Robotic accounting: what it actually does (beyond the hype)

Robotic accounting software can transform time-consuming manual accounting processes into highly automated workflows. This often results in significant cost savings and efficiency gains, especially for growing businesses.

If you’re interested in the technology’s potential, this guide explores how it works, its key benefits, and common applications. We’ll also discuss some typical implementation challenges and how to overcome them.

What is robotic accounting?

Robotic accounting is the use of robotic process automation (RPA) to handle specific types of accounting work. Generally, it’s best suited for repetitive, rules-based tasks that would otherwise require significant time and effort from your accounting team.

For example, you can use robotic accounting tools to automate processes like:

• Capturing transaction data and transferring it between systems
• Processing information from documents like invoices and receipts
• Applying predefined accounting rules to financial statements in real time

These are just a few common examples to consider. In practice, robotic accounting is often highly customizable. Many RPA-enabled platforms allow you to build more personalized workflows that align with your unique finance processes. 

However you use it, the fundamental purpose of robotic accounting is to help streamline manual activities. In addition to saving time and reducing the possibility of human error, this frees your accounting department to focus on higher-value work.

Note that while robotic accounting is often mentioned alongside artificial intelligence (AI) and machine learning, the technologies are distinct. Compared to RPA, AI for accounting can handle more intelligent automation and learn from data over time.

As a result, many modern accounting platforms leverage both. For example, they might use RPA to execute bookkeeping processes while AI conducts financial analysis, calculates key performance indicators (KPIs), and makes strategic suggestions.

How RPA transforms accounting workflows

RPA transforms accounting workflows by automating mundane tasks that slow down financial processes. Robots can execute a wide variety of actions according to predefined rules without the need for ongoing human intervention.

This significantly reduces the volume of routine work your finance team needs to manage as part of daily operations. As a result, accounting functions become much more scalable, which is invaluable as your company grows in size and complexity.

For example, RPA is the primary technology responsible for categorizing expenses in bookkeeping platforms. Without it, someone would need to spend hours each day manually reviewing transactions, applying rules, and finding inconsistencies.

RPA robots streamline these repetitive data entry and validation aspects of key accounting workflows. As a result, accountants can focus on work that benefits from their human judgment, like financial analysis, interpretation, and strategic support.

In practice, this makes each accounting business process more efficient and reliable. It also helps ensure that your employees get to focus their financial expertise where it can provide the highest return.

Key benefits of robotic accounting for finance teams

By streamlining or automating manual task workflows, robotic accounting can provide many different benefits for finance teams. Here are some of the most notable improvements you can expect to experience after implementation:

• Increased accuracy: RPA applies accounting rules consistently across transactions, reducing mistakes like typos or omissions. This helps prevent downstream corrections and improves the reliability of financial records.
• Increased speed: A software robot can complete repetitive financial tasks much faster than humans, processing large volumes of transactions in a fraction of the time. This helps shorten close cycles and keeps financial information current.
• 24/7 operation: Unlike human teams, RPA systems can operate continuously without breaks. This allows you to automate accounting processes overnight or across time zones without delaying financial reporting or approvals.
• Improved compliance: Robotic accounting creates detailed audit trails and applies controls consistently. Continuous monitoring can also help identify anomalies early, reducing fraud risk and supporting regulatory compliance.
• Cost savings: RPA helps decrease operational expenses by reducing manual labor, minimizing errors, and lowering fraud exposure. These savings often become more pronounced as transaction volume increases.
• Scalability: RPA allows accounting professionals to handle higher transaction volume and complexity without a proportional increase in headcount. This makes it much easier to manage growth as your business evolves.
• Higher-value work: By automating routine tasks, robotic accounting lets your finance professionals focus on areas where human judgment adds the most value, such as analysis, planning, and advisory work.

Common accounting processes automated by RPA

Robotic accounting automation is most effective when applied to structured, repetitive processes. The ideal candidates typically involve clear rules, consistent inputs, and high transaction volume. Here are some common examples:

• Transaction categorization: Automated systems can apply predefined rules to classify transactions consistently across accounts, supporting cleaner books and more reliable reporting.
• Bank reconciliations: RPA can rapidly compare bank statements with internal records and flag discrepancies for review. This significantly speeds up reconciliations and month-end closes.
• System updates: RPA can reduce manual data entry by sharing financial information across accounting platforms, such as your bookkeeping software, payroll solution, and enterprise resource planning (ERP) system.
• Journal entries: RPA can automate the generation of predictably recurring journal entries. For example, that often includes depreciation on fixed assets and the amortization of outstanding debts.
• Expense management: Bots can review employee reimbursement requests and act according to your expense policy. For example, it can automatically monitor for fraud, issue payments, and enforce penalties for late submissions.
• Accounts payable (AP): RPA can handle invoice processing, validation, approval, and payment in a single automated workflow. This reduces manual process work and helps ensure invoices are paid accurately and on time.
• Accounts receivable (AR): Robots can automate AR workflows like invoice generation and payment matching. This helps improve cash flow visibility and reduces the time you spend tracking down missing payments.

Implementing robotic accounting in your business

Implementing robotic accounting in your business may not be as disruptive as other technology projects, but it’s still worth approaching intentionally. A strategic rollout helps ensure automation actually reduces friction instead of introducing new bottlenecks.

Start by documenting your existing workflows in detail. Understanding exactly how each accounting task currently moves from start to finish can help you identify areas that are potentially suitable for RPA automation.

Once you’ve done that, review these areas for bottlenecks where an RPA bot can deliver the most value. For example, that typically includes accounting process areas that require frequent manual data entry or are prone to error.

Next, you can move on to researching a solution, with these bottlenecks driving much of your due diligence. Whatever system you choose should have features in these areas that can directly address your unique pain points.

Beyond customer reviews, live demos are especially valuable, as they give you a realistic sense of usability, flexibility, and how the RPA tool performs in real-world scenarios.

Strong integrations with your existing tech stack should also be a priority. While workarounds are sometimes possible, poor integration can add costs and undermine efficiency, counteracting the benefits you’re aiming to achieve.

Challenges and considerations

Robotic accounting can provide many benefits, but implementation isn’t always painless. Even with user-friendly platforms, it requires a significant upfront investment of resources, including time and capital.

Designing workflows, configuring rules, and testing automations can take months, and it may be several more before you realize your full return on investment. As a result, it’s important to set realistic expectations early to avoid frustration.

There are also important technical considerations. RPA relies on stable rules and consistent financial data inputs. Each time your accounting system changes, your robotic automation may require additional updates or maintenance.

Change management is another issue that businesses often underappreciate. In fact, Gartner found that only 32% of leaders globally get employees to adopt organizational changes in a healthy manner.

Employees often hesitate to adopt new automation tools due to concerns about job security or workflow disruption. Without proper training, clear communication, and accessible support channels, they may outright reject even the most effective solutions.

Ultimately, the best way to manage each of these challenges is to address them proactively. The sooner you ground expectations and invest in employee support, the more likely you are to drive long-term value with RPA implementation.

Streamline Robotic Accounting With Zeni

Zeni is an all-in-one financial management platform built to streamline accounting and finance operations. 

By combining RPA and AI accounting software—such as our powerful AI Accountant Agent—Zeni simplifies everything from bookkeeping and expense management to vendor payments and employee reimbursements.

Schedule a demo to see Zeni in action and learn how it can help your business grow.