Tired of entering data manually? Document parsing makes it possible to automate the analysis of your files to extract key information. A technology that is simple to deploy, powerful to use. Here's everything you need to know to use it effectively.
Discover how parsing automates data extraction from PDF, scanned, and digital documents. By combining OCR, NLP, and rule-based methods, it transforms raw content into structured data. This article explains the key concepts, technologies, and use cases behind modern document parsing.
What is parsing?
Parsing, also known as syntactic analysis, is the process of automatically analyzing a data structure or raw text to extract elements that a machine can interpret. It is a key step in many areas of computing, including code compilation, document analysis, information extraction, and web scraping.Parsing is used when content such as a file, a web page, or a text stream needs to be understood, structured, and transformed to feed into software, a database, or an analytical algorithm.
What is parsing in computer science?
In computer science, parsing is used in a wide range of contexts from translating source code into machine instructions, to analyzing configuration files, or processing structured languages like HTML, XML, or JSON.The core idea remains the same: decoding an input (often textual) based on predefined rules (such as grammars or formats) to make it usable by a program.In the context of document processing, parsing is applied to PDF files, emails, or scanned documents to automatically extract information such as names, amounts, dates, or reference numbers.
What is file parsing?
File parsing refers to the automatic analysis of a file’s content to extract useful data. This can apply to various file types:
Structured files (JSON, XML, CSV): tags, nodes, or fields are identified to feed into a database or software.
Semi-structured files (PDFs, forms): text zones are detected based on position, style, or keywords.
Unstructured files (images, scans, handwritten documents): OCR is often required to read the content before parsing.
In a real-world example, parsing a PDF invoice means automatically extracting elements such as the total amount, date, supplier name, or line items and integrating them into an accounting system.
What is a parser?
A parser (or syntactic analyzer) is a program or software module designed to perform this analysis. It follows a formal grammar or parsing rules to recognize expected structures within the content.
There are different types of parsers:
Lexical parser: breaks the text into meaningful units (words or tokens).
Syntactic parser: builds a hierarchical structure (syntax tree) from the tokens.
Domain-specific parser: adapts extraction rules to a particular context (e.g., invoices, contracts, forms).
In document parsing, the parser is often combined with an OCR engine, an NLP model, or rule-based extraction to identify key information within a file.
How does parsing work?
The parsing process involves several steps, which vary depending on the type of document and the chosen approach (rule-based, AI-driven, or syntactic analysis).
Typical steps in document parsing include:
Preprocessing: cleaning the document and applying OCR if needed.
Tokenization: breaking the content into words, lines, or blocks.
Key element identification: detecting target fields such as amounts, dates, names, etc.
Structuring: organizing the extracted data into a usable format (table, database, JSON, etc.).
Validation: checking the quality of extracted data and handling errors.
These steps are often combined with document automation tools that enhance both the reliability and performance of data extraction.
Main Use Cases of Parsing
The need for automated data extraction exists across nearly every industry that handles documents. Here are some typical use cases that illustrate how parsing delivers value in different fields:
Finance & Accounting
Document Type
Use Case
Benefits
Supplier invoices, expense reports
Extraction of key data (invoice number, date, amounts, VAT, supplier, line items) for direct ERP integration.
Avoids manual re-entry, improves accounting reliability, speeds up payment processing.
Purchase orders, delivery notes
Automated reading of references, products, quantities, and addresses for logistics tracking and order/delivery matching.
Automates purchasing and inventory management, reduces tracking errors.
Bank statements, financial documents
Extraction of transaction lines, form data, or financial reports for analytical processing or audit purposes.
Facilitates financial analysis, anomaly detection, and automation of controls.
Human Resources
Document Type
Use Case
Benefits
CVs and Cover Letters
Extraction of contact details, skills, degrees, and work experience to automatically populate profiles in HRIS or ATS systems.
Time saved on data entry, automated candidate screening, faster recruitment process.
Contracts, HR Forms, Evaluations
Automatic reading of key data (contract dates, job titles, clauses, compensation, etc.).
Improved HR tracking, better compliance, more reliable employee data.
Paper Expense Reports
Capture of amounts, dates, and expense categories via OCR, even from receipts or invoices.
Automated reimbursement and simplified accounting integration.
Legal & Public Sector
Document Type
Use Case
Benefits
Contracts, leases, legal documents
Extraction of key clauses (termination, amounts, durations, stakeholders) via NLP to support review and structuring.
Automated order reading, customer feedback analysis using NLP for categorization or prioritization.
Time savings in logistics and customer service, identification of recurring issues, automation of after-sales processes.
