Invoice Scanning Software: Overview and Top Solutions

The transformation from manual to automated processes is more than a strategic choice. These days, it’s a necessity. Recent statistics show that modern technology can handle 50% of all accounting activities. It’s the key to gaining efficiency and competitiveness, where the adoption of cutting-edge technology is reshaping traditional workflows.

At the forefront of digital transformation in AP is the beginning act of invoice scanning. This pivotal step, supported by innovative software solutions, revolutionizes how companies manage their financial documentation. In this article, we explore the concept of invoice scanning, including what it is, why it’s important, and the best invoice scanning software available today.

What is Invoice Scanning?

The primary objective of invoice scanning is to convert physical paper invoices into digital formats so they can be stored, retrieved, and processed electronically. Scanned documents help businesses transition from manual invoice management to a more efficient, automated digital system.

Here’s how the invoice scanning process works:

1. Scanned Invoices: Physical invoices are scanned to convert the paper document into a digital image.
2. Quick Digitalization: The scanned image is then transformed into a digital format, like PDF or TIFF.
3. Data Storage: The digitized invoices are stored electronically in a centralized repository, typically part of a document management system.
4. Total Accessibility: Once digitized, access to invoices is simplified for more efficient collaboration, auditing, and compliance.
5. Smart Integrations: Digital invoices are integrated with other tools like Optical Character Recognition (OCR) for automated data entry.
6. Increased Automation: Integrated systems enable automation in the invoice processing workflow, including validations and approvals.

Invoice Scanning vs. Invoice Data Capture

Although the phrases are often used interchangeably, they refer to distinct stages in the automated invoice processing workflow.

Invoice Scanning Definition

Invoice scanning involves converting the physical document into a digital format using a scanning device or invoice management software. The scanned image can be used for archival purposes or as a reference point.

Invoice Capture Definition

Invoice data capture refers to the extraction of relevant information from digital or scanned invoices. This is a crucial step for automating invoice processing since it requires capturing key data elements like the invoice number, amounts, and vendor details.

OCR invoice processing, commonly used for data capture, is a technology that analyzes the image, recognizes characters, and extracts relevant data fields. The extracted data is then validated and entered into an electronic system for further processing.

Top Invoice Scanning Software Solutions

Tipalti

An accounts payable automation solution is more than just invoice scanning. Tipalti offers advanced OCR technology, data capture, and an end-to-end AP automation solution that eliminates tedious invoice data entry. Tipalti’s functionality covers everything from supplier onboarding to payment remittance with in-depth end-to-end capabilities.

Never key another invoice again. Tipalti has layers of machine learning and managed services to improve the performance of its invoice scanning solution, one document at a time. The system streamlines invoice processing, saving time, money, and resources.

Using the invoice automation system, the document is first scanned. Details, like invoice numbers and line items, are then extracted and pre-populated. After review, Tipalti automatically recognizes any override changes and uses artificial intelligence to apply the logic to future invoices. A second layer of invoice OCR ensures all data is accurately captured.

Top Features

• Self-service supplier portal for safe onboarding with automated supplier communications, like invoice status.
• 2-way and 3-way purchase order (PO) and goods receipt note (GRN) matching for headers and line levels with tolerance ranges to easily handle mismatches.
• Built-in tax compliance with KPMG-approved tax capability for IRS and management of W-9, W-8BEN, and VAT Details.

Strengths

• One of the only global payables automation solutions to streamline all phases of the AP process in one holistic cloud platform.
• Reduce payment error rates by scrubbing data against more than 26,000 rules.
• Supplier portal with instant access to real-time data, streamlining the approval process with a simple click.

Pricing

Tipalti offers three pricing plans starting at $129 per month (Starter, Premium, and Elite). As your business grows more complex, you can seamlessly upgrade to more advanced capabilities at any time.   

Kofax

Kofax offers intelligent invoice processing software that helps an organization digitally transform data-intensive business workflows. Founded in 1985, the platform allows businesses to automate and improve workflows by simplifying the management of data and documents.

Kofax TotalAgility is the intelligent automation feature that accelerates processes with document intelligence, task automation, and process orchestration. Harness the power of cognitive capture and AI to easily automate the extraction of information from unstructured data, driving efficiency and unlocking powerful insights.

Maximize seamless integration across critical operations, legacy systems, mobile devices, and enterprise applications. Kofax allows a business to take productivity to the next level.

Top Features

• Industry-leading document intelligence to process data with the highest accuracy and speed.

• Seamless process orchestration to manage digital workflows and streamline business processes by collaborating with users, systems, and data.
• Simplified regulatory compliance with automated systems for monitoring, reporting, and escalating compliance issues as needed.

Strengths

• Impactful error rate reduction using AI-powered intelligent automation that eliminates human touchpoints.
• Future-proof workflows with intelligent automation to strengthen cybersecurity, tackle inefficiencies, and sharpen your competitive edge.

Pricing

Kofax offers flexible deployment options to suit the needs of everyone. Pricing plans include:

• TotalAgility Base Bundle – $83 Per month/staff member – up to 100,000 pages of processing
• TotalAgility Custom – Custom pricing
• Customer Cloud/On-Premise – Custom pricing

ABBYY

ABBYY is a US-based company that combines process automation with intelligent document processing. It helps a business transform enterprise data and gain the insights needed for digital transformation. The automation software boasts features for invoice scanning, data capture, process intelligence, and optical character recognition.

The ABBYY FineReader Server streamlines document workflows and frees up time associated with high-volume document processes. The system automatically converts from PDF, JPEG, TIFF, Word, Excel, OpenDocument Text, PowerPoint, HTML, and other formats.

