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5 Reasons Why You Shouldn’t Manage Accounts Payable OCR Software In-House

  • March 27, 2016

Why OCR Matters in AP

When implemented correctly, OCR for accounts payable can be a powerful tool for removing manual data entry, increasing visibility, and accelerating invoice processing. But not all accounts payable OCR software is created equal. The wrong solution—or the wrong implementation strategy—can turn an automation dream into a back-office nightmare.

What Does an OCR Nightmare Look Like?

One organization we spoke with licensed an OCR accounts payable module to streamline invoice capture. Initially configured for decentralized scanning, the system became a bottleneck when they centralized their AP operation and began processing most invoices as PDFs.

Without in-house experts to fine-tune the software, capture rates declined dramatically. Eventually, the team was forced to double its headcount just to keep up with manual data entry—essentially reversing their automation gains.

They aren’t alone. Many companies that manage accounts payable OCR internally struggle with outdated systems, mounting IT overhead, and disappointing results.

A Smarter Approach: Cloud-Based OCR for AP

Today, the best OCR software for accounts payable isn’t something you install on-premise—it’s a SaaS-based AP automation solution that includes OCR as part of a fully supported, cloud-native platform. Here’s why that matters:

1. You Need Experts, And That’s Hard to Staff

Getting great results from OCR requires specialized knowledge in document capture, image quality, field-level data extraction, and invoice formats. Most AP teams don’t have that expertise in-house, and IT teams often deprioritize AP automation in favor of more visible projects.

Outsourcing to a provider that specializes in OCR for accounts payable ensures your data is accurate from day one—and keeps improving over time.

2. In-House OCR Is More Expensive Than It Looks

Between licensing fees, infrastructure, IT support, and staffing, managing accounts payable OCR software internally is rarely cost-effective. It’s far more efficient to work with a partner who can deliver guaranteed capture accuracy (we’re talking 99.9%) and remove the burden from your team.

3. Internal Implementations Take Too Long

Deploying in-house OCR can take over a year to reach full efficiency. With a SaaS-based OCR solution for AP, you can be up and running in as little as 3–5 months with proven best practices, implementation support, and built-in scalability.

4. Results Don’t Match the Marketing

Many tools claim “98% accuracy,” but only under perfect conditions like high-resolution, standardized invoices with consistent formatting. In the real world, especially with emailed PDFs, performance degrades fast.

The best OCR software for accounts payable adapts to real-world documents and reduces manual keying, even when invoice quality isn’t ideal.

5. Outdated OCR Drains Time and Resources

When internal OCR becomes unusable—or falls short of expectations—it doesn’t just stall your AP process. It consumes valuable IT bandwidth, frustrates AP staff, and pushes your team back to manual processing. Don’t let legacy tools become liabilities.

The Bottom Line

OCR for accounts payable works best when it’s part of a flexible, expert-supported solution—not a standalone software you’re left to manage. SaaS-based OCR eliminates the need for IT support, scales with your business, and delivers clean, accurate invoice data that flows directly into your ERP.

Ready to see how OCR automation should work? Contact us to learn how DataServ’s purpose-built AP automation with embedded OCR delivers results from day one.

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