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Monday, March 18, 2019

Changes coming from Robotics Process Automation.

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The fourth industrial revolution (IR4.0) is making waves in the business world, with industries scrambling to adapt to fast-changing technological trends, in order to stay relevant in today’s market.

According to the World Economic Forum’s Future of Jobs Report 2018, one of the top ten professions at the highest risk of being automated is the finance and accounting profession, which will be a ‘declining’ profession by 2022.

For accounting and finance to evolve in the value curve, professionals must move on from repetitive transactional work and become partners that can value add and undertake strategic work for the businesses they serve.

“The conundrum is this: finance and accounting professionals are spending 90% of their time performing transactional work, leaving them very little time for value add, let alone strategic finance,” said the founder and chief executive officer of a finance, procurement and HR transformation provider.

The core of finance and accounting involves transactional work such as making payments to suppliers, ensuring salaries and expense claims are paid to employees, as well as issuing invoices to customers, collecting monies and providing financial performance information of the organization.

Currently, most accountants, finance managers and even shared services professionals spend the bulk of their time in the transactional work; i.e. in the “preparing” and “producing”; which is precisely the areas within finance and accounting where the automation and robotic evolution has begun.

Automating and robotizing these repetitive processes, which tend to be voluminous and prone to error, would increase efficiency and accuracy.

She said that it will also enable finance and accounting professionals to become respected brainstorming partners for businesses, as they will be able to focus on value add activities such as forecasting, budgeting and various analytical work, including comparing supply chain cost and product line profitability.

Moreover, finance professionals will be able to lead corporate activities such as funding, listing, and mergers and acquisitions. One important aspect, she noted, is on resource allocation coupled with relevant return on investment analysis.

She said, “It is truly the time to stop pushing the rectangular wheel, take a step back and analyze how to shape the wheel into a round one, in order to propel your organization towards agility and competitive edge.”

To move forward, the key lies in the awareness of opportunities, technology solutions and successful implementation.

“We can look at learning from the global business services and finance shared services organizations in Malaysia, which have been pushing the frontier in automating transactional work via automation, Robotics Process Automation and Artificial Intelligence and making inroads in delivering value add finance work to their businesses,” she added. As the finance and accounting profession rises to the challenge of IR4.0, she said it is key to network, learn and share from peers in the industry.

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