With the availability of software such as QuickBooks, Intuit and more, crunching numbers has turned into a far less complicated task. This goes for companies of all sizes, and even for people just looking to manage their own finances.
However, accounting software comes with data limitations, which can be problematic for businesses of all sizes. Certain features reduce common number mistakes, but they can’t track the deep data issues that cost businesses serious time and money.
The only way to reduce these issues is with the right set of data analysis tools.
What Mainstream Accounting Software Doesn’t Catch
There are hundreds (possibly thousands) of errors, big or small, that people can make when keying in numerical data. That fact alone makes it impossible for accounting software to find most data inaccuracies. A more basic truth is that these programs were simply not built for the purpose of finding errors.
It’s important for companies to keep this in mind, because not being able to detect these errors can lead to losses of profit, time and trust. It’s risky to assume your financial software is the holy grail for managing the finances of your business – there’s more to the numbers than these systems can detect.
Data Limitations of Regular Finance Software
- Won’t easily catch data entry/keying errors
- Won’t catch more serious inconsistencies in formatting and sequences
- Not often tailored to meet the specific needs of a business
- For users to spot data integrity problems, they must know what to look for
- Focuses solely on numbers and calculations (which doesn’t help much for data integrity)
Bear in mind that accounting software is still incredibly useful. The problem lies in what a person uses the software for. If you want to ensure data accuracy or track potential errors with invoicing, you should utilize a data analysis tool in addition to your regular accounting software.
How Does GLAnalytics Fit That Picture?
GLAnalytics uses algorithms to dig under the numbers, where it searches for potential errors and inconsistencies with data. The software allows you to keep track of issues concerning accounts payable and accounts receivable and employee payroll using specific “queries” as starting points.
These Queries Involve:
- Matching names and addresses to ensure consistency of invoicing
- Verifying that there is no duplicate billing or payments
- Identifying potential ghost employees on the payroll
- Spotting number formatting and decimal placement issues
- Finding mismatches between employee hours and wages
- And dozens more…
GLAnalytics sifts through all of the numerical data you input, comparing and verifying data so as to find unusual patterns. These patterns will not arise using traditional software alone.
So What Good is Accounting Software?
Remember, traditional accounting software is an essential part of your business operations. They’re just not intended to find errors in numerical data. That’s where a data analysis tool like GLAnalytics comes in. The opposite is also true. GLAnalytics doesn’t qualify as accounting software – its purpose is data analytics.
Each tool has its specific use. GLAnalytics bridges the gap and allows you to create a central hub for data verification that eliminates gaps in the process.
Completing the Data Integrity Puzzle
Both accounting software and data analysis tools have their place in business. The most important element is knowing which one serves which purpose. The benefit of using both of these tools together is that you will see the bigger picture when it comes to your numerical data.
More specifically, using a data analysis tool like GLAnalytics helps you find errors that could evade a balance sheet and errors that will cost your business in the short and long run.