Enterprises are transitioning towards digital documentation quite rapidly. Physical documents at large are being replaced by emails, scanned images, PDFs and documents in other digital formats. This has made the internal workflows lean, efficient and smooth for enterprises as most data can be shared almost instantly.
Invoice scanning OCR software has a huge role to play in this as well. Invoice scanners have helped accounts payable departments of the enterprise to go completely digital which has not only reduced errors but also ensure that payments are made on time. Documents like invoices, receipts and purchase orders are processed on a day-to-day basis and are usually done manually. With invoice scanning OCR software, this has drastically changed.
Table of Contents
Invoice Scanning OCR Software: What is it?
Invoice scanning OCR software is a solution that can capture all the relevant and important data from invoices, receipts, purchase orders and related documents and present it in a machine-readable format. This helps to seamlessly give structure to unstructured data and transfer it to automated workflows.
Extracting data such as date, amount, line items, vendor name, supplier name, and so on is the main task of invoice scanning OCR software.
Why Use Invoice OCR Scanning Software?
Invoice scanning OCR software solves the issue of transforming physical and digital data into machine-readable data. Scanned documents or non-editable PDFs are not recognized by other software and therefore, they cannot be fed into the ERP system. This poses a major challenge for enterprises to take a step forward towards digital transformation.
This is where invoice scanning OCR software comes useful. Invoice scanning OCR software can identify, capture and present important data from documents in readable formats such as CSV, Excel, JSON etc. By using invoice scanners, enterprises can ensure a seamless flow of data into digital workflows by feeding invoice data wherever it may be required.
Advantages of Invoice Scanning OCR Software
The following listed are some of the many advantages that invoice scanning OCR software has to offer:
- Accuracy is higher in comparison to manual processes and the errors are few.
- Invoice scanning OCR software can extract data such as date, amount, and invoice numbers and extract data accurately from line items of the documents as well.
- The invoice processing time reduces drastically. Payments can be therefore made or received on time. An enterprise may also enjoy early payment discounts.
- Elimination of manual processes and human resources can save massive costs for the enterprise.
- The accounts payable team can then dedicate hours to core operations and business-critical tasks.
- It can accommodate higher volumes of data upon request as the process is easily scalable.
- Can be easily integrated with an ERP solution to create a complete, end-to-end digital workflow. KlearStack AI can be integrated with QuickBooks and RPA.
Disadvantages of Invoice Scanning OCR Software
If there are advantages to a solution, then there are disadvantages as well. Disadvantages need not be necessarily a huge setback but evaluating the pros and cons is important for your enterprise to make a wise decision. Below listed are some disadvantages of having invoice scanning OCR software:
- The accuracy of invoice scanning OCR software is not 100%.
- Data extraction from handwritten text, blurred scans, unclear images low resolution images, illegible fonts and titled texts can impact the performance and accuracy.
- At times, it may not be able to recognize invoice formats that are completely new to the system.
- Data extraction from line items and tables could be suboptimal.
Advancements in Modern Invoice Scanning
The disadvantages mentioned above are mainly found in old and traditional OCR software and to a certain extent, in the certain automated invoice scanning software. Today, there are many modern invoice automation solutions like KlearStack AI that leverage artificial intelligence and machine learning capabilities to reduce the impact of these disadvantages.
- Employ algorithms that learn continuously on their own and become accurate with time. As the new data is passed from the platform, the invoice scanning algorithms can retain this information for future purposes.
- Modern-day invoice scanning tools are intelligent document processing solutions that can learn to perform accurate data extractions.
- Advanced artificial intelligence, machine learning and deep learning technologies enable modern invoice scanning solutions to work with limited data. Common data constraints such as unknown types of documents or unstructured data in a document can be handled with ease.
- Extraction of data from table and line items has become straightforward as modern invoice scanners leverage AI & OCR.
Understanding invoice scanning OCR software and why it is required for enterprises are some of the key aspects that have been covered in this blog. For digital transformation, it is a must to adopt a solution that can help your enterprise transition from manual processes to completely automated ones.
KlearStack AI can process documents with complete automation and achieve the highest level of accuracy, even for unseen documents. Straight-Through Processing in KlearStack AI enables an additional layer of automation wherein data can be verified and validated with corresponding documents seamlessly. Schedule a demo with our experts to learn more about KlearStack AI, an industry leader in providing intelligent document processing solutions.