The robots are coming

While many Caribbean finance professionals may have envisioned a future where their jobs have been made obsolete due to robots and automation, the future is in fact bright for finance professionals in a world of robots. In a future where robots and automation can manage transactional processes like purchase to pay and record to report, finance teams will have more time to focus on more strategic and transformational work, allowing the finance function the opportunity to really shape the future of their organisation. In fact, the threat to Caribbean finance professionals isn’t caused by the presence of robots, but instead caused by finance organisations failing to embrace the robots and becoming irrelevant.

ACCA’s latest global research highlights the potential benefits of robotic process automation for CFOs and organisations worldwide. In early 2018 ACCA and the Chartered Accountants of Australia and New Zealand (CA ANZ) conducted a survey of its global membership to seek their views on robotic process automation (RPA) and the effect that this automation might have on the finance function.

The newest report from ACCA and CA ANZ analyses the results of the survey and together with KPMG client experience in RPA implementation draws global insights on the adoption of robotics by the finance function.

So what exactly is RPA? RPA is software that is easily programmed by end users to perform high-volume, repeatable, rules-based tasks. It doesn’t typically involve complex programming. In its simplest form, RPA technology is a “virtual worker,” using what we call desktop recording practices to record the exact keystrokes and clicks the employee would make for a given process. And it’s not smart technology, meaning it can’t really “think” for itself and can only follow rules or simple activities.

It is used to move files and folders, perform basic calculations, access systems, and complete forms, among other things.

Based on our survey, the finance function hasn’t done enough to effectively implement robotics into their work - 50 per cent of respondents do not believe their companies have trialed or implemented robotics. Another 45 per cent of those responded that they need to understand robotics more fully before implementing it. What ACCA and CA ANZ found in this research is that implementation is slow mainly because there isn’t a full understanding of what robotics is and what benefits it might bring.

The survey revealed that currently, larger organisations are mainly adopting RPA technology. Three quarters of the respondents in the largest organisations (more than $25billion turnover) surveyed were using it, as compared to only one third of the smallest organisations (less than $50million).

Looking to implement RPA in your finance function?

You should be! ACCA and CA ANZ can offer some ideas on how to make the transition as smooth as possible. First, it will be essential to build a business case within your organisation for RPA. Our survey respondents and our case studies had pretty consistent advice, irrespective of business size:

• Improved control. A robot can perform tasks that can be checked and recorded every step of the way. It creates a critical audit trail that can be very helpful for compliance.

• Improved process speeds. RPA makes organisations more efficient when it comes to routine finance tasks. Cycle times are dramatically reduced by RPA, when a task that used to take hours can now take seconds.

• Reduced processing cost. Once implemented and scaled, RPA can result in significant cost reductions.

• Transformational capability. Robots can operate 24 hours a day, 7 days a week year round. This can triple the processing time compared to a human shift.

• Data accuracy. Finance teams need high quality and reliable data. RPA can improve the accuracy to data as RPA performance simple, rule-based tasks and robots do not make mistakes. However, a mistake in programming can lead to significant damage so testing before going operational is vital.

And after speaking with RPA pioneers around the world, we created ten lessons learned which are:

1. Invest in change management capability

2. Engage your employees through the journey

3. Build RPA capabilities widely in the finance team

4. Start small

5. Get IT involved early

6. Get the governance model right

7. Choose the processes carefully

8. Look to optimize processes first

9. Know where to stop with RPA

10. Recognise when RPA might not be the right solution

RPA will keep an organisation relevant — CFOs and organisations need to understand RPA, meaning finance professionals who understand the benefits gained by humans and robots are more in demand than ever before.

Disruptive technology like RPA is going to continue to play a critical role in how the finance function develops and transforms. But business leaders who recognise the opportunity, and the challenge, of RPA and digital technologies will become leaders in their field.