Keeping track of your financial data is incredibly important. While tools like Xero help manage expenses, invoices, and finances, there’s an exciting technology that can take your accounting further: Optical Character Recognition (OCR) software.
OCR is changing how businesses handle receipts and supplier invoices. It scans and reads printed or handwritten text from documents, turning them into editable digital formats that easily upload into accounting systems like Xero.
Here’s how OCR can help your business:
1. Save time by eliminating manual entry
Manually entering supplier invoices and receipts into Xero is both time-consuming and error-prone. With OCR software, businesses can eliminate this process. The software scans and uploads key details - such as amounts, dates, and supplier information - directly into Xero, reducing administrative tasks and freeing up staff to focus on more valuable work.
2. Improved accuracy
Manual data entry carries the risk of human error, which can result in inaccurate financial records, missed payments, or overpayments. OCR software reduces this risk by capturing data with greater precision, minimising mistakes from fatigue or oversight. This leads to more accurate records and fewer time-consuming corrections later on.
3. Seamless integration with Xero
OCR tools like Dext and Hubdoc integrate seamlessly with Xero. Once receipts or invoices are scanned, they automatically extract and upload the data into Xero. This real-time process helps businesses stay on top of accounts payable without extra effort, speeding up approvals and improving workflow efficiency.
4. Better organisation
Digitising financial documents with OCR stores them in a structured, searchable format. Instead of managing piles of paper receipts and invoices, businesses can quickly access scanned documents through Xero’s cloud system. Finding an old invoice or receipt is as simple as a quick search - no more digging through files or losing important paperwork.
5. Faster reconciliation
Uploading receipts and invoices via OCR speeds up reconciliation in Xero. The software automatically matches scanned documents with existing transactions, reducing the time needed to reconcile accounts. This ensures a clearer financial picture, improves cash flow visibility, and makes month-end processes smoother.
6. Scalability for growing businesses
As your business grows, managing more receipts and invoices can become overwhelming. OCR software offers scalability, allowing companies to handle increasing financial data without needing extra staff. Whether processing ten or 1,000 invoices a month, OCR streamlines workflows and maintains efficiency as the business expands.
7. Eco-friendly and cost-effective
Switching from paper to digital with OCR is both eco-friendly and cost-effective. It reduces the need for physical storage and cuts down on printing and paper costs. Additionally, fewer manual processes mean fewer costly errors, saving money in the long run.
How we can help
Integrating OCR software with Xero offers businesses so many benefits, from saving time and improving accuracy to enhancing organisation and scalability. OCR tools streamline processes, making accounting more efficient - especially for businesses dealing with large volumes of invoices and receipts.
By adopting OCR, you can reduce manual tasks and focus more on growing your business.
If you’re ready to explore how OCR can help your business, reach out to us - we're here to help you get started.