
If you want faster, more accurate invoice processing, OCR is your answer. This smart tech automates data entry, reduces errors, and saves your team hours. In short, it makes your process more effective and efficient — exactly what “optimising” should mean (and here's how).
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The manual invoice management process is riddled with clumsy errors (we’re human, after all). This means your data could be wildly inaccurate, making it difficult to make impactful business decisions that drive and support growth.
But there’s good news: AI is reshaping the entire back-office, and optical character recognition (OCR) is only the beginning. Powered by artificial intelligence, Payhawk's OCR instantly pulls every essential detail from your invoices — making processing faster, more accurate, and effortless. And because AI sits at the core of everything we build at Payhawk, even smarter automation is right around the corner. Here's how...
So, how does it work? OCR technology improves the accuracy of invoice processing in various formats, using machine learning techniques to better analyse and interpret invoice data.
In a nutshell, it offers:
Extracting invoice data is a five-step process:
Still have a few questions about introducing OCR into your invoice processing? Let’s start with what matters most — the benefits. Here are seven simple but powerful reasons to use Payhawk OCR.
Data is automatically extracted, removing the need for manual intervention. All you need to do is drag and drop your invoice into the platform, and your part is done.
Optical character recognition technology automatically flags discrepancies between bank charges and invoice amounts, as well as duplicate invoices. This means payments to suppliers are accurate and never duplicated. And consistent data extraction ensures your financial records are always reliable.
This feature helps prevent costly mistakes, ensures purchase accuracy, and catches issues before you issue payments to suppliers.
As described on Payhawk’s Procure-to-Pay webpage: You can prevent costly mistakes with automatic 3-way matching. Ensure purchase accuracy and identify discrepancies before issuing payments to suppliers by matching purchase orders, receipt notes, and invoices.
Cost savings
By decreasing your reliance on manual processes, you reduce labour costs. The time once spent processing invoices manually can now be redirected to forecasting or budget planning.
You can also avoid late payment penalties and take advantage of early payment discounts because faster, OCR-driven data capture gets invoices to the approval stage sooner, giving you plenty of time to schedule payments.
Enhanced data accessibility
Once you convert your invoices with OCR, they’re in a searchable format, making invoice data instantly accessible to everyone in your organisation. You can now create reports on the fly, track and analyse spending patterns, and gain insights into vendor performance.
All this puts you in a great position to start streamlining your procurement process and optimising your purchasing strategies. OCR unleashes the power of true workplace efficiency and data accessibility.
Better compliance and record-keeping
By digitally recording invoices, you ensure a clear audit trail, reducing the chances of accounts payable fraud and enhancing compliance with tax requirements. Having digitally accessible invoice documentation also makes it easier to prove compliance when needed.
OCR allows real-time reconciliations by immediately syncing data, making it quicker and easier to spot discrepancies and compliance issues before they escalate. The automated nature of OCR ensures consistent and accurate data capture — vital for compliance.
After experiencing frustration with payment tracking and reconciliation, high-end IT recruiters at Mindquest (formerly Club Freelance) turned to Payhawk to make managing their finances as efficient and effective as possible.
Finance Director Alessandro Lupo explains:
The Payhawk app is so smart and intuitive. The team loves the app because it's easy and straightforward for everyone to use. We've also seen fewer mistakes now that the built-in OCR tech captures all the receipt data once someone uploads a receipt. So, all they need to do is choose the right expense category, etc.
Introducing optical character recognition into your invoicing process should be high on your priority list. Without it, you’re not only in danger of making mistakes you have to rectify (time-consuming), but you’re also limiting access to important information. With OCR in your toolbox, you can improve operational efficiency and financial workflow accuracy.
The end result? You’ll be better equipped to stay ahead in your field, focusing your energy on understanding spend and resource allocation to drive smarter, faster business decisions. Request your personalised demo, and we’ll show you how our solution (complete with app and OCR can drive your business forward with better insights, smarter cost control, and more).
Trish Toovey works across the UK and US markets to craft content at Payhawk. Covering anything from ad copy to video scripting, Trish leans on a super varied background in copy and content creation for the finance, fashion, and travel industries.