Improving Accounting’s Three-Way Matching with RPA
There’s a witty saying that no one in the world knows the value of balance better than accountants. For businesses, a lot relies on how well-performing their accounting department is. It plays a vital role in tracking income and expenses and monitoring cash flow through complex tasks that become influential in an organization’s financial decisions.
Three-way matching is just one of the many challenges accounting departments handle daily. This refers to the process of matching three documents — the invoice, the purchase order, and the receiving report to validate transactions before making payments. Each one of these documents has its data that needs scrutinous checking and tracking. Through three-way matching, an accounting department can verify when payments should be made and where they should go. It’s a practical and industry-practiced payment verification process that helps prevent financial losses due to data inconsistencies and, potentially, fraud.
Three-way matching used to be a tedious process that concerns both the supplier and the buyer with many manual tasks and paperwork involved. Other than the complex process that three-way matching requires, what adds as challenges to the manual way of doing three-way matching is how prone it is to user error during manual encoding and the troublesome way of matching across different documents. Luckily, through the emergence of Robotic Process Automation (RPA), there are now available digital tools that accounting departments can utilize to ensure an even more fool-proof payment process.
RAX EDITOR, an RPA tool developed by a team of Filipino software engineers of Robotic Automation Expert or RAX, offers automated three-way matching. Through an intelligent automation process done by bots, RAX EDITOR doesn’t only help accounting departments have accurate and free-from-human-errors payments verification. In addition, RAX EDITOR eliminates duplicate tasks, allowing employees to be more productive by focusing on other meaningful workloads.
“Rules based repetitive tasks are common across all organizations. These, unfortunately, are prone to error when done by a human due to either the sheer number of manual transactions or a sense of complacency given the nature of the task,” said Mark Sy, Project Manager of RAX.
“RPA eliminates that risk by ensuring that the rules for those processes are followed down to the last detail since it is being done by a software robot. Given that software robots can run 24/7 and the limitless possibilities of automating the different processes in your organization, an eventual return of investment would just be around the corner,” he noted.
“RAX EDITOR aims to give organizations data encoding speed and accuracy and cost-benefit,” Sy added.
Three-way matching is just one of the many use cases RAX EDITOR can help automate for organizations. Get to know why RPA is an in-demand digital tool across various industries now and discover how automation can pave the way for a stable ROI for your business.