The invoice data extraction software you use to process your invoices can be the difference between financial chaos and clarity. For instance, with accurate data, your accounts payable team can ensure timely payments, strengthen supplier relationships, and avoid any unnecessary complications. Plus, working with reliable data lets you keep everything running smoothly and confidently.

So, how do you achieve this financial clarity? By making sure your invoice data extraction is on point.

An Overview of Invoice Data Extraction

There’s a common misconception that invoice data extraction means digitizing your invoices. In truth, it’s about extracting all the relevant data from invoices to process and analyze them further for payments and accounting. In essence, invoice data extraction is the process of identifying, capturing, and extracting key invoice fields.

Now, invoice data extraction can be done manually, but the days when AP clerks or accountants spent hours processing invoices are long gone. Technologies like OCR have been in use for a while now, but they also leave a lot to be desired in terms of speed and accuracy.

That’s where everyone’s new best friend, AI, struts in.

The Case for Invoice Data Extraction Using AI

Invoice data extraction is a use case ripe for AI. Here’s why:

• Need for accuracy. Invoices carry loads of information, but the key is to extract all the required fields accurately. This can be a challenge considering invoices are typically unstructured and follow different templates.
• Varying formats. Organizations typically receive invoices in different formats, such as paper, scanned, emails, PDFs, spreadsheets, and EDI (electronic data interchange) files. This requires a solution that can adapt to the changing formats.
• Resource-intensive. Depending on the size and complexity of the operation, your AP team likely deals with hundreds, if not thousands, of invoices. This takes up considerable resources that can potentially be saved using AI.

Invoice processing using AI is several times faster and more accurate than conventional approaches and can process invoices with various formats and changing layouts. By leveraging technologies like LLMs, RAG, and ML, AI-powered solutions can automate the invoice extraction process for you.

The 8 Best Invoice Data Extraction Software

1.   Astera

Astera’s next-gen Intelligent Document Processing (IDP) solution integrates AI at every level, allowing users to execute invoice data extraction workflows in just a few clicks. The award-winning solution has received an AI upgrade, known as Astera Intelligence, and now offers a host of new automation features and AI capabilities. Let’s look at what makes Astera the best choice for invoice data extraction:

Features

Automated Data Extraction & Classification: Astera frees you from the burden of pre-defined templates by powering automated invoice extraction. You don’t have to worry about extraction templates, as Astera Intelligence effortlessly generates the templates and extracts accurate data. Astera also automatically categorizes your documents, eliminating the need for manual sorting.

All File Types, Formats, and Sources Are Welcome: Invoices come from a variety of sources and file types, but with Astera, you can effortlessly extract data regardless. Whether it’s PDFs, scanned images, HTML, JSON, XML, or any other document format, Astera’s advanced OCR and text converter technologies ensure smooth and accurate extraction every single time.

AI-Powered Processing for Human-Like Comprehension: By integrating Large Language Models (LLMs) and multi-agent AI systems, Astera processes your invoices with human-like comprehension. No matter how detailed or complex the invoice, get reliable data extraction without fail.

Streamlined Document Processing with AI-Based Matching & Mapping: Astera’s AI-driven matching and mapping capabilities allow you to effortlessly handle large volumes of invoices. Consolidate separate invoice extraction tasks into one intelligent flow without worrying about differing formats or layout variations.

Recursive Extraction for Impeccable Attention to Detail: Astera ensures no critical data gets overlooked, no matter how large or complicated an invoice is. Recursive extraction lets Astera handle multi-page, complex invoices without missing a detail, so you get the full picture for effective decision-making.

Parallel Processing for Faster Workflows: Astera’s parallel processing capabilities allow it to extract data from large volumes of documents in seconds instead of hours. By processing multiple documents simultaneously, Astera ensures timely access to relevant information from your invoices, whether you’re processing hundreds or thousands of them.

Benefits

90% Faster Data Extraction: Astera’s Intelligent Document Processing enables 90% faster data extraction compared to the competition. When you’re dealing with hundreds of thousands of documents, this increase in efficiency translates to comprehensive time and cost savings, boosting your company’s bottom line.

8 Times Faster Invoice Processing: With several times faster document processing, you can stay on top of your invoices, regardless of the volume or frequency. Once you have created a workflow, you can also automate scheduled extractions to ensure uninterrupted operations without worrying about data integrity and accuracy.

