Accounts payable OCR software reliably removes one kind of work and reliably does not remove another, and most disappointment with it comes from expecting the second. It turns a document into fields, which eliminates typing. It does not compare the invoice with the order and the receipt, does not decide which account the cost belongs to, and does not resolve a difference when it finds one. Those are the expensive parts.
What it removes
Keying header fields and, on a good day, lines. For a team that currently types every invoice into an accounting system, that is a real and immediate saving, and it is measurable in an afternoon by timing ten invoices. It also removes a class of transcription error, which shows up later as fewer supplier queries about wrong amounts.
What it does not touch
The match, the coding and the exception. The match is a comparison between documents rather than a reading of one. The coding is a judgement about the transaction that is not printed anywhere on the invoice. The exception is a conversation with purchasing or with a supplier. None of these becomes easier because the fields arrived without being typed.
Where the two meet: the review queue
Extraction that flags what it is unsure about and puts it in front of a person is the join between the mechanical part and the judgement part, and it is the feature most worth interrogating. Software that fills a best guess silently converts a small keying task into a large reconciliation task later, which is a poor trade.
Questions people ask about accounts payable ocr software
Will OCR reduce our headcount?
It reduces keying time. Whether that converts to headcount depends on what share of your team's time is keying rather than chasing and resolving, which you can measure before you buy.
Does it work on emailed PDFs?
Usually better than on scans, because a system-generated PDF carries a text layer. Photographs of paper are the hardest input and worth testing specifically.
Can it code invoices to the right account?
It can suggest, based on the supplier and history. Treat suggestions as suggestions: the account is a judgement about the transaction, and it belongs to your accounting policy rather than to a reading of the document.