Top 8 invoice scanning software solutions

With finance teams spending from 25% to more than half of their time on manual processes ¹, the need of invoice scanning software revolves has become impellent.

In fact, the core solution of automation technologies revolves around digitizing manual document processing to reduce errors and increase valuable business activities.

And, as business owners, accounting teams and payroll specialists often build their work over fixed workflows, choosing the right automation tool depends on how adaptable, comprehensive and affordable it is.

In this article, we explore some of the best invoice scanning software, with particular attention to accounts payable and payroll operations. 

Table of content

• What is invoice scanning software?
• Key features to look for
• Quick comparison
• The 8 best invoice processing automation software solutions
  
  • Procys
  • Microsoft Business Central
  • Sage50
  • Rossum
  • Zoho Books
  • ABBYY FlexiCapture
  • QuickBooks Online Advanced
  • SAP Concur
• Invoice scanning software in payroll and accounts payable operations
• Conclusion - How to choose the right invoice scanning software

What is invoice scanning software?

If invoices are hard static documents, invoice scanning software is what automates the extraction of its key data, reducing manual entry and errors.

By leveraging OCR (Optical Character Recognition) and AI-powered data extraction, an invoice scan helps businesses streamline their entire accounts payable processes, improving the administrative work at scale.

Manual invoice processing is time-consuming, error-prone, and costly. Automating this workflow provides:

• Time savings: Eliminates the need for manual data entry.
• Increased accuracy: Reduces human errors and compliance risks.
• Cost efficiency: Lowers processing costs by minimizing labor.
• Seamless integration: Connects with ERP, CRM, and accounting platforms.‍
• Scalability: Handles large volumes of invoices effortlessly.

Key features to look for

When selecting an invoice scanning solution, we want to take for granted:

• AI-powered OCR, which extracts and structures invoice data accurately.
• Multi-format support, so that teams are not limited by different types of files, like PDFs, images, emails, and scanned handwriting.
• Automated workflows, which is critical to route invoices for approvals and payments.
• ERP and accounting software integrations, to enable businesses to connect their existing tech stack.
• Compliance and security, to ensure data protection and regulatory compliance.

Quick comparison

We crafted this list leveraging the knowledge of software engineers, IT experts, and finance managers with decades of experience.
We have evaluated technical characteristics, as well as customer feedback and online reviews,so that accounting professionals could make informed decisions.
This analysis doesn’t aim to discredit any of the mentioned software providers.

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The 8 best invoice processing automation software solutions

1. Procys

Procys offers a comprehensive set of solutions for document processing automation, including AI-powered invoice processing at a fraction of the average market price.

With plans suitable for both small businesses and enterprises its core, accounting-related functionalities ensure error-free and efficient invoice manipulation.

Key Features

• AI-powered OCR technology for highly accurate data extraction.
• Integrates with almost any software, including ERPs, CRMs and accounting tools
• Automated workflow approvals to streamline AP and AR processes
• Multi-language and multi-currency invoice management 
• Cloud-based accessibility and security features

Pros

• Highly accurate OCR processing with machine learning improvements
• Seamless integration with accounting and ERP systems
• User-friendly and scalable, making it ideal for growing businesses

Cons

Free account doesn’t offer the whole set of automation capabilities, focusing mostly on document processing.

Pricing & Value:

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Try Procys for free

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2. Microsoft Business Central

Part of Microsoft’s ERP ecosystem, Business Central includes invoice automation features that integrate seamlessly with the Microsoft suite.

Key Features

• Built-in OCR and invoice processing capabilities
• Deep integration with Microsoft Dynamics CRM & Office 365
• Custom workflows and automation tools

Pros

• Ideal for businesses already using Microsoft products
• Scalable for enterprise needs

Cons

• Expensive for smaller businesses
• Complex setup and implementation

Pricing

Business Central is a high-tier product with plans starting at 70$ per user, per month (for European countries, the price is often quoted upon consultation). 

