Introducing FootNoteDB: A Database of Footnotes from Public Company 10-K Filings

Tellen’s mission is to help accounting firms transform themselves through AI, and today, we are excited to share a new, free tool called FootNoteDB, which will help auditors research hundreds of thousands of 10-K footnotes.

Unlike traditional searchable databases that rely on basic keyword matching, 

FootNoteDB leverages the power of generative AI to understand the nuances of human language and the complexities of financial reporting. 

This means you can ask sophisticated questions in a conversational way, such as "Show me examples of SaaS companies that bill customers based on their usage of the service, but also have a minimum fee that customers must pay each month, even if they don't use the service much. I want to see how they are handling this under ASC 606, specifically how they are allocating revenue between the usage component and the minimum commitment."

You will receive accurate, synthesized examples of footnotes that closely resemble your queries with answers drawn directly from the 10-K disclosures. FootNoteDB unlocks a new level of efficiency and insight, making it easier than ever to research the world of financial disclosures.

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FootNoteDB Is a Free Research Tool For Auditors

We are releasing FootNoteDB as a free tool because we want auditors to experience the power of generative AI in their daily routines. We encourage anyone conducting financial disclosure research to use FootNoteDB to reduce time by quickly finding those unique footnotes.

FootNoteDB is part of our larger workflow tool, which is under construction, called FootNoteAI, which will help auditors generate new footnotes in a fraction of the time that it has traditionally taken.   

Here is how FootNoteDB differs from a traditional searchable 10-K database:

Traditional Searchable Database:

• Keyword-based: Relies on matching exact keywords or phrases in your search query to the data stored in the database.   
• Structured data: Works best with structured data like names, dates, and categories, which are easily indexed and searched.
• Limited understanding: Doesn't truly understand the meaning or context of your search or the data itself.
• Rigid search: Requires precise search terms to get relevant results. Minor variations can lead to missed information.

Tellen’s Generative AI-powered Searchable 10-K Database:

• Semantic understanding: Uses natural language processing (NLP) to understand the intent and meaning behind your search query, even if it is not phrased perfectly.   
• Unstructured data: Can effectively search and understand unstructured data, including text, tables, and images inside 10-Ks.   
• Contextual awareness: Considers the context of your search and the relationships between different pieces of information in the database.   
• Flexible search: Allows for more natural and conversational search queries, providing relevant results even with variations in phrasing or terminology.     

These features mean you spend less time hunting for information and more time analyzing and applying it.

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Abby's Story: How FootNoteDB Can Make a Difference

To show you how FootNoteDB can help, we want to share the story of Abby, an experienced audit director at a mid-sized accounting firm who recently tackled a tough challenge.

Abby has on-boarded a new client, a middle-market insurance company, which recently acquired an insurance broker to expand its services and customer base. 

This middle-market private company has sophisticated accounting needs but has struggled to hire enough accounting staff to keep up with its evolving needs. As a result, this company has asked Abby to conduct an audit and produce its financial statements. This client has accepted Abby’s offer to complete the audit and financial statement preparation for a fixed cost.

Abby knows that financial statement preparation will typically take 10-25% of her firm’s audit time for a new client, with 80%+ dedicated to new footnote disclosure production. Abby realizes that if she can use an AI-powered footnote generation tool, then any savings in time will drop to their bottom line.

Abby knows that this is a complex footnote, and she will need to research both ASC 805 and ASC 944 disclosures (for insurance company acquisitions). She must articulate the acquisition’s impact on reserves/unearned premiums, integration of the acquired book of business & reinsurance changes, and how they value intangible assets. Abby decides to turn to FootNoteDB to learn how others have structured similar footnotes.

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Discovering FootNoteDB

With FootNoteDB by her side, Abby was able to quickly research and discover footnotes with similar profiles. Since she knew exactly what she was looking for, it was easy for her to type in a query just like she would say it. 

She typed:

• Search Query: "Find business combination disclosures that involve the acquisition of an Insurance Broker."

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In seconds, FootNoteDB gave her a tailored list of relevant disclosures from companies that had made similar acquisitions. Each result showed:

• A snippet highlighting the key info.
• The company name and filing date.
• A direct link to the specific section in the 10-K filing.

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Public Footnotes Are Nice, But Private Footnotes are the Game Changer

Abby saved several hours of research and delivered a thorough, accurate document that impressed her client and firm leadership. She realized that an AI-powered searchable database of her firm's footnotes, would be a game changer. Such a resource could:

• Be More Relevant: Give immediate access to disclosures directly applicable to her firm's clients.
• Promote Consistency: Ensure everyone on the team uses standardized language and follows the firm's best practices.
• Boost Efficiency: Cut down on duplicate work by reusing and adapting existing footnotes.

Abby's experience highlighted the huge benefits of having her firm's collective knowledge in a centralized, searchable place.

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Introducing FootNoteDB's Private Repository Feature

Abby’s story shows a typical user journey. She had the chance to experience generative AI search and she was hooked, because it was so easy and helped become much more accurate and productive.

Tellen can offer the 10-K database for free, because we really want to build your FootNoteDB Private Repository Feature, which enables firms to upload and manage their own collection of footnotes and disclosures.

With this feature, you can:

• Centralize Your Firm's Knowledge: Keep all your company's footnotes in one secure, searchable spot.
• Enhance Relevance: Quickly find disclosures that fit your firm's clients and cases.
• Promote Consistency: Make sure everyone is using up-to-date, standardized language in their disclosures.
• Improve Efficiency: Save time by reusing and adapting existing footnotes instead of starting from scratch.

By adding your firm's own footnotes to FootNoteDB, you can make your disclosure preparation process even more efficient and effective.

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Ready to Give FootNoteDB a Try?

If you're an auditor, accountant, or finance pro involved in preparing disclosures, FootNoteDB is here to make your research easier. See how FootNoteDB can change the way you approach financial disclosures, making the research phase quicker and more effective.  

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