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Tips & Advice

Is Manual Data Entry Costing Your Business? Why Automation is the Solution

If you think that investing in software to automate your systems will cost you more money than doing everything manually, you’re not alone. Many businesses operate under the assumption that paying for automation is more expensive than paying people to do things. The truth is there are hidden costs to doing things by hand, and those costs can significantly affect your bottom line.

We’re going to look at the hidden costs you may not realize you’re incurring by doing your data entry manually. The magnitude of some may surprise you.

1. Increased error rate

Workers entering data manually, without verification, can have an error rate as high as 4%. That means for every 50 entries, two are wrong. In an experiment in 2009, it was shown that data entry workers made up to 10.23 errors when entering data from thirty spreadsheets. This is the nature of human data entry.

When errors involve money, the stakes are high. These errors could lead to over-and underpayments, over-and undercharging customers, disruptions to the accounting and auditing processes, and may lead to financial trouble. Data entry errors have cost companies millions of dollars.

2. It takes time

Manual data entry takes time. The average typist can perform 10,000 to 15,000 keystrokes per hour. Depending on the amount of data and its form, it can take even the fastest typist hours to perform data entry. If the data requires comprehension or analysis before entry, this slows down the process even more.

It could take a competent operator between 8 and 10 minutes to enter 400 units of data. This may not seem like much, but if the volume of data is high, it can cost your company valuable time that could be spent on other workflows, like analyzing the data.

3. Can’t focus on important business tasks

With so much time spent ensuring that the data entered is correct and finding and fixing errors, there is no time left to work on the business. Managers spend their time ensuring that the data they’re reporting is accurate and less time actually analyzing that data. A survey found that 37% of manufacturing professionals don’t trust the reliability of manually entered data when making strategic decisions. If you can’t trust the data you’re getting from your team, how can you grow your business or take on additional work?

4. Inhibits business growth

When management receives data, it often makes decisions based on that information, whether it’s correct or not. These decisions may inhibit the growth of the business. For example, a costly mistake can lead managers to believe a project is over budget when it’s not. They then make moves to cut company spending to protect the company, when instead, they should be investing in future growth.

5. Hidden costs

Most companies think automation costs more than entering data by hand. The truth is there are hidden costs to entering data manually. There’s the obvious labor to enter the data, then more labor to check for mistakes, and more labor to fix the mistakes. At each level, it becomes more expensive and time-consuming to detect and correct mistakes.

It has been shown that incorrect data can cost companies up to 30% or more of their revenue. In particular, a 2018 Goldman Sachs report stated that the direct and indirect costs of manual paper invoice processing are $2.7 trillion for businesses around the world. The hidden costs of manual data entry can be enough to make or break your business.

6. It’s boring

Continually spending days or hours doing mindless data entry can lead to employee dissatisfaction and turnover. When workers spend hours keying in the same information, they are bound to lose focus, which increases errors and leads to frustration. Data entry work is repetitive and tedious. 55% of employees in a survey cited the collection, uploading, and synching of data as the least productive part of manual data entry. When employees don’t feel productive, their morale lowers and they are then more prone to make mistakes.

Automation is the solution

How can companies save themselves the time and money that is lost through manual data entry processes? Automating as much as possible is one way to recoup these costs. By using machine learning and automation, the software can automate much of the data entry process, leading to fewer mistakes and speeding up the process.

Premier Software uses AI, machine learning, and automation to speed up invoice entry and other repetitive tasks, so you can spend time working on your business and less time entering data. For a demo of how our automation works to save you time and money, schedule one today.Author Biography:

Dawn Killough is a construction writer with over 20 years of experience with construction payments, from the perspectives of subcontractors and general contractors. Dawn has held roles such as a staff accountant, green building advisor, project assistant, and contract administrator.  Her work for general contractors, design firms, and subcontractors has even led to the publication of blogs on several construction tech websites and her book, Green Building Design 101.

 

Categories
Accounting Industry Insight Mobile Trends & Technology

Mobility in the Construction Industry

The construction industry is one of the largest and oldest industries in North America. In some areas it is at the forefront of innovation, and yet is oddly still hesitant to progress in others.  In today’s modern era of construction there are few features that can give as great of an advantage as mobility.

As mentioned in an article on Wired.com , the ability to access live data on the go allows Project Managers, Architects and Engineers to effectively operate multiple projects simultaneously and increase productivity during travel and out of office visits.

