For many accounts payable teams, data entry is a regular and archaic practice.
With a solution like OnePosting, accounts payable data entry can be reduced. For many accounts payable teams, data entry is a regular and archaic practice and there are various reasons why some businesses still use manual data entry, which we will discuss later on. It is important to understand the risks that come with manual data entry, and that they can have a negative impact on your business. With an invoice automation solution like OnePosting, you can reduce accounts payable data entry and use the power of automation to empower your team, and also grow your business.
Why do companies still use manual data entry methods? There are various reasons as to why which could include budget constraints, operational limitations and more commonly historic practice. For many companies they continue to use manual data entry practices since “this is the way it has always been done.”
Although many companies are still relying on manual data entry, there are various problems that come along with it that could be creating long term problems.
Some of the problems that occur with accounts payable data entry include:
Wasted Time: Manual data entry requires a great deal of time to understand the data and then put it into the preferred format or system whether that be excel or management software. Depending on the volume of data, this could become a very time consuming task for your team.
Employee Burnout & Turnover: When it comes to manual data entry, many teams are often stretched thin and working longer hours to complete certain tasks, this is especially true at times of the year when you have a higher volume of invoices coming in. This leads to burn out and ultimately, high employee turnover. With the monotony of manual data entry, employees feel dissatisfied in their role, which often leads to them feeling devalued forcing them to look elsewhere for work.
Human Error: Similar to the above, repetitive tasks often lead to a higher chance of an employee making a mistake, which in the accounts payable department can be very costly. When completing the same task over and over again, it is more likely that mistakes will be made when it comes to data entry. These mistakes can create a long chain of problems if not flagged right away, and ultimately requires additional manual intervention to be fixed, which means more time is wasted.
Missed, Late Payments & Compliance: We now know that manual entry can lead to greater risks, including human error which can also include failing to enter invoices as a whole. This can result in vendor tension, and also can make your company more susceptible to fraud. With the risk of inaccuracy that comes with manual data entry, manual data entry also raises the risk of compliance. If you operate in an industry that requires data to be accurate, and updated regularly like that of the construction industry, then manual data entry can put you at great risk for missed or late payments and also compliance.
It’s clear that manual data entry can affect your business at various levels, putting stress on your team, your vendors and potentially your ability to grow and scale your business. With an invoice automation solution like OnePosting, you can simplify and automate your accounts payable process. If you are ready to make the jump to a more efficient accounts payable process, book a meeting with us.
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