What is OCR Software and How Does OCR Work?


OCR software is a program that enable computers to recognize written text in documents and convert into data. If we see text in documents, whether printed on paper or your computer’s screen, you can instantly can identify the letter or symbols it’s. For computers, things are a bit more complex.

Certain programs utilize OCR to let you edit the text in the document you scan as you would with word processor. Highlight text or copy into other documents , or even rewrite entire sections. Another benefit of OCR is to enable full-text searching possible. Certain OCR applications will also add text they have scanned from the document into the metadata document and allow certain programs to look up the document using any of the text in the document.

How it Works

OCR software programs work slightly differently based on the program’s developer and purpose, but they all have a common set of principles.

The software usually includes a pre-processing stage which aims to make the text more easily and more readable. Every scanner is not perfect therefore, even with modern, commercial scanners there will some flaws in the image. It accomplishes this by cleaning the image and separating the text from other elements. It ensures that the text lines correctly aligned, and all pixels have been smoothed.

The next standard procedure is for the program to distinguish each individual character, while recognizing pixels as characters and spaces between the characters. This lets the program analyze each character individually, and also be aware that a cluster of characters constitutes the word.

The next phase is most complicated, and usually the one that distinguishes the different OCR software. When the OCR software is aware of an element it needs to be able to recognize. It’s now time to determine what character is so it is able to assign correct data to it. Simple OCR software compares characters that are common to fonts in the library to see when they’re similar and then assigns the information. But, for characters that do not correspond to any of the fonts recognized in the library, like handwritten or unusual fonts advanced techniques needed.

Advantages of OCR Software

Advanced OCR software will continue to match characters with patterns that aid in determining the character it’s. They will be able to recognize that the letters “A” comprises two diagonal lines, with an in-between line. The most sophisticated OCR will make use of contextual clues to figure out which words and characters are that. If it is unable to determine the difference between “I” or “1” then it looks at the other characters it recognizes and makes an educated guess. The more probable interpretation is to read this phrase in the form of “Invoice delivered” instead of “1nvoice handed out.”

Reduces Time:

OCR significantly reduces the time needed to gather data and then enter in an accounting program. This allows finance and accounting professionals to work less performing tedious data entry processes, and more time delivering the financial services needed to rely on superior skills like expert judgement and strategic direction.

Enhances accuracy 

The technology has transformed the field of accounting and finance in ways that only a decade ago appeared impossible. However, there’s one essential issue that has not solved the human errors. The possibility of mistakes is high, and the misplacement of numbering or commas could cause significant costs. Because OCR software eliminates the requirement to manually enter data by employees such mistakes removed.

Enhances Reporting

Streamlining the accounting process is crucial to ensure prompt reporting. Accounting data that is structured is an evolving process. When structured data is incorporated into financial information , it grows exponentially and produces new and unique data. In the event of delays due to manually entering data can hinder the ability to get a “big picture” overview of your financial situation. OCR’s use OCR assures you of an accurate and timely finance and accounting reports that lead to better business decision-making.


OCR software is an essential component of the majority of document management software. For the purpose of properly digitizing documents and use them beyond archive. OCR that uses pre-defined templates to find characters within specific areas of a document. This makes the process quicker when scanning papers to workflow applications.


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