Data entry – that entails entering business transactions into accounting software usually takes up a lot of time. Mainly, these are from Payroll, Credit cards – in and out, Banking and checks , all of which generate numerous transactions. As a business grows, this work grows, and the accounting staff are unable to be analytical or inquisitive and hence unable add real value to the business.
The answer is to do electronic data entry. Today, most of this data can be downloaded electronically from vendor systems directly into the accounting software. Look into all your Vendors that have online Banking, credit card and Payroll systems and look into connecting into your accounting software to download this data, thereby avoiding manual input. Pay attention to how exactly this data can be downloaded – avoid duplication and focus on internal controls and security. Download should be done daily to avoid month-end spikes in data entry time. It is incredible the amount of drudgery work time you will save and mistakes you can avoid.
This moves the accounting work performed by your staff to a higher quality level as they have time to spot anomalies, patterns and query the information in an engaged and meaningful manner.