Although capturing invoices is a crucial step in your accounting process, it takes up a lot of time manually inputting the data from the invoice into the accounting system. In addition, it is a time-consuming and error-prone process due to human mistakes, duplicate data, and misplacement of documents.
The question is, can an automated invoice OCR system make this process more efficient and with less wastage of time, paper, and manual resources? The answer is, yes. Let’s see how.
What is invoice OCR?
By using automated invoice OCR technology, you can automatically extract data from your invoices, cutting down on the amount of time your staff must spend processing manual invoices. It also improves accuracy and decreases the likelihood of human errors, while helping your organization save resources and reduce costs.
Benefits of integrating an invoice OCR system
Here’s why you should consider digitizing invoices using accounts payable automation with invoice OCR system.
1. Helps digitize your bills
By digitizing your invoices, an invoice OCR solution enables you to develop a smoother AP process. It allows you to create machine-readable files from your scanned invoices thereby eliminating manual data entry into your database because the program can understand most types and formats of data.
2. Automated invoice processing for speedier invoicing
Processing an invoice can take up to 5 minutes to 60 minutes. An invoice OCR software can read and extract data from invoices automatically, bringing down the invoice processing time to a few seconds.
The OCR software can extract tables and text from invoice images, extract values from the fields, and even verify if the products match the approved inventory.
3. Reduces errors with accurate data capture
Errors may increase the average cost of processing an invoice. Regardless of how skilled your team may be, once the manual effort is involved, you can nearly anticipate human errors to follow suit. Delays result from mistakes such as entering the incorrect invoice number or address.
With optical character recognition technology, you can digitize bill processing and get rid of these mistakes brought on when done manually. As a result, your bills will be processed more promptly and precisely, and reduce the processing fees. Additionally, notifications will be sent to you if your OCR invoice doesn’t meet the requirements.
4. Increases flexibility
An automated invoice OCR system helps edit your invoices on various file types, including word processors, spreadsheets, PDFs, and your own bespoke database. This makes it simple to share your work with others and allows you to work in the format that best matches your needs.
The OCR software can also assist in automating various accounts payable-related operations, including drafting and sending invoices, monitoring payments, and account reconciliation.
5. Secures your invoices and payments
Data security issues can arise with paper invoices because they can be readily stolen, lost, or altered.
Invoice management using invoice OCR software makes your data secure as it is stored in the cloud. You can control the access rights and fine-grained security of your most valuable data giving you peace of mind.
Why implement OCR software?
Docsumo’s OCR engine and in-built APIs enable automated invoice data capture and processing. Docsumo’s invoice OCR capture software needs minimal configuration and allows smart extraction and validation, saving hours that would’ve been spent on entering invoice data.
The benefits of using invoice OCR are:
- Extracting data from thousands of invoices with 99% accuracy.
- Sophisticated accounts payable (AP) automation detects duplicate invoices, identifies mistakes, and detects potential fraud.
- Reduces the document processing and back office costs by nearly 50% using document classification, key attribute attribution, and data verification.
Click on this to learn more how OCR invoicing works.