Maintaining financial data integrity is critical, yet errors, inconsistencies, or even fraud can hide within intricate general ledger transactions. Traditional manual review methods often are not efficient ways to catch anomalies. Thus, Sage Intacct general ledger outlier detection was introduced to address this issue directly. Infused with its latest artificial intelligence (AI) technology, Intelligent GL™, available from Sage Intacct, offers innovative outlier detection capabilities, automatically pinpointing unusual entries to help reduce risk.
Why Outlier Detection Is Important in Accounting
Outlier detection involves finding data points or observations that differ significantly from the rest of the dataset. In accounting, outliers can indicate errors, inconsistencies, or potential fraud. Outliers can be detected through various methods, including statistical techniques and machine learning algorithms. Identifying outliers can help safeguard the accuracy and integrity of your financial data.
Sage Intacct’s Intelligent Approach
Sage Intacct general ledger outlier detection leverages sophisticated AI and machine learning algorithms, moving beyond simple rule-based checks. It’s designed to act as a vigilant digital assistant for your finance team. Here’s an overview of how it works:
- Learns your patterns: The system analyzes your organization’s historical journal entry data to understand unique transaction patterns—typical account/dimension combinations, amount ranges, journal sources, etc.
- Reviews in real-time: As new journal entries are submitted for approval, the AI component compares them against the learned historical patterns.
- Flags anomalies: Entries that deviate significantly are automatically flagged as potential outliers. Visual cues and detailed explanations can highlight why something was flagged, e.g., unusual coding, unexpected amount, etc., making it easier for submitters to review and correct errors. In addition, Sage Intacct administrators can configure outlier detection by customizing thresholds for materiality and dimensions, helping the system be fine-tuned to your organization’s sensitivity to anomalies.
- Continuous improvement: The AI model constantly learns and adapts, becoming increasingly attuned to your organization’s specific financial behavior over time.
Streamlining Corrections
Recognizing the need for efficient workflows, Sage Intacct enriched system capabilities with the GL Outlier Assistant. This functionality allows for customizable approval routing. It enables flagged outliers to be sent back to the original submitter for review and correction before they reach the approver. The GL Outlier Assistant is available to all Sage Intacct environments, including those where it acts as the sole approval step. It can provide outlier insights to smaller organizations with users who can self-approve journal entries. This can help streamline entry, approval, and correction processes.
Potential benefits of using the GL Outlier Assistant include:
- Proactive prevention: Catch mistakes before they make it into financial reports, reach stakeholders, and require downstream adjustments.
- Enhanced efficiency: Reduce the time spent manually reviewing line items.
- Improved confidence: Gain assurance in your financial data earlier in the process without waiting for month-end close activities.
- Expanded risk management: Add an automated layer of scrutiny to help identify risk and potentially fraudulent transactions.
- Streamlined audits: Simplify audit preparation by highlighting transactions that may warrant closer review.
How Forvis Mazars Can Help
Initial tips: Sage Intacct general ledger outlier detection is configurable, allowing your organization to focus on what matters most. Also, after enabling the AI-powered features, allow some time for the technology to learn from your transaction history.
In summary, accounting mistakes can be costly. Sage Intacct general ledger outlier detection capabilities can help you proactively address these issues by providing an intelligent, automated layer of review. It can transform manual, reactive processes into a streamlined way to catch anomalies early and help you correct errors and identify potential fraud. By harnessing the power of AI, your finance team can save valuable time and gain unparalleled confidence in their financial data.
Connect with us today to learn more or schedule a personalized demo. Business Technology Services at Forvis Mazars is a Sage accounting and Sage Intacct software value-added reseller, offering a full suite of consulting services. As a certified Sage Partner, our experienced team of technology consultants can help you transform your financial management processes.