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  • Writer's pictureTanya Hilts

Data Entry vs Data Management

We would like to educate you on the real difference between data entry and data management. There are still too many people that think that bookkeeping is data entry. This could not be further from the truth, even at the most basic level.

To do data entry, you simply just have to enter data. You do not need any knowledge about the data itself. Data management, on the other hand, is to manage the data. In order to manage the data, you need to understand what is being entered.

Bookkeeping requires us to understand what is being entered so that we can ensure it is entered in the correct area for many reasons. The financial data tells a story and will let the business owner know how they are doing, where they can make changes and what they can afford to do. The financial data tells financers if the business owner is running a successful business and to be able to project to see if the business owner will be able to afford to make payments to pay back a loan. The government uses the financial data to ensure compliance and that the proper taxes are charged.

The role of the bookkeeper is to ensure that the data is managed properly so that all of the people listed above can access what they need and accurately.

So please, take this to heart. Bookkeeping has nothing to do with data entry. There is a ton of knowledge that we need to learn to be able to accurately manage the data. It takes an average of 10,000 hours to become an expert in our craft. This is why it is so important to know what you are paying for and to understand that you get what you pay for.

Until next time...

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