# What is RPA, and how can it revolutionise finance departments?
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2020-10-16
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: How RPA Can Revolutionise Finance Efficiency: Expert
Meta Description: Discover how RPA can automate manual finance processes, freeing up time for strategic decision-making and reducing errors. Learn from UiPath's VP of Sales.
URL: https://financedigest.com/what-is-rpa-and-how-can-it-revolutionise-finance-departmentshtml

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_By **Rory Gray**, Vice President of Sales at leading software automation firm, UiPath, explains what role Robotic Process Automation (RPA) can play in improving the efficiency of finance departments over the course of the pandemic and beyond._

The pace of the pre-coronavirus world was already fast. However, time now seems like a distant luxury within finance departments. There is an increasing pressure to move quickly, increase efficiency and [improve customer service](https://www.financedigest.com/how-can-financial-firms-improve-customer-service-after-the-pandemic.html "How Can Financial Firms Improve Customer Service after the Pandemic?"), all while working remotely.

Unfortunately, for [finance teams](https://www.financedigest.com/protecting-the-finance-team-from-burnout-to-drive-employee-retention.html "Protecting the finance team from burnout to drive employee retention"), improving efficiency and agility is easier said than done. Many [processes involve legacy systems](https://www.financedigest.com/persistence-innovation-to-replenish-the-tissue-processing-system-market.html "Persistence Innovation To Replenish The Tissue Processing System Market"), paper-based documents and unstructured data. These all result in time-consuming and repetitive tasks which eat into a finance professional’s day.

Take processing invoices. The [way it’s done hasn’t changed](https://www.financedigest.com/three-ways-that-2022-is-going-to-change-how-you-think-about-money.html "Three ways that 2022 is going to change how you think about money") for years in many organisations. It often involves a member or members of the finance team receiving the invoice by mail or email, approving it manually, printing, [signing and submitting it to Accounts](https://www.financedigest.com/twitters-account-of-deal-shows-musk-signing-without-asking-for-more-info.html "Twitter’s account of deal shows Musk signing without asking for more info") Payable. An AP Clerk then has to pick it up, read it, verify the approvals, extract the data and input it into to the accounting package. This all takes [time and costs money](https://www.financedigest.com/netflixs-gaming-foray-will-cost-time-and-money-wall-st.html "Netflix’s gaming foray will cost time and money – Wall St"). What’s more, it’s dull and prone to errors. [People don’t](https://www.financedigest.com/people-dont-like-to-be-told-no-when-it-comes-to-finance.html "People don’t like to be told no when it comes to finance") want to spend their days doing it.

Imagine if processes such as invoicing, but also purchase orders, expense statements and many more, could be automated. [Finance teams would spend much less time hanging around the printer and more time making sense of strategic data and following up with decisions that really count during the current crisis](https://www.financedigest.com/six-ways-to-prepare-for-a-personal-finance-crisis.html "Six ways to prepare for a personal finance crisis").

**_This is where RPA comes in_**

Robotic [Process Automation](https://www.financedigest.com/what-businesses-can-achieve-with-microsofts-full-suite-of-process-automation-tools.html "What businesses can achieve with Microsoft’s full suite of process automation tools") or RPA, is software that can work just like a human. It can read and interpret [data from both physical and digital](https://www.financedigest.com/whose-role-is-it-anyway-why-finance-underpins-data-led-digital-transformation.html "Whose role is it anyway? Why finance underpins data-led digital transformation") documents. It can extract the necessary information and it can transfer this to multiple IT applications. It’s a software robot – or [digital assistant](https://www.financedigest.com/discrete-digitization-to-drive-the-assisted-reproductive-technology-market.html "Discrete digitization to drive the Assisted Reproductive Technology Market").

For finance professionals, RPA holds the [key to freeing up their time and improving efficiency in their department and the business](https://www.financedigest.com/foot-orthotic-insoles-market-to-generate-us-5-billion-by-2026-growth-key-business-strategies.html "Foot Orthotic Insoles Market to Generate US$ 5 Billion by 2026 | Growth & Key Business Strategies") as a whole, while reducing human errors to almost zero.

![Rory Gray](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/rory-gray-450x300-1736838790508-compressed.jpg)

Rory Gray

In the past, under similar pressures organisations may have chosen to offshore many of their transaction-heavy finance processes to regions such as South [East Asia](https://www.financedigest.com/stanchart-sees-asia-middle-east-as-bright-spots-in-weak-global-economy.html "StanChart sees Asia, Middle East as bright spots in weak global economy") where labour was cheaper. This posed a number of risks including degraded [customer experience](https://www.financedigest.com/solving-the-customer-experience-conundrum-how-fs-organisations-can-use-data-to-level-up.html "Solving the customer experience conundrum: How FS organisations can use data to level up").

