Balance Sheet Analysis tool is a must-have tool for Bankers, Auditors and a third-party vendor who works for Bank. Balance Sheet Analysis Tool help’s to convert the dirty scan image pdf file into meaningful data.
In this blog, we will try to understand how the Balance Sheet Analysis tool works on PDF. How to use it, it benefits, prons and cons and everything else.
If you know everything about the balance sheet analysis tool you can directly go to the Analysis tool Just click over here. or Visit https://balancesheet.techaroha.com
Before going to problems let me tell you to balance sheet is the must-have a document for Business Loan Application. Business loans like Working Capital, Fixed Capital, Office Loan, Overdraft Limit all require
To understand the problems with Balance Sheet analysis of PDF copy lets understand the current process of Balance Sheet Analysis by Banks
Bank receives thousand of loan applications(Just considering Business Loan other loans)on a daily basis. And with every loan application Bank receives a Balance Sheet of the Company.
CA prepare and signed the balance sheet for the Company. Afterward, the Balance Sheet is scan and then sent to the bank for the loan approval in PDF Format.
These scan files are difficult to read and not searchable. The worst part for ratio analysis and loan approval all the pages are not required.
Well, few balance sheets of big companies are in text format and easily searchable. But they are very rare and contain 100-200 Pages. And banks just need 4 pages out of that.
This work is hectic since we can’t search from the image file. But still, we have to do it because it’s important. Those 3 files especially Balance Sheet, Profit and Loss, and Cashflow are very important for loan approval.
It’s the most difficult part. Bank just needs 4-5 Pages out of those 50 Pages. They ask the third party or the staff to dig our important pages from the balance sheet.
Now we have the shortlisted pages from which data needs to be extracted regarding companies’ finances. This step takes most of the time in the complete process of Balance Sheet Analysis.
But still, banks need to this for loan processing. In the process bank employees or third part, manual read figures from scan pdf file. Then he enters the data in the excel sheet.
Later on this excel sheet is for credit analysis or ratio analysis. This excels many times is directly entered into the credit rating software.
Though I have just mentioned 3 steps it takes around 4 hours to complete the process. Sometimes more than that if the company is big.
Process of shortlisting takes around half an hour(3o minutes) if the user is highly trained with all the Notes to Accounts. Then the user manually enters data which takes around 2-4 hours.
So we can say, the existing process has following drawbacks
Balance Sheet Analysis Software develop by Techaroha is a very very simple and powerful tool.
Just upload the pdf, get the excel data. All this is just 2 minutes. Post this you will have to review for AI error if any. After review just submit the excel sheet for ratio analysis. Well, don’t worry we will discuss in detail how this work and why this is so useful for the credit industry.
Actually there is no need to explain this step. But still, for your convenience, I will try to explain. Just open the link Registration for Balance Sheet Analysis.
Enter Email Address, Name, and Password. You will receive a confirmation email. Approve the email and you are good to go.
You might have recieve the balance sheet in PDF format from your customer or businessman seeking a business loan. That image could be a text pdf or scan images with the signature of CA.
Just upload the file on the screen. You can you drag and drop option or use select from the browser option. But please remember one thing over here. Uploading may take around 20-50 seconds. It mostly depends on the size of your pdf and the number. And also your internet speed.
As soon as you upload the pdf, the status becomes pending. You will see tabs. The first tab is for Shortlisted PDF and another tab is for tabular data from pdf.
When we get the balance sheet statement in pdf format it has many pages from 30-400. I know it sounds strange but it’s true.
As a banker or auditor or finances, we just required 3-4 pages of statements and few pages of Notes. Since the balance sheet has many other pages, this balance sheet analysis tool filters out the pages and gives us the pages which are of most important.
These filtered pages are combined into the single pdf. Which is available for download from the shortlisted pdf tab. This shortlisted page is just for your review in case something goes wrong.
Once the system filters out the pages, it starts processing those pages. In the process, it identifies the table and number’s in it.
The AI, ML logic identifies the tabular structure and renders it in an HTML table with almost 90+% accuracy.
This balance sheet analysis tool identities tables and number and particulars from this 3 pages
There scan Balance Sheet PDF has more pages containing tabular data with values. But as of now this tool only filter out those pages. It doesn’t work their tabular data.
This is the most important and beautiful part of the Balance Sheet analysis tool. You know the majority of credit rating software and credit analysis software accept excel data but not the scan file pdf data.
And this is the reason users spend hours converting image data into tabular data in excel format. So to solve the problem balance sheet analysis tool gives the output data in tabular format.
In the second tab of the result page, you will see the download option. Just click on the download option and get you to excel data from the pdf balance sheet immediately.
Well, the tool is great but it has some limitations. Due precaution needs to be taken while using the balance sheet analysis tool. Since a small mistake may take away your customer. Or you may approve a loan which turns an NPA
Consider these points when you balance sheet analysis tool of Techaroha or any other tools available
Time needed: 5 minutes
Step by Step guide to using the Balance Sheet Analysis tool to analyze balance sheet pdf
Please visit the website https://balancesheet.techaroha.com/ . Click on register and log in. Once login you are ready to upload the pdf in the dashboard itself. And please don’t forget to verify your email. Otherwise, you won’t be able to log in.
Drag and Drop your pdf file or select the file using a file browser.
Please wait for the file to be uploaded.
As soon as you upload the file the AI will start its work and file processing will start. You will be redirected to this screen. Initially, it will show the status of the Shortlisted PDF as pending.
But don’t worry in a few seconds it will say Shortlisted PDF status as completed. You don’t need any action here. Just wait and watch
In a few minutes system will show status as complete or partial completed. If it shows partially completed please don’t worry.
Partially completed means the scan pdf doesn’t have any of the main sheets like Balance Sheet, Profit, and Loss or Cash flow.
Now click on the Report/Excel tab of the balance sheet analysis screen, you will see the scan image data in the tabular form of the HTML table.
In the report/excel tab, you will see the Download option. Just click on it and download the excel sheet.
But please remember one thing. Don’t submit the excel data directly to other software. Please review it twice and do the corrections if any.
Because though it fast AI is not 100% accurate.
Balance Sheet Analysis tool is a software or web portal which takes the scan pdf images of the balance sheet as input and converts them to excel data for credit rating software. Such software generally uses AI, ML, OCR to extract information from scan images of the Balance Sheet.
But this software can be expanded for ratio analysis and credit rating. It depends on the features of the software.
Even Google is confused about this query. It shows the result of the PDF. Instead, it should show the result for tool or software or website which converts balance sheet pdf into meaningful data for credit rating or ration analysis.
But it’s showing a list of pdf which may or may not contain balance sheet analysis details.
According to us, the Balance Sheet Analysis PDF means a tool that accepts pdf as input and output in excel, JSON or HTML tabular data.
I don’t think there is any software available for balance sheet analysis pdf except https://balancesheet.techaroha.com. This one link claims that it’s ratio analysis(https://www.readyratios.com) from balance sheet data.
But they don’t work on PDF. You have to manually enter data into the web portal.