Invoices are one of the most important documents in business operations. Efficiently managing invoices is essential for companies to maintain smooth workflows and accurate financial records. To streamline this process, many businesses are turning to Optical Character Recognition (OCR) technology. OCR is an advanced tool that can quickly extract data from invoice, making it easier for financial and accounting teams to input and organize information. In this article, we will delve into how OCR works and how to effectively use it to extract data from invoice.
What is OCR?
OCR, short for Optical Character Recognition, is a technology that extracts and converts data from various types of documents, such as scanned paper documents, PDF files, or images, into editable and searchable data. OCR software is particularly helpful for quickly extracting data from invoices, eliminating the hours typically spent on manual data entry.
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Benefits of Using OCR for Extracting Data from Invoices
OCR is very helpful for extracting data from invoices, making business operations more efficient. Here are the key benefits of using OCR for invoice data extraction.
1. Less Time Spent
Manual data entry is very time-consuming and prone to errors. With OCR, the extraction process can be completed in minutes, significantly reducing the time spent handling invoices. This allows workers to focus on more valuable tasks.
2. Accuracy
OCR not only speeds up the extraction process but also offers high accuracy. It eliminates human error, ensuring that financial records are precise and reliable.
3. Cost Savings
Implementing OCR for extracting data from invoices can help businesses save on operational costs, such as labor costs associated with manual data entry. These savings can be reallocated to more strategic tasks, enhancing overall efficiency.
4. Enhanced Productivity
OCR can handle a large volume of invoices, allowing financial and accounting teams to concentrate on more value-added activities. This increase in focus and efficiency boosts overall productivity.
Steps to Extract Data from Invoice Using OCR
1. Choose the Right OCR Software
There are various OCR software options available. You can choose OCR from Fintelite because the advanced Fintelite OCR is suitable for every industry in managing documents, especially invoices.
2. Scan or Upload Invoices
Start by scanning paper invoices or uploading digital invoices (such as PDFs) into the OCR software. Ensure the scans are clear and of high quality to improve the accuracy of the OCR process.
3. Processing the Documents
Once the documents are uploaded, the OCR software will process them to read and extract data from the invoices.
4. Review and Verify Data
After the OCR software extracts the invoice data, it’s crucial to review and verify the data for accuracy. Any missing or incorrect data can impact the entire process. In Fintelite, you can edit the OCR reading results, ensuring higher accuracy.
5. Export Data
Export the extracted data into various formats, such as CSV or Excel, depending on what your software provides. With Fintelite, you can export the results of extracted invoices into CSV, Excel, JSON, or even directly into accounting software such as Xero, Jurnal, and QuickBooks, making the process easier and more efficient.
Conclusion
Extracting data from invoices using OCR is helpful for improving business operations and ensuring businesses stay ahead in this competitive digital era. Fintelite is a great option for businesses that handle a large volume of invoices. With OCR technology that is 10 times faster than manual work and offers over 90% accuracy, Fintelite makes invoice data extraction more efficient and effective. To experience the power of the dashboard, Fintelite offers a free trial to access the full range of advanced features.
