Have you been recording manual finance reports ? If you are still experiencing these conditions, then it’s time for you to reassess and determine. Whether the system you are using is right for your business finances. In fact, today many companies have abandoned the traditional recording system. This is because the system for recording financial reports manually has several weaknesses that are dangerous for the security of your data. The following are some of the reasons why manual finance reports are becoming obsolete:
Requires Big Cost
The risk of using a manual recording system is of course you have to hire an accountant to complete your bookkeeping tasks. Not to mention the cost of the auditor having to check your financial statements. If an error occurs due to human error, then you have to re-create the financial report. Remember that all these processes take a long time because they require a high level of accuracy.
One of the weaknesses of the manual finance reporting system is that it is difficult to access. As a businessman, you need to know and update your business’s financial activities. On the other hand, company financial data is important and highly confidential. However, when you are doing business elsewhere, the difficulty of getting the necessary information will be fatal for your business.
Relatively Low Level of Supervision
You will find it difficult to monitor the company’s financial flows if you use a traditional recording system. Financial data or company bookkeeping is only held by one person or one department so it will be difficult for you to control company finances. The most fatal consequence is the emergence of perpetrators of fraud or fraud in the company without you knowing it. This fraud can be in the form of misusing company assets, changing financial statements for personal gain, or it can also be corruption. Because the level of supervision is low, without you realizing it your employees are eating away at your money.
Risk of Losing Data
When you decide to use a traditional accounting system, you are indirectly risking your company’s data. The risk of losing or damaging data due to minor accidents due to daily activities is greater than that of intentional actions such as data theft. Spilled drinks on reports or important data that are accidentally discarded are examples of small activities but have a big impact on the company. In fact, you can also lose investors or customers because of the risk of losing data. But difficult doesn’t mean it can’t be done. Because, now an internet-based accounting system has emerged known as cloud accounting. With a cloud accounting system, you can store your data online so that the risk of data loss can be minimized. Data can be easily accessed whenever you need it.