Robotic Automation Eases Fixed Asset Management

RPA is not a humanoid robot that will replace all human workers. The term “robot” as used in this context may be better termed a “bot.” A bot is a software application that once directed can repeat automated tasks. Bots interact with software applications the way humans do, using the same interfaces to complete specific tasks. Imagine, if while performing a repetitive task you created a video of your screen and were able to run the steps back in a continuous loop until the job was complete — that is essentially what a bot does.

The value of bots comes from their speed and accuracy. They can perform the same work as a human in a fraction of the time and with little to no errors. Bots can be run at night and on weekends to augment staffing needs.

Consider how a bot could be used by accounting and finance teams to make mundane tasks related to fixed assets management faster, easier, efficient, and more accurate. RPA can only do what it is told to do. Unlike a human employee it can’t think, innovate, strategize, or problem solve.

Benefits of RPA

As companies look to streamline operations and minimize data errors, robotic processes are taking center stage. By automating routine, manual tasks, companies can foster greater employee satisfaction by reassigning staff to more fulfilling, strategic roles.

A few reasons why companies look to RPA for tax automation are that it is:

• Cost-effective when compared to outsourcing or hiring temporary, part-time, or full-time workers
• Efficiently working at machine speed behind the scenes, either automatically or when manually tasked
• Capable of handling much larger volumes of work than a person and of 24/7 operation

Challenges of RPA

RPA is a great way to drive toward automation, but it’s not without its drawbacks. As with any business initiative it will be important to weigh the benefits against the costs. Some of the challenges you may face when implementing RPA are:

• Expenditure to acquire and create each bot.
• High degree of maintenance required after implementation.
• Dependencies associated with changes to the user interface — the bot will need to be reprogrammed to perform tasks correctly.
• Human intervention required to ensure bots remain technically sound.

While there is no question that bots can help reduce manual work – their use is certainly not hands-free automation. The level of maintenance and human intervention is definitely a consideration.

Leveraging APIs to Perform Tax Automation

Application Programming Interfaces (APIs), sometimes referred to as web services, also provide an option for reliable process automation. Unlike bots that interact with software as a user, APIs serve as a messenger between two applications allowing data to be automatically transferred and manipulated without the involvement of a user or a bot. Because APIs are maintained by software vendors, updates occur automatically ensuring continuous functionality, unlike bots that can be rendered useless if something as simple as a user interface changes.

Just as RPA bots can automate repeatable tasks, so can APIs, many times for less money and greater reliability. Optionally, human oversight with full audit trail can be built into the automated API process. By leveraging web services, many of the labor-intensive and data-heavy tasks required by fixed assets management can be reduced or entirely eliminated from a team’s to-do list.

Here are five key areas within fixed assets management where APIs may be more beneficial than RPA:

1. Business rules ─ capture and automate manual processes so rules can be consistently applied to data and transactions in support of specific workflows. Staff gains visibility into processes, allowing timely turnaround during compliance and provision deadlines.
2. Data transformation ─ eliminates the need to capture and rekey data for use in multiple applications. APIs allow data from various sources to be combined, separated, manipulated, and/or merged for more streamlined, accurate data analytics, and reporting.
3. Data transfers ─ eliminate the need to check accuracy and reliability when transferring data across applications. Automated data exchanges can be set up with checks and balances to ensure quality and integrity.
4. File imports and exports ─ automate time-consuming steps required in the fixed assets administrative process to manually import and export data files.
5. Reporting ─ improves accuracy by turning incomplete data into usable, automatically generated reports and analysis.

The Future is Now

Robotic Process Automation and APIs are both excellent tools for bringing automation to the tax function. Yet the subtle differences as to how they function may determine whether or not true automation is achieved. RPAs are not hands-free automation; they require oversight, making maintenance and level of human intervention a consideration. APIs tend to provide more of a hands-off experience for users, while still providing the necessary checks and balances to ensure data is correct. Both technologies can truly unleash human capital and help transform the tax department of a company from an administrative cost to a value-add function. By maximizing the value of their employees, companies are committing to continuous improvement.

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Ryan Sheehan, CPA is Product Manager for Bloomberg Tax Technology.