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NED 2 – never enter data twice

Duplicating data entry is both a waste of time and a source of errors. So how can you avoid it, how can you adopt a NED 2 approach and never enter data twice?

NED 2 in accounting

The particular area of data we are most interested in is accounting data.

Invoices, bank receipts and payments etc. are often entered in to more than one computer system and yet there are ways to avoid this. Let us look at some.

Online banking and your accounting system

More and more accounting systems are working with banks to allow uploads from online banking.

It is easy to upload bank statement data such as date, transaction type, who paid whom and the amount of the transaction – the bulk of the data to be entered.

Often, a little effort is required to tell your software what the other side of the accounting entry is, but this takes less time than keying in the data from scratch.

Memorised transactions

Good accounting software will allow you to memorise transactions and post them automatically in the future on pre-determined dates. This works well for a subscription paid for in twelve instalments for example. One piece of data entry gets you eleven more.

Uploading invoices from other systems

Many businesses have non-accounting systems that create financial transactions.

These range from simple applications such as FreshBooks or Excel, to more complex databases which process transactions and generate customer invoices.

The trick here is to create a CSV or spreadsheet file which summarises the sales invoice data for a period and then upload this file into your accounting system.

 

Any business can look for NED2 examples to reduce data entry and error correction. Identify them and design them in early on – because as you grow they become more and more valuable.

 

Michael
@michaeljcaustin