Data Extraction

Should You Go for Automated or Manual Data Entry? Here’s Your Answer

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Should You Go for Automated or Manual Data Entry? Here’s Your Answer

In today’s world, enterprises have to stay up-to-speed when it comes to data extraction and storage. The costs of growing a business and keying in data through manual entry are huge.  Traditional methods of data entry do not suffice since there is a margin of human error and when a business processes large volumes of data, streamlining document processing workflows becomes difficult using human employees. The answer to all these problems is automated data extraction. In this guide, we’re going to delve into what it takes to do manual data entry and discover how automated document processing solutions help businesses. 

How the cost adds up with Manual Data Entry

An average typist types at the speed of 70 WPM (words per minute) and many invoices issued to businesses are done on paper. Tax receipts, building documents, accounts payables, and sales documents are forwarded to the accounts for document processing. Many businesses do not use automated processing and hire employees to convert these data into electronic formats. There are also standards to be followed which can vary from country to country, such as the European VAT Invoicing Regulations.

However, manual data entry presents its own set of challenges. Below is a list of how the costs add up for businesses by manually entering data:

1. Limited Keystrokes Per Hour (KPH)

A human being can manually enter data at a consistent speed for so long. It’s impossible to perform at peak productivity round the clock or maintain the average keystroke per hour without taking breaks. Employees are prone to fatigue and when you add in sick leaves or days, there are delays in document processing.

2. Higher Processing Costs

Employees are paid by the hour for doing manual data entry tasks in organizations. However, the hours add up and in the long run, it becomes expensive for businesses to maintain their upkeep

3. More Corrections

Nobody likes to revisit forms and redo their data entry work. But with manual data entry this is a reality as employees aren’t perfect at entering data. There is an element of human error and no matter how well-trained employees are, they make mistakes. Furthermore, if details in documents get updated and they’re notified later, they have to re-enter the data and start over

4. Hidden Charges

Assigning blank values, missing fields, discrepancies in data output, etc., all lead to delayed turnaround time. This leads to hidden charges and sometimes employees don’t know how to verify the accuracy of information being entered. Businesses can lose up to 18 million EUR a year due to mistakes made by employees in organizations and that’s a big number!

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Manual vs Automated Data Entry

Manual data entry is used for all kinds of paper-based documents while automated data entry adds flexibility since the technology is capable of reading a variety of data formats. Mistakes inevitably happen due to the monotonous nature of manual data entry work while automated data entry makes it easy to read or organize information.

Here are the primary differences between manual and automated data entry.

Manual Data Entry Automated Data Entry
Cost Initial costs of manual data entry are low. Initial costs of using automated data entry solutions are high because of software pricing.
Human Intervention Manual data entry has workers or employees manually entering the data. Every file is reviewed step-by-step. Automated data entry solutions require minimal human intervention. They have well-defined workflows for document processing and data entry.
Processing Time It is a very time consuming process and companies have to find the right data entry specialists. Automated data entry using pre-trained APIs takes a few minutes. It’s a great way to save hours of time processing documents.
Error Rate Manual data entry has risks such as making duplicate entries, typos, grammatical errors, and entering wrong information in fields. Automated data entry can cross-reference using previous data models and validate the keyed in information.
Paper Usage Uses paper-based documents for reading and filing information. Uses original documents, scanned documents, and various electronic or analog formats for digitizing documents.
Analytics Manually analyzing data is as cumbersome as the manual data entry. Automated data extraction technology intelligently reads, organizes, and analyze data stored.

Benefits of Automated Data Entry

In a world where data is king, enterprises and organizations around the world are increasingly relying on automated data entry solutions. Schools, universities, banks, and hospitals process a massive number of documents on a yearly basis and simply don’t have the time to manually go through huge volumes. Migrating to automated data entry solutions gives these organizations a stable footing and helps the job of data entry and document management much easier. 

Here are the top benefits of using automated data entry solutions for all users-

1. Reduced paper-based storage

There is no need to host physical spaces for storing documents when companies switch to automated data entry solutions. Intelligent OCR data entry tools make it easy for organizations to sort and save their documents online. All this data is not lost due to proper file backups and these files can be easily shared with others

2. Improved accuracy and efficiency

Data capture solutions use intelligent machine learning algorithms to read and process documents. There are no human errors since these models use past data to fact-check and verify sources of information.

3. In-depth analysis

Data analytics from scanning and digitizing documents can help organizations uncover patterns in details. CEOs get insights into business workflows which in turn help improve and optimize business operations

4. Higher rates of client satisfaction

Clients are turning to businesses that use automated data capture and entry solutions because of the credibility of software. Intelligent document processing solutions like Docsumo are compliant with legal regulatory standards and trusted by clients worldwide.

5. More variety

Automated data entry takes a simple drag and drop approach where users upload a variety of documents and let APIs do their job. Users don’t have to worry about what category their documents belong to since the algorithms take care of it. They can feed APIs data entry examples for reference and the software is able to learn from sample structures.

6. Saves money

When businesses remove manual labor and focus on more productive tasks, they automatically save money. It takes hours to scour through billions of documents and organize data according to different types. Automated data extraction and entry solutions speed up the document processing workflow, thus helping businesses focus on what matters most to them.


The document AI industry is growing at a substantial rate of 70% annually. Innovative platforms like Docsumo make it easy for clients to digitize and store their documents. The best part about using automated data entry solutions is the level of confidentiality and privacy maintained by the platform. All data is kept secure, not shared, and the sole property of clients.

If you are looking to optimize and automate your document processing workflow, Docusmo can help. Sign up for a free demo with us today and enjoy customized automated data entry solutions for your business.

Suggested Case Study
Automating Portfolio Management for Westland Real Estate Group
The portfolio includes 14,000 units across all divisions across Los Angeles County, Orange County, and Inland Empire.
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Pankaj Tripathi
Written by
Pankaj Tripathi

Helping enterprises capture data for analytics and decisioning

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