# Structure First, Reason Next: Enhancing a Large Language Model using Knowledge Graph for Numerical Reasoning in Financial Documents

arXiv: https://arxiv.org/abs/2601.07754 · HTML: https://mlsanity.com/paper/2601.07754/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in Reasoning for agents, planning and code, one of 17 directions in LLM reasoning.
- Builds on 12 of its 16 references that are in the map.
- First posted on arXiv 12 Jan 2026.

## Placed in

- LLM reasoning / [Reasoning for agents, planning and code](https://mlsanity.com/lr/reasoning-for-agents-planning-and-code/)

## Builds on (most cited first, 12 of 12)

- [The Llama 3 Herd of Models](https://mlsanity.com/paper/2407.21783/) (2024)
- [JudgeLM: Fine-tuned Large Language Models are Scalable Judges](https://mlsanity.com/paper/2310.17631/) (2023)
- [HybridRAG: Integrating Knowledge Graphs and Vector Retrieval Augmented Generation for Efficient Information Extraction](https://mlsanity.com/paper/2408.04948/) (2024)
- [A Survey of Large Language Models for Financial Applications: Progress, Prospects and Challenges](https://mlsanity.com/paper/2406.11903/) (2024)
- [Fin-R1: A Large Language Model for Financial Reasoning through Reinforcement Learning](https://mlsanity.com/paper/2503.16252/) (2025)
- [Simple Is Effective: The Roles of Graphs and Large Language Models in Knowledge-Graph-Based Retrieval-Augmented Generation](https://mlsanity.com/paper/2410.20724/) (2024)
- [Fino1: On the Transferability of Reasoning-Enhanced LLMs and Reinforcement Learning to Finance](https://mlsanity.com/paper/2502.08127/) (2025)
- [DianJin-R1: Evaluating and Enhancing Financial Reasoning in Large Language Models](https://mlsanity.com/paper/2504.15716/) (2025)
- [Struct-X: Enhancing Large Language Models Reasoning with Structured Data](https://mlsanity.com/paper/2407.12522/) (2024)
- [APOLLO: An Optimized Training Approach for Long-form Numerical Reasoning](https://mlsanity.com/paper/2212.07249/) (2022)
- [Thinking with Knowledge Graphs: Enhancing LLM Reasoning Through Structured Data](https://mlsanity.com/paper/2412.10654/) (2024)
- [Pyramid-Driven Alignment: Pyramid Principle Guided Integration of Large Language Models and Knowledge Graphs](https://mlsanity.com/paper/2410.12298/) (2024)

## Abstract (arXiv)

Numerical reasoning is an important task in the analysis of financial documents. It helps in understanding and performing numerical predictions with logical conclusions for the given query seeking answers from financial texts. Recently, Large Language Models (LLMs) have shown promising results in multiple Question-Answering (Q-A) systems with the capability of logical reasoning. As documents related to finance often consist of long and complex financial contexts, LLMs appear well-suited for building high-quality automated financial question-answering systems. However, LLMs often face challenges in accurately processing the various numbers within financial reports. Extracting numerical data from unstructured text and semi-structured tables, and reliably performing accurate calculations, remains a significant bottleneck for numerical reasoning in most state-of-the-art LLMs. Recent studies have shown that structured data augmentations, such as Knowledge Graphs (KGs), have notably improved the predictions of LLMs along with logical explanations. Thus, it is an important requirement to consider inherent structured information in financial reports while using LLMs for various financial analytics. This paper proposes a framework to incorporate structured information using KGs along with LLM predictions for numerical reasoning tasks. The KGs are extracted using a proposed schema inherently from the document under processing. We evaluated our proposed framework over the benchmark data FinQA, using an open-source LLM, namely Llama 3.1 8B Instruct. We observed that the proposed framework improved execution accuracy by approximately 12% relative to the vanilla LLM.