Are paper, tape, and photocopies still part of your company’s expense reporting process? Are your employees still manually inputting data from receipts for all their business expenses?
We understand why businesses might be skeptical about using an automated expense management software. And we know there are some legitimate concerns behind all the doubts and questions.
But, what if we told you that an expense management software like Fyle could efficiently operate via smartphones? That it can help an employee to report and submit their expenses accurately and on time? In this article, we will talk about data extraction technology and its working. We will also delve into how accurate data extraction can benefit the expense management process.
Receipt data extraction using OCR technology
Modern expense management software has adapted new technology to ease management woes. One such technology is OCR or optical character recognition (a machine learning technology). This technology reads each character one by one and converts it into text. Obviously, accuracy is of primary concern and OCR performs that conversion with 98-99% accuracy.
With the help of OCR technology, receipts can be scanned easily with the camera of the smartphone acting as the scanner. This technology can also sit in your Gmail or Office 365 mailboxes and perform the same function. The extracted data can then be stored in a unified system for easy access.
Digitizing expense reporting with receipt data extraction
Expense reporting is a process that is dreaded by everyone. With all the receipts, forms, numbers, and policies involved, it can start to feel like a huge burden. With this in mind, let's look at how expense reporting has evolved over the years.
Before digitizing expense reporting
While reporting an expense, the employee needs to
- Fill the expense report form with expense details
- The details include the date, amount, the name of the vendor, and expense category
- Ensure the details on the expense report match the receipt attached to it
- Submit the expense report form with the respective receipt to the approving manager
For an employee making several business expenses, inputting all the details into an expense report can be taxing. Despite all the time and effort, it still remains error-prone. The manual process also increases the chances of wrong or mismatched entries. This could lead to multiple back and forths and result in delays or employees missing out on reimbursements.
You can easily install a receipt scanner, or receipt tracking app on a smartphone. This can decrease the burden of collecting, collating, and storing physical receipts.
After digitizing expense reporting
When an employee has the right data extracting tool, it reduces the workload to a considerable extent while also giving satisfactory results. Modern expense management softwares provide tools like receipt scanner and email add-ons. In these methods, receipt data extraction is done with great ease and accuracy. It also eliminates the tedious task of manual data entry.
With a receipt scanner,
- Employees can simply take a picture of a receipt
- The software scans the picture and extracts relevant details
- The extracted information and corresponding receipt are stored safely
- The employee can submit the expense report anytime via the app
With an email add-on,
- You can directly report all business expenses from the mailbox
- With data extraction, employees do not need to manually fill in expense details
- An employee can simply review and submit the expense report
With receipt data extraction tools, the time taken for the entire expense reporting process reduces drastically. All the hassles of referencing and matching receipts to expense report forms are eliminated. Now, the employees can have enough time to tend to more productive work.
Benefits of using an expense management software for receipt data extraction
Accurate receipt data extraction can benefit both the employees and the company. For the employees, it eases their workload and helps them report expenses on time. For the company, timely and accurate submission of expense reports helps decrease the turnaround time for employee reimbursements.
- No more wasting time in manual entry - One of the primary benefits of receipt data extraction is to automate mundane tasks, this includes manual data entry.
- Lesser room for errors - With no manual entry, employees only need to check that the numbers pulled up by the software are correct before submitting it.
- Optimizing costs - A well-built system ensures there is less leakage of data. This translates to a decrease in manual labor and hidden costs.
- Better storage and accessibility - The extracted receipt data is stored in a unified system like a cloud. This ensures the safe storage of all the expense receipts.
- Lesser policy violation, greater compliance - Modern softwares allow companies to integrate their expense policies with the software to ensure compliance.
Expense management and receipt data extraction
New technology has been developed over the years to troubleshoot any problem area in any sector. As a result, technology such as artificial intelligence (AI) and machine learning (ML) has embedded in every field. With annotation tool to label the data that the AI model needs to learn which helps them achieve a more productive process. With an annotation tool that labels data in the background, the AI constantly learns to work in a more productive manner to make life easier for you.
To eliminate most of the manual work and inaccuracies, expense management softwares leverage AI. Fyle is one such AI-powered expense management software. With its effective receipt scanning ability and receipt management, employees can enjoy easy expense reporting. The finance team can also expect and appreciate greater compliance with company policies from employees.