Using Invoice Data Capture helps you automatically store complex or unstructured documents into simplified formats like receipts, invoices, financial tables, and much more. The process specifically works to save a lot of your time and costs through automated invoice scanning and data capture.
Read on to know more about the process and get an insight into how it is used.
What is Invoice Data Capture?
Invoice Data Capture is the process of extracting structured data from invoices so that they can be automatically processed.
Businesses today are rapidly moving toward complete digitization and so, most of their tasks are shifted online. Hence, they receive digital invoices from vendors that need to be extracted to check and match the existing orders. Invoice Data software in these businesses is mainly to automate the extraction process and reduce the manpower required to do so.
What are the different types of Invoice Data Capture?
Automated invoice data capture software are mainly of two types:-
1. Template Based
- Machine learning based
Let’s take a look at these different approaches and their unique ways to extract the invoice data
Template Based Software
Template-based software works best for fixed invoicing formats. The process is applicable for businesses with limited vendors where you only need to process a couple of invoices to train the software. Since the changes do not happen more often here, the system becomes strong and accurate with time.
Machine Learning Based Software
Machine Learning Based software works best for multiple vendors with varying invoice formats and data. They can precisely detect the value pairs and line items from varying layouts. Machine learning models adapt to varying structures of invoices – training these models with more data help get more accurate and reliable results.
How to use Invoice Data Capture Software?
Invoice Data Capture can be used in almost all businesses. Here are some of the real-life examples where Invoice Data software is being successfully implemented.
Personal Finance Management
You can use Invoice Data Capture software in personal finance management. When you pull the data from all your invoices, you can easily check your total spending. The process benefits both individuals and banks providing financial advisory services to peep into their expenditure and manage it accordingly. It also helps to optimally utilize the finances.
Invoice Data Capture when implied in business expense management can prove highly efficient for fintech or banks to offer a better experience to their customers. It means that the software not only helps businesses to save their costs and time but also gives them a clearer view that can help them guide their customers. They do this by finding the best route from sale invoices to cash.
Automated Invoice Payments
With more and more businesses being digitized, they are using Invoice Data Capture software and tools to perform automated invoice payments as well. Invoice Data makes it easier to get basic details like a bank account, amount, sender, and messages. Further, it eases the process and helps make the payment through email contexts or even through images on your phone. Therefore, it supports instant results and saves a lot of your time and effort.
Accounts Payable Department
Invoice Data Capture software is most commonly used by the Accounts Payable department to automatically streamline the invoicing process. A high-performing accounts payable department is highly essential for business and this is what they look for in the success of their company. The Invoice Data software is a perfect way to encourage the department by helping them generate precise results with minimum effort.
Accuracy of Invoice Capture Solutions
Generally, the accuracy of Invoice Data Capture Solutions is expected to be between 80% to 95%. However, it completely depends on the data types and the invoicing details. If there are limited invoices with fewer changes, you can expect accuracy between 95% to 99%. Yet, in a practical sense where there is ample data and multiple variations, the accuracy is between 80% to 90%.
Consider the following points while measuring the accuracy of the data –
- Data in PDF form will help you get more accurate results as scanning the text in image form may not always be an effective solution.
- 300 dpi and above resolution scanners have good OCR accuracy and help keep the invoices aligned.
- Avoiding capturing line items from multiple pages to get better data accuracy.
Invoice Data Capture is undoubtedly the new normal, continuously helping businesses to grow and playing a prominent role in delivering them the best. The automated techniques help get the best possible results, provided that you are well-known for all the technical know-how and its basic requirements.
The different invoicing software works uniquely and has a wide scope. Hence, it is better to understand the process first and then move on to the amazing results that it carries with it.