Invoice Scanning Software: Brief Overview and Top 10 Tools of 2025

Struggling to choose the right invoice scanning software? You’re not alone.

Managing invoices manually is a slow, painful process. You spend hours keying in line items, chasing down approvals, and correcting avoidable errors. And when it’s time to scale? That manual process turns into a full-blown bottleneck. That’s why invoice scanning software has become a must-have for modern finance teams. But here’s the challenge: with so many tools on the market promising everything from faster approvals to flawless AI, finding the right invoice scanning software for your business can feel overwhelming.

Luckily, the process is easier when you know where to look, and what to look for.

In this blog, you’ll find everything you need to confidently choose the best invoice scanning software for your company, from understanding how automated invoice scanning works to knowing what features to look for and, most importantly, what this software can do for your business.

What Is Invoice Scanning Software?

Invoice scanning software helps you turn paper or digital invoices into clean, structured data, automatically. Instead of typing everything in by hand. Invoice scanning software reads the document using OCR (Optical Character Recognition) or advanced AI powered document processing tools such as IDP (Intelligent Document Processing) and pulls out all the important details: invoice numbers, supplier names, dates, amounts, line items, and more.

That data is then sent directly into your accounts payable or ERP system. With automated invoice scanning, you cut down on manual entry, avoid typos, and process invoices faster, with fewer errors.

But modern invoice scanning software goes way beyond OCR. Many tools now include artificial intelligence (AI) and machine learning to handle different formats and layouts. That means even if every vendor sends a different style of invoice, the system keeps learning and improving. It also flags issues like mismatched totals or missing fields, so your team can catch problems early.

In short, automated invoice scanning helps you get the data right from the start, so the rest of your workflow, approvals, matching, and payments can move quickly and smoothly.

Why Invoice Scanning Software Matters

About 68% of companies still enter invoice data manually. 

A lot of companies, even today, enter invoice data manually. That’s not just slow—it’s expensive and full of risk. If you manage a team that manually processes the data, you know how painful that is.

Invoice scanning software helps you solve that problem. You reduce processing costs, improve accuracy, speed up payments, and give your team time to focus on more important work.

How Invoice Scanning Fits into Your AP Workflow

Here’s how automated invoice scanning works inside your current system:

1. You receive an invoice (via email, portal, or mail).
2. The invoice scanning software reads it and pulls out key data.
3. That data is used for matching (PO, invoice, delivery receipt).
4. The invoice is routed for approval or sent directly for payment.

It all happens automatically, no more printing, scanning, or copy-pasting. And the best part? Invoice scanning software often integrates with your existing ERP or AP system, so you don’t have to rebuild your workflows from scratch.

Why Companies Are Adopting Invoice Scanning Software Fast, and You Should Too

The market for invoice scanning software is exploding. It’s expected to grow from $25.3 billion in 2024 to $98.4 billion by 2032. That’s an 18.5% annual growth rate.

It proves  that the industry is growing, with more businesses adopting advanced invoice scanning technology.

Why the rush?

Because companies that use automated invoice scanning are seeing real results, like processing invoices faster than manual teams, paying fewer late fees, capturing early payment discounts, and building better supplier relationships.

Top Benefits of Automated Invoice Scanning

1. Save Time and Speed Things Up

Manual invoice processing takes an average of 14.6 days. With automated invoice scanning, you can cut that down to 3–4 days on avaerage. Some teams even process invoices in a few hours.

That means faster approvals, on-time (or early) payments, and less time wasted on follow-ups.

2. Cut Down on Errors

From what we’ve learnt from our clients, 1 out of 3 invoices has a mistake when entered manually. With invoice scanning software, the data is pulled directly from the document, no typing, no mistakes. And when errors do happen, smart software can flag them for review. That means fewer exceptions to handle and more accurate records for audits or month-end.

3. Handle More Invoices Without Hiring More People

If your invoice volume is growing, you don’t need to hire more AP clerks. Automated invoice scanning lets you scale without increasing costs. Cloud-based systems even adjust to handle peak seasons. One-third of AP teams say they struggle to keep up during busy times, this fixes that.

4. Stay Compliant and Ready for Audits

Invoice scanning software keeps track of who approved what and when. If your process requires multiple sign-offs, the software manages it all. You also get a digital audit trail and better protection against fraud, like duplicate invoices or incorrect amounts.

5. Save Big on Processing Costs

Processing one invoice manually costs about $15. With invoice scanning software, that can drop to as little as $1.42. Even partial automation cuts costs in half. That’s a huge ROI, especially if you’re processing tens of thousands of invoices each year.

And it’s not just about saving money. When your team isn’t buried in paperwork, they can focus on strategic work, like improving cash flow, negotiating vendor terms, or spotting spend trends. 