RPA on the other hand allows [finance professionals to stay in control of these processes](https://www.financedigest.com/gary-mcgaghey-explains-how-cfos-can-strengthen-decision-making-processes-and-reimagine-the-finance-model.html "Gary McGaghey Explains How CFOs Can Strengthen Decision-Making Processes and Reimagine the Finance Model") but without having to do all the legwork. The software robots can undertake the repetitive and manual tasks, only passing responsibility back to [human colleagues if there is an inaccuracy that requires the personal touch](https://www.financedigest.com/building-a-relationship-led-bank-requires-a-more-human-touch.html "Building a relationship led bank requires a more human touch") or a loop in the workflow where a decision is needed. This [saves time and money](https://www.financedigest.com/modernisation-of-insurance-technology-saves-invaluable-time-and-money.html "Modernisation of insurance technology saves invaluable time and money") – and allows people to focus on the tasks that can make a difference to the business.

Let me add an example.  Accountants and financial specialists will agree that they can spend up to a [third of their day](https://www.financedigest.com/basic-material-luxury-stocks-drive-european-shares-to-a-third-day-of-losses.html "Basic material, luxury stocks drive European shares to a third day of losses") gathering and modelling financial data in order to analyse its content and offer account and financial advise to business, clients and their employers.  Actually, the skill of an accountant is the latter of these tasks – offering advice and analysis.  When we automate the gathering and modelling, we create more time for better [management and more rewarding](https://www.financedigest.com/managing-compliance-complexity-will-deliver-security-rewards.html "Managing compliance complexity will deliver security rewards") work.

**_RPA in practice_**

The idea of software robots taking over repetitive tasks may sound futuristic, but it’s already happening at scale in many organisations. For example, a leading smart infrastructure [solutions firm we work with has created a software](https://www.financedigest.com/healthcare-software-solutions-to-ride-the-pneumatic-compression-therapy-market.html "Healthcare Software Solutions to ride the Pneumatic Compression Therapy Market") robot affectionately named Archie, which has taken over the responsibility for processing all invoices.

Pre-Covid, the 400,000 invoices received by the [firm each year](https://www.financedigest.com/german-engineering-firms-expect-hit-from-supply-chain-bottlenecks-next-year.html "German engineering firms expect hit from supply chain bottlenecks next year") were dealt with manually. With Archie this is now fully [automated freeing up on average 11 minutes per invoice of time which employees can now use to focus on value-adding activities](https://www.financedigest.com/how-process-automation-increases-productivity-in-the-insurance-sector-while-giving-employees-room-for-more-high-value-activity.html "How Process Automation increases productivity in the insurance sector while giving employees room for more high value activity"). It also means that no employee needs to come into the office to process the invoice, nor does any paper need to be passed around the team. Thus helping to [keep the workforce safe](https://www.financedigest.com/the-future-of-cloud-how-to-keep-your-data-safe.html "The Future of Cloud: How to Keep Your Data Safe").

Archie, and other software robots just like ‘him’, can work around the clock without fatigue, processing paperwork live. So when [finance departments](https://www.financedigest.com/ai-in-the-finance-department-augmenting-not-replacing.html "AI in the finance department: augmenting, not replacing") fire up their laptops at home, all the paperwork that came through overnight or over the weekend has already been handled, with any issues flagged and ready to be dealt with accordingly. This allows finance departments to power on with their day and focus on financial planning or analysis.

More time and lower costs aren’t the only [driving factor](https://www.financedigest.com/insights-on-the-flexible-packaging-global-market-to-2027-key-driving-factors-and-challenges.html "Insights on the Flexible Packaging Global Market to 2027 – Key Driving Factors and Challenges") for the adoption of RPA. [Data intensive tasks are also freed from human error](https://www.financedigest.com/outthink-raises-10-million-to-tackle-human-errors-behind-data-breaches.html "OutThink raises million to tackle human errors behind data breaches"). However accurate we aim to be, the [reality is that processing data](https://www.financedigest.com/understanding-the-realities-of-payment-data-monetisation.html "Understanding the realities of payment data monetisation") is always open to mistakes. Software robots, however, are programmed by finance professionals to strictly follow the same steps [every time](https://www.financedigest.com/how-to-nail-your-banking-audition-every-time.html "How to nail your banking audition every time") and thus do not fall victim to the same blunders as all humans inevitably do. This in turn provides better [risk management](https://www.financedigest.com/extended-reality-applications-in-risk-management.html "Extended Reality Applications in Risk Management") and compliance, higher accuracy, better cycle times and improved throughput.

With all this extra time, the [role of the finance](https://www.financedigest.com/the-role-embedded-finance-systems-will-play-as-commerce-goes-increasingly-digital.html "The Role Embedded Finance Systems Will Play as Commerce Goes Increasingly Digital") department can adapt to the current crisis. [Moving away](https://www.financedigest.com/exclusive-eu-to-move-away-from-emergency-phase-of-covid-pandemic-document.html "Exclusive-EU to move away from emergency phase of COVID pandemic – document") from data gathering, data entry and bookkeeping and towards advisory roles where they can best use their strategic skills.

This will not only [benefit the business](https://www.financedigest.com/how-choosing-the-right-mtd-for-vat-software-can-maximise-business-benefits.html "How choosing the right MTD for VAT software can maximise business benefits") during the pandemic and beyond but will also free the teams from mind numbing work, improving employee satisfaction. A rare win-win in a difficult time.


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