How OCR Tech Can Drive Value for Accountants and Bookkeepers

It may not generate as many headlines as some tech trends, but it has helped drive considerable social change and business innovation over the years. So how has it developed and how important is it to organizations today?

OCR through the ages

OCR is not a "new" technology, as it has been leveraged since the last century to support use cases including telegraphy and reading aids. In fact, one of the first developments of OCR was through the invention of the optophone in 1913, by the Irish physicist Dr. Edmund Fournier d'Albe.

As one of the earliest known applications of sonification, the optophone scanned text from books or newspapers, generating musical tones that correlated with the lyrics. The optophone was a significant advance for visually impaired people by helping them to read much more than what was available in braille.

Later in 1966, IBM released its 1287 optical scanner, which was the first scanner capable of identifying handwritten numbers and characters, as well as machine-printed credit card numbers and cash register rolls. Using this solution, information typed by sales clerks or delivery people could be scanned directly into a computer, reducing manual data entry and creating significant efficiencies for users right away.

Moving forward and by the turn of the millennium, free OCR software was released through Adobe Acrobat and Google Drive. Solutions like these allow users to upload paper documents and convert them into editable PDF or text files. It also allows users to find words or expressions instantly, without the need to search through the document by hand.

In recent years, further technological advancement has led to an increase in the adoption of OCR-powered applications for data entry throughout the business and financial ecosystem, particularly within accounting and bookkeeping.

So why it become such a hot topic in the industry and what has are the benefits of adopting these solutions?

Save time

OCR significantly reduces the time and cost spent on manual data entry, with research finding that specialized solutions in this field can reduce data capture times for paper documents by up to 75%.

Improve accuracy

In an industry based on numbers, a single typo can mean a drastic misreading of an account and the potential loss of a customer. In addition to speed of delivery, OCR accountingensures accuracy rates much higher than the human eye, with intuitive built-in algorithms that analyze and extract data from paper documents with verified accuracy.

Go Green

OCR-based data entry tools allow businesses to archive documents in the cloud, retrievable on any device, at any time. In addition to decluttering the office, this means users no longer need to print, store, photocopy or process reams of paper documents by hand.

A more engaged workforce

Let's face it, spending long hours on paperwork is not fun. Reducing this burden will make your employees happier and more engaged in the long run. Instead, staff can focus more on analyzing your customer data, rather than their input, and supporting other revenue-generating lines of business.

OCR in practice

To generate these efficiencies and more, many accountants and bookkeepers are now choosing cloud-based automated tools that leverage OCR accounting Philippines and machine learning to operate with lightning speed and accuracy.

These tools work by capturing and analyzing scanned and photographed sales and purchase invoices, receipts, bank and card statements, and automate data entry into your accounting solution, such as Xero, QNE, QuickBooks, or Sage.

The right software can capture tax summaries by default and, if requested, full line item details, including description, quantity and unit price. Certain solutions can also remember how you categorize your expenses, such as the relevant vendor account, nominal account, and tax code without having to create duplicate vendor accounts or post duplicate invoices to your accounting solution. They even match invoices to purchase orders.