Generally speaking, there are two ways to record data: physically and digitally.
Physical documentation normally involves filling out forms or other pieces of paper with the relevant data. It also involves printing out the appropriate documents. Once that’s done, the data is manually transferred from paper to computer.
Digital documentation involves recording data on computers.
In effect, both methods of documenting have the same goal: get the data onto a computer. The only difference is that physical documentation requires extra steps to reach that goal.
It’s apparent, then, that digital documentation is superior. However, if that’s not enough, here are some more benefits of document digitization.
Digitization requires some investments to develop the processes and technology needed to manage and store digital information. However, once these digitization tools are established, they offer immediate benefits.
Consider transferring physical data into digital form. Due to the amount of data being transferred, the risk of human error is very high. Scanning and optical character readers can eliminate this risk of human error. Of course, optical character readers aren’t completely error-proof, but their risk of error is much lower than the risk of human error because of fatigue.
Once again, consider the example of transferring physical data into digital form. As mentioned in the introduction, physical and digital documentation produce the same result, but the latter requires extra steps.
By adopting digital documentation, you save a certain amount of time per document since it’s much faster than physical documentation. The data is also available to you faster. The amount of time saved increases with the number of documents you’re dealing with. Consequently, when dealing with bulk data, digital documentation will save time, lower costs, and boost efficiency.
You can expedite an audit of your company’s records or data by easing the establishment of an audit trail. An audit trail refers to the path between a datum and its origin. When dealing with physical documentation, establishing audit trails is difficult since physical forms can go missing, tear, etc. In contrast, digitized databases lend themselves to far easier audits since the origin of a datum and the datum itself are both digital. Consequently, the path between them is also entirely digital and easily traced.
If you’re looking to outsource data digitization processes, including data conversion and document data entry, contact us at 3Alpha, LLC. We’re a BPO company that offers the aforementioned services, as well as accounting services, tax advice, and more. Get in touch, and we’ll make sure your data is accurate, reliable, and well-managed.