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What is OCR? How NetSuite Uses OCR To Automate Financial Processes

Written by Karl Threadgold | Feb 18, 2025 4:45:39 PM

What is OCR Scanning?

Optical Character Recognition (OCR) scanning is a technology that converts different types of documents, such as scanned paper documents, PDFs, or images, into machine-readable text. OCR is widely used to automate data extraction from invoices, receipts, and forms, helping businesses eliminate manual data entry errors and speed up document processing.

How OCR Technology Works

OCR technology works by analysing a document, recognizing characters, and converting them into digital text. The process includes:

  1. Pre-processing – Enhancing the image for better accuracy by removing noise, correcting alignment, and adjusting contrast.
  2. Character Recognition – Identifying text patterns using AI and machine learning algorithms.
  3. Post-processing – Verifying and refining extracted data using context-aware corrections.
  4. Exporting Data – Integrating the extracted data into a structured format for business applications like ERP or accounting systems.

The Role of OCR in Business Process Automation

OCR technology is a key component of business process automation, particularly in industries that manage extensive paperwork. By converting physical documents into digital data, OCR minimizes the need for manual processing, allowing employees to focus on more strategic tasks. Companies use OCR for various purposes, including document indexing, automated approvals, and compliance tracking.

The ability to extract and organise data automatically saves businesses hundreds of hours and makes processes much more efficient. For example, businesses can set up automated systems where invoices are scanned, relevant details are captured, and the information is directly entered into financial software. This eliminates the delays and errors associated with manual entry, ensuring faster and more reliable processing.

NetSuite and OCR: How It Works

Does NetSuite Have Built-in OCR Scanning?

NetSuite does not have a fully integrated OCR system by default. However, it provides document scanning capabilities through SuiteCloud, and you can easily integrate with third-party OCR tools to enhance document processing and automation.

How OCR Enhances NetSuite’s Financial Automation

By integrating OCR with NetSuite, businesses can:

  • Automate accounts payable (AP) and accounts receivable (AR) workflows
  • Reduce data entry errors and improve accuracy.
  • Improve compliance and audit readiness by ensuring accurate document records.
  • Streamline invoice matching and approval processes for faster financial operations.
  • Reduce labour costs by minimising time spent on manual processes

Popular OCR Software that Works with NetSuite

Several third-party OCR solutions integrate seamlessly with NetSuite, including:

ABBYY FlexiCapture

ABBYY FlexiCapture is an AI-powered OCR solution designed for businesses that need high-accuracy document processing. It uses machine learning and natural language processing (NLP) to extract data from structured, semi-structured, and unstructured documents, making it a great choice for finance and accounting departments. ABBYY FlexiCapture integrates with NetSuite through APIs and pre-built connectors, enabling seamless document processing.

Rossum

Rossum is a cloud-based intelligent document processing (IDP) platform that uses AI to automate invoice data extraction. It specializes in handling accounts payable automation and is designed to integrate with ERP systems like NetSuite via a direct API connection.

Tipalti

Tipalti is a comprehensive accounts payable (AP) automation solution that includes OCR functionality as part of its broader financial workflow automation. It focuses on streamlining supplier invoice processing, payments, and compliance management. Tipalti offers native integration with NetSuite, syncing directly with accounts payable and general ledger (GL) records.

Yooz

Yooz is an accounts payable automation solution with powerful OCR capabilities designed to help businesses optimize invoice processing and financial document management. It focuses on high-speed data extraction and real-time financial visibility. Yooz integrates with NetSuite through API connections and pre-built connectors. 

Best Practices for Seamless Integration

When integrating OCR with NetSuite, businesses should choose a solution that is compatible with their specific document processing needs. High-quality document scans improve OCR accuracy, so companies should ensure that documents are well-formatted and legible before processing. To ensure a smooth integration, businesses should test the OCR system with sample documents to verify accuracy.

It is also important to configure automation rules that define how extracted data should be processed and entered into NetSuite. Testing the integration thoroughly before full implementation helps identify and resolve potential issues early, and regular monitoring and error-checking help maintain data quality and prevent processing issues.