OCR (Optical Character Recognition) is the use of technology to distinguish printed or handwritten text characters inside digital images of physical documents, such as a scanned paper document. The basic process of OCR involves examining the text of a document and translating the characters into code that can be used for data processing. OCR is sometimes also referred to as text recognition.
Bookkeeping by OCR is working by capturing data by artificial intelligence. The system is working as follows;
- The document (for example sales or purchase invoice) has been scanned through a scan machine or a mobile phone.
- The artificial system is capturing required data over the documents, such as invoice date, invoice amount, nature of the sales or purchase, payment terms.
- The user reviews and controls the data captured and able to make corrections or additions on the data.
- Bookkeeping entry is made based on the information captured.
- The data is uploaded to the accounting software.
- OCR is allowing to reach related documents of the accounting entry, makes controlling and auditing easier. Additionally, scanned data is kept at the system for a period of time, which is allowing to make a digital archiving.