How to Get Started with a New Invoice Scanning Software

If you're ready to start using invoice scanning software, here’s how to roll it out smoothly:

1. Review your current process – Where are the delays? What’s the cost per invoice? Set goals like “cut cycle time” or “reduce errors.”
   
2. Get leadership buy-in – Make sure your CFO or finance lead supports the change, and involve IT, procurement, and your AP team early.
   
3. Pick the right tool – Look for features like smart OCR, AI learning, ERP integration, and strong data security. Cloud vs on-premise depends on your needs.
   
4. Plan the rollout – Map out how the system will work with your current setup. Automate where possible and rethink approval workflows.
   
5. Start small – Run a pilot in one department or with one group of invoices. Fix bugs, collect feedback, and scale from there.
   
6. Train your team – Show your team how automated invoice scanning makes their jobs easier. Address fears about automation by focusing on how it helps, not replaces.
   
7. Track performance – Measure time saved, error reductions, and cost per invoice. Share wins with your team and fine-tune the process over time.

Overcoming Common Challenges of Implementing a New Invoice Scanning Software

Every new system has bumps. Here’s how to avoid common issues:

• Data Security: Work with vendors who use encryption and follow compliance rules (like SOC 2 or ISO 27001). Limit access to sensitive data internally.
  
• Integration: Legacy systems can be tricky. Use APIs or RPA bots to fill the gaps. Involve IT early to smooth the process.
  
• User Resistance: People fear change. Involve them early, pick champions, and share success stories. Show how invoice scanning software actually lightens their workload.
  
• Budget Approval: Show the numbers. If you're spending $15/invoice now, and automation should get you to $1.42, and the ROI sells itself. Many vendors have calculators and case studies to help you make your case.
  

Top 10 Invoice Scanning Software of 2025

1. Infrrd – Built for Enterprise-Grade Invoice Intelligence

Infrrd’s award-winning Intelligent Document Processing (IDP) platform is purpose-built for the real-world challenges of enterprise invoice processing. Instead of relying on rigid templates, which often break when formats change, Infrrd uses pre-trained machine learning models that understand document layouts and adapt automatically. This makes it ideal for organizations that deal with a wide variety of invoice formats from different vendors.

What makes Infrrd stand out is its ability to extract granular details, like line items, taxes, and totals, with high accuracy, even from complex or inconsistent invoice formats. It also supports three-way and four-way matching, allowing invoices to be reconciled automatically against purchase orders, receipts, and contracts.

When something doesn’t add up, the platform uses a human-in-the-loop approach to review exceptions without slowing things down. It also integrates seamlessly with major ERP systems. 

With support for SLA-based processing, built-in validation, full audit trails, and advanced exception handling, Infrrd helps finance teams streamline invoice workflows, reduce manual errors, and improve compliance, all while scaling effortlessly as invoice volumes grow.

 Why Infrrd Stands Out:

• No templates required: Pre-trained on millions of invoice formats
• Supports multi-line, multi-page invoices with high accuracy
• Built-in SLA management for time-sensitive processing
• Supports 2-, 3-, and 4-way matching
• Exception handling with human-in-the-loop
• Seamless ERP integrations (SAP, Oracle, NetSuite, Dynamics, etc.)

What Infrrd’s users report:

• 98%+ data accuracy
• 8x faster processing
• 90 %+ reduction in costs
• Go-live in weeks, not months

For enterprises looking for the best invoice automation software with flexibility, accuracy, and scalability, Infrrd checks every box.

Common FAQs About Invoice Scanning Software and Infrrd’s Solution 

Infrrd’s invoice scanning software is thoughtfully designed with the real concerns of invoice processing teams in mind, making sure it fits the way teams work and delivers what they need most. Here are some of the most common questions and challenges Infrrd helps solve with ease.

“Our invoices are too complex for software to handle.”
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Infrrd’s Solution:  That’s exactly what Infrrd is built for. Our AI is trained to manage highly complex invoice structures, multi-page, multi-line, multi-language, and from hundreds of different vendors. Best of all, it works without templates, so there’s no need to rebuild rules every time a format changes.

“We’re worried about losing control of the process.”
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‍Infrrd’s Solution: With Infrrd, you actually gain more control. Every invoice action is tracked, every exception is flagged, and every step is logged for auditability. Our human-in-the-loop feature ensures that edge cases are reviewed without breaking the workflow.

“Integration will be difficult with our existing systems.”
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Infrrd’s Solution: Not at all. Infrrd offers plug-and-play APIs and native connectors for major ERPs like SAP, Oracle, and NetSuite. You won’t need to overhaul your current setup—we fit into your existing systems with minimal disruption.

