3 Best Ways For Processing Invoice Data

Paper-based documents exchange comes with its struggles. If you own a company, you must understand better how it feels to receive or send hundreds or thousands of unstructured invoices every day. Undoubtedly it is not only time-consuming but also needs an equal amount of energy and money. Paper invoices can be lost before they reach the recipient. This can create more stress as suppliers get upset and ultimately you get to do more paperwork in return. Modern-day technological advancement has resulted in various economical solutions.

 

It has become an absolute necessity to process your business data in portable formats. Your business relationships with your clients and partners count on the quality of the information that you provide. Giving in flawed or inconsistent information can hamper your business communications very deeply. Employing state-of-the-art technology and software tools can effectively streamline your data processing process and deliver high-quality results. There are many options to consider in this regard. However, we have chosen and enlisted the top three software tools to help you out in getting your business data configured.

What is Invoice Processing? Definition, Steps, Flowchart & Software

 

By utilizing a supply chain network you can solve all your problems and help you strengthen your business ties with your partners. Of course, there are various tech-based methods to process your company’s invoice data. We have enlisted 3 best ways to get invoice data structured and ready to be sent –

 

1. Optical Character Recognition (OCR)

 

The renowned method for data extraction from any document is OCR. Optical Character Recognition or OCR is a mechanical or electronic transmission of data into an automatic machine editable text. Usually captured by a scanner, data entry through OCR is faster, more accurate, and more efficient than keystroke data entry.

 

It possesses a software-driven system that can readily identify characters, elements, and digits in each text. The identified information is then converted into computer code. OCR is a capable tool to automate data collection procedures and reduces your business data processing cost overheads in return. The next important step is set up when the DTP personnel compare and contrast the original document with the scanned file. This can be easily done via advanced software or by hand on experience by which all recurring and misread words are eliminated, corrected, and replaced. The OCR cleanup involves a great deal of checking and insertion of the right data.

 

Optical Character Recognition is capable to convert both PDF and paper-based documents into various other formats. By comparison with other tools, OCR performs a “3-way match” to enable easy data onboarding. Such are a few reasons out of many why OCR has become a popular choice of today’s institutions and organizations. However, you can still not be 100% doubt-free if the data gathered using OCR is entirely correct. To bust the doubt cloud, you must check the printed document with the digital version for any chance of error. If you miss this step then the chance of error to occur becomes prominent. Also, OCR proves a bit expensive in the long run. There occur problems with many other languages, especially with right-to-left ones. At the end of the day, the character recognition tool has what it takes to read and extract invoice data from any document for your business growth.

 

Automated Invoice Processing | Invoice Automation

 

2. E-invoicing

 

The first thought that comes into your mind at reading the title is exactly what the system s used for. It is self-explanatory and includes a portal for exchanging electronic invoices in your preferred format. All your invoices are automated and secure. You can easily access data whenever it is required. With this system, you can rest assured that all your invoices will reach recipients in a matter of seconds. E-invoicing is entailing the electronic conversion of unstructured invoices. With the help of this system, you can structure and format all your invoices with very little energy. This mechanism is popularly applied in western countries.

 

In Europe, B2G e-invoicing has been termed obligatory. Most companies encourage the step and regard it as an effective means to make your lives easier. With the electronic invoicing revolution, governments are striving hard to introduce e-invoicing portals n every industry. It is significant to point out e-invoicing can provide you quality data and improve your business partner relationships greatly. In case if there occurs a problem with e-invoicing then it has something to do with the agreed document format we must say. Because some formats may not be in sync with your partner’s requirements. However, to avoid such a problem you must discuss the favored format before signing the deal.

 

3. Electronic Data Interchange (EDI)

 

The last one to enter our list is EDI. The method is used to gather and process invoice data by using an electronic system. With this system, you are sure to get high-profile data that is accurate and fully compliant with your client’s requirements. It is one of the least costly techniques to get your invoice data processed, formatted, and stored. You must select a single communication channel to deal with your partners (e.g. AS2, sFTP) and any document format (e.g. flat-file, XML, IDoc).

 

Typically, it happens so that one partner agrees to use one format while the other prefers a different one or both agree on an industry-specific format. Another interesting fact about EDI is that it offers structured formats like Excel, CSV, and flat files. Hence, the process can be validated on its own. However, the initial setup can take some of your time but in the long run, it proves quite economical for your business. Thus if you think about getting yourself an EDI, in this case opting for a web-based EDI application proves vital. By and large an electronic invoice data interchange platform is the best option for larger companies and organizations.

 

Conclusion

 

The winner is EDI, the system is reliable, innovative, smart, and secure to make invoices organized. Of course, this does not mean that OCR or e-invoicing systems are any less. At the end of the day, it is your business demands, that decide whether a system works for you or not. Before starting with any of the aforementioned solutions just make sure that you communicate your business ideals with your suppliers. This helps to streamline data processing as your business success is counting on it.

 

How ITS Can Help You With Data Entry Service?

 

Information Transformation Service (ITS) provides convenient Data Entry Solutions regardless of any additional investment of staff, resources, or infrastructure. By outsourcing your Data Entry Projects to us your company will be blessed with high-quality and diverse data entry-related options. Such quality service enables your data to be entered in various desirable formats with repetitive, inaccurate, incomplete, grammatically nonsensical words replaced to form better semantic clarity and understanding. Irrespective of the size and complexity ITS Team defines customized packages to directly answer specifically your business big data projects. If you are interested in getting ITS Data Entry Services you can ask for a free quote!

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