What is invoice digitization?

Invoice digitization is the process of converting paper-based invoices into digital formats — typically electronic files or data. This involves scanning, capturing, and converting invoice information into digital data, which can either be done manually or automated. Through specialized software or automated systems, invoice details such as billing information, line items, dates, and amounts are extracted and organized into a digital database.

Benefits of Invoice Digitization

  • Increased efficiency: Invoice digitization streamlines the accounts payable process, reduces the amount of time spent on data entry tasks, and decreases processing times by automating workflows, approvals, and payments.
  • Increased accuracy: Automated data extraction and processing reduces manual data entry errors that can be costly to fix or lead to payment delays.
  • Reduced costs: Invoice digitization minimizes paper usage, printing, and storage costs associated with traditional invoicing methods.
  • Improved accessibility and compliance: It’s easy to retrieve, access, and share digital invoices. Digital files can be more secure than paper documents, as audit trails, data backups, and other features help ensure that your invoices are secure and compliant with regulatory requirements.

How to Digitize Invoices

Invoice digitization can be implemented through optical character recognition (OCR) technology, invoicing tools, and automated workflows. Typically, paper invoices are scanned and uploaded to a solution that uses OCR to recognize and extract the data in the invoice. That data is then matched to the fields in your invoice or accounting system, inputted, and saved.