In today’s dynamic business environment, the fusion of precision, speed, and adaptability in financial management is pivotal. We’re thrilled to introduce a revolutionary advancement in financial acumen. Last week, Veryfi’s groundbreaking OCR API ushered in a new era by introducing an unparalleled capability: the ability to capture and scan bank statements with unprecedented accuracy and efficiency. We call this functionality Bank Statements OCR API, and we’re virtually the first to bring this capability to market. In this article, we’ll delve into how this game-changing innovation not only accelerates financial processes but also sets a new standard for bank reconciliation, uncovering discrepancies, preventing fraud, and ensuring that financial records align seamlessly with reality.
Bank Reconciliation: Where the Magic Begins
At the heart of sound financial practices lies bank reconciliation—a process that ensures a business’s financial records accurately reflect the real state of its bank account. This reconciliation statement serves as a bridge connecting internal records with the bank’s account balance. Now, let’s explore how Veryfi’s cutting-edge automation takes this process to astonishing new heights. Bank reconciliation–a process that relies on the ability to read all sorts and types of bank statements and assess them holistically– ensures that a business’s financial records mirror the actual state of its bank account. This reconciliation statement functions as a bridge between internal records and the bank’s account balance. Here’s where Veryfi’s automation streamlines this process and aids bookkeepers in getting the books right before “closing the books” every month, quarter, year, and so on.
Task You Should Automate #1: Summarize banking and business activity
A bank statement serves as a comprehensive summary of banking activities. It acts as a compass, guiding bookkeepers through the labyrinth of transactions, balances, start points, and end points. With Veryfi OCR API for bank statements, bank statements are scanned and automatically extracted into structured files that can be combed at any time and stored properly. In true API-technology fashion, these structured extraction files that Veryfi provides are then automatically fed into another API such as your business’s bookkeeping system, so bookkeepers have a single source of truth at their fingertips.
Task You Should Automate #2: Confirm payments and collections
The essence of a bank reconciliation statement is its ability to confirm the alignment of payments and collections. It’s the financial watchdog that ensures payments have been duly processed and cash collections have been accurately deposited. Veryfi OCR API for bank statements magnifies this vigilance, providing real-time verification such as three-way matching using three different types of documents. For instance, a large retailer looking for accuracy on accounts payable and accounts receivables values would look to two-way matching and three-way matching processes to ensure every value corroborates with another. These processes may require looking at all three types of documents engaged in the retailer’s buying and receiving process: purchase orders, invoices, and receipts of goods. With Veryfi’s advanced algorithms, the extracted data is accurately categorized and properly tagged. This precision minimizes the risk of misclassification and ensures the integrity of financial records.
Task You Should Automate #3: Match, Reconcile, Review
So where do bank statements come into play during this reconciliation process?
Bank statements can come into play during the reconciliation process for verifying payments, flagging outstanding checks, and reconciling discrepancies. Bank statements can be used to verify that payments made to suppliers match the invoices. Companies can cross-reference the bank statement entries with the payment records in their accounting system. Bank statements can also help identify outstanding checks that have not yet cleared. This can be important for reconciling accounts payable and ensuring that payments have been successfully processed by the bank. Lastly, if there are discrepancies between the three-way matching process and the bank statement, it may indicate errors in the payment process or fraud. This is where bank statements become crucial for identifying and resolving discrepancies.
The power of Veryfi lies in its ability to quickly and accurately reconcile bank activities across the board. The API can process a high volume of data in a fraction of the time it would take a human, thereby speeding up the reconciliation process and ensuring real-time accuracy. Having a thorough, real-time access to banking activity leaves no room for ambiguity. When time comes for analyzing accounts payable and accounts receivables values, there is no confusion to be had. For businesses, this means that both security and accuracy are enhanced thanks to elimination of human error produced inevitably by manual data entry.
Task You Should Automate #4: Don’t Bandage Fraud, Prevent It
While financial management strives for precision, the threat of fraud and accidental discrepancies lurks. Vigilance against discrepancies is very necessary. Lessons from the 2001 Enron Scandal shows how important it is to point out accounting discrepancies and implement a system of financial checks and balances where multiple admins in a company have access to the books. This is where the power of Veryfi’s technology comes to light. The digital age has given rise to sophisticated financial malpractices. Bank reconciliation statements, when coupled with Veryfi’s data extraction, become a formidable tool against fraud. Any unusual activity or unauthorized transactions are promptly spotlighted, allowing swift action. Moreover, the eagle-eyed automation of Veryfi exposes accidental discrepancies that might otherwise go unnoticed. The pinnacle of bank reconciliation lies in achieving harmony between internal records and bank account balances. Veryfi’s role in this delicate balancing act is paramount. A successful bank reconciliation process culminates in the reconciliation statement’s balance aligning seamlessly with the bank account’s ending balance. Veryfi’s technology plays a pivotal role in ensuring that this balance is not just maintained but is fortified by accurate data extraction and processing.
How Veryfi’s Bank Statements OCR API changes the game for your business
Veryfi OCR APIs have unveiled a new era of financial management—where extraction accuracy, speed, and security must converge to do proper reconciliation. Whether it’s revenue reconciliation, bank reconciliation, vendor reconciliation, or customer reconciliation, reconciliation should be automated where it can be in order to accelerate processes, enhance accuracy, and set a business up for financial success. Using amazing OCR for bank statements and financial documents is the game changer for doing reconciliation. Veryfi’s technology acts as a financial sentinel, guarding against fraud and discrepancies, while ensuring the sanctity of financial records. As businesses navigate the complexities of the financial world, the fusion of Veryfi’s automation and bank reconciliation becomes the compass that guides them to unprecedented growth. After learning about the complexity surrounding extraction of financial documents–especially bank statements, should you build from scratch or buy? Use this decision criteria to make your assessments, cheers!
Experience the Power of Veryfi: extract data from receipts and financial documents with speed, accuracy, and security. Veryfi is OCR made for extracting information from financial documents. Grab a bank statement, and try out this demo today!