Streamline Financial Statement Quality Review Process
Streamline Financial Statement Quality Review Process
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Contact Us
Streamline Financial Statement Quality Review Process
Contact Us
Streamline Financial Statement Quality Review Process

Streamline Financial Statement
Quality Review Process

The Client

Asset Management
Enterprise Solutions
BFSI

This article describes a real-life project. However, we cannot disclose our client’s name for privacy purposes.

The client, a Canadian provider of business consulting, accounting, and tax advisory services, wanted to reduce the burden of manually reviewing clients’ financial reports and statements. They came to RKTech to find a solution that could help them automate the process.

Key Takeaways

RKTech’s solution reduced manual financial reviews by
75%, cutting the process from 3-4 weeks to 1-2 weeks, saving cost and improving efficiency significantly.

Tech Stack

          

Python       React JS

             

  Jira        Rule-based
                 Engine

   

 Azure Static
  Web App 

The Challenges

Inefficient Manual Reviewing Process

The client’s current financial statement reviewing process consists of six separate manual phases involving many stakeholders, from bookkeepers and senior accountants to finance managers. This is time-consuming and diverts attention and human resources from more important business functions.

Strict Accuracy Requirements

Over 1,000 common errors exist, including calculation errors, spelling
mistakes, and formatting inconsistencies. Despite applying a rigorous QA
process, minor errors were still overlooked, posing risks of regulatory issues
and reputational damage.

Our Solution

Our solution leverages advanced AI algorithms and industry specific rules for:

Document Ingestion

Accountants can upload financial statement documents and are prompted to review key information, including the company’s legal name, the year-end date, the reporting type (interim or annual), and the reporting period end date. This information would provide essential input for error detection.

AI-Driven Error Detection

Our AI system employs machine learning techniques and rule-based logic to analyze financial statements. It learns from a vast dataset of historical
documents, identifying patterns and anomalies that indicate potential errors. Our AI becomes increasingly adept at detecting even subtle inconsistencies and deviations by continuously refining its understanding.

Error Reports & Financial Statement Downloads

Once the analysis is complete, the application generates detailed error reports that clearly outline the detected issues and their specific locations within the financial statements. Accountants can review the highlighted errors and consider the suggested corrections before finalizing the documents.

The Result

Before implementing RKTech’s automated financial statement quality review web application, the client relied on a large team of CPAs to manually review
thousands of financial reports at the end of each quarter. This process was time consuming and resource intensive.

With the new solution in place, the client has reduced manual review by 75%. Only a few CPAs are now required to review error reports and implement suggested changes, reducing the review process from 3-4 weeks to 1-2 weeks.

Implementing RKTech’s solution has resulted in significant cost savings and
improved efficiency. By automating the review process and reducing the need for manual labor, the client has freed up valuable resources and mitigated the risk of regulatory violations.

More in-depth Knowledge

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