The Utilization of OCR Tools for Accounting and Financial Management

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OCR tools is a game changer in financial industry. Most accounting activities always involve information from physical documents such as invoices, contract, document,  sale and purchase invoices, and other physical documents. Not infrequently, Managing documents with a variety of data can be time-consuming.

Fortunately, OCR technology, or Optical Character Recognition, is now available, allowing us to manage physical documents in a fast, effective, and accurate way.

The use of OCR tools for accounting and financial management is quite beneficial. With OCR, physical data can be quickly converted into computer text data. As a result, the recording and analyzing processes are more efficient.

What is an OCR application?

The term “OCR” is still uncommon in Indonesia, despite the fact that its implementation has been seen many times. OCR is short for Optical Character Recognition, a new technology capable of converting physical images into text formats that machines can read.

In the past, we couldn’t change the text or numbers in an image or pictures. However, with OCR, that image may now be saved in text data form and edited directly.

How can OCR technology work

Before going into more detail  about the utilization of OCR tools in accounting, we need to first know how OCR works. OCR works in three stages. First, an image or photo is scanned, followed by pre-processing, and lastly, character recognition.

1. Image scanning

First, OCR begins by scanning the picture of a physical document using a camera or from a digital file containing the text to be recognized. The scanned image could be a document, a book, a shopping receipt, an invoice,etc.  

2. Pre-processing

The scanned images must be processed first before character recognition can be performed. The steps in preprocessing can include image compression, noise reduction, image cropping, geometry correction, and contrast adjustment. 

3. Image character recognition

Following the completion of pre-processing, the next step is the process of character recognition and identification based on patterns in machine learning’s algorithms. The result of this character recognition is computer text that can be analyzed, saved, or edited as needed by the user.

The utilization of OCR tools for Accounting

The functions and uses of OCR tools in accounting are extremely varied. The sophistication of this technology allows it to cut down the processes of recording and analyzing numbers on physical documents quickly without having to record them manually one by one.

1. Processing various kinds of financial transactions with OCR Tools

OCR tools can be used to recognize printed information on purchase orders, invoices, and other accounting physical documents. Important things such as invoice numbers, dates, amounts, and transaction details can be extracted automatically and imported into the cash book system.

2. Saving data in an important document fast

Besides recording financial transactions, OCR tools can assist in recognizing key information in documents such as financial reports, contracts, and agreement letters.

This is very helpful for accountants or employees in the financial area. In the past, they had to input data one by one from the recording of expenses and income. But now, their work has become more efficient; just take a photo of that important document, and that data will be automatically entered into the system.

3. OCR Tools Can Analyzing data 

Before the advent of OCR, the process of analyzing data took a long time. Now, OCR is able to analyze scanned data in the system more efficiently and precisely. Moreover, the analysis result can be directly presented in the form of a graphic or a table, as needed.

4. Archive physical documents

Accounting activities involve plenty of physical documents that must be correctly archived. With OCR tools, that document can be saved in digital form and indexed into a storage system. As a result, the process of searching can be done efficiently.

Fintelite’s OCR+ maximizes accounting recording and financial management in a fast way

Four uses of OCR tools for accounting mentioned above can be found in Fintelite’s OCR+ product. Fintelite’s OCR+ is very suitable for medium-sized businesses and big industries as a tool for financial data processing fast and accurately. Try For Free or Consult for Free now.

OCR+ can automate the input process, verification, and transaction categorization that used to be done manually. Just input the document’s photo or digital file.

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Invoice.xls