Glossary: Key Terms in Finance Automation
This glossary explains common terms used in finance process automation. Share it with finance teams, IT, and stakeholders to build a shared language around automation initiatives.
API (Application Programming Interface)
A defined way for different software systems to communicate with each other. APIs are often used to integrate finance systems and automation tools more robustly than screen-based RPA.
Audit Trail
A complete, time-stamped record of actions taken in a process or system. For finance automation, audit trails are critical for compliance with Swedish regulations and internal controls.
Automation
The use of technology to perform tasks with minimal human intervention, typically repetitive and rule-based activities. In finance, this often includes data entry, reconciliations, report updates, and approval workflows.
Bot (Software Robot)
A software component that executes automated tasks, typically configured in an RPA or workflow platform. In finance, bots might post journal entries, extract data, or send reports.
Bot Credential / Service Account
A dedicated user account used by an automated solution to access systems. Proper management of these accounts (permissions, logging, reviews) is important for security and compliance.
Business Case
A structured argument for why an automation initiative should be undertaken, including expected benefits, costs, risks, and ROI. Our Automation ROI Calculator supports this.
Center of Excellence (CoE)
A dedicated team or function responsible for setting standards, providing support, and governing automation initiatives across the organization.
Change Management (Organizational)
The structured approach to preparing, supporting, and helping individuals and teams adopt new ways of working, including new automated processes. See our Change Management Plan Template.
Citizen Developer
A non-IT employee who creates or configures automation solutions using low-code or no-code tools, under appropriate governance and guidelines.
Exception Handling
The way an automated solution deals with cases that do not follow the standard rules (for example, missing data, validation errors, or system downtime). Exceptions are usually logged and routed to humans for review.
Finance Process Automation
The application of automation technologies specifically to finance and accounting processes, such as accounts payable, accounts receivable, general ledger, reporting, and budgeting.
Hyperautomation
A broader approach that combines multiple technologies (RPA, workflow, AI, analytics, integrations) to automate and optimize end-to-end processes, not just individual tasks.
OCR (Optical Character Recognition)
Technology that converts text in scanned documents or images (for example, PDF invoices) into machine-readable data that can be processed automatically.
Pilot Project
A limited-scope implementation used to test an automation solution in a controlled way before broader rollout. Pilots help validate assumptions and build confidence.
Process Mapping
The activity of documenting a process step by step, including roles, inputs, outputs, and systems. Process maps are a key input to automation design. See our Process Mapping Template.
Process Mining
A technique that uses system log data to automatically discover and analyze how processes actually run in practice, highlighting bottlenecks and variations.
Process Owner
The person or role responsible for the performance and design of a process. Process owners are key stakeholders in automation projects.
Quick Win
A relatively small, low-risk automation initiative that can be implemented quickly and delivers visible benefits. Quick wins are often used to build confidence and momentum. See Top 5 Quick Wins in Finance Automation.
ROI (Return on Investment)
A financial metric that compares the net benefits of an investment to its cost, usually expressed as a percentage. In automation, ROI often comes from time savings, error reduction, and risk reduction.
RPA (Robotic Process Automation)
Software that mimics human actions on computers to perform structured, rule-based tasks. RPA tools interact with applications via the user interface (clicks, keystrokes) or via APIs where available.
Segregation of Duties (SoD)
A control principle where critical tasks are split between different people or roles to reduce the risk of error or fraud. Automation must respect and support SoD requirements.
Structured vs. Unstructured Data
Structured data is organized in predefined formats (for example, tables in a database or ERP). Unstructured data includes free-text emails, PDFs, and images. Structured data is generally easier to automate.
Workflow Automation
Automation of multi-step processes involving tasks, approvals, and handoffs between people or systems. Common examples include invoice approvals, expense approvals, and master data change requests.