97% Reduction in Errors: Astera Intelligence is always adapting and learning and is trained to ensure accuracy throughout the extraction process. Plus, the built-in validation capabilities ensure a 97% reduction in errors compared to conventional data extraction methods.

No-code Platform for Non-technical Users: As a no-code platform, Astera offers ease of use to users with little or no expertise. Plus, the availability of relevant resources, robust customer support, and training courses means you can become proficient in no time at all.

Partner your invoices with Astera for 8 times faster processing

Astera's intelligent document processing (IDP) solution is designed to leverage AI for faster and more accurate invoice processing. No matter how complex or unique your invoices are, Astera can handle it.

Connect with us to transform your invoice processing

2.   UiPath Business Automation Platform (Document Understanding)

UiPath Document Understanding, part of the UiPath Business Automation Platform, is a document processing solution specializing in unstructured data extraction.

UiPath Document Understanding’s ML capabilities facilitate data extraction from unstructured and structured documents. It can automate document processing tasks to reduce manual effort and dependency on human intervention. Plus, the tool can reduce errors by up to 52%, time spent on document processing by up to 17%, and the cost of manual document processing by 35%.

The solution may be unfeasible for smaller clients, primarily due to the huge price difference between its basic and advanced tiers. Some users have claimed that its signature and handwritten text recognition can be improved, while the solution also struggles with extraction and classification for documents containing long tables and line items.

3.   ABBYY FlexiCapture

ABBYY FlexiCapture is a tool known for streamlining manual data entry tasks and is part of the larger ABBYY ecosystem.

The solution enables efficient data extraction by simplifying rule configuration and automating tasks, boosting workflow efficiency and reducing costs.

However, users report challenges with text recognition in smaller fonts and certain letters, impacting accuracy, especially with unstructured files. Additionally, ABBYY FlexiCapture’s complexity requires training, making it challenging for non-technical users.

4.   Nanonets Invoice OCR

Nanonets leverages conventional Optical Character Recognition (OCR) technology to extract data from unstructured documents, eliminating manual data entry in the process.

Nanonets offers document classification and extraction capabilities that leverage OCR for unstructured data extraction from a variety of formats. The solution also provides templates and pre-built models depending on the popular use cases.

On the other hand, users have complained that the output is limited when the solution is implemented on-premises. Some features can be improved to increase the overall usability of the platform. For instance, tagging documents like invoices and mapping all the details can be time-consuming. Similarly, users have pointed out that training custom models can be time—and resource-intensive, and the workflow management setup can benefit from more checkpoints to determine whether data extraction is optimal for the desired output.

5.   Docsumo

Docsumo is an IDP solution specially designed for SMB lenders, Insurers, CRE lenders, and investors and their document processing requirements.

Docsumo has been praised for its ease of use and customer support. Users have appreciated the solution’s data extraction and data capture capabilities. The solution’s OCR capabilities have been acknowledged for their level of accuracy.

On the flip side, the processing time can be longer than the alternatives, and some users have highlighted occasional issues with data capture accuracy. ML technology has limitations when processing documents with varying formats or if there’s complexity of information within the documents. Some users have highlighted limited options and missing features, but these can vary depending on user-specific requirements.

6.   Rossum

Rossum is an IDP solution that offers data extraction capabilities through a low-code platform. While it combines OCR and AI, many have termed it too complex to set up. It is a better fit for companies with available technical resources.

Rossum is known for its data extraction and data capture capabilities. Their customer support is responsive and has received praise from several users. Plus, Rossum’s extraction accuracy has been highlighted by many of its users.

However, Rossum’s users have highlighted that their bigger updates often cause minor issues, and the solution has a lengthy and complex setup and may require technical resources. Plus, it may have limitations when extracting data from certain document types and Rossum’s high price may be an issue for certain businesses.

7.   Klippa DocHorizon

Klippa is a cloud-based accounting solution that also offers a document processing service known as Klippa DocHorizon. The solution leverages OCR to extract data from a variety of documents using template-based extraction.

The solution is easy to use, especially for non-technical users. It offers reliable OCR capabilities with support for a variety of documents, and the customer support team is responsive and helpful.

Nevertheless, the solution offers limited customization options, and it may not fully support complex workflows and requirements. Some users have pointed out that its extraction accuracy can drop with varying formats and layouts, and training the model can take a lot of time and resources.

8.   Tungsten InvoiceAgility (Previously Kofax TotalAgility)

InvoiceAgility is an invoice automation solution by Tungsten Automation, formerly Kofax. It’s an integrated e-invoicing network and invoice capture solution that accelerates invoice processing while ensuring accuracy and compliance.

