To most people, data is data. Trying to track it in a multitude of different ways all at once can be a head-spinning process, even for trained professionals. Most people consider the value of a company to be as high as its data performance. This means that data quality is key, as poor data can be way more costly than you’d think.
The True Costs of Poor Data Quality
The true costs of poor data quality are shocking and can spell out a bad future for you and your company. If you are struggling to maintain your reputation due to performance and data always missing the mark, it may be beneficial to see how online bookkeeping services can prevent a major loss of productivity, finances, and opportunities.
Productivity Costs
Bad data isn’t always about the financial aspect of things. Employees who use outdated or inefficient data processing systems end up wasting too much of their limited working hours on a function that could easily be automated. Not only does this cause a huge dip in working performance, but it will cause employees to feel that they are underperforming as well. Updating your data collection and processing procedures may seem like a menial task, but it is imperative that you pencil in some time to scout out better data management systems.
Monetary Costs
The most significant and most deeply felt loss from poor data quality (and poor data processing practices) is financial. Poor data quality can literally make or break a company in terms of capital and reputation. A recent research report showed that the average fiscal impact of poor quality is almost $10 million, while another report from IBM revealed that poor data quality leads to an average loss of $3.1 trillion across the U.S. every year.
Banking and accounting departments are the most susceptible to, and therefore the most hurt by, overall quality loss. Whether you are just starting a new franchise or expanding with new personnel, the importance of your data processing systems cannot be overlooked. When updating computer systems, processes, and general policies for efficiency, make sure you understand the impact of these changes in dollars and cents.
Reputational Costs
Poor data quality is obvious, and it won’t take long for other franchises to catch on to your poor business practices. Losing data or processing it incorrectly could lead to irreparable damage to your company’s reputation. This may not ever be something that a small starting company can recover from.
One of the most common ways in which this happens is when a CEO makes big assumptions about the state of their data. Prioritizing traditional, old-fashioned methods of data collection means that your workers are spending more time fixing small mistakes and updating tedious files that could easily be done by a computer. The New York Times referred to this as being a data janitor, with more focus spent on cleanup and quality improvement rather than investing in better quality control from the start.
How Autonomous Accounting and Data Processing Can Majorly Improve Your Systems
When businesses grow, it becomes easier to lose sight of data collection and tracking methods. What’s worse, departments start to cross with each other while needing to share and use the same types of data. How can you keep track of this constant flow of data while also monitoring it for quality, keeping it secure, and ensuring that all tasks get done in a timely manner?
It’s time to use technology as a tool to propel your business further into success. If you are starting to struggle with all of your data processing needs, now is the best time to see what automated accounting systems are all about. While switching to an advanced bookkeeping system may seem daunting, the payoff will be well worth the initial learning curve.
Personalize And Improve Your Data Quality with Indevia
Whether the quality of your data is suffering in bookkeeping, accounting, or general processing, you need to do something about it now before the quality degrades further. It can be easy to lose track of the intricate data processing systems you need to implement in order to stay consistent with good quality information.
It’s okay if you don’t have time to do all of this yourself; that’s what our accounting data entry services are for. You can finally wrap your head around the ever-growing pile of information that goes in and out of your company while finessing the procedures and practices used to keep it all in line. Transition into an easier stage of accounting and watch your data quality improve over time when you reach out to Indevia today!