Tools and Languages for Parsing
Document parsing relies on a set of software tools and programming languages designed to automatically extract, structure, or interpret content from digital files. Choosing the right technology is a key success factor in any document automation project.
There are two main approaches to implementing document parsing: using technical tools (parsing libraries integrated into code) or relying on ready-to-use application solutions like Koncile. The table below compares these two types of tools based on their use cases, user profiles, and levels of abstraction.
Koncile, Mindee, Rossum, Google Document AI, Azure Form Recognizer
User Profile
Developers, data teams, internal tech departments
Project managers, business functions (Finance, HR, Legal)
Installation
To be installed and integrated in Python/Java code
Ready-to-use SaaS application or API
Learning Curve
High: requires technical skills
Low: intuitive interface, no-code setup
Flexibility
Very high (full code control)
Medium to high (depending on configuration options)
Implementation Speed
Slow (development, training, validation)
Fast (PoC or immediate deployment)
Preferred Use Cases
Custom parsing, specific processing, R&D
Standardized data extraction (invoices, KYC, contracts…)
Maintenance & Evolution
Managed by internal team (updates, monitoring…)
Handled by the vendor, support included
Initial Cost
Low (open-source), but time-consuming
Variable (per document, per use, or monthly plan)
Languages Commonly Used for Parsing
Python: the most widely used language for document parsing, thanks to its rich ecosystem (OCR, NLP, PDF extraction, etc.).
Java: often used in enterprise architectures for building robust, scalable parsers.
JavaScript: useful for parsing JSON or interacting with the DOM of web pages.
Bash/Shell: suitable for parsing simple text files, logs, or CLI outputs.
These technologies enable the development of document parsing pipelines tailored to business needs including field extraction, classification, structuring, and semantic enrichment.
How Does Syntactic Analysis Work?
Syntactic analysis is an advanced parsing method that breaks down a text into grammatical elements to understand its logical structure. It goes beyond simple keyword extraction by identifying relationships between words — such as the connection between a subject, verb, and object.
In document parsing, this approach enables accurate interpretation of natural language content like contracts, reports, emails, or legal documents.
Syntactic parsing allows software to:
Understand sentence structure (e.g., "The tenant agrees to pay a monthly rent of €750")
Identify entity relationships — who is doing what, to whom, and under what conditions
Extract data with greater context, even when phrasing varies (e.g., "monthly rent of €750" vs. "€750 in rent")
Detect linguistic dependencies to avoid incomplete or ambiguous extractions
In short, syntactic analysis goes beyond surface-level reading: it helps reconstruct the meaning of the text — a crucial step when dealing with complex documents.
This process typically involves several steps:
Tokenization: breaking text into units (words, punctuation, etc.)
Part-of-speech tagging: identifying the grammatical role of each word (noun, verb, adjective, etc.)
Dependency parsing: building a graph that maps each word to its syntactic function (subject of, complement of, etc.)
Syntax tree generation: creating a hierarchical representation of the sentence, usable by rule-based systems or AI models
This parsing workflow is handled by modern NLP engines, often trained on large multilingual datasets.
The Main Approaches to Document Parsing
Document parsing can rely on different technologies, each suited to a specific context or type of document. The three main categories are: syntactic parsing, rule-based extraction, and AI/NLP-based approaches.
Syntactic Parsing
This method relies on analyzing the grammatical or logical structure of the text. It is commonly used to process natural language documents (contracts, reports, etc.) by identifying relationships between words (subjects, verbs, objects, etc.).In semi-structured documents (such as logs or XML files), it uses formal grammars to extract blocks of information.Syntactic parsing offers high precision when the structure is known in advance, but it lacks flexibility when documents vary.
Rule-Based Extraction
Here, extraction is based on manually defined rules such as regular expressions, fixed positions, or keywords. This method is effective for homogeneous documents like standardized forms, invoices, or bank statements.It offers full control over what is extracted, but it is rigid any change in document format requires the rules to be updated. For simple and repetitive use cases, it is often the fastest solution to implement.
Artificial Intelligence and NLP
AI-based approaches (machine learning, deep learning) learn to extract data from annotated examples. By combining layout analysis with semantic understanding, they adapt to a wide variety of documents even unstructured ones. Models like LayoutLM achieve high accuracy rates and continue to improve over time through human corrections. This method is ideal for processing large volumes and diverse formats but requires an initial investment in annotation and model training.
Why Use Parsing in Business?
Document parsing offers numerous practical benefits for businesses looking to automate and secure their document processing.
