Scan and process large batches of unreadable invoices

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Project Overview

A leading CPA firm specializing in the ambulance industry, faced a significant challenge with processing a vast number of gas receipts. Given their expertise in tax consulting and relationships with private medical transportation providers, they needed a solution to streamline the handling of these receipts, many of which were low-quality scans and often difficult to decipher. To meet this need, we developed an AI-powered solution using cutting-edge computer vision and OCR technologies to automate the extraction, validation, and categorization of gas receipts, drastically reducing the time and effort required for processing.

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The Challenge: Turning Unreadable into Actionable Data

The client managed thousands of gas receipts each month, many of which were scanned or photographed under suboptimal conditions, resulting in images that were blurry, faded, or poorly lit. The core issue was extracting data such as gallons purchased, price per gallon, total cost, and applicable state taxes from these low-quality images. In many cases, receipts had missing information, making manual review and calculations necessary. This process was not only time-consuming but also prone to errors.

Beyond extraction, the challenge extended to tax calculations. Different states imposed varying tax rates depending on fuel type, such as Ultimate or regular gasoline. Accurately calculating and applying these rates was essential for maximizing tax write-offs and ensuring compliance with state regulations. The goal was to create a system that could automatically extract, validate, and categorize receipt data, while filling in the gaps with minimal human intervention.

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The Strategy: Advanced Receipt Analysis with YOLOv10 and Fine-Tuned OCR

We utilized YOLOv10, a state-of-the-art object detection algorithm, alongside a fine-tuned OCR (Optical Character Recognition) model. This combination allowed us to accurately identify key fields on gas receipts—such as gallon amounts, fuel types, and prices—even from low-quality images. YOLOv10’s capability to detect various regions of interest enabled precise extraction, while our customized OCR model ensured that even faded text could be interpreted with high accuracy.

• Data Quality Assurance and Categorization: To further enhance the reliability of the extracted data, we implemented a categorization mechanism. This system analyzed the quality of data, automatically flagging any values that appeared inconsistent or ambiguous. For instance, if a receipt’s total cost didn’t align with the price per gallon multiplied by the number of gallons, it would be flagged for human review. This mechanism allowed the system to maintain a high standard of accuracy, ensuring that only data with high certainty was auto-approved, while other entries were routed for minimal human verification. On another note, if 2 out of 3 fields were identified as fully readable and high quality, we could have correct low quality readings, automatically delivering complete data.
• Automated Tax Calculation & State-Specific Compliance: A key feature of our solution was the ability to integrate state-specific tax calculations directly into the system. By accessing real-time tax rates and rules, the AI could determine the appropriate tax deductions for different fuel types that it would recognize based on the gas receipt. This functionality was seamlessly integrated into an intuitive interface, allowing the client to view, approve, or adjust the calculated values before submission. The system then auto-filled state-specific tax forms, ready for submission to relevant tax authorities, eliminating the need for manual data entry.
• Integration with Existing CRM: To ensure a smooth workflow, we integrated the system with client’s existing CRM. This allowed for automatic categorization of clients and projects, making it easy to track receipt data and tax calculations in real-time. By centralizing this information, the client could quickly access records, generate reports, and maintain a clear audit trail for each submission.
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The Impact: A 90% Reduction in Processing Time

• Faster, More Accurate Processing: The AI-driven solution reduced the time spent on receipt processing by over 90%. What once took hours or even days to review and calculate could now be done in minutes. This efficiency allowed the client to redirect their focus from manual data entry to more strategic advisory services for their clients.
• Enhanced Accuracy and Compliance: By automating data extraction and validation, the risk of human error was significantly reduced. The system’s ability to cross-check and verify values ensured that tax deductions were calculated correctly and consistently across all states. This not only streamlined compliance but also maximized potential tax savings for their clients.
• Improved Client Experience: With faster receipt processing and automatic tax form generation, their clients were provided with more timely updates on tax filings. This led to improved client satisfaction and a stronger reputation for efficiency and expertise in the medical transportation field.

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Why it Matters: Streamlining Compliance with AI

This project went beyond mere automation—it transformed a labor-intensive process into a streamlined, AI-powered workflow. For our client, it meant the ability to focus on what they do best: providing top-tier tax consulting services to the medical transportation industry. It allowed them to shift the employees’ focus and hundreds of hours spent on repetitive and time consuming tasks into something that valued more - growing the business itself.

By implementing this solution, they not only gained a competitive edge but also set a new standard in leveraging AI for financial services.

From our perspective, the success of this project highlights the potential of AI and computer vision to address industry-specific challenges. It demonstrates how a deep understanding of a client’s needs, combined with the right technology, can lead to transformative results for the business and how they do things.