Why IDP is the necessary and perfect foundation for accounting automation
Accurate data is the foundation for error-free processes in accounting, especially in accounts payable, which is crucial for companies. Manual work puts both accurate data and error-free processes at risk. However, the biggest problem for large-scale accounting automation has been the complexity of documents, consisting of semi-structured, completely unstructured, and handwritten documents. Traditional OCR technologies have no chance of dealing with this complexity, let alone moving towards true automation. With Intelligent Document Processing (IDP), on the other hand, these problems can, for the first time, not only be clearly addressed but also quickly and efficiently solved.
Intelligent automation with IDP in accounting eliminates the headache of manual processes.
According to a survey by Levvel, 57% of invoice data in the North American market across all company sizes is still entered manually from documents (in SMEs even more than 80%). Furthermore, according to Levvel’s forecast, accounting departments in companies will have to deal with many paperwork in unstructured form for years to come. In addition, the number of unstructured documents coming in digitally will only increase. Thus, the current approach to document capture must change. IDP is the solution for accurate and automated document processing in accounting to feed structured data into downstream processes and promote positive business development.
IDP combines innovative, advanced AI technologies – pure class for your accounting.
The two biggest pain points in accounting
Business processes based on manual work always make for inefficient workflows. Accounting is no different. According to the Levvel survey, the following two pain points are among the biggest in accounts payable:
– Across all companies, the number one pain point for over 70% is manual data entry and thus inefficient processes.
– Closely followed by over 60% as a result of manual routing of invoices for their approval.
Both pain points are of massive importance for accounts payable and can finally be solved with the integration of IDP.
Among other things, IDP enables intelligent routing and intelligent workflows – precisely captured documents end up with the right employee or in the right workflow.
IDP uses a wide range of different AI technologies
Rather than relying on single technologies, IDP (Intelligent Document Processing) uses a wide range of technologies based on artificial intelligence. In addition to OCR (Optical Character Recognition), which in simple terms is responsible for converting text in an image into readable text, Machine Learning (ML) and Deep Learning (DL) models provide the powerful and highly intelligent touch of IDP. It is ML and DL that make it possible to automatically capture the large variation of unstructured and handwritten documents, classify them correctly, and finally extract the relevant data. Not only can IDP mimic cognitive abilities by understanding what the documents are about, but thanks to the tremendous learning capabilities of ML and DL, the results are continuously improving. And if the ML and DL models notice discrepancies in the data, they are automatically flagged for human in the loop and specific validation.
Sophisticated AI technologies for intelligent document processing – Welcome to Parashift’s IDP.
Parashift’s IDP platform has your data under control
For a slightly clearer overview, let’s break down the approach to the Parashift IDP platform into three essential steps:
– Document capture and classification: Needless to say, the first steps are also among the most important. After capture, the documents are classified (by invoice, voucher, receipt, purchase order, and so forth).
– Data extraction: The data from the document is extracted automatically. Thanks to the powerful IDP, the data is also understood in a context comparable to human intelligence, just incomparably faster and more efficient. If required, the human in the loop can view data in the validation interface on Parashift’s IDP platform.
– Structured data output: Finally, the automated output of the structured data takes place (usually in JSON).
Finally, high-performance IDP becomes possible for SMEs and their accounting departments thanks to affordable prices – without the need for a data scientist or engineer.
Extracted data from P2P documents for efficient accounting
Not to be underestimated are the overall improvements achieved with Parashift’s IDP. In addition to automating classic invoice processing, the additional automatic processing of numerous Procure to Pay (P2P) documents such as purchase orders, order confirmations, delivery bills, credit bills, and so forth massively increases the efficiency of the entire accounts payable department. After all, not only accurate but above all relevant data never hurt any accounting department.
Minimize errors through automation while increasing productivity – possible with Parashift’s IDP.