Methods and apparatus for analysing and/or pre-processing financial accounting data

• US 9,031,873 B2
• Filed: 02/07/2008
• Issued: 05/12/2015
• Est. Priority Date: 02/13/2007
• Status: Active Grant

• Current Assignee: Validis UK Limited (Validis Holdings Ltd.)
• Original Assignee: Future Route Ltd. (Validis Holdings Ltd.)
• Inventors: Parson, Rupert, Shuttlewood, Andrew, Dunn, Andrew, Hambrook, Alan
• Primary Examiner(s): Wilder, Hunter
• Application Number:
  US12/527,170
• Publication Number:
  US 20100205076A1
• Time in Patent Office: 2,651 Days
• Field of Search: 705/7, 705/30, 705/35
• US Class Current: 705/35
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/10 Tax strategies
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

In an on-line method of analyzing financial accounting data, uploaded financial accounting data is received at a server (2) from a client computer (3). The data is analyzed at the server (2) to identify anomalies in the data. A display is provided at the client computer (3) representing the anomalies that have been identified. Further, in a method of pre-processing financial accounting data prior to analyzis of the data, the financial accounting data is abstracted to correspond to a pre-stored accounting ontology. Further, in a method of analyzing financial accounting data, the method checks the data for violation of a particular state to identify inconsistent combinations of values in the data.

Claims

1. An on-line method of analyzing financial accounting data, the method comprising:

receiving at a server financial accounting data communicated from a computerized accounting package, the financial accounting data comprising a set of accounts comprising accounting transactions comprising values allocated to one or more in the set of accounts, the set of accounts being organized as a chart of accounts having a hierarchical tree structure wherein the structure of the tree is unknown;

abstracting the financial accounting data to correspond to an accounting ontology that is stored at the server, the accounting ontology having a predetermined structure comprising a hierarchy of nodes in a tree structure that is independent of the structure of the financial accounting data, wherein each node represents an accounting category and wherein at least one node is mapped to plural accounts in the set of accounts;

wherein abstracting the financial accounting data comprises an automatic process in which the nodes of the ontology are matched with the accounts in the set of accounts to determine a mapping between the financial accounting data and the accounting ontology;

analyzing the abstracted financial accounting data at the server to identify anomalies in the data by;

applying predetermined accounting or other validation rules to the data to determine validation failures, the rules being defined in terms of nodes of the accounting ontology so as to be independent of the structure of the financial accounting data, wherein at least one rule is defined in terms that include said at least one node that is mapped to plural accounts; and

providing a report or a display representing the anomalies that have been identified.

2. The method according to claim 1, wherein the abstracted data and the accounting ontology are represented by tree structures having nodes and branches, the map being obtained by recursively determining an overlap of nodes in the abstracted data with nodes in the accounting ontology.

3. The method according to claim 2, wherein the overlap is measured within a predefined tolerance.

4. The method according to claim 1, comprising editing the determined mapping to amend the correspondence between the financial accounting data and the accounting ontology.

5. The method according to claim 1, wherein the analyzing is carried out on the entirety of the financial accounting data received by the server.

6. The method according to claim 4, wherein contra and reversal transactions are withdrawn from further analysis.

7. The method according to claim 1, wherein the rules may be edited by a user.

8. The method according to claim 1, wherein at least some of the rules check the data for variation beyond a threshold compared to a corresponding variation of the data at a previous time instance.

9. The method according to claim 1, comprising determining a distribution of at least some of the data over a period of time, wherein the analyzing comprises identifying data that exists beyond a threshold outside said distribution.

10. The method according to claim 1, wherein the report that is provided includes an indication of a number of anomalies that have been identified and an ability to display details of individual transactions in the analyzed data that have contributed to said anomalies.

11. The method according to claim 1, wherein the analyzing comprises identifying contra and reversal transactions in the data.

12. The method according to claim 1, wherein at least some of the rules check the data for violation of a particular state.

13. The method according to claim 1 wherein analyzing further comprises finding transactions with unusual combinations of values in the abstracted data.