ABBYY integrates with existing platforms, easily connecting with digital archives and enterprise content management systems via XML tickets, COM-based APIs, and web service APIs.

Top Features

• ABBYY FineReader Server is an automated high-volume document conversion server to create accessible and searchable digital repositories.

• AI-powered OCR to deliver fast, accurate results in over 200 languages (including European, Arabic, CJK, etc.).
• Compresses PDFs to minimize file size while preserving quality; supports PDF/A, PDF/E, PDF/UA formats, digital signatures, and watermarking.

Strengths

• High-volume scalability with a system that converts large volumes of documents in a short amount of time.
• Audit workflow that analyzes repositories to identify file types, searchable documents, duplicates, and outdated files.

Pricing

The ABBYY FineReader has three pricing options from $19 to $69, with a free trial. For other features, a custom quote is required.

DocParser

DocParser is a web-based document management solution used by hundreds of successful businesses to automate their workflows and extract data from documents in PDF, Word, or image format. The technology uses Zonal OCR technology, which is advanced pattern recognition, with the help of anchor keywords.

To use the intuitive software, simply upload or scan the invoice document, then train the system to extract the data you need, with zero coding. Select preset rules and then download the data directly to an Excel, CSV, JSON, or XML format, or connect the system to thousands of cloud applications, such as Zapier, Workato, and MS Power Automate.

Top Features

• Template types include invoices, purchase orders, bank statements, contracts, applications, shipping orders, and more.
• Powerful custom parsing rules that are 100% tailored to your use case, with a simple set of instructions.
• Extract and format repeating text patterns and tables from PDF files, Word, and Image docs (like line item details).

Strengths

• Integrate with REST API to import documents and obtain parsed data, and use the webhook feature to send extracted document data to any HTTP endpoint.
• Process multiple layout variations with a single document parser, making it easier and more efficient to parse your documents.

Pricing

The DocParser system offers several types of pricing plans depending on your need for parsing. Here are the current plans and prices:

• Starter – $32.50/month
• Professional – $61.50/month
• Business – $133.00/month
• Enterprise – Custom

Rossum

Rossum is one of the fastest document processing platforms built for the cloud. The cloud-based gateway offers end-to-end workflow automation with AI document processing. Improve data accuracy and employ your workforce more efficiently with automated document communication.

A business can instantly organize and process all incoming document traffic, whether through an inbox as a PDF or in the physical mailbox as a letter. Rossum also integrates with Tipalti, providing OCR technology. Every invoice image received in Tipalti for any payer with the OCR module enabled is sent via API to Rossum. This reduces time-consuming processes and eliminates human errors.

Rossum uses automated understanding and two-way communication to resolve exceptions. Receive documents across multiple channels and act on data using in-depth integrations. Additionally, Rossum is ISO27001 certified and HIPAA compliant. 

Top Features

• Automated document classification removes data entry mistakes that result in payment charges and penalties.
• Open document gateway connects and integrates existing inboxes, invoice scanners, and document management systems in one spot.
• Automated communications based on business rules like missing attributes or wrong values so errors can be fixed pre-process.

Strengths

• Classify work across unlimited queues (grouped to create complex workflows) and sort document extraction and validation.
• Extraction engine that learns documents based on content, not just layouts, taking into account formatting, labels, and context.

Pricing

Rossum pricing is custom and based on the volume of documents processed and the specific mix of features a business requires.

The First Step to Optimized AP is Invoice Scanning

The first step toward optimizing AP involves implementing invoice scanning technology. This transformative step is a cornerstone in transitioning from traditional, paper-based workflows to a more efficient, digital system. 

Here’s why invoice scanning is considered a critical first move:

Digitizing Invoices

Scanning paper invoices and converting them to digital formats initiates the invoice management process. This simplifies systems and reduces the time it takes to manage growing invoice volumes.

Electronic Storage and Retrieval

e-Invoicing and invoice scanning eliminate the need for physical storage space, contributing to a more efficient and organized environment. Digital invoices increase the ease of use and facilitate faster access for auditing, compliance, and reference needs.

Improving Accuracy

Invoice scanning and accounting software reduce manual data entry errors associated with paper invoice processing. Additionally, integration with OCR technology enables automated data extraction and validation.

Integration with Automation

Digitized invoices provide the foundation for further automation in the AP and bookkeeping process. This includes tasks like automated data entry, seamless integration with ERP systems, and invoice approval workflows.

Enhanced Collaborations

Digital invoices enable remote access for authorized personnel, supporting collaborative efforts regardless of location. It also allows for the tracking of invoices in real-time to enhance communication among team members.

Compliance and Auditing

Digital invoices facilitate a cleaner audit trail, providing a more comprehensive record of all activities related to each invoice. It also leverages the adherence to regulatory requirements and compliance standards in a more organized and easily verifiable fashion.

Summing it Up

Whether you are a small business or a Fortune 500, efficiency is an indispensable advantage. It has become abundantly clear that the adoption of invoice scanning technology offers a seamless transition from paper to pixels, and from manual data entry to automated precision.

The top solutions highlighted here exemplify the need for businesses to adopt a technology that streamlines workflows, reduces errors, and helps you gain a competitive edge. The move from physical invoices to a digital process is marked by increased accessibility, enhanced collaboration, and a greater ability to meet the needs of a demanding market.

As companies continue to navigate this ever-evolving landscape, the role of invoice scanning software stands as a beacon of progress, where operational excellence is not just a standard objective, but a tangible reality.

Ready to explore the latest invoice scanning technology? Get started with Tipalti Invoice Management today.