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Data Extraction from Financial Statements using OCR and IDP?

financial data extraction

 

Now, we are far aware of data extraction, it is the digital version of data entry that works. Manual data entry and automated data extraction undergo far differences. Now, technology is getting advanced, which has changed our lives. Technology is developing and updating newer versions. Those can be automated document extraction; documents arrive through pdf or scanned images digitally. Now, the data is required to be put in the system.

Manual typing will make errors and take time. Automated data extraction, extracts the data from the pdf or scanned images into text. It follows an automatic process that extracts data faster following no errors.

Due to automated document extraction, processing the essential document has also become easier. With less risk and a fast process. Those can be document extraction from financial statements. In business, there are lots of petitions to care about. One of them is the financial statement. Automated Documents extraction from the financial statement is necessary. It results in fast extraction. There are no chances of misplacing, leaking, or stealing information. The automated data extraction software guards the software with a strong security system.

 

 

What are financial statements?

The financial statement is the sensitive or essential or personal information of a business. Mainly, it holds up the entire financial health of a business company through financial statement analysis and organization.

The financial statement is divided into four categories: balance sheet, income statement, cash flow statement, and statement of stakeholder equity. The balance sheet refers to what a company owns and owes at a fixed point of time such as assets, liability, and equity. The income statement refers to the company’s profits and losses over a while.

The cash flow statement enlists the records of money exchange between the company and the outer world. The last statement, the statement of stakeholder equity states the change in the interest of the company’s stakeholders over a while. So, it is not easy to extract financial documents manually. It contains some information that is needed to be protected from the outer world. Automated data extraction will make the processing easy and secure.

How Can You Improve OCR Quality ?

Automated data extraction from financial statement

Business organizations receive regular volumes of documents regularly. One of them is a financial statement. Extracting each document manually is difficult and time-consuming. Automated data extraction helps in preceding the data extraction in seconds. It does not require a long time frame. Automated data extraction extracts necessary data precisely into excel, XML, CVS, or JSON format and uses Google Sheets integration.

The financial statement deals with sensitive documents which are not easier to extract manually. There are risks of stealing, leaking, and misplacing documents. While using automated data extraction methods, the risks won’t bother anymore. Following the automated process has made it easy.

Data extraction processes through software. Docextractor is one of them and is known as the best one. The software precedes their work by using tools such as OCR and IDP. Mainly, these tools are the keys to easy data extraction. Though it sometimes differs in quality. There are a few processing rules as well. Nowadays, processing financial statement manually is a kind of taking loads on the back. While using the automated software, it extracts data securely as well as efficiently.

 

financial data extraction

Financial data extraction using OCR

OCR or Optical Character Recognition is the tool used for data extraction. The documents of financial statements arrive as scanned images or pdf. With the use of OCR, it gets converted to printed text. It works automatically. It extracts data from the financial statement faster. This has already been discussed, financial documents contain vital documents.

Extracting the financial statement manually covers up a couple of days to extract the files. In the case of automated document extraction, it extracts the file faster. The time interval between the scanned images or pdf entered and the financial data extraction is a few seconds. There is no reason to wait for a simple task. OCR also works by making the information searchable. Corrections and editing can be made if found. Though errors are impossible in the case of using automated technology.

In the case of quality control, OCR lacks sometimes. It cannot recognize or read specific characters such as phone numbers, numerical, handwritten characters, signatures, etc. OCR finds difficulties in the case of layout and variations.

OCR is the oldest technology of data extractions tool. It extract images from pdfs and convert pdf to searchable pdf. OCR has also controlled the huge money spent by the companies on employees. It increased the productivity of the companies and helped them to gain profits. In the case, of data extraction from financial documents, OCR provides easy, safe, and fast data processing.

How OCR can transform accounting industry ?

Significance

Faster data extraction:

It is not easy to extract data manually. Typing will cover up days to put it in the system. It also causes delaying of work. In the case of automated financial data extraction using OCR from financial documents produces faster work progress. Secondly, it is an automated technology, it works continuously faster.

In the case of human labor, the work must stop for a certain time. Because humans cannot work continuously and fast. Humans do not have the capabilities as much as machines. Docextractor is an automated data extraction application that extracts data faster and produces the samples within a few seconds. It works with OCR for better accuracy and efficiency.

Automatic:

Automated financial data extraction using OCR is easier and safer. It takes less time and increases the accuracy. These options are only possible due to the automatic process. The entire system is connected to software, which receives the documents automatically. Due to the automatic system, the working progress has also increased. It has also helped the employees to work faster without going through heavy efforts. The information gets into the system automatically.

In the case of the manual process, it requires human labor. Humans cannot work as fast as a machine. The works go through a slow process. It makes errors, which causes trouble. Humans need to study thousands of files when required. In the case of automated document extraction, the required can be easily searchable. Automated data extracting applications such as Docextractor extract data automatically using such tools.