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3. Sage50

Part of Sage Intacct automation software, Sage 50 is known for belonging to a larger ecosystem, usually apt for bigger financial teams. 

Key Features

• Invoice and receipt management
• Profound AP automation flows and functions
• Integration with other accounting tools

Pros

• Helps businesses stay compliant with tax regulations and provides detailed financial reporting.
• Integrates with third-party apps, including Microsoft Office and some CRM and payroll solutions.

Cons

• Steep learning curve, as the interface and features may be overwhelming for beginners
• Costs can be high, especially for multi-user versions or cloud access

Pricing

Higher tier, it starts at about 45€ per month per user, depending on the country.

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4. Rossum

An AI-powered document processing solution focused on invoice automation.

Key Features

• OCR-based invoice scanning
• Machine learning-powered document recognition
• API integrations

Pros

• Customizable AI
• Scalability for large enterprises

Cons

• Higher pricing tier compared to many other software
• Some online feedback mention that the initial configuration can be challenging and time-consuming, particularly for those without a technical background

Pricing

Custom pricing based on quotations.

5. Zoho Books

Zoho Books is an accessible software for accounting, part of the Zoho CRM ecosystem. 

Key features

• Accounting workflows
• Data extraction for invoices and payment documents
• Core integrations within the Zoho ecosystem

Pros

• Affordable and accessible
• Good potential for multiple integrations 

Cons

• Limited advanced features, especially for enterprises
• Best if used in combo with other Zoho services

Pricing

Tiered pricing plans based on features, from 12€ to 36€ per month.

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6. ABBYY FlexiCapture

Overview: AI-based document capture and OCR solution.

Key Features

• Advanced OCR engine.
• Highly configurable workflows.
• Cloud-based document storage.

Pros

• Enterprise-ready document management.
• Strong automation capabilities.

Cons

• Complex user interface for beginners
• It’s been reported that the system struggles with extracting data from more unstructured or low-quality documents

Pricing

High tier, with custom pricing and quotation based options only.

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7. QuickBooks Online Advanced

A popular accounting platform with built-in invoice automation.

Key Features

• OCR-powered receipt and invoice capture
• Seamless accounting system integration
• Expense tracking and reporting tools

Pros

• Focused on accounting ops
• Native accounting integration
• Mobile app available

Cons

• Limited AI-powered automation compared to specialized solutions
• Useful accounting features are available for higher plans only
• The focus on accounting might limit the needs for other types of document processing

Pricing

Tiered pricing from 19€ to 70€.

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8. SAP Concur

An enterprise-level invoice processing platform, with a robust expense management toolset.

Key Features

• Global invoice compliance features
• End-to-end expense tracking
• Enterprise-level ERP compatibility

Pros

• Industry-leading compliance features
• Scalable for large enterprises
• Focused on accounting and financial operations

Cons

• Complex setup and high cost

Pricing

Custom enterprise pricing.

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Invoice scanning software in payroll and accounts payable operations

Invoice scanning technology plays a critical role in automating and streamlining financial processes for both payroll specialists and accounts payable teams. 

In our effort to maximise the ROI on software and enable businesses to unlock more time in their day-to-day operations, here’s a breakdown with specific use cases of invoice scanning software.

Payroll specialists

Handling salary payments, tax withholdings, employee benefits, and compliance with labor laws is an oversimplification of HR or finance managers dedicated to payroll management. 

Invoice scanning and data recognition helps with:

1. Processing vendor and contractor payments

Payroll teams can manage payments for freelancers, consultants, and contract workers, sometimes overlapping with the accounts payable work.

Invoice scanning allows payroll specialists to capture payment details from their invoices by extracting amounts, payment terms, and vendor data, and connect this info to separate payment workflows or softwares, without manual-work-related errors.

2. Benefits and reimbursement 

Payroll departments often process healthcare, insurance, and employee benefits invoices from third-party providers.

