OCR, or Optical Character Recognition, is a technology that converts physical data such as invoices, purchase orders, bank statements into digital data that can be edited and searched. Accounting handles a large volume of documents on a daily basis, therefore, manual methods are no longer effective due to some challenges such as being time-consuming and error-prone. This is where OCR plays important roles in accounting, OCR automates document processing, making it faster and more efficient. Staff can also be more productive by focusing on strategic activities rather than conducting repetitive tasks. This article will provide you with 5 ways of how OCR significantly improves accounting teams, as well as recommendations on the best OCR software for businesses that want to switch to automation.
1. Automated Data Entry
While the manual method involves inputting data from invoices or receipts into a system one by one, OCR allows this process to be automated. Imagine one document can be completed in an hour manually; however, hundreds or even thousands can take hours or even days. With OCR, hundreds or even thousands can be completed in minutes. Staff can simply upload documents into the OCR system, and they will be read and extracted automatically. This significantly saves time and effort.
2. Faster Document Processing
Documents like invoices can be processed effectively with OCR. It extracts key invoice details such as vendor names, dates, amounts, and items faster. This can speed up cycles, as the extracted process can be faster, allowing analysis and decision-making to happen more quickly. It also reduces payment delays that disrupt relationships with suppliers.
3. High Accuracy and Fraud Prevention
OCR eliminates errors that can be caused by humans, such as typos, miscalculations, and missing fraud. This reduces the need for manual reviews, which can take time. OCR has a high level of accuracy, ensuring the data extracted is accurate and detecting potential fraud that is difficult to flag with human eyes.
4. Improved Searchability and Accessibility
With OCR, all financial documents, like invoices, receipts, bank statements, and more, are converted into digital data that can be searched. This allows accountants to instantly find files by searching for keywords, dates, or amounts for specific records without having to dig through piles of paper.Teams can access data anytime and anywhere, making timely decisions and generating financial reports.
5. Cost Savings
Manual methods may appear cheaper because they do not implement advanced technology, but in reality, they require significant human effort to process large volumes of documents. This labor-intensive method ends up costing more in salaries and time. When calculated, the total spent exceeds automation. Using OCR, businesses just pay for the initial setup of tools that integrate with their existing systems. OCR provides long-term benefits by eliminating manual work, resulting in significantly minimized operational costs.
Verihubs, OCR Software Solutions for Accounting Teams
OCR is important to speeding up document processing and ensuring seamless workflows. With the five benefits mentioned, Verihubs covers them effectively. It can extract any type of document in any format, making it easier for businesses to process without first converting it into a specific format. Verihubs can also be integrated with accounting software, allowing the retrieved data to be exported automatically to the systems. For security, Verihubs is certified by trusted institutions, ensuring that sensitive information in documents is highly protected. As OCR provides cost-saving benefits, Verihubs is available at an affordable price, making you save even more.
As business competition grows and OCR is implemented across many industries, it is important for your business to stay efficient. Contact us now to experience the benefit of your accounting team.
