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OCR Invoice Extractor - Enterprise Podcast Network

There are two ways to process invoices; manual and automated. As it goes by the name, manual invoices processing requires a person to input the information, confirm the accuracy and achieve the documents. In contrast, OCR invoice extraction allows you to automate the processing of the invoices by using digital images to turn them into editable documents.

The invoice processing The API passes through a centralized entry point and runs the extractor. Therefore, it makes it easier for people to extract invoices from emails, SMS, or any source. In other words, invoice information extraction using OCR leaves people with time and energy to focus on their specialized work area.

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This post will mention the benefits and limitations of using OCR invoice processing software. It is suggested to read through reviews and specifications of OCR software before using them. Then, go through the reviews and pick the best OCR software for invoice processing according to your requirements.

What is OCR Invoicing?

OCR Invoicing is more like automating the invoice layouts to integrate and extract data from upload files. It is a structured database that trains a template-based OCR model to extract invoices when uploaded digitally. As a result, it decreases the time and effort it takes to input the data manually.

How does Invoice Processing OCR Work?

The OCR invoice extraction software works in a 4-step flow because no two invoices are identical. Therefore, it is important to set up various templates to understand and extract data from different invoices. It also acts as a limitation of using OCR. If any invoice not templated in the system is uploaded, the API will not extract the data accurately.

The four steps are:

  1. Pre-processing the Invoice Image: The invoices are scanned and saved in JPEG format in the standard resolution of 600x600x3 and DPI at 300. After this, the image parser puts the scanned copies into the deep learning model for training purposes.
  2. Detect the Text: After the images are parsed, they are run through the text detection model to recognize the text, tables, paragraphs, and more in the images.
  3. Recognize the Text: In this step, the OCR recognizes the location of the text and forms in the image to delineate their extent by the bounding boxes.
  4. Extract information: The software now uses various techniques to extract the data from the images and turn them into editable documents.

Benefits of Using OCR Invoice Processors

Using OCR invoice processing is beneficial in many ways for your business.

  • Reduce manual Data Entry: The main benefit of using Optical Character Recognition (OCR) is reducing the manual data entry process. The scanner and character recognition feature easily identify the patterns and convert them accordingly. You can search the documents in their designated fields.
  • Increased Efficiency: Digitalizing the invoices also helps make many processes smooth and fast. Simply knowing if the invoice is fake, digitally manipulated or other helps in sorting out the further plan of action.
  • Better Storage: Having digital storage of all the invoices, including access to information anytime, makes it beneficial for companies to use OCR invoice processing. You do not need to keep a manual record of the things. Instead, a single click will take you through the information and sort your work.

Limitations of OCR Invoice Process

Ince OCR is software; it has many benefits but also comes with a few flaws such as:

  • Low Accuracy: The inaccuracy level is somewhere at 30%, high for any business. It may affect the accounting statements as invoices play an important role in running the business.
  • Human Intervention: Since not all invoices can be put into templates, therefore, at times, it also needs human intervention to review the extracted data.
  • Hand-Written Text: It has been seen that OCR invoice processing does not work efficiently in hand-written invoices. The accuracy is much less as compared to printed invoices.

Final Words

If you plan to use optical character recognition to handle the invoices, then it is a good idea. Of course, every software has its pros and cons; however, they all work to reduce human effort and leave the team members a lot more time to process other things.

OCR invoice processors are becoming widely popular for their benefits and ease of work. Several OR invoice processors are now available in the market; you can read through their specifications and pick one for your business based on the requirement.

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