negative image to the organization. Many vendors avoid dealing with the firms due to its failure to settle the payment on time. Through robotic AP automation, the process areas where delays arise such as errors, duplicate payment, authorization are addressed. With tracking visibility, payment history, speed and accuracy, the accounting practice is able to establish trust and satisfaction with both customers and suppliers’.
6. Flexibility to scale:
   Robotic automation workflow can be easily reused in cross sections of the firm wherever it is conducive for automation. Depending upon the workload, robots can reallocate busy queues to achieve targets. Scalability is quick and simple when firms go on for expansion of its projects.
7. Taking on the competition:
   Accounting firms always have many competitors to deal with. In order to be competitive, they need to upscale through technology. This is achieved through AP robotic automation, helping to achieve early ROI, time savings and error reduction.
8. Promoting team spirit & participation:
   AP automation helps team members to reduce their mundane workload. Robots can help in many areas of an AP process and to smoothen the process. This smooth progress of work flow reduces friction and AP employees can have more time in a more collaborative environment. Robotic AP sets the tone for a friendly working environment.

These are a few benefits of robotic automation in accounts payable process. Get in touch with us, if you are looking to automate accounts payable process.