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Why Finance Departments Choose Digital Workers

group of employees discussing automation

You may be asking, “Why should our finance department adopt digital workers?” Well, we have the skinny on that!

Did you know the concept of leveraging Robotics Process Automation originated within the realm of finance operations?

Data reconciliation and validation, as well as data entry operations, where accuracy is of the utmost importance, are the center pieces found in RPA use cases. Organizations adopted digital workers to assist with processing orders, paying the bills, and expediting accounts receivable functions.

The operational activities among finance departments that RPA can support are the following:

  1. Customer Onboarding
  2. Accounts Payable & Receivable
  3. Fraud Prevention
  4. Compliance & Reporting
  5. Transaction Processing
  6. Investment Management
  7. Reconciliation
  8. DSO Outstanding
  9. Credit Checks
  10. Remittance
  11. Foreign Exchange
  12. Data Management
  13. Dividend Management
  14. Reporting
  15. Loan, Credit Card & Mortgage Applications
  16. Auditing
  17. Write-offs
  18. Debt Management
  19. Accounting Journal Entries
  20. Collections
  21. Service Desk
  22. Notice to Close
  23. Internet Application Processing
  24. Quote Through to Pay
  25. Procurement Management
  26. Partner Management
  27. Accrual Booking
  28. Financial Close Management

The nature of activities performed by most finance departments requires extreme accuracy and it’s highly transactionalFinance activities such as account reconciliations, journal entries, and even 10-key data entry are manually based and require heavy quality control reviews to ensure accuracy. A human being’s level of detail and accuracy at 100% is almost impossible to achieve.  

RPA and the advent of digital workers altered the landscape for finance professionals across all industries.

Forbes Magazine published a list of high-level use cases with the most significant impact on organizations’ operational budget by deploying digital workers – and the winners are:

  • Risk / Fraud Management: Combine past and present transaction data from organizational systems to flag potentially fraudulent activities.
  • Reporting: Aggregate data from various sources like email, organization systems, and databases, and automatically generate reports based on standard rules.
  • Transaction Processing: Automate pre- and post-payment validation and reconciliation, notify exceptions, monitor and identify potential duplicate payments, and automatically transfer pending payment requests into a suspense account to prohibit withdrawal.
  • Collections: Automatically receive and post payments, send dunning letters, create reminder reports and a shortlist of customers to call, and automatically allocate work to collectors.
  • Financial Close: Post data from multiple sources to sub-ledgers.

Source: forbes.com