Automation may be on its way to affecting every aspect of our daily lives. In the meantime though, there are more substantial ways that automation is positively affecting the financial sector. This trend is not something to be threatened by, but instead to celebrate as it has the chance to free humans up to fulfill more qualitative functions.
Robotic Process Automation (RPA) is a general purpose software that goal is to relieve humans of the repetitive and mundane tasks of their days. This type of software is advantageous in corporate finance positions. Forbes estimates that finance professionals spend more than three-quarters of their time completing simple, data-heavy tasks which leaves them little time to focus on the analyzing and making strategic decisions. RPA can do the same items faster and more accurately, and in tandem, free us up to do the more important work.
There are a few key roles that would and will benefit from automated practices. These jobs include accounts payable, receivable, and payroll. Because the range of financial functions is so varied, RPA would not be able to fulfill every duty but, it is equipped to handle tasks such as general accounting, financial reporting, cash distribution, and even revenue management. By handing responsibilities like these over to software, we are increasing the productivity and efficiency, as well as cost-effectiveness of our overall financial processes.
For those who are nervous by the impending onslaught of automation in this industry, don’t be! While jobs that are rooted in quantifiable data, such as hard facts, reports, and number, are likely to be automated, it is much less likely that we will get to the point that we can replace the human judgment that goes into many functions of finance. Qualitative job responsibilities that require emotional intelligence, strategic management, and even most client interactions will still need the human touch. The implementation of automation into those simple, everyday tasks will open up your time to provide better service.
Some challenges are inevitable such as maintaining overall financial visibility, but as with every new technology these concerns will need to be debugged. There are conversations about the process of machine-learning and the possibility of cognitive-automation, where the software learns and improves based on new experiences, but these conversations are still in the beginning stages. We can look forward to hearing about how AI has the potential to assist us in auditing processing, processing transactions, and even monitoring compliance, but for now, it is hopeful that we will be able to spend more time on the critical tasks and provide better service to our companies and clients.