The solution is a good option for automating invoice processing and while the AI isn’t perfect, it’s comparatively accurate when extracting data. Plus, it can process high volumes of invoices.

Conversely, the UI is difficult to navigate and can be made simpler and user-friendly, and licensing costs are too high and only suitable for large-scale enterprises with no options for smaller operations. Some users have pointed out that their customer support can be more responsive and helpful. Moreover, training and expertise are required to use the solution.

What To Look For In An Invoice Data Extraction Software

If you’re still unsure which invoice data extraction solution is a good fit for you, here are some things to look for before you seal the deal:

AI Capabilities

AI is here to stay, and it appears to be tailor-made to resolve the challenges associated with invoice data extraction. From automating the end-to-end process to improving efficiency and increasing accuracy, selecting a solution with AI capabilities will not only benefit you now but future-proof your invoice processing. Plus, solutions that leverage technologies like RAG and NLP allow you to do more than just process your invoices. For instance, with RAG and LLMs, you can talk to your data and extract valuable insights that can augment your decision-making in real-time.

Volume and Complexity

While invoices are crucial almost everywhere, the volume and complexity can vary significantly. It’s important to see if the solution you select can meet your requirements in terms of the volume of documents you’ll be processing daily. Solutions with AI and parallel processing capabilities are recommended as they are adept at dealing with varying formats, different file types, and large volumes of data.

Budget and Additional Costs

While budget consideration is pretty self-explanatory, it’s good practice to make sure that there aren’t any additional costs that you aren’t aware of. For instance, many solutions charge a monthly fee but ask for a premium after you have processed a specific number of documents.

Customizability

Customization is crucial when it comes to document processing, as requirements vary significantly depending on the use case. Considering this, a one-size-fits-all solution may not be the answer, which is why it’s better to go for an invoice data extraction software that offers a certain degree of customizability and control.

Workflows

If you’ll be processing thousands of invoices daily, it’s helpful to look for a solution that can facilitate combining all the extraction tasks in a single workflow or a handful of workflows. This helps streamline all your invoice processing by consolidating all the iterations into a handful of flows instead of having to deal with hundreds or thousands of extraction tasks separately.

Ease of Use

The solutions available on the market can vary significantly in terms of ease of use. Some solutions claim to be easy to use but require a certain degree of technical expertise and coding knowledge. Of course, there are also easy-to-use, no-code solutions that offer a drag-and-drop interface. Make sure that your users’ technical expertise aligns with the solution’s requirements.

Concluding Thoughts

Your choice of invoice data extraction software can have far-reaching consequences, not just for your accounts payable team but for your entire organization. With AI arriving on the scene, invoice processing solutions that incorporate it properly can improve their accuracy and help users increase efficiency.

To that end, Astera’s AI-powered Intelligent Document Processing is a next-gen solution featuring market-leading data extraction and document processing capabilities, AI-driven features to automate the entire workflow, and an intuitive drag-and-drop interface that takes all the hassle out of processing invoices.

Get in touch today to see how it works.

Frequently Asked Questions

1.   How do I extract data from an invoice?

You can extract data from your invoices using Astera’s Intelligent Document Processing. Astera features automated data extraction, which means you can accurately and effortlessly extract the data you need, even if no two invoices follow the same format.

2.   What is the best data extraction software?

The best data extraction software for your invoices will depend on your specific needs. However, Astera’s award-winning solution has now incorporated AI to make data extraction faster, more accurate, and more streamlined than ever. You can get a free demo to see if it’s the best data extraction software for you.

3.   How do I extract data from a PDF invoice?

Using Astera’s Intelligent Document Processing, you can effortlessly and accurately extract data from your PDF invoices. Not only that, but you can also extract data from any of your invoices, regardless of the file types and formats. Yes, even if it’s a picture of a paper invoice, Astera can accurately extract data for you.

4.   Which technology is used to extract data from scanned invoices?

Optical character recognition (OCR) is typically used to extract data from scanned invoices. However, with AI now involved, data extraction technology is becoming much more accurate, smarter, and faster. One example of this is Astera’s Intelligent Document Processing.

5.   What is invoice scanning software?

Invoice scanning software is any software that can scan and extract relevant data from an invoice. Such software solutions typically combine OCR with AI or ML algorithms to ensure fast and accurate data extraction.