Benefits of OCR in expense management system
In the present era of globalization, where we are proceeding in all aspects of life, the world has pleasantly accepted the benefits of digitized processes and products. Smartphones are one of the most used tools by everybody for everything from grabbing a ride, paying bills to daily communication.
There is the digitization of records that saves time, paper, and workforce. Storage and archiving data are done faster and placed in larger storage space. There is more practical and efficient access to all data. It makes information easy to search and share among different relevant parties.
What is OCR technology?
Optical Character Recognition (OCR) technology lets us connect physical documentation to the digital receipt or an element. Accounting automation has been limited to the minimal tasks of managing paper receipts, invoice collection, etc., instead of its actual use, which has become possible with the OCR technology.
OCR can scan documents and transform them into files of different formats. It processes the data in the form of a document which can be a PDF or JPEG and converts it to machine-compatible or machine-friendly data. This can be printed or a hand-written text. Once digitized, this data gets easy to search, edit, and store according to the user's convenience.
8 Benefits of using OCR technology for your business
OCR technology can come off as a very beneficial tool in today’s day and age. It is proved to be advantageous in different sectors of the market. Most of all, finance and accounting would benefit from digitization.
Faster processing of payments
This technology can interpret all structured documents. They’re usually able to locate the critical data, letting you perform tasks such as depositing cheques through your phone—the need to travel to the bank and wait an hour or so to process a cheque. If your bank’s app uses this technology, then you can take a photo, and the amount gets transferred to your account in a matter of seconds.
Enforces compliance for better auditing
Optical character recognition in finance also benefits auditors through the expense reports. Audits can be done with more efficiency and convenience as auditors now have the provision of easier search through different types of documents and budget reports. In this way, the auditor can spend more time analyzing the transaction details rather than just collating and reporting each one.
Absorbs all kinds of information
Apart from receipts, transactions, and cheques, OCR can read long texts of books or presentations. There can be analysis of handwriting, making meeting notes, and information collation using more advanced technology. OCR can scan print the documents for long texts and convert each line into searchable, editable, and selectable text.
Saves time and money
It proves to save money by minimizing the need for professional finance managers. Handling the paperwork saves the time of these people, which used to be spent in entering data all day. Instead, they can focus on the more specialized aspects of their jobs, leaving the routine tasks of decoding old receipts and statements. It can be done using the software within no time.
Related page: Benefits of receipt tracking app for small business expenses
Reduces errors
There are very few chances of errors while using the software, and hence it gives a stress-free experience to its users. There is an improved convenience and efficiency of doing these things faster with much more precision and accuracy using OCR technology.
Easy accessibility
It converts information into accessible files, and the users are free to download these into their laptops, computers, and smartphones. An accountant can use a preferred device to use the data.
Digitization
You don’t need to worry about physically storing files and data since it can all be stored digitally. These can be uploaded online or on cloud storage to keep all your data safe and secure.
Related page: Benefits of online receipt management over paper receipt
Eliminates manual data entry
OCR software removes various departments' most time-consuming manual processes. It provides the digitization of data and saves time, manual labor, and storage space.
Use of OCR in streamlining the spend management process
Reimbursements
When an employee submits receipts for reimbursements, it becomes a tiresome task. They may forget to keep the receipt. Also, the whole process takes a lot of time and slows down the process of actually getting the reimbursement. Using a mobile app with OCR technology, an employee can take a click of the receipt and submit it to the authority. After the receipt is submitted, the OCR technology will take care of it by scanning and taking the required information. This way, you get your reimbursement without any hassle and in time.
Bill payments
OCR technology can be helpful in a lot of processes, including bill payments. When an invoice gets submitted, the OCR billing technology can recognize it and place it in the correct place within the system. It can also re-arrange files and documents correctly, including email chains, so a bill's context is immediately available. While creating an invoice, OCR technology can quickly provide the necessary information. There are a lot of fields that are necessary and auto-filled according to the user’s needs. This may include, Vendor, Invoice date, Invoice amount, Due date, etc.
Accounting automation
OCR technology in accounting takes the most manual aspects of an accountant's work and does them electronically. This is also known as computerized accounting software which performs the tasks of calculations and transaction tracking. In conclusion, OCR technology has become a boon to us and can be a valuable tool for various processes and conversion of products into more accessible data.
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