Earlier this year we commissioned a research study with Paradoxes Inc., to better understand the impact of manual data entry for retailers, restaurants, non-profits and accounting firms. We are sharing the findings in a three-part Executive Summary. The first installment covered The economic impact of manual accounting data for retailers, restaurants and accounting firms. The second report, Inside the CAS department: Today’s practices & perspectives on ecommerce accounting is now available. You can request your own copy below.
Here are a few highlights:
Ecommerce platforms are a growing challenge for standard accounting processes. The sheer volume of ecommerce transactions combined with reporting variations and data inconsistencies across platforms are forcing Client Accounting Services (CAS) to spend thousands of additional hours every year performing manual data entry.
According to the study, the increase in work is estimated at nearly 100 hours per month, or 2.5 full-time-equivalent weeks, spent on manual processes across teams. On average, individual staff members are spending 38 hours per month doing manual work. This equates to approximately a quarter of their time – each month!
The report indicates that nearly half of accounting firms outsource support services for manual data entry. The majority of these firms work with domestic partners, while 22% use offshore resources.
On average, accounting firms spend $21,700 per month on outsourcing, and a median of $3500 per month. This represents annual costs of roughly $25,000-$45,000 per firm (based on median spend per month), and collectively $550M per year.
View the additional insights.
We’ve prepared an Executive Summary that offers a glimpse into the findings and includes charts and graphs that illustrate the key data points. The Executive Summary is available for free, using the form below.
Fill out this form to receive the Executive Summary via email: