Eliminate manual data entry challenges with automation
In the corporate world, data is crucial, therefore resorting to ancient processes of manual data entry is not only a waste of time, money, and skill, but it also poses threat to data being tampered with by human error. Then what’s the solution? Automation has made our personal life effortless and primed for peak productivity. It is indeed becoming the most sought-after technology. Why not use the power of automation against daily manual entry data problems?
Why do some businesses still use manual data entry?
Manual data entry is the traditional way of transferring data from multiple sources into your bookkeeping system or data management program. These programs could be anything from spreadsheets to handwritten records and even cloud databases. To retrieve data, data entry operators thoroughly check various potential sources such as paper-based purchase orders, invoices, receipts, etc manually.
Better control
Since manual data entry involves more human interaction, it gives business owners visibility and control in selecting certain data over others or manipulating it.
Budget constraints
Automated data entry systems in the market could be beyond the budget of small and medium business owners, therefore they rely on manual data entry operators more.
Business scale
To some small and medium business owners, investing in an automated data entry system seems like an overspend since they might not have a large client base and fewer operations as opposed to large corporations.
Less technological reliance
Manual data entry eliminates the need for having an internet connection or special software dedicated to automated data entry. This helps to avoid any security breaches such as hacking or unavoidable software updates, etc.
8 manual data entry challenges
Time-consuming
Business owners who rely on manual data entry due to its higher visibility and control do not realize how time-consuming they can be. For better control of the data, comprehension is required, which means that an average data entry operator can take several minutes to understand data and then put it into the system. If the volume of data to be entered is into the thousands or tens of thousands, manual data entry then becomes a mind-numbingly time-consuming task.
Boredom for employees
Talking about a mind-numbing task, the ‘rinse and repeat pattern of manual data entry has proven to be a breeding ground for employee dissatisfaction and boredom borne out of unproductivity. When employees feel like they are not making any significant contribution by doing meaningful work, they are more likely to leave your company as soon as they get a better offer.
Due to this, many manual data entry jobs have an extremely high employee turnover rate. How is this bad for your company? By taking employees with great potential and assigning them repetitive, predictable tasks that can easily be done by automation, you are running the risk of losing out on great talent to your competitors.
Data inaccuracy
Boredom leads to recklessness which can result in a higher chance of data entry errors in your systems. Aside from boredom, other causes for data inaccuracy bu human errors include improper operator training, misinterpretation of data, etc. When dealing with sensitive data, an erroneous entry could be devastating to your company.
It could result in internal team conflicts, sour vendor relationships to even accounting errors, losing clients or vendors due to overcharging and underpaying, and even financial and legal trouble. It is reported that many companies have suffered up to millions of dollars worth of losses due to inaccurate manual data entry.
Missing payments
Data inaccuracy usually means errors in entering data values. But sometimes it can also mean failure to enter data into the system as a whole! The average percentage of data inaccuracy is as high as 4%. That means that out of every 100 data entries, 4 are either incorrect or entirely skipped. Manual data entry problems in transferring invoice processing data can wreak havoc on your company. Failure to lodge invoices into your system can result in vendor dissatisfaction and worst cases, even fraudulent charges against your enterprise.
Compliance issues
When manual data entry risks data inaccuracy, it doesn’t just create problems and delays in the workplace, it can also pose industry compliance issues. If the industry you are working in requires accurate data to be regularly updated, then relying on manual data entry is a sure shot recipe for disaster. It renders your company vulnerable to legal notices, compliance hearings, etc.
Cash flow issues
Manual data entry creates an accounts payable bottleneck, where invoices are not being processed at the same rate with which they are flowing in. When vendors are not paid on time, the money that’s supposed to be paid to the vendor lies at the company, and can potentially be considered as extra money lying around.
This creates a particularly dire situation when expenses exceed your budgets, simply because of time-consuming manual data entry holding up the payment cycle. On top of that, you also have to pay late fees because the invoices were put into the database on time.
Affects business growth
When your cash flow is all clogged up, your vendors dissatisfied, your employees unmotivated, and your data is riddled with inaccuracies, your business growth is the first to take the hit. Manual data entry problems create a domino effect, that topples over every business operation in its path.
Without proper compliance, your industry value also depletes in comparison to your competitors. This may not happen overnight, but without timely intervention, incorrect data entry can set into motion certain challenges that may end up irreversible after gaining momentum.
Auditing ordeals
Data entry errors can expose your company to government-ordained auditing. Incorrect data entry can be perceived as manipulating financial numbers, landing you in trouble with the law. Faulty invoice processing can pose a serious problem during auditing, as you are unable to furnish the necessary documentation for every transaction. That’s why relying on manual data entry is a huge risk a company can take in keeping track of their accounts payable process.
Related page: What are accounting checklist for businesses?
Eliminate all your manual data entry errors with accounting automation
Benefits of automated data entry processes
Most accurate data
Automated data entry provides more accurate data capture as opposed to manual entry. While even automation is never 100% accurate, the chances of incorrect data capture through automation are more significant than its manual counterpart. Transitioning to automated data entry can save the company time it takes to comb through tens of thousands of data entries and correct human errors due to distractions, keystroke errors, etc.
Saves time and money
Automated data entry is ten times faster than manual entry, if not more. Unlike manual data entry, automation eliminates speed restraints such as keystrokes per hour (KPH), a metric that determines the speed at which a data entry operator inputs information, and never experiences human fatigue which is a natural thing to occur within the workforce after a certain point. Compared to keeping multiple data entry operators on your payroll along with giving other benefits, automated data entry systems are more economical and efficient.
Improve efficiency
When the unnecessary manual data entry are removed in the automated format, the bottleneck situation of your accounts payable process improves and invoices are approved faster and paid on time. This further increases the overall efficiency in the workplace. Employees can do tasks that used to take hours into seconds. Not only that, with automation taking up the repetitive mundane processes, your employees are freed up to learn more complex nuances around the workplace, ensuring both business and workforce efficiency.
Better visibility
With no workplace clutter, thanks to automated and digitized data entry, all your orders, invoices, and receipts are now at a convenient system. Automation gives you utmost visibility and clarity into your documents, ensuring instant access to any information whenever you require it.
Eliminate paperwork
Making the digital jump to automated data entry is like a trust fall, scary but worth it in the end. Instead of drowning in a sea of paperwork on the daily basis, using automation to digitize your data entry process can save you loads of time and money in organizing the data and storing it in cabinets, files, folders, etc.
Automate your data entry process with Volopay
Volopay is an automated expense management software that’s designed to simplify and streamline your spending with unparalleled visibility and real-time expense tracking. Volopay is built with the purpose to help you avoid painful challenges posed by manual data entry without compromising on control over all approval workflows.
Volopay’s automated accounting feature allows you to sync your existing accounting system, sort your expenses categorically, verify quickly and export instantaneously! Our smooth integration guarantees a seamless auditing experience along with multi-purpose corporate cards, and subscription management.
OCR technology
Our OCR is an automated invoice solution that digitally captures all invoice data in real-time accurately, so you never have to worry about transferring tens of thousands of data onto a database ever again.
3-way matching
It allows you to upload the purchase order, invoice, and receipt along with every transaction so you never lose sight of important documentation. Reduce any scope of error with our fully customizable and effortless approval workflows, ensuring that the data flows through the right channels and gets approved in the shortest time.
Trusted by finance teams at startups to enterprises.