What is robotic accounting? Benefits & how it works

Accounting has traditionally been a very human-centric task.

Sure, calculators and even accounting software have been a part of the picture for a long time, but that’s beginning to change, as many teams embrace robotic accounting.

In this article, we’ll explore what robotic accounting is, how it works, and the challenges and considerations to bear in mind when deciding whether to implement it in your own organization.

Robotic accounting definition 

Robotic accounting, or Robotic Process Automation (RPA) in accounting, uses software bots to automate repetitive, rules-based finance tasks.

These bots replicate human actions to handle processes such as data entry, invoice matching, and bank reconciliations, boosting speed, accuracy, and operational efficiency across accounting workflows.

Benefits of robotic accounting 

Robotic accounting helps finance teams achieve:

• Increased efficiency: RPA bots work 24/7, speeding up tasks like approvals and reconciliations to free up finance teams.
• Greater accuracy: Bots eliminate human error by following strict rules for data entry and validation.
• Lower costs: Automating routine accounting tasks reduces the need for manual labor and cuts operational expenses.
• Better compliance: RPA creates detailed logs for every action, supporting stronger audit trails and easier reporting.
• Streamlined workflows: End-to-end automation removes bottlenecks and ensures faster, more consistent execution across processes.

How does robotic accounting work? 

Robotic accounting performs repetitive tasks by interacting with digital systems in the same way a human would (clicking buttons, entering data, reading fields, and moving files), just without the actual human.

Robotic accounting allows teams to offload time-consuming, repetitive, and sometimes menial work without altering their existing software stack or reengineering core processes using automation.

Integration with existing accounting systems

Since robotic accounting is designed to work with your existing tech stack, RPA tools are built to integrate seamlessly with software tools like:

• Enterprise resource planning (ERP) systems
• Accounting software
• Spreadsheets
• Internal databases

Instead of requiring new platforms or APIs, accounting bots interact directly with the user interface of tools like QuickBooks or Xero, just like a human would.

Robotic accounting workflow: Step-by-step

While every robotic accounting workflow looks slightly different, depending largely on the tools you’re using and the actions it's performing, here’s what a typical process looks like:

1. Triggering the workflow: A scheduled time, new file upload, or system event (such as a new invoice received) triggers the bot.
2. Data extraction: The bot then retrieves the data from documents, software platforms, or spreadsheets (for example, importing transactions from a bank feed).
3. Validation and processing: The bot checks the data against predefined rules.
4. Entry and posting: Once the data is verified, the bot enters it into the appropriate fields within the accounting system.
5. Exception handling: If the bot encounters an error or the data can't be verified, it flags the entry for manual review by a person.
6. Reporting and reconciliation: Finally, the bot compiles reports, updates dashboards, or performs reconciliations by comparing entries across multiple systems.

Examples of robotic accounting applications 

The benefits of robotic accounting are clear, but what does it actually look like in practice?

Here are eight compelling examples of how robotic accounting can be applied to internal processes.

1. Accounts payable (AP)

Bots can automate the full invoice lifecycle. They can read invoice data, match it with purchase orders and receipts, and initiate payment once approvals are in place.

2. Accounts receivable (AR)

Robotic accounting can streamline customer billing by:

• Automatically generating and sending invoices
• Updating payment statuses in real-time
• Flagging overdue accounts for personalized follow-up

3. Expense management 

Accounting bots can validate expense claims against company policies, extract data from receipts, and input approved expenses directly into the accounting system. 

4. Payroll processing

RPA handles repetitive payroll tasks like:

• Collecting timesheet data
• Validating inputs
• Calculating deductions
• Processing payroll entries

5. Reconciliation

Robotic accounting can compare records across systems (such as comparing the general ledger against bank statements), flag any discrepancies, and reconcile accounts without manual intervention.

6. Data entry

Time-consuming and repetitive manual data entry can often be completed by accounting bots. They can extract and input structured data (like vendor records or transaction details) from emails, PDFs, or spreadsheets into your accounting platform.

7. Report generation

RPA can compile data from multiple sources and automatically generate routine reports like balance sheets, P&Ls, and cash flow statements.

8. Cost allocation

Robotic accounting can take care of cost allocation by:

• Pulling expense data from different systems
• Consolidating it into a master file
• Applying predefined allocation rules 

Robotic accounting vs traditional accounting 

Traditional accounting relies heavily on human input, which is prone to delays and errors.

Robotic accounting replaces the manual, time-consuming tasks with automation, taking care of processes like data entry, invoice matching, and reconciliation.

Basically, it takes the repetitive tasks involved in traditional accounting off of accountants’ plates, so they can focus on more strategic and advisory roles.

Challenges and considerations 

While RPA does offer a lot of important benefits, it does come with some risks and limitations to be aware of.

These include:

• High upfront setup costs for software, configuration, and testing
• Dependency on clean, structured data to function properly
• The possibility of bot failure or breakdown when inputs deviate from expected formats
• Limited flexibility in handling exceptions or judgment-based tasks
• Ongoing maintenance needs, especially when systems or processes change

Even with the right tools and processes in place, success depends on people. Finance staff need clear communication, training, and support to adapt to new workflows and approaches.

Change management ensures teams shift from manual execution to supervising and optimizing automated processes, maximize the long-term value you’ll see from adopting robotic accounting.

Factors to consider before adopting robotic accounting

Before putting robotic accounting into practice at your organization, you’ll want to consider these six critical factors:

1. Process stability: Are your workflows consistent and rules-based?
2. System compatibility: Will RPA integrate with your current tools and platforms?
3. Data quality: Is your source data clean, accurate, and structured?
4. Expected ROI: Do the time and cost savings justify the investment?
5. Scalability: Can the solution grow with your business needs?
6. Security and compliance requirements: Does automation maintain your quality standards?

The future of robotic accounting 

With technologies like RPA and artificial intelligence (AI) continuing to expand their capabilities, it begs the question:

What’s next for accounting?

Here are a few trends we’re seeing right now in the world of accounting automation tech, and expectations on what we should see continue to improve:

• Integration with AI and machine learning for better exception handling and decision-making
• Natural language processing (NLP) to interpret unstructured data like emails or receipts
• End-to-end workflow automation, linking RPA with other tools like OCR, analytics, and ERP systems
• Increasing ability to work autonomously and provide strategic input
• Cloud-native RPA platforms that scale more easily across distributed teams and systems
• Real-time processing and analytics for faster financial insights and reporting
• Enhanced functionality in handling complex tasks, identifying anomalies, optimizing workflows, and supporting forecasting

How to prepare for advancements in automation

Here’s how to help your team stay ahead of the curve:

• Standardize all processes and document them clearly so RPA can follow them correctly 
• Invest in staff training to build automation literacy and cross-functional skills
• Focus on developing a team culture that embraces automation and AI, rather than rejecting it
• Evaluate your tech stack to ensure compatibility with evolving automation tools
• As you implement new tools, start small and scale gradually 

BILL’s powerful suite of AR and AP automation 

Robotic accounting is one step on the way to a finance team or accounting firm that’s focused on high-value, strategic tasks, leveraging automation to take care of manual, repetitive tasks.

With BILL, you can take several leaps toward that same goal, with:

• Accounts payable automation (capture, approve, and pay invoices fast and accurately)
• Accounts receivable automation (create, send, and track invoices in real time)
• Spend & expense management software (keep on top of all business expenditure to enhance forecasting)

Get started with BILL today.