Are you work in any financial Accounting Institution? Are you a project manager and work with many financial documents daily basis?
if yes, it is true that you know, how you and your colleague face several challenges when it comes to documents processing financial documents, manually.
The Documents are fulfilled with many transaction records, profit, loss, assets, liability, and many more important data, which you need to analyze and generate a report. We can understand, this task is very time-consuming and challenging, because, if you mistake any digit of the value, it fully ruins the report and your hard work.
And, another challenge is these documents often include a wide range of data types, such as numbers, text, and images, making manual data extraction difficult and prone to errors.
So, to minimize your challenges, IDP technology has come. If you don’t know this document process trend, Now, you have known. Already many companies are using this to speed up their Document Processing Process 10x by integrating their system into Imaginorlabs Presents Docextractor.
In this article, I am gonna show you the 14 Use cases of IDP in the Finance and Accounting Industry. And Why already many financial institutions moved manual data entry to Automatic Data Entry.
Accounts Payable Automation
Accounts Payable Automation refers to the use of technology to streamline and automate the process of bill payment and vendor invoice management. Implementing Intelligent Document Processing (IDP) Technology, you can automatically extract, classify, and verify data from any type of Invoice and also Track and communicate with vendors. Use human-in-loop verification to check only exception events or threshold levels below the confidence level, which are clearly automatically marked for verification. The main aims of Accounts Payable Automation are to reduce error and improve the efficiency and visibility of Financial operations. Integrating IDP and RPA can faster your manual work 10x.
Automatic Invoice Processing
Automated Invoice Processing with IDP is a technology-driven solution to automatically manage invoices, especially those received on paper or in electronic format. By using OCR and Machine learning algorithms, it automatically extracts data value from Paper Based Invoices such as Invoice Number, Total amount, Vendor Details, Date, and many more data and saves them to ERP System. Integrating this technology with RPA bots and workflow components towards end-to-end P2P automation and creating audit trails. When, as per the rules, when all the details will be validated, it will automatically initiate the payment.
Financial Report Analyzing
In every business or company, whether it Financial Institute or any other organization, Analyzing Financial reports with 100% accuracy is the most crucial and important, though, it is very time-consuming. So, to improve that, IDP is here. First, collect the PDF or Excel Documents of the Financial Report, then use IDP, Machine Learning Algorithm, and OCR to extract relevant information from the financial reports, such as revenue, expenses, profits, and losses. After that Organize it and analyze it with Visual Insight Tool.
Invoice Generation from Excel File
First, Create an Excel file in a way that makes it easy for the IDP to extract relevant information such as vendor details, invoice number, and total amount due. Then set up an OCR to extract data. After that Integrate Excel files into enterprise core systems like SAP using intelligent document processing. Then, Run and Generate all records in the Excel file. During this process, whenever an AI bot validates the data can be used to generate an invoice in PDF. This process is fully automated and automatically generates invoices for each new Excel file.
Invoice Generation from Unstructured Data
To generate an Invoice from Unstructured Data, the combination of IDP and RPA use very effective. With these technologies, it builds an Electronic Data Interchange (EDI) system that automatically reads email suggestions for invoice generation and automatically saves received attachments. The received attachment can be anything such as purchase orders, service receipt documents, or anything.
Basically, it read the order number or id number from the email documents, then fetches the digitized document from the original system. And, After that, it Automatically ingests details from these purchase orders or service receipt documents and routes the details to generate invoices using RPA.
Automatic fraud detection
By extracting and validating data from invoices and using IDPs and applying machine learning algorithms to detect fraud, invoice processing workflows can be made more efficient, accurate, and less prone to errors and detect any suspicious activity. First, you need to live the Document in the IDP software such are Docextractor. This software already has many Fraud Detection algorithms to detect any signs of fraud. This includes analysis of seller behavior, invoice numbers, and other data points that may indicate fraudulent activity. Whenever the software detects Any suspiciousness on the invoice, it can be flagged for further review by human analysts or accounting staff.
Credit Assessment of Companies
Intelligent Document Processing (IDP) helps the company to automatically extract relevant information from financial documents like financial statements, Balance sheets, annual reports, tax returns, etc. to help in the credit evaluation of companies. IDP Software like Docextractor uses ML, Computer Vision, and AI to analyze and use RPA technology to automate task and helps to compare the credit status of different companies.
Improving Project management
Intelligent Document Processing can greatly improve project management by streamlining the document management process, increasing data accuracy, enhancing collaboration, and providing the best insights and analytics to the Manager. IDP can automate the storing and organizing of project-related documents, reducing manual effort, reducing error-prone, and increasing efficiency. This can lead to better collaboration among team members and stakeholders, and provide valuable insights to help optimize project outcomes.
Reconciliation is a process of comparing two sets of records to ensure they match and agree. With the combination of RPA and IDP technology, RPA software download data from documents received in unstructured format from various sources and automatically download from any financial website. After that, IDP automatically reads and ingests. If the data is matched with source data and ledger statements, this IDP software with AI/ML algorithm levels automatically, Reconciles data and generates reconciliation statements.
Basically, Compliance reporting refers to the process of generating reports that demonstrate a company’s compliance with legal and regulatory requirements. For any industry’s organization, from Finance to health, this report must be needed for environmental regulation. IDP technology captures data from the documents and compares them with Excel files and various company records with ERP systems using RPA and evaluates the data by the already stored business rule.
Sales and revenue management
In the financial institution, there are many types of sales-related documents that need to analyze correctly. But as a human, it is very painful. So here, IDP has come, to help them. IDP software process of analyzing sales contracts, and invoices, providing real-time data about sales performance, customer behavior, and revenue trends. By reducing this processing time, Employee optimizes their time sales and revenue management strategies.
Journal Voucher Automation
Journal voucher automation refers to the use of technology and software systems to automate the process of recording financial transactions in a company’s general ledger or journal. With the help of IDP and RPA, you can automatically accept the journal voucher and then capture data from it. By doing this automation, you can check payments, and correct the expense of the transaction of purchases, sales, and payments documents.
Regulatory Authority Financial Reporting
Intelligent Document Processing (IDP) Software like Docextractor, help regulatory authorities by automating the process of extracting relevant information from large volumes of regulatory reports documents, PDFs, and Excel sheet. Then, The extracted information can then be used to generate reports that meet regulatory requirements, helping organizations comply with regulatory authorities in a timely and efficient manner.
Supply Chain Automation
Supply chain automation refers to the use of technology and software systems to manage and optimize various processes in the supply chain such as purchasing, manufacturing, distribution, and delivery. In financial Institutions, IDP software with the help of RPA Technology automates the process of analyzing supplier invoices, purchase orders, and other documents, providing real-time data on the performance and payment status.