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Intelligent Automation is Reshaping Finance Accounting Operations
FEI Dly May 29, 2019
By Jim Shand and Elenor Griffith
The business landscape has witnessed a significant shift in finance and accounting FA functions, powered by the emergence of intelligent automation technologies. The Bureau of Labor Statistics forecasts that jobs for bookkeepers, accountants, and auditors are declining at a rate of 1 by 2026 due to technological advancements. Meanwhile, HFS Research predicts a decrease in the Indian IT and business process outsourcing BPO sector workforce by 14 by 2021. Major BPO providers have slowed down their hiring trs with plans for minimal staff growth after seven years, openly ming to expand their automation businesses.
One of the fastest-growing intelligent automation tools is robotic process automation RPA, effectively transforming traditional tasks previously only executed by s into a digital workforce. This technology can be applied across various FA processes and activities like accounts payable and receivable, payroll management, and account reconciliation. Any repetitive task involving data that follows established rules is suitable for RPA implementation. A properly deployed RPA program not only liberates workers from mundane tasks but also frees them to focus on more complex value-adding assignments.
The rapid adoption of intelligent automation has rsed critical questions for FA leaders regarding their outsourcing partners and IT departments. Here are three key inquiries every leader should ask:
Automation Progress Inquiry: Have you already automated our entrusted work? Conversations with clients reveal that many BPO providers have been autonomously automating repetitive tasks without informing them, as contracts typically specify the services to be performed along with outcomes but not the number of personnel involved. Additionally, outsourcing firms can benefit significantly from automation due to higher profit margins. Leaders should consider renegotiating their contracts for potential margin recovery.
Automation Intent Inquiry: If you haven't automated our tasks yet, do you plan on doing so? While BPO providers view RPA as a threat to their core business, it also presents an opportunity to reduce costs and provide higher-value services with fewer resources. Providers with growing automation businesses may not have shared this information if asked.
Automation Absence Explanation Inquiry: If our work hasn't been automated and you don’t plan on doing so, why is that? Finance departments are the first entry point for RPA since they are rich with tasks and processes suitable for automation. Moreover, finance leaders often face constant pressure to cut costs by automating repetitive activities.
If you haven't had candid discussions with your outsourcing partners and IT department about these topics, it's time to schedule appointments. You stand to gn significantly while potentially reducing unnecessary costs.
Jim Shand is a Director at AlixPartners' Digital practice, while Elenor Griffith serves as an Associate in the Business Intelligence service of AlixPartners.
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This article is reproduced from: https://www.financialexecutives.org/FEI-Daily/May-2019/Intelligent-Automation-Is-Revolutionizing-Finance.aspx
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