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Automation in Accounting and Tax Preparations

Overview

This project introduced an automated tax form management system powered by intelligent technologies such as Optical Character Recognition (OCR), robotic process automation (RPA), and cognitive capabilities. The solution enabled automated data extraction, validation, and integration with the client's web application.

  • Location: USA
  • Industry: E-Commerce/Retail
  • Technology Used: Automation Anywhere A360, AWS Tesseract OCR

Challenges

Our client is an India-based service provider catering to the accounting and tax preparation needs of US-based CPAs. They manage high-volume income tax form submissions—including federal and state return filings—through a dedicated web application. The client specializes in streamlining the extraction and submission of data from a variety of tax forms.

Manual Data Entry

The client's data entry process involved manually copying data from various PDF forms (W2, 1099-G, 1099-R, etc.) and pasting it into a web application. This task was time-consuming. The repetitive nature of this work also increased the likelihood of human errors, impacting the overall efficiency and accuracy of the process.

Data Accuracy and Proofing

Ensuring the accuracy of the data entered was a significant challenge. Each record required thorough proofing to verify the legitimacy of the information. This additional step not only added to the workload but also delayed the overall process, making it difficult to meet deadlines and maintain high standards of data integrity.

Scalability Issues

As the volume of tax forms increased, the manual data entry process became unsustainable. The client struggled to scale their operations to handle the growing workload efficiently. Hiring additional data entry operators was not a viable long-term solution due to the associated costs and the potential for increased errors.

Competitive Market Pressures

To remain competitive in the market, the client needed to streamline their operations and improve efficiency. The manual data entry process was a bottleneck, preventing them from achieving the desired level of productivity. The need to keep pace with competitors and provide timely services to their customers added pressure to find a more efficient solution.

Solution

Silver Touch implemented an RPA solution using Automation Anywhere A360 to automate the data extraction and entry process. Here are the technical details of the solution:

Data Extraction

  • Utilizes PDF commands or AWS Tesseract OCR to extract structured data from various tax forms.
  • Extracts key details such as employer/employee information, ZIP codes, federal and state tax amounts.
  • The bot leverages cognitive capabilities to accurately interpret and extract data from different formats and layouts of tax forms.

Data Entry

  • Automatically inputs the extracted data into the web application under a unique customer ID.
  • Ensures data accuracy by following pre-established rules and procedures.
  • The bot verifies the accuracy and completeness of the data entered, reducing the risk of errors.

User Notifications

  • Sends email notifications to users upon the successful processing of each form.
  • Notifications include details of the processed forms, ensuring users are kept informed about the status of their tasks.

Integration and Deployment

  • Developed using Automation Anywhere A360, a cloud-native, web-based intelligent automation platform
  • The bot is integrated with the client's existing web application, ensuring seamless data flow and processing.
  • The solution is scalable, allowing the client to handle increasing volumes of tax forms without additional human resources.

Security and Compliance

  • The solution adheres to data security and compliance standards, ensuring the confidentiality and integrity of sensitive tax information.
  • Utilizes secure communication protocols and encryption to protect data during extraction, processing, and storage.

This automation solution enables the seamless handling of large volumes of data without human intervention, ensuring consistent speed and accuracy.

Key Features

1. Automated Data Extraction

  • Utilizes bots to extract data from various PDF forms (W2, 1099-G, 1099-R, 1099-SSA, 1099-DIV, 1099-INT, W2-G).
  • Extracts details such as employee and employer names, addresses, zip codes, state tax, federal tax, and IDs.

      • 2. Error Reduction

      • Cognitive capabilities ensure tasks are completed without errors.
      • Pre-defined rules and decisions minimize the risk of inaccuracies.

      3. Time Efficiency

      • Significantly reduces the time required for data entry, saving approximately 1000 hours annually.
      • Each form is processed much faster compared to manual entry.

      4. Scalability

      • Easily handles an increasing volume of tax forms without additional human resources.
      • Supports the client's ability to scale operations efficiently.

      5.User Notifications

      • Users receive email notifications upon the completion of data extraction and record creation.
      • Keeps users informed about the status of their tasks.

      6.Integration with Existing Systems

      • Developed using Automation Anywhere A360 and AWS Tesseract service.
      • Seamlessly integrates with the client's web application to create records automatically.

      The implementation of an automated tax form management system using Automation Anywhere A360 and AWS Tesseract OCR has significantly transformed the client's operations. By automating the data extraction and entry process, the solution has enhanced efficiency, reduced errors, and ensured scalability. The integration of cognitive capabilities and user notifications has further streamlined the workflow, allowing the client to handle large volumes of data with consistent speed and accuracy. This successful deployment marks a crucial step towards leveraging intelligent automation to meet the demands of a competitive market, positioning the client for future growth and expansion.

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