 

Errors:

As financial statements are the documents needed to be extracted carefully. Errors cause a vital problem, which even cannot be handled at a certain time. So, it is difficult to extract data from financial statements manually. A certain mistake may cause big trouble. Now, these troubles can be avoided by using the automated data extraction tool, which extracts documents efficiently, causes no errors. This is one of the top advantages of financial document extraction using OCR.

In the case of manual document extraction, correction of errors takes multiple days. Automated data extraction will also be of major use. Software such as Docextractor follows the same properties in extracting data. It also minimizes the chances of causing errors and extracts data from financial documents efficiently.

financial data extraction

Cost reduction:

Financial data extraction using OCR has become easier. It occurs through an automated process by using tools and software. Mainly, the aim of the tools and software is to extract data fast and efficiently. Automated tools and software have reduced manual efforts. Reduction of manual efforts also symbolizes the reduction of errors and delays. It also helps in reducing the cost spent by the company. After introducing automated software, human efforts are not required.

Manually, data entry tasks take time and also cause an error. The company also needs to spend money on the employees. In that case, in increasing productivity, automated software will work the best. Document digitalization applications such as Docextractor work automatically. It uses the tool OCR and results in better data extraction from financial statements.

 

OCRIDP
Cannot read specific characters such as signatures, phone numbers, etc.Can read specific characters.
It is the oldest technology.It is an advanced technology.
Extracts data faster.Extracts data faster than OCR.

 

Financial data extraction using IDP

IDP or Intelligent Document Processing is another tool used for data extraction. It is the advanced version of IDP. We can say, there are a few things that OCR cannot do but IDP can. OCR and IDP both are data extraction tools. Financial data extraction using IDP will be the best choice.

Mainly, the aim of IDP is the same as OCR. It extracts data faster but with quality. IDP extract images from pdfs and convert pdf to searchable pdf. It increases productivity as well. IDP extracts data efficiently with better accuracy. It also produces no errors. IDP can read and recognize specific characters such as signatures, phone numbers, numerical, handwritten characters, etc. IDP can also recognize different layouts, variants, and tables. It includes a few pre-processing methods, which results in increasing the quality as well as accuracy. So, data extraction from financial statements will be easier through intelligent document processing.

Why Business Needs Financial Statement Automation Software?

Significance

Accuracy:

In case of accuracy, IDP or Intelligent Document Extraction results best. IDP undergoes pre-processing methods to provide better accuracy. IDP recognizes specific characters, layouts, tables as well as variants, which results in better accuracy. It also extracts data from the financial statement faster, produces no errors, and provides better accuracy.

Through IDP, the chance of printing mistakes is less or zero. In the case of manual data extraction, there are no such options to follow. So, the level of producing better accuracy as well as productivity is low. Errors are also less. So, data extraction from financial statements using IDP provides better accuracy. In the case of financial statements, accuracy is an important point. It contains essential personalized documents, financial data extraction using IDP will work the best. Data extraction software such as Docextractor results in better accuracy and extracts data efficiently with higher quality.

 

Advanced tool:

The first thing, IDP is known as the advanced tool because it can do specific things which OCR cannot. IDP can extract data faster than OCR. It can auto-classify, auto-categorize, and auto-crop the given information. It can read or recognize specific characters and also layouts, variants, tables, etc… These options initiate the extraction faster and easier. Data extraction from financial statements will be easy following the process using IDP.

In manual working progress, there are no such automatic facilities. Manually everything needs to be done by typing, which takes time as well as makes errors. In automated data extraction, everything works automatically. It requires no human intervention. Financial data extraction using ICR or the advanced tool is safe and easier. Digital software such as Docextractor extracts data efficiently following similar categories.

 

Strong server:

The tools and the software run through a strong server. There are no chances of losing the server and stoppage of the work. The entire system is connected to the same software. Manually, every data extracted undergoes a slow process. In case, when the server is down it causes a stoppage of work. Through which it indicates delaying of work.

Data extraction from financial statements using IDP is safe. It secures the information from being misplaced, leaking, or stolen. Data extraction from financial statements extracts data efficiently following the strong server. Software such as Docextractor provides the customer the high server technology.

 

Faster efficiency:

As it works automatically, it produces faster efficiency of work. The system runs automatically. Financial data extraction using IDP is faster in manual efforts. In the case of manual data entry, there is no. bundle full of documents. Extracting the data from the financial statements is not easy. Software such as Docextractor produces the same result while extracting the data from financial documents.

OCR and IDP are the main tools used for document extraction. Data extraction from financial statements is not easy. But it has become easier due to them. As there are no risks such as cybercrime, data misplacing, etc.  Automated data extraction tools play an essential role in data extraction. Automated data extraction software and tools also work best for the data extraction from financial statements. In this case, it requires no human interventions. In that case, manual data extraction will cause risks, misplacing. The tools are used by Docextractor for producing better accuracy and efficiency.

How OCR can transform accounting industry ?

 

More about Docextractor

 

So it’s high time that you need to get yourself and your business introduced to this modern-day ML-based tool, Docextractor. This will help you automate data extraction in every way possible.

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