In-House Automation: Using OCR to Process Invoices & Accounts Payable
It all begins with an idea. This is the story of one client’s path to efficiency and team support.
Automation Brings Efficiency to Invoice Processing
Traditionally, The client’s accounts payable team managed thousands of paper invoices, cross-checking each one against internal records to identify duplicates and correct amounts before issuing payments. The time-intensive process was ripe for improvement, prompting the team to implement an innovative OCR (Optical Character Recognition) program that transformed the workflow.
The new OCR system reads both printed and handwritten portions of scanned invoices, synthesizing the data into a spreadsheet. It then compares this data against Cornella’s accounts payable software, flagging any discrepancies for further human review. This digital-first approach has significantly reduced the hours spent on manual checks, enhancing both accuracy and efficiency.
Collaborative Implementation and Testing
The project, completed in just three months, involved close collaboration with the accounts payable department. “We worked hand-in-hand with the team to ensure the OCR technology accurately recognized key data fields on the scanned invoices,” explained Carmen, the project’s lead. Through rigorous testing, the system achieved high accuracy in capturing invoice details, including handwritten notes.
Automated Reporting and Digital Documentation
To fully automate the process, the system now generates a detailed report whenever it detects potential duplicates, mismatched values, or invoices without a corresponding record in the database. This report provides a side-by-side comparison of invoice details and highlights any issues, making it easy for team members to validate the data before final approval.
Additionally, The client now benefits from a searchable, digital archive of their invoices. Each scanned invoice is compressed, stored by date and vendor, and uploaded to their software for long-term access. The files can also be easily searched using a PDF reader or file explorer, improving the team’s ability to retrieve historical records quickly.
Impact on Operations
The impact of the automation project has been clear:
Time Savings: Faster processing of invoices means more time for strategic tasks.
Enhanced Payment Accuracy: With fewer manual steps, the likelihood of payment errors has decreased significantly.
Digital Archive: A comprehensive, searchable database of invoice records ensures greater accessibility and long-term security of data.
The client’s accounts payable team is now better positioned to manage its workflow efficiently, and the benefits of this project are expected to support the company’s operations for years to come.