Robert Kugel's Analyst Perspectives

Robotic Process Automation is a Cornerstone of Digital Finance

Posted by Robert Kugel on Dec 25, 2017 7:52:13 AM

Robotic process automation (RPA) relies on programming or the application of analytical algorithms to execute the most appropriate action in an automated workflow. RPA enables business users to configure a “robot” (actually, computer software) to interact with applications or data sources to process a transaction, move or manipulate data, communicate with other digital systems and manage machine-to-machine and man-to-machine interactions. This technology is gaining increasing notice by finance departments, with good reason: RPA represents an important step beyond simple process automation in that it uses software to execute routine but complex workflows that require judgment. Rather than making an individual check-off a step in a routine approval, a robotic system applies an algorithm that decides the next step. The system thus does what people spend an awful lot of their time doing every day: making judgments that most of the time could be done by a machine.

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Topics: Robotic Process Automation, automation, Continuous Accounting, Accounting, Operations, finance, web crawler, bank, banking, legacy systems, close, closing

The Virtues of Automating Reconciliation

Posted by Robert Kugel on Mar 29, 2014 8:40:50 AM

Reconciling accounts at the end of a period is one of those mundane finance department tasks that are ripe for automation. Reconciliation is the process of comparing account data (at the balance or item level) that exists either in two accounting systems or in an accounting system and somewhere else (such as in a spreadsheet or on paper). The purpose of the reconciling process is to identify things that don’t match (as they must in double-entry bookkeeping systems) and then assess the nature and causes of the variances. This is followed by making adjustments or corrections to ensure that the information in a company’s books is accurate. Most of the time, reconciliation is a matter of good housekeeping. The process identifies errors and omissions in the accounting process, including invalid journal postings and duplicate accounting entries, so they can be corrected. Reconciliation also is an important line of defense against fraud, since inconsistencies may be a sign of such activity.

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Topics: automation, Business Performance Management (BPM), CFO, close, closing, Consolidation, Controller, Data, Document Management, effectiveness, Financial Performance Management, Financial Performance Management (FPM), FPM, Governance, Risk & Compliance (GRC), Reconciliation, XBRL, Office of Finance