The more accounting firms experiment with AI tools, the more competitive the industry becomes. Manual data entry is quickly becoming a thing of the past – but in spite of all the progress the industry has made, it’s still par for the course at some firms.

In addition to costing thousands a year, manual processes also risk introducing human error. Fortunately, there are a lot of data extraction tools that you can use to automatically extract data from various sources, such as documents, invoices, and receipts. This can help streamline accounts payable and receivable processes, analyze tax data, and parse complex data.

Below, we’ll cover 5 popular tools you can use for AI data extraction in a variety of different settings.

1. Fivetran

Fivetran’s data extraction tool is great for accountants that need to automate data transfer from different analytics, ecommerce, or other platforms. It comes with 497 integrations (including Quickbooks) plus custom connectors for other data sources. It also has automated transformations to jumpstart data analysis for reporting and insights. 

One of its perks is that it has a generous freemium plan, with up to 500,000 monthly active rows – in other words, the pipelines from the source to the destination – regardless of how many times they’re used. For accountants, a drawback is that it’s not an industry-specific tool, so it’s not as intuitive as some other options. You’ll have to set up the connections yourself.

2. Dext Prepare

Dext Prepare is part of a suite of tools aimed at finance professionals, mostly focused on data extraction from receipts. It uses Optical Character Recognition (OCR) to scan receipts, with AI and machine learning to improve accuracy beyond basic OCR in QuickBooks, even with handwritten receipts or complex layouts.

It also automatically categorizes expenses based on rules and machine learning, saving a lot of time for accountants who do a lot of expense tracking. However, that convenience will cost you; its Essentials plan starts at $244.99 per month (when billed annually).

3. Microsoft Copilot

Copilot’s data extraction capabilities are fairly broad, since it’s a generative AI tool that’s integrated across the Microsoft 365 suite. For example, you can use it to extract data from Excel and incorporate the data into generative AI outputs.

Because it’s a newer generative AI tool, Copilot is versatile and flexible, and it’s likely that its features will grow as it becomes more established. It’s ideal for teams that want to create generative AI outputs from data in a secure platform. It’s $20 (USD) per user per month, so it could get expensive for larger teams.

4. Octoparse

Accountants dealing with online data scattered across websites can try Octoparse. It’s a powerful web scraping tool, and useful for aggregating data from stock exchanges, news stories, and marketplaces for more sophisticated financial analysis.

It also has a point-and-click interface to make web scraping intuitive, so you don’t have to spend hours learning a new tool. As a bonus, you can export data directly into Excel so it’s ready to go. There’s also a limited free plan so you can try up to 10 tasks.

5. Docparser

Like Dext Prepare, Docparser uses OCR to scan documents – but its focus is broader, allowing it to extract data from things like contracts, bank statements, purchase orders, and other documents. At $32/month for a starter plan, it’s also much cheaper than Dext Prepare.

While Dext Prepare is ideal for high-volume receipt processing, Docparser is the better option for teams that need an all-around solution for data extraction.

A few notes about choosing data extraction tools

Before choosing a data extraction tool for your firm, it’s important to consider things like:

Ease of use: Choose tools with intuitive interfaces and minimal technical expertise required. That will save you time in the long run, particularly if the whole team will use it.

Security and compliance: Most finance-oriented data extraction tools have security features built in, but it’s always a good idea to double check to protect your firm and your clients.

Integration with existing systems: Choose tools that integrate seamlessly with accounting software and other workflow tools.

Scalability: If you’re looking to grow your firm, select tools that can adapt to growing data volumes and changing needs.

Remember, the best data extraction tool depends on the specific needs and challenges of your accounting practice. Doing a little digging into the available options can help you start leveraging AI-enabled data extraction in no time.