Fixed Asset Roll Forward Automation for Energy Sector Using UiPath
A prominent company operating in the energy sector manages a diverse range of fixed assets, including infrastructure, machinery, and equipment. The company's accounting team regularly prepares fixed asset roll forward schedules to ensure accurate recording of asset values and accumulated depreciation. The manual process of assembling this data was time-consuming, error-prone, and resource-intensive. To overcome these challenges, the company opted to implement Robotic Process Automation (RPA) using UiPath.
The energy company faced several challenges in its fixed asset management process:
Manual Data Compilation: The process of collecting and collating data from various sources to create accurate fixed asset roll forward schedules was labor-intensive and susceptible to errors.
Data Accuracy: Mistakes in data entry and calculation could lead to inaccurate financial reporting and compliance issues.
Time-Consuming Process: The manual process consumed valuable time that could be better allocated to more strategic financial activities.
Auditing and Compliance: Ensuring the accuracy and traceability of fixed asset transactions was crucial for audits and regulatory compliance.
The company adopted UiPath's RPA technology to automate the fixed asset roll forward process. The RPA solution included the following steps:
Data Extraction: The bot accessed relevant data sources, including the general ledger, purchase orders, and maintenance records, to gather information about asset acquisitions, disposals, transfers, and depreciation.
Data Transformation: The bot transformed the raw data into a standardized format suitable for roll forward calculations. It categorized assets and transactions based on predefined criteria.
Calculation and Roll Forward: The bot performed calculations to determine additions, disposals, transfers, and accumulated depreciation for each asset account. It maintained an accurate running balance for each account.
Accuracy and Validation: The bot cross-validated the calculated values with the original source documents to ensure accuracy.
Reporting: The bot generated comprehensive fixed asset roll forward schedules, including beginning balances, transactions, and ending balances for each asset account and its corresponding accumulated depreciation.
The implementation of RPA for the fixed asset roll forward process delivered significant benefits to the energy company:
Data Accuracy: The automation minimized the risk of errors associated with manual data entry and calculation, ensuring reliable financial reporting.
Efficiency: The RPA solution significantly reduced the time required to compile the fixed asset roll forward schedules, enabling the finance team to allocate resources to more strategic tasks.
Compliance and Auditing: Accurate and well-documented roll forward schedules facilitates audits and compliance reviews by providing a clear trail of asset transactions.
Resource Optimization: The finance team could redirect their efforts from manual data compilation to analyzing financial data and making informed decisions.
Consistency: The RPA bot consistently followed predefined rules and calculations, ensuring uniformity in the roll forward process.
By utilizing UiPath's RPA technology, the energy company automated the fixed asset roll forward process, achieving enhanced accuracy and efficiency. This success, along with the potential of RPA to reduce financial services costs by 75%, has prompted the exploration of additional automation opportunities. The RPA implementation led to a 13% productivity increase, 8% growth in AUM, and a 7.7% rise in revenue, highlighting its significant impact on the company's operations and financial performance.