Receipt Scanning OCR – Full Guide (Including Top Tools in 2023)

 Receipt Scanning OCR:
Everything You Need to Know

Using Receipt Scanner OCR

Home Blog Receipt Scanning OCR – Full Guide (Including Top Tools in 2023)

 Receipt Scanning OCR: Everything You Need to Know

Using Receipt Scanner OCR

 Receipt Scanning OCR: Everything You Need to Know

Using Receipt Scanner OCR

Unveil the world of receipt scanning OCR in this in-depth guide.

Receipt and document scanning OCR technology has gained significant traction in recent years, offering individuals and businesses a convenient way to streamline their expense tracking and management processes.

In this article, we will explore the ins and outs of receipt scanning OCR, including its benefits, various applications, and tips for selecting the best receipt OCR software to suit your needs.

How Receipt Scanning OCR Works

Optical Character Recognition (OCR) technology is the backbone of receipt scanning systems. OCR works by converting either printed text or handwritten text into digital data that can be easily edited, searched, or stored.

This technology is particularly useful for recognizing and extracting information from receipts, as it automates the process and eliminates manual data entry. The primary steps in scanning receipts using OCR, include preprocessing, character recognition, and post-processing.

1. Preprocessing

Before OCR can accurately recognize characters, the receipt image must be preprocessed to enhance its quality.

This step involves correcting the image orientation, removing noise, and adjusting contrast levels to ensure that the characters are clearly visible.

2. Character Recognition

During character recognition, the OCR software identifies individual characters and converts them into digital data.

Advanced OCR code and algorithms are capable of detecting and recognizing various fonts, sizes, and styles raw text, as well as dealing with distortions caused by printing, scanning, or photographing receipts.

3. Post-processing

Post-processing involves validating and correcting the extracted data to minimize errors. This step typically includes spell checking, grammar analysis, and validation of structured form of data against predefined templates or patterns.

3 Options to use OCR for scanning receipts:


1. Using Physical Scanner

To use a physical scanner for receipts, place the receipt on the scanner and start the scan. Then, save the digital image on your computer. A physical scanner is a large tool that needs to be purchased.

  • Advantage:
    High-quality images make digital copies clear and accurate.
  • Disadvantage:
    It’s big and costly, needing dedicated space and not suitable for travelers or limited workspaces.

2. Using an App to Scan Receipts With OCR

An app that scans receipts is a simple solution. Once you take a picture of your receipt, the app processes and savesthe digital copy.

  • Advantage: Convenient and portable, making it easy to scan receipts on-the-go.
  • Disadvantage: In most apps, especially free ones, receipt details may not be accurately captured. Also, In most cases, apps are not easy to use in teams, so do your research before choosing one at random.

3. Using WellyBox

WellyBox is a powerful receipt scanner OCR online tool for individuals and businesses.

You don’t even need to download a separate app, as it conveniently integrates with WhatsApp. The user-friendly solution uses advanced OCR capabilities to extract data from receipts effortlessly.

Using WellyBox is as simple as creating an account, connecting your mobile device, scanning receipts with your mobile camera, and that’s it. WellyBox will do the OCR for you.

  • Advantage: In addition to its impressive 99.8% accurate OCR capabilities, WellyBox is an all-in-one receipt management solution offering a range of helpful features: T
    1. Automatic collection of receipts from email accounts
    2. Seamless syncing with Google Drive and QuickBooks
    3. The ability to send receipts directly to your accountant from the system.Furthermore, WellyBox works exceptionally well for teams, making it an ideal choice for streamlined receipt tracking.
  • Disadvantage: A potential drawback of WellyBox is its monthly cost of $9, which might discourage some users. However, the high-quality features and functionality it provides are difficult to find in free solutions, making WellyBox a worthwhile investment for efficient receipt management.

Benefits of Receipt Scanning OCR

Implementing receipt scanning with OCR can provide numerous advantages for both individuals and businesses, streamlining expense management processes and improving overall efficiency.

Reduced Manual Data Entry

Manual data entry is not only time-consuming and labor-intensive but also prone to errors. With the right tools, you can automate this process, save time and reduce the risk of errors caused by manual data entry.

Improved Expense Tracking

You can easily track and categorize expenses, making it simpler to manage budgets and monitor spending patterns. This technology can also help detect duplicate entries, ensuring accurate financial reporting.

Enhanced Compliance and Security

OCR technology allows for the secure storage of digital receipts, reducing the risk of data breaches and ensuring compliance with industry-specific regulations. Furthermore, digital receipts can be easily backed up, protecting your financial data from loss or damage.

Applications of Receipt Scanning OCR

Receipt scanning OCR has a wide range of applications, catering to various industries and use cases. Some of the most common applications include:

Expense Management

Many businesses use receipt scanning OCR to automate their expense management processes. By converting paper receipts into digital data, employees can easily submit expense reports and track reimbursements, while managers can monitor budgets and analyze spending patterns.

Tax Preparation

Individuals and businesses can use free receipt scanning apps and OCR to simplify tax preparation by organizing and categorizing deductible expenses.