So what exactly is a mobile solution? Well for starters, it’s a system that when implemented, allows you hassle free access to live data in any setting and across multiple platforms I.E. your laptop and mobile device. True cloud based software allows you to enter live data and update on the go which ensures that everyone on your team is in sync and up-to-date. Cloud based Accounting and Project Management software provides you access to your data anytime, anywhere, on any device.

With current technology, it is very simple to implement a mobile solution for your construction business of any size.  Devices like the Microsoft Surface or the Chuwi ci8 Plus are capable of running full versions of Microsoft windows which gives you access to the full functionality of software that is too complex for a smartphone, while also maintaining the portability and ease of use of a tablet.  In addition to cloud based software, there are also Mobile Apps that will allow subcontractors to do time entry, daily job logs, and photo captures from the field that update to your projects in real time.

The time to take your business mobile is now. It is 2016 and there is no excuse to limit your own productivity or the productivity of those you employ, to traditional Construction Project Management and Accounting systems. The demands of today’s construction industry are higher than they have ever been before – Mobile Solutions represent the best way to reach new possibilities.

 

Categories
Industry Insight

Why Contractors Should Stick To True Cloud Technology

A true cloud deployment brings contractors and their business a convenient, affordable and on-demand infrastructure. This is an advantageous alternative to having to configure, optimize and back-up software applications. A true cloud platform provides several distinct advantages including smaller expenditures for IT resources, hardware and maintenance.

 

The most powerful benefit of true cloud technology is the “ease of use”, which is often overlooked. A cloud’s true potential should be to provide more than a web-based version of an application – its true potential should have the ability to host all applications and make them as easily accessible to the end users as if they are sitting in the office.

 

Many software vendors operate on a subscription basis where they charge monthly, quarterly or annually for their services, so expenditure on software, hosting and supporting is more predictable. Conversely, traditional desktop software which might require specific equipment, may lead to increased costs investing in additional computers or servers. This in turn not only infringes on a company’s cash reserve, but also eats into their bottom line net income due to the increased depreciation costs of the additional required equipment.

 

True cloud technology allows for increased flexibility on all platforms including training and receiving ongoing support which can be delivered on demand with the only requirement being internet access. With traditional software, often users are required to invest in additional capital outlays for new hardware or software access which is usually via a standard internet browser or through a provider that uses in-house servers and/or gateways such as VPN and Citrix.

 

Another advantage to true cloud technology is the security that comes with it.  Storing sensitive information on a cloud software requires advanced encryption, highly resilient data centers complete with sophisticated backup systems.  This all comes equipped with your cloud software but extremely difficult for traditional software to replicate.

 

Jonas Premier secured by Microsoft Azure, offers a true cloud format so that users can access the system anytime, anywhere on any device. Take advantage of a true cloud provider that offers a true cloud technology solution and stick with it.

Categories
Trends & Technology Uncategorized

The Hidden CEO of Constellation Software, Mark Leonard

For the past 19 years, Mark Leonard has been building Constellation Software (CSU.TO) into one of the most successful software companies in Canada, and yet you probably don’t know much about him. He’s managed to avoid the spotlight completely, to the point where it is even difficult to find a picture of him online.  In today’s age of social media and rampant press, it’s actually a pretty incredible feat that he’s accomplished.

Joe Chidley recently wrote an article for The Globe and Mail titled “Constellation Software’s Elusive CEO,” which probably contains the most information about Mark Leonard ever published and made available to the public.

“He is probably the most intensely private individual in IT,” says one long-time associate.

Why the preferred anonymity though? The Globe and Mail unsuccessfully tried to get an interview, and within 30 minutes Mark Leonard replied by email.

“Kind of you to offer,” he replied, “but I discovered when I was in the venture business that interviews aren’t for me. What little I have to say, I generally put in my letters to shareholders. I do occasionally speak with students, but usually in the vain hope that I can distract them from pursuing careers in investment banking and private equity.”

Whether it’s in the public eye or not, there’s no disputing Mark Leonard’s success with Constellation Software. Constellation’s stock has grown at a faster rate than Google or Apple and is continuously growing. Owning companies in 60 different markets and raking in over $1.2 billion (U.S.) in sales in 2013, Constellation Software is definitely a Canadian heavyweight and a company to look out for.

 

Source: Chidley, Joe. “Constellation Software’s elusive CEO.” The Globe and Mail[Toronto] 24 Apr. 2014: n. pag. The Globe and Mail. Web. 15 July 2014.