Having accurate data is the reason why business owners opt to use accounting software in the first place. And with artificial intelligence (AI), or automation, quickly gaining popularity, you might be wondering if accounting automation software is right for your business.
Before you can make that decision, you first need to understand the difference between the different types of data software manages.
Structured vs. unstructured or document-based data
There really isn’t a battle between structured and unstructured data, since both types of data are important. In most cases, document-based data provides more detailed results than structured data, but both are necessary for true AI-powered accounting. Let’s take a look at the two types of data that Docyt uses.
Document-based data, also known as unstructured data makes up the majority of data stored. Document-based data includes data that is extracted from invoices, receipts, and emails. Although it can be more difficult to extract document-based data in a meaningful way, a document-based data model is more flexible and scalable than its counterpart.
Structured data is data that is organized in a specific manner. While that organization makes it easily searchable, it also renders it inflexible. Common structured data forms include XML and CSV formats. Though you can arrange the data in the manner that you wish, i.e. numerically or alphabetically, the format of the data is pre-defined and unwavering.
In a perfect world, a system that manages both unstructured and structured data will give you the most accurate results. Unfortunately, that’s not always the case. While many software applications have the ability to import structured data such as bank transactions, they are unable to handle unstructured data that can truly automate accounting.
When both types of data are supported, it improves accuracy, helps you make more informed, up-to-the-minute decisions, and provides you with real-time reporting that ensures that your financial statements provide an accurate picture of your finances.
Yes, the ability to import bank transactions is great, but what if you want more than that? Docyt is your complete all-in-one accounting solution – and downloading bank transactions is only the beginning. Unlike its competitors, Docyt also captures your documents such as receipts, invoices, and revenue reports, and utilizes AI to extract the data from them. That data is then used for improved workflows and automated categorization and reconciliation. And with the convenient Docyt app, you can run your business from just about anywhere.
If you’re tired of your current software giving you mediocre results, visit the Docyt website to schedule a free consultation today.