How optical character recognition is reshaping document collection

A lot of businesses are still manually entering data from invoices and expense receipts. But there's a secure way to slash the time spent on these mundane tasks: optical character recognition (OCR). 

Discover how OCR can transform your business' operations and has revolutionized how we interact with documents in our daily lives.

Optical character recognition is a sophisticated technology that's revolutionizing how businesses handle documents. At its core, it's a powerful system that pulls data from documents using advanced pattern recognition to make editing and processing easier. Modern OCR technologies have evolved significantly, now incorporating machine learning and neural networks to deliver increasingly accurate information.

This intelligent character recognition technology lets you automatically grab data from several pages, no manual entry needed. The latest multilingual OCR technology can handle documents in multiple languages, making it an invaluable tool for international businesses. Built into specialized software and services, OCR transforms images into editable text through several ways of processing, typically storing the data in structured formats like XML.

Today's source OCR systems can efficiently process:

• printed pages and professional documents,
• digital images or screenshots in formats (like svg, jpeg, heic),
• handwritten documents (using advanced pattern recognition),
• bank statements and financial records,
• PDF files of varying complexity.

It's this technology that makes it possible to transform a PDF file into an editable Word document, opening up endless possibilities for document manipulation. You'll find these OCR systems extensively used in fields like finance and accounting, where they're key for digitizing invoices, scanning expenses, and creating searchable archives. The technology has become particularly valuable for users handling high volumes of financial documents, as it significantly reduces the manual task of data entry while improving accuracy.

What sets modern OCR technologies apart is their ability to understand context and learn from experience, thanks to sophisticated neural networks. These systems can recognize common writing systems and adapt to various document layouts, making them increasingly reliable for business applications. Whether you're dealing with structured forms or complex financial documents, optical character recognition software can handle it all while maintaining the original document's integrity.

Essentially, OCR-based digitization tools act like sophisticated scanners. That being said, they're far more intelligent than traditional scanning systems. Using advanced pattern recognition and machine learning algorithms, these tools scan documents to pinpoint and interpret each piece of data. For users dealing with high document volumes in their daily lives, understanding this process can help maximize the technology's potential.

Here's a detailed breakdown of how modern OCR technologies work:

1. Image Optimization
   First, the system enhances image quality to ensure the OCR software can perform at its best. This crucial preprocessing stage involves:
   • ‣ automatic document straightening and alignment,
   • ‣ smart cropping and border detection,
   • ‣ precise brightness and contrast adjustments,
   • ‣ noise reduction and cleanup of digital artifacts,
   • ‣ resolution optimization for better character recognition.
2. Intelligent Analysis
   The code recognition system then begins its detailed analysis:
   • ‣ characters are examined pixel by pixel using neural networks,
   • ‣ closed loops and distinctive patterns are identified,
   • ‣ the system recognizes different writing systems and fonts,
   • ‣ machine learning algorithms compare detected patterns against known character sets.
3. Advanced Recognition
   Modern OCR technologies employ several ways to ensure accurate information extraction:
   • ‣ pattern matching compares detected glyphs against known character databases,
   • ‣ feature extraction identifies unique characteristics of each character,
   • ‣ contextual analysis helps correct potential errors,
   • ‣ multilingual OCR technology enables processing of various languages simultaneously.
4. Data Processing and Output
   Finally, the optical character recognition software:
   • ‣ converts all recognized elements into editable text,
   • ‣ maintains the original document's formatting,
   • ‣ generates searchable PDF files,
   • ‣ creates structured data ready for integration with other business systems.

Here's a practical example: When processing a paper invoice for accounting, the journey from physical document to digital data is seamless. Simply snap a photo with your phone and send it to the OCR software. The system's neural networks analyze every character, converting the image into structured, usable data. The result is a fully editable digital version that can be imported into any word processor or accounting program.

It's worth noting that while these systems are highly sophisticated, factors like document quality can affect results. Even with advanced machine learning and pattern recognition capabilities, poor-quality originals might lead to occasional transcription errors. However, modern OCR technologies continuously learn and improve, making these instances increasingly rare.

OCR has transformed how humans interact with documents in their daily lives, particularly for professionals in accounting and finance. The technology has revolutionized how users handle tasks that traditionally required manual data entry. Here's how these modern OCR technologies make a difference:

• Automated data processing: instead of manually typing bank statements and invoices, optical character recognition software instantly captures and processes information.
• Error reduction: neural networks and machine learning algorithms significantly reduce human error in data entry.
• Streamlined workflows: systems automatically route processed documents to relevant departments or services.
• Time management: professionals can redirect their focus from mundane tasks to more strategic work.

For accounting teams specifically, the technology offers several ways to improve accuracy and efficiency:

• instant processing of financial documents,
• automated data extraction from complex forms,
• quick verification of numerical data,
• seamless integration with existing accounting programs.

Modern OCR technologies have revolutionized document management through:

1. Advanced Security Features
   • ‣ encrypted storage of sensitive information,
   • ‣ secure cloud-based access to documents,
   • ‣ audit trails for document access and modifications,
   • ‣ protected backup systems.
2. Intelligent Organization
   
   • ‣ automated categorization of documents using pattern recognition,
   • ‣ smart tagging and indexing for easy retrieval,
   • ‣ integration with common writing systems and file formats,
   • ‣ efficient handling of PDF files and other digital formats.
3. Accessibility and Collaboration
   • ‣ real-time access to digitized documents,
   • ‣ easy sharing among authorized users,
   • ‣ cross-platform compatibility,
   • ‣ remote access capabilities.

Implementing OCR technology into your accounting immediately delivers tangible benefits:

• uncluttered (or empty) file cabinets,
• lower printing and paper costs,
• decreased manual processing time,
• minimized risk of document loss or damage.

On a daily basis, you can use a variety of OCR-equipped software like:

• PDFelement, analyzing and transcribing documents in different languages.
• Simple OCR, a free tool turning scanned docs from TXT/RTF to Word.
• i2OCR, an online tool for converting main image formats (jpeg, png, svg) into Adobe PDF-compatible versions.
• Tesseract OCR, an open-source tool from the late '80s.

There are expense management tools with OCR tech too. They digitize receipts from employees looking to get reimbursed for business expenses. Expense management can eat up time. OCRization is a go-to method for better handling those reports.

Integrated in specialized software, OCR automatically pulls info like:

• the language used,
• the employee's name,
• what the transaction was,
• the date of the expense,
• the business expense amount,
• the VAT rate.

OCR software is easy to use. Just snap a photo of the receipt for it to process the image’s data. Entering expenses in accounting is automated. Just do a quick check to make sure the info’s correct.

The main thing is picking an expense report tool with OCR tech that fits your needs. Be realistic with your choice of a solution, leaving sufficient space for your business to grow.

• comprehensive expense type coverage,
• integration with tax and regulatory systems,
• legally compliant archiving,
• structured approval workflows,
• easy access for all users.

• machine learning capabilities for improved accuracy,
• multilingual support for international receipts,
• cloud-based services for remote access,
• integration with existing business systems,
• automated compliance checking.

Qonto’s fully embraced cutting-edge OCR technology. With OCR-based digitization tools alongside our other tools and integrations, we’re able to deliver a comprehensive financial management solution.

Our platform automatically pulls data from your supplier invoices and receipts. You can also match invoices to transactions in your business account with Qonto. Using OCR technology, professionals can catch all their key accounting info in an instant.

Connect Qonto to your accounting software and certify your receipt images with legal-proof archiving. Even digitized as PDFs, these receipts hold the same legal weight as paper versions. With tons of features, Qonto saves you valuable time. Try Qonto today and make your daily accounting a breeze.