September 26, 2023
Automation and Reengineering for Actual Property

That is half one in all a two-part sequence targeted on clever automation in the actual property business and the crucial advantages it offers: streamlining month-end closing processes, optimizing operations and extra.

The actual property business can streamline their month-end closing course of via automation and reengineering. This text will cowl the advantages of automation, together with elevated effectivity and accuracy, and supply a step-by-step method for implementing automation and reengineering within the month-end closing course of. It additionally contains examples of greatest practices and case research to assist actual property professionals perceive how automation and reengineering could be utilized of their organizations.

Automation and Reengineering for Actual Property

                                                                                                                 Workiva.com

Automation can considerably streamline the month-end closing course of inside the actual property business. Utilizing software program and expertise, duties corresponding to information entry, doc administration and monetary reporting could be automated, lowering the quantity of guide labor required and minimizing the potential for errors. Moreover, automation can enhance the pace and effectivity of the month-end closing course of, permitting actual property corporations to shut their books quicker and make extra knowledgeable enterprise selections. Automation may also assist with compliance and audit by offering correct and constant information, audit trails and recordkeeping.

Course of reengineering and robotic course of automation (“RPA”) can work collectively to enhance the effectivity and accuracy of the month-end closing course of inside the actual property business. Course of reengineering includes analyzing and redesigning present enterprise processes to make them extra environment friendly and efficient. For instance, within the month-end closing course of, this might embrace figuring out bottlenecks, duplicated efforts and guide duties that might be automated, and redesigning the method to get rid of these inefficiencies.

As soon as the method has been reengineered, automation could be carried out to automate particular duties inside the course of. RPA software program could be programmed to carry out repetitive, rule-based duties corresponding to information entry, doc administration and monetary reporting, lowering the necessity for guide labor and minimizing the potential for errors. RPA bots may also be programmed to robotically extract information from numerous sources, corresponding to emails, spreadsheets and databases, after which enter that information into the suitable programs, thus enhancing pace and accuracy.

There are a number of advantages to automating month-end closing processes inside the actual property business, together with:

  1. Elevated Effectivity: Automation can considerably pace up the month-end closing course of by lowering the necessity for guide labor and minimizing the potential for errors. This may result in quicker closing occasions and extra correct monetary reporting.
  2. Improved Accuracy: Automation will help affirm that information is entered and processed accurately, lowering the danger of errors and inaccuracies in monetary experiences.
  3. Elevated Compliance: Automation will help confirm that month-end closing processes adjust to rules and requirements, corresponding to IFRS and GAAP.
  4. Higher Resolution-Making: Automation can present real-time information and analytics, permitting actual property corporations to make extra knowledgeable enterprise selections.
  5. Price Financial savings: Automation can scale back the necessity for guide labor, thus lowering labor prices and rising effectivity.
  6. Scalability: Automation will help companies deal with elevated workloads and enlargement, with out including headcount.
  7. Auditability: Automation can present correct and constant information, audit trails and recordkeeping, which is crucial for compliance and audits.

The price of automating month-end closing processes can fluctuate extensively relying on a number of components, such because the complexity of the method, the variety of duties to be automated, the expertise used and the seller you select.

Normally, automation expense could be damaged down into a number of completely different classes:

  1. Software program and Expertise Prices: This contains the price of buying or subscribing to the automation software program and every other expertise required, corresponding to {hardware} or cloud-based storage.
  2. Implementation Prices: This contains the price of configuring and establishing the automation system, in addition to any mandatory customization or integration with present programs.
  3. Upkeep Prices: This contains the price of sustaining and updating the automation system and any mandatory technical help.
  4. Coaching Prices: This contains the price of coaching staff on the way to use the automation system.

Normally, the price of automating month-end closing processes can vary from just a few thousand to a number of hundred thousand {dollars} or extra, relying on the scope and complexity of the venture.  It is essential to notice that whereas the price of automation could also be excessive within the quick time period, it could possibly present vital price financial savings in the long run by lowering labor prices, enhancing effectivity and rising accuracy.

An actual property firm can begin with automation and course of reengineering tasks by first figuring out the processes which can be candidates for automation or reengineering. These might embrace property itemizing, lead technology or contract signing. As soon as the processes have been recognized, the following step is gathering information on them, corresponding to how lengthy they take, how many individuals are concerned and the way usually errors happen. This information can be utilized to prioritize which processes to deal with first.

Subsequent, the actual property firm ought to conduct course of mapping to know the present course of circulate and determine areas that may be improved. This may be achieved utilizing instruments corresponding to flowcharts or course of modeling software program.

As soon as the method has been mapped, the actual property firm can then start to design the brand new, automated or reengineered course of. This may contain utilizing applied sciences corresponding to a CRM, workflow automation or e-signature to automate repetitive duties or enhance decision-making.

The following step is to implement the brand new course of and practice staff on the way to use it. It is also important to observe the method to verify it is working as anticipated and make any mandatory changes.

Lastly, it is important to measure the success of the automation or reengineering venture. This may be achieved by evaluating information on the outdated course of with information on the brand new course of, corresponding to time saved, error discount and value financial savings. In abstract, the important thing steps for automation and course of reengineering tasks in the actual property business are:

  1. Determine the processes which can be candidates for automation or reengineering (property itemizing, lead technology, contract signing, and so forth.);
  2. Collect information on the processes;
  3. Conduct course of mapping;
  4. Design the brand new, automated or reengineered course of;
  5. Implement and practice staff on the brand new course of;
  6. Monitor the method and make changes as wanted; and
  7. Measure the success of the venture.

In conclusion, streamlining the month-end closing processes in the actual property business could be achieved via automation and reengineering. A digital transformation advisor will help organizations with this course of by implementing software program options and standardizing procedures, to tremendously enhance the effectivity and accuracy of their month-end closing course of. Moreover, a digital transformation advisor will help rethink and redesign the method by figuring out and eliminating pointless steps, additional streamlining the method. General, implementing automation and reengineering can result in vital price financial savings and improved total efficiency for actual property organizations.

This sequence is a part of the strategic alliance between EisnerAmper and main actual property expertise consulting agency REdirect Consulting. Study extra right here.