The Best OCR Software for Accounts Payable: Streamline Your Invoice Processing ‍

SHARE

In today’s digital age, businesses are constantly seeking ways to improve efficiency and automate time-consuming tasks. When it comes to accounts payable, one area that can greatly benefit from automation is invoice processing. This is where OCR software comes in. OCR, or Optical Character Recognition, is a technology that enables the conversion of printed text into digital text that can be edited and manipulated. In this article, we will explore the best OCR software options available for accounts payable teams, and how they can streamline the invoice processing workflow.

What is OCR Software and How Does it Benefit Accounts Payable?

OCR software plays a crucial role in transforming paper invoices into digital files that can be easily edited and processed. With the help of OCR, accounts payable teams can extract data from various sources and compile it into a neat, digitized document. This not only saves time but also minimizes the risk of human error. By automating the extraction and utilization of information, OCR software allows invoices to quickly enter the next stage of the processing cycle, which is forwarding them to the appropriate person or department for approval.

OCR software for accounts payable is becoming the standard among middle-market companies, as automation is key to freeing up the department from overwhelming paperwork. The ideal OCR software should be a helpful tool that works alongside the accounts payable team, preparing invoices for review and minimizing the opportunity for errors. It should also be able to automate further by automatically entering data or coding the text it scans, making the processing of invoices even more efficient.

The Best OCR Software for Invoice Processing

When it comes to choosing the best OCR software for accounts payable, there are several factors to consider. The software should be specifically designed for efficient invoice processing and offer features that cater to the needs of the accounts payable team. Let’s take a closer look at some of the top OCR software options available:

  • AvidXchange: AvidXchange offers OCR software that not only scans invoices but also processes and delivers them to the accounts payable team via their platform. With machine learning technology, AvidXchange’s OCR software can extract structured data from invoices automatically, streamlining the entire invoice processing workflow.
  • Rossum: Rossum is a cloud-based OCR solution that utilizes artificial intelligence (AI) technology to capture data electronically. It allows users to extract structured and semi-structured data from multiple documents, making it a versatile option for accounts payable teams.
  • AutoEntry: AutoEntry is an OCR software service that integrates with multiple accounting solutions, including Quickbooks, Xero, Sage, Freshbooks, and more. It automates data entry by extracting data from receipts, invoices, statements, and other documents, simplifying bookkeeping tasks and unlocking time savings.
  • Tipalti: Tipalti offers OCR invoice scanning capabilities and automation for the entire accounts payable workflow. It eliminates 80% of manual workload, streamlining the invoice processing cycle and improving efficiency.
  • Nanonets: Nanonets is an OCR platform designed to help businesses digitize PDFs, receipts, and other documents using deep learning methods. It allows managers to convert food menus into structured data with prices and names, making it a unique option for certain industries.
  • DocuPhase: DocuPhase provides capture and recognition tools that automate the capture of key data using OCR. This allows for effortless organization of data and documents, making information readily available to the accounts payable team when they need it.
  • Datamolino: Datamolino extracts data from receipts, bills, and invoices, eliminating the need for manual data entry. It seamlessly exports the extracted data into accounting software, making the invoice processing workflow more efficient.
  • Square 9: Square 9 is an enterprise content and document management platform that includes OCR capabilities. It helps businesses streamline document capture and automate processes, making invoice processing more efficient.

These are just a few examples of the best OCR software options available for accounts payable teams. Each software has its unique features and benefits, so it’s important to evaluate your specific needs and choose the one that best fits your requirements.

OCR for Invoice Processing: Benefits and Use Cases

The utility of OCR for invoice processing is unmatched when it comes to identifying, processing, and synthesizing invoice information. Traditionally, going through invoices and extracting important data manually can be a time-consuming and error-prone process. OCR software significantly speeds up this process by automatically extracting data from invoices and converting them into a digitized, usable format.

OCR for invoice processing has several benefits, including:

  • Time savings: OCR software automates the data extraction process, allowing accounts payable teams to process invoices faster and more efficiently.
  • Accuracy: By eliminating manual data entry, OCR software reduces the risk of human error, ensuring accurate data extraction and processing.
  • Cost savings: Automating invoice processing with OCR software reduces the need for manual labor, saving businesses significant costs associated with manual data entry and processing.
  • Improved workflow: OCR software streamlines the invoice processing workflow, making it easier for accounts payable teams to review, approve, and process invoices in a timely manner.

Use cases for OCR in invoice processing include:

  • Matching invoices to purchase orders: OCR software can automatically compare the amount on invoices to the corresponding purchase orders, identifying any discrepancies that require further attention before payment approval.
  • Coding and categorizing invoices: OCR software can automatically code and categorize invoices based on predefined rules, simplifying the process of organizing and managing invoices.
  • Data extraction from various formats: OCR software can extract data from a variety of invoice formats, including printed text, PDFs, and more, making it easier to process invoices regardless of their original format.

Overall, OCR for invoice processing offers numerous benefits and use cases, enabling accounts payable teams to work more efficiently and accurately.

Open Source and Free OCR Invoice Scanning: Pros and Cons

When considering OCR software for invoice processing, you may come across open-source or free options. While these options may seem appealing, it’s important to consider their pros and cons before making a decision.

Open-source OCR software allows for customization and tailoring to specific needs and workflows. However, it may not be as focused or well-supported as commercial OCR software. Open-source software may not offer the same level of features, support, and compatibility with other systems as commercial options.

Free OCR invoice scanning software can be useful for scanning and converting invoices into digital text. However, they may lack advanced features such as automated data extraction, invoice matching, and coding. Free software may also have limitations in terms of scalability and integration with other accounting systems.

Before opting for open-source or free OCR software, consider the complexity of your accounts payable system and the specific needs of your industry. It’s important to choose a solution that provides the necessary features and support to streamline your invoice processing workflow effectively.

The Power of OCR APIs for Invoice Processing

APIs (Application Programming Interfaces) play a crucial role in integrating OCR technology into existing systems and workflows. OCR APIs enable seamless scanning of invoices into a platform like AvidXchange, saving time and improving the accounts payable team’s workflow. With OCR technology as a feature, the approval process can start quickly, as invoices are scanned and converted into a usable dataset for further processing.

Using the best OCR API for your invoice processing software can help you quickly move through the approval process. Matching invoice information to purchase orders becomes more efficient, and the extracted data from OCR technology is immediately usable for invoice matching. Having a user-friendly invoice OCR API can be advantageous in efficiently processing invoices, improving overall productivity.

Conclusion

OCR software is a powerful tool for accounts payable teams looking to streamline their invoice processing workflow. By automating the extraction and utilization of data from invoices, OCR software saves time, reduces errors, and improves overall efficiency. With a wide range of OCR software options available, it’s important to consider the specific needs of your accounts payable team and choose the software that best fits your requirements.

Whether you opt for commercial OCR software like AvidXchange, Rossum, or AutoEntry, or explore open-source and free options, OCR technology can greatly enhance your invoice processing capabilities. Additionally, leveraging OCR APIs can further streamline the invoice processing workflow by integrating OCR technology into existing systems.

Take advantage of the benefits that OCR software offers and unlock the true potential of your accounts payable department. Streamline your invoice processing, save time, reduce errors, and improve overall efficiency with the best OCR software for accounts payable.