Cash flow statements are among the most important financial documents in business funding workflows. They reveal how cash moves in and out of a merchant’s business, covering operations, investments, and financing, and help funders assess repayment ability and liquidity stability.
However, these documents often arrive in mixed formats or bundled with other files like profit and loss statements or balance sheets. Sorting and identifying them manually slows down operations and increases error risk.
Heron automates the classification of cash flow statements during intake. The system reads every file, detects its type, and tags it correctly before routing it to scrubbing or validation.
Whether the document arrives through email, portal upload, or API, Heron’s AI-based classifier recognizes the structure, terminology, and layout unique to cash flow statements. This ensures every document lands in the correct queue instantly, ready for the next processing step.
Automated classification replaces repetitive manual sorting with a clean, reliable system that keeps funding pipelines accurate and moving efficiently.
Use Cases
- Automatically identify document type: Heron recognizes cash flow statements among multiple attachments in a submission packet.
- Prevent misclassification: The system distinguishes cash flow statements from similar documents such as P&Ls or balance sheets.
- Label documents consistently: Each file is renamed and tagged with the correct merchant and reporting period.
- Enable routing automation: Classified statements are sent automatically to the right review or scrubbing queue.
- Support large-volume submissions: Heron can process hundreds of files from multiple brokers simultaneously.
- Assist human reviewers: High-confidence classifications go straight to the next step, while low-confidence cases are flagged for quick review.
These use cases demonstrate how Heron’s classification improves document flow, reduces friction, and guarantees accurate sorting across the entire intake process.
Operational Impact
Automated classification streamlines financial document management and provides measurable operational benefits.
- Reduced manual handling: Teams no longer need to open and identify each document individually.
- Faster pipeline throughput: Documents are categorized within seconds of submission.
- Increased accuracy: Fewer misclassified documents lead to cleaner queues and faster underwriting.
- Scalable infrastructure: Classification performance remains stable even as submission volume grows.
- Transparent tracking: Every classification event is logged and auditable for compliance.
With Heron’s classification system, funders and brokers experience cleaner intake processes and better visibility into document readiness.
Classification Logic and Workflow
Heron uses structured logic combined with machine learning to classify cash flow statements with high confidence.
- Content analysis: The system scans headers and key phrases like “Operating Activities” and “Net Cash Provided,” which are unique to cash flow statements.
- Layout recognition: Heron identifies table formats, column headers, and line-item patterns that match the expected structure.
- Cross-document validation: It compares related documents in the same packet to verify type and consistency.
- Metadata tagging: Each document receives standardized labels for date, broker, merchant, and document category.
- Confidence scoring: Files are given accuracy scores that determine whether they can proceed automatically or need review.
- Feedback learning: Reviewer corrections help Heron continually improve classification accuracy.
This structured approach ensures that even when brokers use non-standard formats, Heron can identify and categorize the document reliably.
Governance and Data Integrity
Heron’s classification process adheres to high governance and security standards to maintain full transparency.
- Audit logs: Each classification includes timestamps, source information, and accuracy confidence.
- Exception tracking: Low-confidence files are routed to exception queues instead of being processed incorrectly.
- Access controls: Only authorized users can modify or override classification results.
- Compliance alignment: The process follows SOC 2 principles and maintains consistent audit readiness.
- Version control: Reclassified or reprocessed documents retain version history for traceability.
- Error visibility: System dashboards display confidence rates and exceptions in real time.
These safeguards keep Heron’s automated classification reliable, explainable, and compliant across financial use cases.
Cross-Workflow Coordination
Classification does not exist in isolation; it determines the accuracy of every subsequent step in Heron’s automation loop.
- Scrubbing readiness: Once a file is classified, it is sent automatically to the scrubbing module, where financial data extraction and validation occur.
- Routing and prioritization: Classification tags decide which queue receives the document, optimizing throughput.
- CRM integration: Heron syncs document metadata back to deal records in connected CRMs.
- Exception handling: Low-confidence classifications trigger a “needs review” status to prevent bottlenecks.
- Notification triggers: Teams can receive alerts for new classified cash flow statements or flagged files.
- Operational monitoring: Real-time dashboards allow supervisors to track volumes, confidence rates, and turnaround times.
By coordinating classification across the entire document workflow, Heron ensures seamless movement from submission to underwriting.
Benefits of Using Heron for Classifying Cash Flow Statements
- Speed: Processes incoming files instantly, removing manual document sorting.
- Accuracy: Detects and labels cash flow statements with exceptional precision.
- Consistency: Standardizes document handling across brokers, reducing operational noise.
- Transparency: Classification decisions are fully logged and visible to teams.
- Scalability: Handles large intake volumes without delay or additional staff.
Heron transforms classification from a manual, error-prone task into a dependable automation layer that powers faster, more organized funding operations.
FAQs About Classify for Cash Flow Statements
How does Heron know a document is a cash flow statement?
Heron uses AI models trained on document structure and terminology. It looks for phrases such as “Operating Activities,” “Net Cash from Financing,” and “Investing Cash Flow” to confirm document type.
What happens if a file is misclassified?
If confidence is low, the document is routed to an exception queue for human review. Once corrected, Heron learns from the feedback to improve future accuracy.
Can Heron classify cash flow statements in bulk submissions?
Yes. The system handles multi-document packets and classifies each attachment separately, correctly labeling all cash flow statements, P&Ls, and balance sheets.
How does this help underwriting teams?
Accurate classification ensures underwriters always see the right documents in their queue, reducing delays and confusion. It also guarantees that scrubbing and validation only happen on correctly tagged files.
Is classification data tracked for audits?
Every classification event is logged, including who sent the document, when it arrived, and what confidence level was assigned. This creates a full audit trail for compliance and operational monitoring.
