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Benefits of Automating Invoice Data entry using AI powered OCR
Manual Invoice data entry process is a time consuming and redundant process. This laborious process impacts businesses in many ways as it requires more time, costs more money and is error prone. To combat the issues involved in manual processing, AI powered OCR is being used to extract data from invoices and fill it into required softwares, thus automating the process and decreasing the turnaround time.
Pibit.ai’s Data Extractor is automating such manual processes and improving their efficiency with automated invoice data capture using IDP.
AI powered OCR or mostly known as Intelligent Document Processing (IDP) is a combination of traditional OCR technology and Artificial Intelligence. OCR helps in extracting data whereas artificial intelligence helps in understanding the data and extracting it.
If you want to know what are the limitations of OCR and how combination of AI and OCR can overcome those limitations and provide companies an end-to-end solution to automate their manual document processing, then check out our last blog.
Advantages of Automated Invoice Processing
IDP technology can bring multiple advantages to an organisation as a whole, including:
1. Increased Productivity
AI powered OCR extracts data within minutes helping companies to process invoices in very less time. Time saved due to automation, can now be used towards other productive tasks that are of consequence to the success of your business.
2. Improved accuracy of extraction
Invoice data extraction using AI can reduce errors and increase the efficiency of the process and can deliver faster results in comparison to manual processing. IDP based data capture solutions are based on deep learning models which are trained to extract data with the same accuracy as humans. The manual data entry process is tedious and a boring task, always increases the chance of human error. But with IDP technology, there is no risk of making such errors.
3. Cost reduction
IDP extracts data from the invoices without the need of setting up of templates, customization and rule configurations for the extraction process. This helps in saving the implementation costs of setting up templates, efforts of the accounts departments, and operational expenses on processing the invoices.With Increased efficiency and reduced errors, significant returns are achieved in a short period of time.
Also, companies can cut costs spent on hiring professionals for manual data entry, or overseeing data extraction processes.
4. Efficient Process Management
An AI-powered data extraction system will help in reducing the rework required for erroneously processed invoices, avoids late payments fees and penalties by the suppliers for the left out invoices and reduces the human interference with less approval time for invoicing. An efficiently managed system will improve the relationship with the vendors and help in becoming a result-driven and optimally functioning organization.
Today, Companies are adopting technology to automate their business process but still too many are over-reliant on employees and paper-based processes. Now, It’s time that companies should take a step forward and adopt such technologies to reduce the wastage of resources and leakages in the cash-flow.