OCR (Optical Character Recognition)
TechnologyTechnology that converts different types of documents, such as scanned paper documents, PDF files, or images captured by a digital camera, into editable and searchable data.
Optical Character Recognition (OCR) is a widespread technology to recognize text inside images, such as scanned documents and photos. OCR technology is used to convert virtually any kind of image containing written text (typed, handwritten, or printed) into machine-readable text data.
How OCR Works
OCR systems use a combination of hardware and software to convert physical documents into machine-readable text. Hardware — such as an optical scanner or specialized circuit board — copies or reads text; then, software handles the advanced processing.
Benefits of OCR
- Searchable Text: Scanned documents are just images. OCR makes them searchable.
- Editable Content: Convert static PDFs into editable Word or Excel documents.
- Accessibility: Screen readers can read the text for visually impaired users.
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This definition of OCR (Optical Character Recognition) is part of our comprehensive financial and accounting processing glossary. Understanding banking terms is crucial for accurate bookkeeping, auditing, and automated data entry workflows. If you regularly work with PDF bank statements or financial documents, consider using SmartBankStatement's professional converter to securely extract, validate, and reconcile your transaction data into Excel or CSV format effortlessly.