How Infrrd’s Invoice Processing Platform stands out from the rest? 

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Infrrd brings a uniquely powerful combination of AI, flexibility, and enterprise-readiness:

Pre-trained AI: Infrrd’s engine is trained on millions of invoice samples, so it’s ready to go out of the box—no template building needed.
Line-Item Parsing: It doesn’t just read headers. Infrrd understands line items, taxes, charges, and codes—even from complex or irregular invoice formats.
‍Rule-Based Processing: Define your own rules, Infrrd enforces them automatically. Whether it’s flagging international invoices or separating freight charges, you set the logic.
‍Exception Handling: Infrrd flags and prioritizes only the invoices needing human attention, so your AP team focuses on what really matters.
Real-Time SLA Management: Need invoices over $50K approved within 24 hours? Infrrd routes and escalates based on your SLA policies.
Multi-Way Matching: Supports 2-way, 3-way, and even 4-way matching against POs, GRNs, and contract terms.
Seamless ERP Integration: Infrrd integrates with SAP, Oracle, NetSuite, Microsoft Dynamics, and custom-built systems—no heavy lifting required. Infrrd’s clients typically go live in weeks, not months, and see value from day one. Quantifying the ROI of Invoice Automation Software Still weighing the cost? Let’s look at potential ROI.

2. Tipalti – Automation with a Focus on Global Payables

Tipalti offers strong automation capabilities, particularly for global mass payments. Its invoice automation software streamlines onboarding, tax compliance, and multi-currency payouts.

Where it falls short:

• Heavily focused on payment processing rather than invoice extraction
• Less flexible for non-PO invoices or complex line-item structures
• Limited AI customization for enterprise-specific rules

Tipalti is a good choice if global payments are your top priority, but for businesses looking for robust invoice intelligence, it may lack the depth offered by tools like Infrrd.

3. Iron Mountain - Insight Intelligent Document Processing for Invoices

Iron Mountain offers an Intelligent Document Processing (IDP) solution through its InSight Digital Experience Platform (DXP). It’s designed to help companies automate invoice handling by capturing, extracting, and routing invoice data using AI.

What It Does Well:

• AI-Powered Data Extraction
• Workflow Automation
• ERP Integration
• Centralized Access
• Scalable & Cloud-Based

Points to Consider:

• Still New to the Market: Launched in late 2024, it has limited customer reviews and a shorter track record compared to mature players.
  
• Integration May Require IT Help: While APIs are available, connecting legacy systems could take time and technical support.
  
• Learning Curve: It's a feature-rich platform that may need training and support, especially for less technical users.
  
• Not an End-to-End AP Tool: The platform automates document handling but doesn’t manage payments—your ERP will still handle that.
  
• Support Experience May Vary: Some past reviews on Iron Mountain's other services point to inconsistent customer support, so it’s worth evaluating SLAs and onboarding help.
  
• Cloud-Only Deployment: There’s no clear on-prem option, which could be a hurdle for companies with strict data regulations.

4. Airbase (by Paylocity) – Spend Management with AP Automation

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Airbase is a spend management platform that includes AP automation as part of a broader finance toolset.

Pros:

• Expense management + invoice capture in one platform
• Useful for SMBs with <500 employees

Drawbacks:

• Not ideal for large enterprises or multi-entity structures
• Invoice processing is region-restricted
• Steep learning curve and limited onboarding support
• Lacks flexibility for high-volume, complex invoice workflows
  
  

While Airbase offers a clean UI and solid features for spend control, its invoice automation software lacks the power and precision needed by high-scale AP teams.

5. Image One - Invoice Scanning for Accounts Payable 

Image One specializes in digitizing and automating accounts payable (AP) processes through its invoice scanning services. Established in 1994, the company offers both onsite and offsite scanning solutions, converting paper and emailed invoices into standardized digital formats. Utilizing Optical Character Recognition (OCR) technology, Image One extracts essential data from invoices, facilitating streamlined workflows and improved efficiency.

Key Features:

• Comprehensive Scanning Services: Handles various document types, including paper invoices, receipts, and correspondence, ensuring a complete digitization of AP documents.
  
• Workflow Automation: Integrates scanned data into automated workflows, reducing manual intervention and expediting invoice processing cycles.
  
• ERP Integration: Offers compatibility with existing accounting and ERP systems, allowing seamless data transfer and improved financial management.
  
• Enhanced Compliance and Security: Implements security measures and compliance protocols to protect sensitive financial data and adhere to regulatory standards.
  
  

Considerations:

• Regional Focus: While Image One provides robust services, its primary operations are concentrated in Florida, which may affect availability for businesses outside this region.
  
• Customization Needs: Organizations with complex AP processes might require additional customization or integration efforts to fully align Image One's solutions with their specific workflows.
  
