OCR in Finance & Accounting

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OCR Finance & OCR Accounting Use Cases

OCR finance & OCR accounting have many interesting use cases with respect to document processing workflows. Since accounting & financial documents mostly deal with structured data presented in standardized formats, OCR can handle pretty much any document related to these disciplines.

The most common OCR use cases for financial documents are invoice OCR (or automated invoice processing) & receipt OCR. Extracting relevant fields of data from invoices or receipts can help organizations process transactions more quickly, avoiding delays and potential fines. Here’s a case-study on how Minnesota’s largest construction company improved it’s AP productivity with OCR finance.

Banking use cases would include processing various applications (for loans, new accounts or check requests) or doing KYC verifications. OCR software can scan application forms, extract relevant fields & populate the same in banking software for faster processing. ID card OCR or identity OCR currently powers most of the mobile-based KYC processes offered by modern banks. These OCR use cases allow banks to fast-track processes that could turn into potential customer pain points. Here’s another case-study on how a KYC platform leveraged OCR to process more than 50,000 Drivers licenses per month.

Insurance companies can similarly automate claims processing with the aid of OCR technology. Insurance OCR can expedite claims verification and claims processing, benefiting consumers and insurance companies alike. Apart from processing insurance related documents, OCR can also be used to assess physical damage related to insurance claims.

OCR can also be used to simplify accounting related processes by integrating with accounting software. Here’s an interesting case-study on how a business used OCR software to simplify accounting processes related to QuickBooks.

Businesses also use accounting OCR for improving audits and reports on expenses. OCR tools compare and match various document trails to help accountants flag fraudulent charges and business expenses. Here are some examples of potential fraudulent charges that businesses might encounter: blank receipts for non-business transactions, duplicate expense receipts, inflated invoices, or amount mismatches.

Nanonets OCR

Nanonets is an AI-based OCR software that is easy to set up and use, offering convenient pre-trained models for popular financial OCR & accounting OCR use cases. Extract financial/accounting data in seconds or train a custom OCR model to meet your specific data extraction needs.

The advantages of using Nanonets over other OCR software parsers go far beyond just better automation & Machine Learning capabilities:

Source: https://nanonets.com/blog/ocr-financial-documents/