To ensure accurate and automated tracking of deductions related to employee benefits, data scanning aligns invoices with payroll deduction records to prevent mismatched payments.

Moreover, for scenarios where employees submit receipts and invoices for work-related expenses, comprehensive software solutions allow users to build hybrid or fully-automated build reimbursement approvals.

3. Tax compliance and deductions

Another critical task is handling tax compliance, including VAT and other obligations.

Here, differentiating (especially for remote teams) and approving tax applications is a core aspect that can slow down the reporting operations. 

For this, invoice scanning reduces errors in tax calculations by cross-verifying invoices with tax records.

4. Legal compliance and cybersecurity

Payroll teams are responsible for ensuring all payments comply with labor laws and company policies, while keeping their work in a safe technological infrastructure.

While recognizing and extracting data from invoices and other documents, software users generate a trail of what’s been processed, so that compliance audits are easier to populate.

Additionally, a proper software flags duplicate or fraudulent invoices, and is backed by ISO and AICPA SOC certifications. 

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Accounts Payable Teams

Being responsible for managing supplier invoices, payments, and maintaining accurate financial records, AP teams can use invoice scanning technology as a central tool for their  workflows, helping them process large volumes of invoices efficiently.

1. Invoice formatting and data capture

AP teams receive invoices in various formats (PDFs, scanned paper documents) on various channels (dedicated ERPs, emails, HR tools).

Establishing a central point of control that can receive, convert and read any type of file is a key function of advanced invoice scanning softwares.

2. Matching invoices with purchase orders

The verification of invoices against POs and delivery receipts prevents payment mismatchings: the automation of this delicate process usually works with functions called automatic 2-way and 3-way matching.

Other than flagging any discrepancies, this is also the feature that enables the prevention of duplicate payments, fraudulent operations, and manual mistakes.

3. Approval workflow automation

One of the most tedious parts of the AP work is having clear and transparent communication across different roles: invoice scanning tools are often ingrained in more comprehensive, intelligent systems that let users build automatic approval workflows.

Flexible software solutions allow the customization of approval rules and cycles across different C-suite departments.

4. Managing vendor payments

Invoice scanning enables faster, error-free invoice processing, and connects with functions to process payments automatically.

It’s often the case where these operations need a communication between the data extraction  tool and other ERPs, where vendor information is stored and managed.

For this, any proper automation tool should offer pre-built integrations with other systems and personalized connections (APIs) as per the business needs. 

5. Tax Calculation, compliance and fraud detection

Just as payroll specialists work with ensuring the tax compliance of the employees, AP professionals can take over the entire administrative strategy of the business.

Thinking of the critical weight that these operations have, also and especially for enterprises with multiple local divisions, automating the recognition and categorization of VAT, withholding tax, and other governmental fees is an unavoidable need.

For tax audits, an invoice scanner minimizes errors and accelerates the due diligence, preventing critical situations with local and international financial regulators.

At the same time, as any financial professional knows, checking for duplicate, altered, or fraudulent data in invoices is something that should not be done manually.

The key here is choosing the right tool in terms of how precise, flexible and rewarding it is.

6. Financial forecasting and reporting

A trail leaves space for historical tracking: when digitizing and automating data from documents, a proper software store categorizes a track record of all operations.

This gives a clear vision about the financial and/ or administrative expectations for business directors. Moreover, it’s important to look for real-time insights and accessible data visualization panels, so that critical decisions about outbound payments, cash flow and financial status can be informed.

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Conclusion - How to choose the right invoice scanning software

Choosing the right invoice scanning software depends on the business size, budget, and integration needs.

If you're looking for an invoice scanning software that relies on AI and ML to automate document processing securely at a fraction of the market average cost, you can rely on Procys.

Try it out for free here.

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Sources

1: Airtable - Survey Shows Too Many Hours Wasted On Manual Accounting - Automation Can Help