Double data entry happens when employees enter financial information manually in two or more systems or reports. Double data entry can make your company’s accounts payable, accounts receivable, and other financial systems operate inefficiently. It can also lead to errors that then have to be found and corrected. All of that takes time that could be better spent.
When employees enter data on company expenses, totals are calculated. If that information then has to be manually inputted in another system or spreadsheet, it results in double data entry.
Something similar can happen with accounts receivable. Employees may enter information into a system every time the company receives payment. If at the end of the month, a worker has to manually enter the total amount the business received in another place, it leads to double data entry.
A worker may enter information in the wrong system or category. If another employee then enters the figures in the right place, the data exists in two places in the system. That double data entry can lead to errors when reports are compiled.
Since double data entry occurs when workers have to input data manually, the best way to avoid it is to automate your company’s financial operations. Technology makes it easy to have expenses, receipts, employees’ hours, and other critical data automatically transferred to the appropriate system or spreadsheet.
That can eliminate the confusion and guesswork that often happens when employees handle data entry themselves. Automation can prevent errors and keep information current. If numbers are entered and updated automatically, managers and employees will have access to up-to-date information. They won’t have to wait until the end of the month to find out where the business stands financially and will be able to make better decisions, knowing that they’re working with accurate information.
Manual data entry takes time. Every hour that an employee spends entering data or finding and correcting mistakes is an hour that can’t be spent focusing on the company’s long-term growth. When financial reporting is automated, that frees up time for employees to devote to other things.
Outsourcing your company’s data entry is another way to improve efficiency and prevent errors. DOAAR has a team of bookkeepers and accountants who can manage your business’ finances so you can focus on the big picture. Our highly trained employees use the latest technology to provide accurate reports and valuable insights. Contact us today to discuss how we can help your business.