  

6. Coupa – Strong on Procurement, Limited on Usability

Coupa is known for its procurement-first approach and community-driven AI. It offers e-invoicing and AP automation as part of its broader spend management suite.

Pros:

• AI assistant (Coupa Navi) for support
• Procurement-to-pay capabilities

Cons:

• Not user-friendly—frequent complaints about interface design
• Limited file type support for invoices
• Customization options are minimal.
• Customer support is rated below average in user reviews.
  
  

For companies already using Coupa for procurement, its invoicing add-on may be a logical step. But as a standalone invoice automation software, it may not offer the ease of use or depth of features that others provide.

7. Proactis – AI-Driven Invoice Capture and AP Automation

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Proactis offers an advanced invoice processing solution that leverages AI and machine learning to automate the capture, validation, and integration of invoices into financial systems. Their services cater to organizations aiming to streamline accounts payable operations and enhance efficiency.

Key Features:

• Comprehensive Invoice Capture: Processes various invoice formats, including paper, PDF, XML, and EDI, converting them into electronic records ready for processing.
  
• AI-Powered Data Extraction: Utilizes AI to extract invoice data, improving accuracy and reducing manual intervention.
  
• Managed Service Options: Offers both fully managed and hybrid services, allowing organizations to choose the level of involvement that suits their needs.
  
• Supplier Self-Service Portal: Provides suppliers with tools to submit invoices and track payment statuses, enhancing transparency and communication.
  
  

Considerations:

• Implementation Complexity: While Proactis offers robust features, integrating the solution with existing systems may require careful planning and resources.
  
• Customization Needs: Organizations with unique processes might need additional customization to fully align the solution with their workflows.
  
• Training Requirements: To maximize the benefits of the platform, staff may require training to adapt to new processes and tools.

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8. Rho – Lightweight AP Automation with Banking Integration

Rho is a newer entrant that combines finance automation with business banking.

Benefits:

• No subscription fees
• Fast invoice scanning and reconciliation

Limitations:

• No three-way matching
• Lacks support for multi-entity and multi-regional processing
• Doesn’t offer robust features for complex invoice layouts or exceptions
  
  

Rho’s simplicity is appealing for startups or lean teams. However, it doesn’t meet the needs of enterprises seeking the best invoice automation software with customizable AI and deep rule-based automation.

9. Tungsten Automation (formerly Kofax) – InvoiceAgility for Document-Centric Workflows

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Tungsten’s InvoiceAgility offers document automation with AI support via its Tungsten Copilot feature.

Pros:

• ERP integrations with SAP, Oracle, and Dynamics
• AI-assisted trend analysis

Challenges:

• Expensive license tiers
• Non-intuitive interface
• Requires coding knowledge to optimize
• Long learning curve, especially for non-technical teams
  

Tungsten suits companies with large IT teams and time for deep implementation. But if you’re seeking fast deployment, ease of use, and high accuracy, it may not be the most accessible solution.

10. Docsumo – Strong OCR, Limited Invoice Focus

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Docsumo started as a document AI platform and later expanded into invoice processing.

Strengths:

• Pre-trained OCR for document types
• API-based integration with CRMs, ERPs

Weaknesses:

• Invoice AI requires training and doesn’t perform well out of the box.
• Struggles with high variability in invoice layouts
• Inaccurate extractions if AI is not finely tuned
• Best suited for simple, structured invoice formats

Docsumo is effective for small businesses needing basic OCR. However, for enterprise-scale invoice automation, it lacks advanced matching, customization, and end-to-end AP capabilities.

Honorable Mention: Sage Intacct – Full-Fledged Accounting with Some Automation

Sage Intacct is a core accounting suite with AI-powered invoice processing baked in.

What it does well:

• Auto-matching and draft creation for AP entries
• Supports spending limits and audit trails
  

What to consider:

• Expensive and feature-heavy
• Steep learning curve
• Post-implementation changes are complex and often require vendor involvement.

Conclusion

What was once a helpful tool has now become a must-have for modern finance teams. Moving from manual processes to automated invoice scanning isn’t just a tech upgrade; it’s a game-changer in how finance delivers value.

Executives are embracing it to cut costs, speed up approvals, and improve visibility. The return on investment shows up in faster processing, fewer errors, and major cost savings per invoice. Just as importantly, it frees your team to focus on strategic work like supplier negotiations and cash flow insights.

If you haven’t made the move yet, now’s the time. Those who adopt invoice scanning software are gaining a competitive edge. Those who don’t risk falling behind with slower processes and higher costs.

In short, automation isn’t just about efficiency, it’s about future-proofing your finance operations and leading with data and agility.
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Ready to automate your invoice processing?

Book a demo today 

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