By storing digital receipts, you can easily access and provide documentation for tax audits.

Inventory Management

Retailers and wholesalers can leverage receipt data scanning OCR to streamline their inventory management processes.

By automating data entry, businesses can accurately track purchases and sales, ensuring efficient inventory control.

Choosing the Right Receipt Scanning OCR Software

Selecting the right receipt scanner OCR software is crucial to maximizing the benefits of this technology. Therefore, here are some factors to consider when choosing an OCR receipt and solution:


The accuracy of OCR software is critical for ensuring reliable data extraction and information extraction from receipts. Consequently, look for a solution with a high recognition rate, especially for the types of receipts and documents you typically deal with.

For instance, some OCR tools are better at recognizing specific fonts, languages, or formats, so choose one that best meets your needs.

Integration Capabilities

Ideally, the receipt scanner OCR software should integrate seamlessly with your existing accounting, expense management system, or inventory management systems. As a result, this will allow for a smooth workflow for customers and minimize the need for manual data transfers.

Speed and Scalability

Moreover, consider the speed and scalability of the OCR solution, particularly if you handle a large volume of data set of receipts. The software should be able to process multiple receipts quickly and efficiently, without compromising accuracy.

Customization and Template Support

Lastly, choose a receipt scanning app or OCR software that offers customization options and supports templates. This will allow you to tailor the raw output of the software to your specific requirements and ensure the extracted data is formatted and processed correctly.


The receipt scanning app and OCR software should be user-friendly and easy to navigate, even for users with no computer vision and limited technical expertise. Opt for a solution with an intuitive interface, clear instructions, and responsive customer support.

Best Practices for Receipt Scanning With OCR

To maximize the benefits of your receipt scanner, follow these best practices:

Ensure High-Quality Receipt Images

The accuracy of receipt recognition in OCR, largely depends on the quality of the receipt images. When scanning or photographing receipts, ensure proper lighting, focus, and resolution. Avoid crumpled or damaged receipts, as they may result in errors during character recognition.

Regularly Update Your OCR Software

OCR technology is continually evolving, with developers releasing updates and improvements to enhance performance. Keep your software up to date to ensure optimal accuracy and efficiency.

Verify Extracted Data

While receipt scanning can significantly reduce manual data entry, it’s essential to verify the extracted data for accuracy. This can help catch any errors or discrepancies before they impact your customers’ bottom line, financial reporting or decision-making.

Train Your Team

Ensure that your team is well-versed in using the software and understands the importance of following best practices. Providing proper training and support can improve overall efficiency and minimize errors.

Frequently Asked Questions

Can receipt scanning OCR handle handwritten receipts?

Yes, advanced receipt scanning OCR software can recognize and extract information from handwritten receipts. However, the accuracy of the recognition and extract data may vary depending on the legibility of the handwriting and the quality of the image, print or scanned document.

Is receipt scanning OCR suitable for all types of businesses?

Receipt scanning OCR is beneficial for businesses of all sizes and industries that deal with expense tracking, tax preparation, or inventory management. It can streamline processes, improve accuracy, and save time, making it a valuable tool for various organizations.

How secure is the data extracted?

The security of the extracted data depends on the receipt date of key data from scanning OCR software and the measures implemented to protect the key information. Choose a software solution that complies with industry-specific security standards and employs encryption to safeguard your data.

Does receipt scanning OCR support multiple languages?

Most OCR software supports multiple languages, allowing you to scan and process document types and receipts in different languages. However, it’s essential to choose a solution that specifically supports the languages relevant to your business operations.

How does receipt scanning OCR technology utilize machine learning and natural language processing?

OCR technology employs machine learning algorithms and natural language processing (NLP) techniques to improve the accuracy of data extraction from receipt images. Machine learning enables the software to learn from previous data inputs and continuously improve its performance.

NLP aids in extracting key information from unstructured text, such as addresses, dates, or product names, by identifying patterns and context in the scanned document. These advanced technologies work together to enhance the overall receipt recognition and data extraction process.

Can mobile phone apps use receipt OCR APIs to automate data extraction from paper receipts?

Yes, mobile phone apps can integrate receipt OCR APIs to automate the data extraction process from paper receipts. In other words, by utilizing a receipt OCR API, mobile apps can convert receipt images taken with the phone’s camera into structured data.

The receipt scanner API processes the receipt images, leveraging advanced algorithms to recognize and extract relevant receipt data.

This allows for seamless receipt scanning and data extraction, enhancing expense tracking and management capabilities directly from your mobile phone.


OCR technology offers a powerful solution for streamlining expense management, tax preparation, and inventory management processes. Therefor, by understanding the basics of this technology and implementing the right software and best practices, you can save time, reduce errors, and improve overall efficiency.

This article has covered everything you need to know about receipt scanning OCR, from the benefits and applications to choosing the right software and following best practices.

Armed with this knowledge, you can make an informed decision to enhance your business processes with technology.

Leave a Reply