According to CIMA’s Future of Finance survey, the majority of accountancy and finance employers say they are either already investing in automation or are in the planning stages of doing so.
Admin-heavy tasks like data gathering and financial reporting are named by employers as the top areas that would benefit from further investment in automation, while just under half think credit management and staff payroll would benefit, too. Some employers are also already underway with projects like automating cash allocation.
So, why is automation in accounting here to stay? And what can you do to make sure you benefit from it?
4 different kinds of automation used in accounting
Robotic process automation (RPA)
RPAs are simple pieces of software that sit on top of existing systems. They can be used to perform straightforward and repetitive accounting processes, like calculations, inputting data, and keeping on top of financial controls. You can start using RPA to boost your career prospects now – read our blog, How will robotic process automation impact your career in finance? for more.
Artificial intelligence (AI)
In finance, artificial intelligence means copying human decision-making processes and replicating tasks in a human way. Firms are using it to do things like detect fraud and analyse risk. Importantly, though, AI doesn’t replace the need for human intelligence.
Natural language processing (NPL)
A subset of AI, natural language processing enables computers to digest and present information in a human way. In accounting, it’s already being used to translate raw data into meaningful insights, classify documents, and review contracts.
Machine learning (ML)
Another cousin of AI, machine learning allows computers to develop and improve without human intervention. The more data machines are exposed to, the more they can improve their performance.
Let’s be clear: the robots aren’t coming to steal your job.
Automation is here to make your job easier – or, at least, more interesting. The future of finance is strategy, not reporting or processing transactions. The you of the future won’t be spending time doing calculations, inputting data or checking controls are in place – automation will do that for you.
Automation can be used to perform those repetitive, rule-based, slightly mundane tasks that take up time you could spend doing more exciting things, like strategizing, analysing, and that all-important creative thinking. Machine learning can also be used to check compliance automatically, so you won’t have to worry about costly breaches. Automation should make for a much less stressful working environment all round.
Now is the time to upskill
To get going, automation needs actual humans who know how to set it up, use it, and make the most of it. But, believe it or not, almost two-fifths of employers say that a lack of skills from their current staff is a barrier to the implementation of automation. Employers are also facing a shortage of the right skills to make the best use of automation technology, with both technical and soft skills being in short supply.
Step forward, Gen Z. You’re already digital natives – new technology isn’t scary to you. Get your head around the different kinds of automation that can be used in finance and you’ll land on your feet when you start working.
Where to start
The CIMA Future tech and business insights short course is a good place to start. Developed with university students in mind, it’s 10 hours long, can be completed online, in your own time (and it looks good on your LinkedIn, too).
Once you start the CIMA Professional Qualification, you’ll get a thorough grounding in all-things automation and finance. The syllabus covers it all in-depth from the outset, so you’ll be learning about tech and processes that’s applicable to the job that you’re doing.
