While much is said about the power of big data, it’s useless if one cannot trust the accuracy of the underlying information itself. Lack of confidence that what their computers tell them reflects reality has led businesses to retain certain manual processes despite the toll it takes on time and resources, according to a recent report from accounting automation software provider
The report said that 75% of businesses are forced to manage accounting tasks manually because of data errors in their ecommerce platforms. Furthermore, 67% of respondents said they personally perform reconciliations in response, and an additional 33% oversee, review and approve the process themselves.
In addition, the research found that, in any given month
- 45% manually adjust ecommerce payment data;
- 44% run manual reports for each ecommerce platform they interact with;
- 42% manually correct sales costs, taxes and other items; and,
- 40% manually re-enter corrected totals as journal entries.
“Businesses across size classifications lack confidence that ecommerce integrations will input data accurately into their accounting system,” said the report.
The use of manual processes costs businesses five to seven staff days each month, which translates into about $30,000 of staff hours per year. One alternative is to outsource data entry, which many do. The accounting industry alone, said the report, spends about $500 million a year on outsourcing, and this is small compared to retail ($6.7 billion) and restaurants ($7.3 billion) which do the same.
The data was based on a February 2022 survey of 697 full-time employees of small, middle-market, major and enterprise-sized entities within the retail, accounting and nonprofit sectors in the U.S., the majority of respondents being executives.
