Automated OCR Data Capture: A Complete Guide

Ashutosh Saitwal
Ashutosh Saitwal

Founder CEO - KlearStack AI

Table of Contents

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[vc_row pix_particles_check=””][vc_column][vc_column_text]Data is a critical asset for any organization, and capturing it accurately and efficiently is key to success. One way to achieve this is through automated OCR data capture. In this article, we’ll discuss what automated OCR data capture is, how it differs from manual data entry, whether Intelligent Document Processing (IDP) is a better alternative to OCR, and how to automate data capture with KlearStack.

What is Automated OCR Data Capture?

Automated OCR data capture is a process of using Optical character recognition(OCR) technology to automatically extract data from various sources such as documents, invoices, receipts, and forms. OCR technology converts scanned or handwritten text into digital text that can be processed and analyzed by a computer. The extracted data is then validated, verified, and formatted for use in downstream applications or systems.

Automated OCR Data Capture Vs Manual Data Entry

Manual data entry involves the entering of data from paper documents or scanned images. Its high demand for labor and wages often makes it a bottleneck for businesses and enterprises trying to scale their operating costs. Apart from these limitations, manual data isn’t the most efficient choice for businesses. Personnel can often face many challenges while entering data such as the inability to comprehend poor handwriting or low-resolution pictures, excessive time and resource consumption to enter data manually, chances of human errors, and so on.

Instead, automated OCR data capture can help businesses capture data hidden in unstructured documents such as invoices, bills, and so on. Further, with intelligent AI-driven data extraction solutions, it can possess the data obtained at rapid speeds and is even compatible with bulk volumes of information to find the most effective ways to handle data. With menial human involvement, automated OCR data capture software is highly convenient for companies that deal with the massive influx of documents every day to ensure regular and optimized data processing.

In comparison to manual data entry, investing in automated OCR data capture can help businesses set up economic and efficient data processing systems. Instead of focussing large amounts of money and valuable labor on manual data, the resources can, now, be redirected to more critical business operations. It is also widely used while processing sensitive documents with classified information to retain the integrity of data with no scope of any external manipulation.

Such data processing systems are widely used in Accounts Payable and Enterprise Resource Planning teams to optimize operations. With decreased turnover periods in generating employee payslips and increased transparency, it also creates a secure and stable work environment to enhance productivity. Further, it shows businesses how to evaluate resource allocation to ensure greater output to boost revenue and profit margins in the long run.

By providing scanned and machine-readable copies of data, companies can now edit and share information easily to improve and streamline the flow of internal operations. It also enables them to collaborate with third-party agencies and clientele in cases of mergers or partnerships.

Automated OCR Data Capture Vs Manual Data Entry:

Parameters Automated OCR Data Capture Manual Data Entry
Speed Fast Slow
Accuracy High Low
Scalability Highly scalable Limited scalability
Human error Low High
Labor cost Low High
Training cost Low High
Document types Can handle various document types Limited to structured documents
Integration capabilities Can integrate with various systems Limited integration capabilities
Data extraction Can extract data from multiple documents at once One document at a time
Time required to get results Near-instantaneous Takes considerable time to get results

Is Intelligent Document Processing (IDP) a Better Alternative to OCR?

Intelligent Document Processing (IDP) is an advanced automation technology that combines OCR, Machine Learning (ML), and Natural Language Processing (NLP) to automate end-to-end document processing workflows. IDP goes beyond OCR by understanding the context of the document, extracting data, validating it against predefined rules, and automating downstream processes based on the extracted data.

While OCR technology is an excellent solution for extracting data from structured and semi-structured documents, IDP is better suited for handling unstructured documents that require context and understanding to extract meaningful data. For example, OCR technology can extract data from invoices, but IDP can also validate the invoice data against predefined business rules, verify the vendor information, and automate the approval and payment processes.

How to Automate Data Capture with KlearStack Intelligent Document Processing Platform

KlearStack is a cloud-based AI-powered platform that provides automated OCR data capture and IDP solutions for various industries such as finance, healthcare, insurance, and logistics. Here’s how to automate data capture with KlearStack:

  1. Upload documents: Upload the documents you want to extract data from to the KlearStack platform.
  2. OCR and Data Extraction: KlearStack will automatically OCR the document and extract the relevant data using its AI-powered OCR technology.
  3. Validation and Verification: The extracted data is validated and verified against predefined rules to ensure accuracy and consistency.
  4. Integration: The validated and verified data is then integrated with downstream applications or systems, such as ERP or CRM systems.
  5. Analytics: KlearStack provides detailed analytics and insights into the extracted data, allowing businesses to make informed decisions and identify areas for improvement.


By leveraging AI-driven and Machine Learning (ML) power data extraction and processing solutions, companies can process bulk volumes of information generated every day. With a multitude of OCR software and data parsing platforms, businesses can invest in any of the same to reap benefits.

Opting for KlearStack will provide smart data processing services to help businesses gain insight and formulate actionable policies to improve operations. With increased productivity, higher revenues, and greater profit margins, companies are sure to reach newer heights by integrating with these high-end digital solutions.

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