14. An apparatus for on-line analysis of financial accounting data, the apparatus comprising:

a server constructed and arranged to receive financial accounting data from a computerized accounting package, the financial accounting data comprising a set of accounts comprising accounting transactions comprising values allocated to one or more account in the set of accounts, the set of accounts being organized as a chart of accounts having a hierarchical tree structure wherein the structure of the tree is unknown;

wherein the server comprises an abstraction engine constructed and arranged to abstract the financial accounting data to correspond to an accounting ontology that is stored at the server, the accounting ontology having a predetermined structure comprising a hierarchy of nodes in a tree structure that is independent of the structure of the financial accounting data, each node representing an accounting category, wherein at least one node is mapped to plural accounts in the set of accounts,

wherein abstracting the financial accounting data comprises an automatic process in which the nodes of the ontology are matched with the accounts in the set of accounts to determine a mapping between the financial accounting data and the accounting ontology;

the server having a data analysis engine constructed and arranged to analyze the abstracted financial accounting data at the server to identify anomalies in the data by;

applying predetermined accounting or other validation rules to the data to determine validation errors, the rules being defined in terms of nodes of the accounting ontology so as to be independent of the structure of the financial accounting data, wherein at least one rule is defined in terms that include said at least one node that is mapped into plural accounts; and

the server being constructed and arranged to provide a report containing a representation of the anomalies that have been identified.

15. The apparatus according to claim 14, comprising a map editor arranged to permit the determined mapping to be edited to amend the correspondence between the financial accounting data and the accounting ontology.

16. The apparatus according to claim 14, wherein the data analysis engine is arranged to identify contra and reversal transactions in the data.

17. The apparatus according to claim 16, wherein the data analysis engine is arranged to withdraw contra and reversal transactions from further analysis.

18. The apparatus according to claim 14, comprising a rule editor arranged to permit the rules to be edited by a user.

19. The apparatus according to claim 14, wherein the data analysis engine is arranged such that at least some of the rules check the data for violation of a particular state.

20. The apparatus according to claim 14, wherein the data analysis engine is arranged to determine a distribution of at least some of the data over a period of time and to identify data that exists beyond a threshold outside said distribution.

21. The apparatus according to claim 14, wherein the data analysis engine is arranged to identify duplicate transactions in the data.

22. The apparatus according to claim 21, wherein the data analysis engine is arranged to identify duplicate transactions among Sales and Purchase invoices.

23. The apparatus according to claim 14, wherein the server is arranged such that a display that is provided includes an indication of a number of anomalies that have been identified and the ability to display details of the individual transactions in the analyzed data that have contributed to said anomalies.

24. The apparatus according to claim 14, wherein the data analysis engine is arranged such that at least some of the rules check the data for variation beyond a threshold compared to a corresponding variation of the data at a previous time instance.

25. The apparatus according to claim 14 wherein the data analysis engine analyzes the data at the server to identify anomalies in the data by finding transactions with unusual combinations of values in the abstracted data.

26. A non-transitory computer readable carrier containing program instructions that, when executed, cause a processor to:

receive financial accounting data communicated from a computerized accounting package, the financial accounting data comprising a set of accounts comprising accounting transactions comprising values allocated to one or more in the set of accounts, the set of accounts being organized as a chart of accounts having a hierarchical tree structure wherein the structure of the tree is unknown;

abstract the financial accounting data to correspond to an accounting ontology that is stored at a server, the accounting ontology having a predetermined structure comprising a hierarchy of nodes in a tree structure that is independent of the structure of the financial accounting data, wherein each node represents an accounting category and wherein at least one lode is mapped to plural accounts in the set of accounts;

wherein abstracting the financial accounting data comprises an automatic process in which the nodes of the ontology are matched with the accounts in the set of accounts to determine a mapping between the financial accounting data and the accounting ontology;

analyze the abstracted financial accounting data to identify anomalies in the data, wherein the processor further;

applies predetermined accounting or other validation rules to the data to determine validation failures, the rules being defined in terms of nodes of the accounting ontology so as to be independent f the structure f the financial accounting data, wherein at least one rule is defined in terms that include said at least one node that is mapped to plural accounts; and

provide a report or a display representing the anomalies that have been identified.