There are two methods of data entry: manual and automated. Each approach has distinct differences in how the process is carried out. Manual data entry relies on human labor to enter data from paper or digital documents into a system. Automated data entry uses a technological tool to extract and input the data seamlessly downstream.
In this article, we will explore a comparison between manual and automated data entry, uncovering their true cost, speed test results, and overall efficiency.
The Definitions
To begin, let’s define both approaches.
Manual data entry is a practice where data from documents or other sources is manually keyed into a system like spreadsheets or ERP by an individual, without any tools involved, which is why it highly depends on human attention and hands-on work.
In contrast, automated data entry is a process of instantly capturing, structuring, and transferring data from documents or images into a system, commonly using a combination of technologies called Optical Character Recognition (OCR) and Artificial Intelligence (AI).
Read also: How and Why Automate Data Extraction With OCR
The Key Differences
From the definitions earlier, we can see a glimpse how each one works. Now, to better understand how they differ, here’s a breakdown of their key distinctions based on several factors:
| Factor | Manual Data Entry | Automated Data Entry |
|---|---|---|
| Accuracy | 1–5% human error rate per document processed | >95% accuracy per document processed |
| Processing time | 10–15 minutes per document processed | 1–2 minutes per document processed |
| Cost | ~$1.50–$3.00 per document page (based on average labor rates) | ~$0.15 per document page; cheaper with higher-volume plans |
| Effort | Requires continuous human focus and involvement | Little to no efforts, the system works on autopilot |
| Scalability | Difficult to scale, more demand means more staff to hire | Easily scales to high volumes without additional personnel |
The Pros & Cons
Manual and automated data entry both have benefits and drawbacks. However, automating data entry can provide advantages that are unobtainable through manual work. If you are wondering what they are, let’s take a look at this summary of their pros and cons:
Manual Data Entry
Pros:
- Easy to start with minimal skills and setup.
- Lower costs requiring no new tools and software.
- Better control in unclear data such as interpreting handwriting and anomalies.
Cons:
- Keying data manually requires a lot of time and effort.
- Poses a higher risk of human error that can lead to inaccuracies.
- Increased cost due to growing labor expenses as more staff are hired.
- Limited scalability to process a large number of data as business grows.
- Hinders team productivity by spending too much time on repetitive tasks instead of strategic work.
Automated Data Entry
Pros:
- Collecting and inputting data with high accuracy across documents.
- Performs faster data entry in minutes, not hours.
- Seamlessly integrates to business databases or tools that already exist.
- Capables of handling increasing volumes of data without compromising accuracy.
- Lower costs in the long term as unnecessary manual expenses are reduced.
- Maintains consistent results with standardized data extraction and processing.
Cons:
- Requires a higher initial investment to adopt automation software.
- Technical issues may arise and need on-going monitoring or maintenance.
Why Automated Data Entry Matters For Your Business
Many businesses, and probably your business too, still continue to use manual data entry without realizing the hidden inefficiencies it carries. Manual data entry is long outdated and limits your team to maximize time more strategically.
Automated data entry is a way forward. It transforms time-consuming paperwork into fast, automated workflows that save significant time. With Fintelite AI-powered OCR, data from documents like invoice, purchase orders, or other documents can be automatically extracted and routed into the right place—all without manual grind. Automate repetitive work of data inputting and gain extra time that could be better allocated in revenue-generating tasks. Ready to experience a seamless data entry and processing in your business? Contact us to see how it makes everything effortless.