Benefit
Description
Time savings
Faster document processing: just seconds compared to several minutes of manual entry.
Increased productivity
Teams are freed from repetitive tasks and can focus on higher-value missions.
Cost reduction
Less manual entry, fewer errors, fewer delays = significant savings.
Data reliability
More consistent and accurate extraction, with validation rules to ensure quality.
Faster workflows
Quicker processing of invoices, contracts, purchase orders… and improved responsiveness overall.
Compliance and traceability
Extraction history available, easier compliance for audits and legal obligations.
Data valorization
Data ready for analysis, automation, or decision-making (BI, reporting, anomaly detection…).
In short, using document parsing in a business context means automating repetitive tasks, improving data accuracy, and boosting operational efficiency — often with a fast return on investment. In many cases, an OCR/AI project pays for itself within just a few months thanks to the hours of manual work saved.
Tips for Choosing the Right Parsing Solution
Given the wide range of tools available on the market, it’s essential to identify the solution that best aligns with your use cases, document types, and technical constraints. Here are the key criteria to consider for making an informed decision.
Volume to Process and Expected Speed
Start by assessing the number of documents to be processed (daily, monthly) and the level of responsiveness required.
For high volumes or near real-time needs, opt for scalable solutions that can handle increased workloads such as cloud-based services or multithreaded OCR engines.
Conversely, for smaller volumes, a lightweight local tool or open-source solution may be sufficient.Also check whether the tool supports batch or parallel processing, especially if you experience activity spikes.
Document Diversity and Complexity
The type of documents you handle greatly influences the choice of technology.
Structured and consistent documents (such as CERFA forms or bank statements) can be processed effectively using rule-based methods or simple models.
More diverse content with free or loosely standardized formats typically requires AI and NLP-based approaches.
If your documents include partially or fully handwritten content, make sure the tool supports handwriting recognition (ICR).For text-heavy documents (emails, contracts, etc.), the quality of language processing such as multilingual NLP or French language support is a key factor to consider.
Available Technical Expertise
Your organization’s technical maturity will largely determine the type of solution that’s feasible.
If you have a data or tech team, you may consider a custom development based on open-source components
However, for a faster deployment or if internal resources are limited, a ready-to-use solution with dedicated support is the better choice.
Also think about ongoing maintenance: who will update the models, adjust the rules, or oversee extraction quality?The level of support offered by the provider is a key decision factor.
Hosting and Security Requirements
The deployment model (cloud or on-premises) depends on your internal policies and regulatory requirements.
Cloud solutions offer agility, simplified maintenance, and automatic scalability.
However, if you handle sensitive data (e.g. in healthcare, finance, or legal sectors), an on-premise solution or one hosted in a certified private cloud is often a better fit.
Be sure to check security guarantees such as GDPR compliance, HDS hosting, ISO 27001 certification, and more.
Budget and Return on Investment (ROI)
Your budget will naturally influence your choice, but it should be weighed against the expected productivity gains.
Open-source solutions are inexpensive upfront but require significant development and ongoing maintenance.
Commercial solutions come at a cost but are often faster to implement and deliver ROI more quickly
Some platforms operate on a consumption-based model (per page or per document), which can be cost-effective at the start but be mindful of rising costs as volumes grow.A simple ROI analysis (time saved, errors avoided, reduced manual entry) can help make an objective decision.
Try Before You Buy: Proof Through Practice
Before making any commitment, run a Proof of Concept (PoC) using a representative batch of documents.
Test multiple solutions and assess their accuracy, usability, field extraction capabilities, and API integration with your existing tools.
Pay close attention to how errors or edge cases are handled (e.g., poorly scanned documents, unknown formats).
Also evaluate the quality of support: responsiveness, guidance, documentation, and overall assistance.
Parsing – Key Takeaways
Parsing plays a key role in automating document processing. Whether syntactic, rule-based, or powered by artificial intelligence, it transforms unstructured documents into usable, structured data.
It delivers major benefits for businesses, including:
Time and productivity gains
Reduced human error
Reliable, traceable data
Automated document workflows
The right parsing technology depends on your document types, processing volume, available technical resources, and desired level of automation.
To ensure a strong return on investment, it’s recommended to:
Run a proof of concept (PoC) using real documents
Evaluate extraction accuracy and integration ease
Analyze scalability and the quality of technical support
In summary, document parsing is a foundational step toward intelligent information processing. When properly implemented, it paves the way for faster, more reliable, and more efficient document management.
A concrete example of how document automation can drive operational performance. Nona automated its supplier invoice processing by integrating Koncile’s OCR into its vendor management workflow.