What is OCR?
OCR (Optical Character Recognition) is a technology that automatically converts text in images into digital text data. When you take a photo of a receipt, it can automatically read and extract dates, amounts, vendor names, and more.
Traditional OCR had accuracy limitations, but recent advances in AI technology have enabled high-accuracy reading of handwritten text and receipts with complex layouts.
Benefits of Using OCR
Massive Time Savings
Manual data entry takes 1-2 minutes per receipt. With OCR, it takes seconds. For 100 receipts, that's over 2 hours saved.
Fewer Input Errors
Manual entry is prone to typos, especially with numbers. OCR significantly reduces human error.
Real-Time Recording
Snap a photo right when you receive a receipt and data entry is done. No more "I'll organize later."
Auto-Categorization
AI-OCR can automatically determine expense categories from the content read. Makes bookkeeping easier.
Traditional OCR vs AI-OCR
| Traditional OCR | AI-OCR | |
|---|---|---|
| Character Recognition | High for printed text only | Handles handwriting & fading |
| Layout Handling | Fixed formats only | Handles various layouts |
| Semantic Understanding | Reads text only | Identifies amounts, dates, vendors |
| Auto-Categorization | No | Auto-determines expense category |
| Learning & Improvement | Fixed rules | Improves with use |
How AI-OCR Works
AI-OCR uses neural networks trained on massive amounts of receipt images. Rather than simply reading text, it understands receipt structure and recognizes where specific information is located.
AI-OCR Processing Steps
- 1
Image Preprocessing
Improves accuracy through tilt correction, noise removal, and contrast adjustment
- 2
Text Region Detection
Identifies areas containing text within the receipt
- 3
Character Recognition
Deep learning recognizes characters with high accuracy
- 4
Information Structuring
Automatically classifies dates, amounts, vendors, and items into structured data
- 5
Category Estimation
Automatically estimates appropriate expense category from content
What Denpyo's AI-OCR Extracts
Date
Purchase/transaction date
Amount
Including/excluding tax
Vendor
Store/company name
Items
Purchased goods/services
Category
Auto-estimated
Tax
Rate and amount
Tips for Better OCR Accuracy
Take photos in good lighting
Shadows and dim lighting reduce accuracy. Place the receipt flat in a well-lit area.
Capture the entire receipt
Cut-off edges mean missing information. Make sure the entire receipt is in frame.
Shoot from directly above
Shooting at an angle causes distortion. Hold your phone perpendicular to the receipt.
Capture receipts early
Thermal receipt text fades over time. Capture it as soon as you receive it.
