Data Extraction

Automated Data Extraction from Bills - How to Extract Data from Utility Bills with Docsumo

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Automated Data Extraction from Bills - How to Extract Data from Utility Bills with Docsumo

Automated utility bill processing can speed up organizational efficiency and streamline business operations by saving time and preventing manual data entry. OCR technology used for bill scanning is much more efficient than hiring human employees for data extraction and is reliable as it offers up to 99% accuracy.

What is bill scanning software? 

Bill scanning software is software designed for extracting data from utility bills and invoices. It basically scans paper-based documents to recognize key fields, extracts them, and organizes them into structured data for record-keeping or processing. In most cases, the data is uploaded to the Cloud or saved in PDF file formats which are then entered into ERP systems. 

Types of Bills

OCR software recognizes data from invoices and is a great way to streamline your workflow by preventing the manual re-entry of data. Bill scanning software is used to convert your paper-based documents into digital formats which are then processed to review and approve payments. Users work towards making PDFs editable after they acquire scanned bills and store them electronically in systems.

The most common types of bills scanned and recognized by bill scanning software are:

1. Utility Bills

Utility bills are receipts that can be used as valid documents for verifying addresses and personal information. Electricity bill, water bill, telephone receipts, and postpaid internet invoices are examples of utility bills. These are sent to the official address as proof of received or pending payments

2. Water and Sewer Bills

Water bill shows the rate of water consumption by households and the price they have to pay for it. For sewer bills, details such as sewage consumption, sewer fixed charges, and meter readings are listed. Sewage bills are sent to those who use residential irrigation systems and water for outdoor purposes.

3. Homeowner Association Bills

Homeowner association billing is money that is collected on a monthly or quarterly basis from owners of certain residential properties for the purpose of making improvements and renovations to the premises. These bills assist with the maintenance of these properties and their amenities.

4. Insurance & Loan Premiums

Loan premiums are payments made to fund insurance coverage and these are required to be paid on annual, quarterly, or monthly installments. Medical bills, invoices for prescription drugs, car insurance payments, and worker’s insurance are other types of insurance bills covered under utilities

How to automate data extraction from bills using Docsumo

Automating utility bills processing using Docsumo is easy and requires just a few simple steps. It begins with creating and training an API module that learns how to recognize and structure your documents.

Here is how to train an API in Docsumo for automated utility bills processing:

  1. Log in to by using your user credentials. Upload your documents online after logging in. Hit Create New Document Type and start training the API by drawing bounding boxes around the main fields of your document
  1. You can annotate key value pairs and assign the appropriate data types. Docsumo lets you create sections, tables, columns, and maps out line items
  1. After you are done scanning and reading all the fields, click on Save and Close. The app will ask if you want to apply the changes to all your new documents or both existing and new ones. Select whichever you prefer and exit
  1. Go to Document Types and upload at least 20 utility bills to your Utility Bills Module. Since your utility bills document had been annotated, the API will have now learned how to read and structure the information
  1. If the software doesn’t capture any information from your new uploads, you can guide it and help the API get smarter. Otherwise, it will automatically flag any anomalies or discrepancies
  1. After all the fields get annotated, you can approve it. You can  review data extracted and train the API to capture information correctly. Repeat the process a few times until the Docsumo API gets faster and better at capturing key information.
  1. Once you’re confident that the API module is able to read your utility bills correctly, you can upload documents in bulk for faster processing. The Docsumo API will automatically extract data and let you export it in various formats for easier document sharing and management.


Docsumo utilizes the power of Artificial Intelligence and Machine Learning to extract data and put together key information from utility bills and invoices. Its robust OCR models help users in mapping out data points across invoice layouts and collect data from key fields, making it easy to structure information. The APIs are trained to flag errors during document processing and users receive alerts if there are any anomalies, missing details, or discrepancies.

What’s unique about Docsumo is it offers high precision, accuracy, and faster document processing times, thus speeding up organizational efficiency. You don’t have to worry about any errors and there are validation rules users can set when processing documents. 

If you are ready to start automating your utility bills processing today, feel free to sign up for a free demo on the website. Use Docsumo for a hassle-free experience and see how it makes a difference to your utility bills processing and storage!

Suggested Case Study
Automating Portfolio Management for Westland Real Estate Group
The portfolio includes 14,000 units across all divisions across Los Angeles County, Orange County, and Inland Empire.
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Pankaj Tripathi
Written by
Pankaj Tripathi

Helping enterprises capture data for analytics and decisioning

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