Invoice OCR Software: How It Works, Cost Impact, and Best Recommendations for Indonesian Businesses
JAKARTA - Processing invoices manually often takes a long time and is prone to errors. Various studies reveal that the finance team spends an average of 10-30 minutes just to process one invoice.
If a company processes hundreds or thousands of invoices per month, the time wasted on this administrative work is even greater. In addition, the human error rate in invoice data input reaches 1-3 percent per data point, which can cause many problems such as overpaying vendors and delaying closing the books.
On the other hand, automated payment solutions based on technology such as invoice OCR software are able to significantly reduce time and errors. This technology offers cost savings of up to 80 percent compared to manual processes. One of the main advantages can be found in the OCR feature of Mekari Expense for high-accuracy data input automation.
What is Invoice OCR SoftwareInvoice OCR software is Optical Character Recognition (OCR) technology that converts text on physical or digital documents into digital data that can be read and processed automatically. You can upload or take a picture of documents such as invoices, receipts, or PDFs, and the system will extract important data.
OCR technology supported by artificial intelligence is able to recognize various invoice formats, without depending on fixed templates. The data that has been extracted is then directly entered into the Purchase Invoice or cost claim module in the financial system, without the need for manual typing. The main difference between traditional OCR and AI-powered OCR is the ability of AI to learn to recognize new patterns and improve accuracy over time based on corrections.
Impact of Using Invoice OCR Software1. Impact of Costs
The manual process costs around 15 to 40 US dollars per invoice. This cost includes labor, error correction, and opportunity costs. By using invoice OCR and AI-based automation, these costs can drop drastically to around 2 to 5 US dollars per invoice.
2. Time Impact
Manually, the invoice processing cycle usually takes 7 to 14 days from receipt to being ready to be paid. This process involves many stages such as validation, data entry, approval, and correction. With invoice OCR automation and digital workflow, this cycle can be shortened to only 1 to 3 days.
3. Impact of Accuracy
Manual process errors reach 1-3 percent per entry, and almost 39% of manual invoices have errors such as numbers, vendor names, or account codes. This creates additional costs for corrections and delays in payment. With a combination of OCR, AI, and validation rules, the automation process can reduce the error rate to around 0.1-0.5 percent, with first-time-right accuracy above 97 percent.
7 Best OCR Invoice Software RecommendationsHere are some of the best invoice OCR software options that you can consider:
1. Mekari Expense
Mekari Expense is the first spend management system in Indonesia, part of the Mekari integrated software ecosystem that controls business expenses transparently and provides clearer budget predictions.
Mekari Expense provides AI-powered OCR to extract invoices and receipts from various formats, to facilitate invoice management to payment.
All data automatically enters the Purchase Invoice module to be paid in the same dashboard, through a layered Approval process. Mekari Expense is part of the Mekari integrated software ecosystem which provides various conveniences such as operational automation, seamless integration, and intelligent reporting in various divisions and business processes.
2. Rossum
AI document processing platform with deep learning that can recognize various invoice formats without templates. Easy integration with various ERP and AP systems, suitable for global companies.
3. Kofax ReadSoft (Kofax AP Automation)
AP automation solution complete with OCR, approval workflow, and integration into major ERPs such as SAP. A mature choice for companies with enterprise needs.
4. ABBYY Vantage / FlexiCapture
Focus on Intelligent Document Processing with advanced data extraction. Supports on-premise and cloud scenarios with in-depth customization options.
5. Dext Prepare
Popular among accountants and SMEs, invoice and receipt input automation into accounting software such as Xero and QuickBooks. Mobile application is available for taking pictures of receipts.
6. Adobe Acrobat Pro DC
In addition to the PDF editor, it offers OCR features for converting scanned documents into searchable text and exporting them. Suitable for organizations with many PDF archives.
7. Readiris
Old OCR software that supports various languages and document formats. Commonly used for digitizing physical documents before further processing.
Mekari Expense, the Best Invoice OCR Software Option for Indonesian BusinessesMekari Expense stands out with the use of AI-based OCR technology that is able to detect and extract information from various invoice formats without the need for template configuration for each vendor. This technology overcomes the variation in formats often found in Indonesia.
The process at Mekari Expense is end-to-end. You can upload, take pictures, or invoice that is detected from the vendor's email directly processed by OCR, then the data enters the Purchase Invoice or expense claim module. The approval stage runs within one integrated platform, then the data is automatically synchronized to Mekari Journal for bookkeeping. This way reduces the risk of double errors and speeds up the financial closing process.
Mekari Expense also provides a mobile application that allows you to take photos of receipts or invoices directly from your smartphone. This feature makes it easier to submit expenses for field teams in a fast and practical way.
This system is also developed in accordance with Indonesian regulations, especially the calculation of VAT and income tax, making the tax process more accurate and easy to report. Mekari Expense has been certified ISO/IEC 27001, ensuring the security of financial information data in accordance with international standards. Native integration with other Mekari ecosystems such as Mekari Journal and HR/payroll modules makes the financial management process more structured and efficient.
Use Mekari Expense to take advantage of the OCR feature of Mekari Expense and start optimizing the invoice management process in your business. This technology will help speed up financial work while improving accuracy and tax compliance.