The Future of Every Firm: Automated Processing vs. Manual Process

Posted by Angelica Garcia
Jul 19, 2023
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In today's business world, there is a growing trend towards automation. As technology advances, businesses are finding new ways to automate their processes to save time, money and improve efficiency.  

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However, not all processes are created equal. Some processes are better suited for automation than others. In this article, we will compare each method to help you determine which is right for your firm. 


Automated Process vs. Manual Process 

Heres a table summarizing the key features of each process: 



Automated Process 

Manual Process 


Higher accuracy, as machines are less likely to make mistakes than humans. 

Lower accuracy, as humans are more likely to make mistakes. 


Faster process, as machines can process data and perform tasks much faster than humans. 

With everything in one centralized platform, this is a much slower   process 


More expensive to set up and maintain but can save money in the long run by reducing errors and increasing productivity. 

Less expensive to set up and maintain but can be more costly in the long run due to human error and lost productivity. 


Easier to scale, as machines can be easily added to handle increased workload. 

More difficult to scale, as humans need to be hired and trained to handle increased workload. 


More reliable, as machines are less likely to experience downtime than humans. 

Less reliable, as humans are more likely to experience downtime due to illness, vacation or other factors. 


Less flexible, as machines can only be programmed to perform specific tasks. 

More flexible, as humans can adapt to changing circumstances and requirements. 


What is automated processing?  

According to Techopedia, automation is the creation and application of technologies to produce and deliver goods and services with minimal human intervention. Automation technologies, techniques and processes improve the efficiency, reliability and speed of many tasks that were previously performed by humans. 


The advantages of automation processing in accounting 

There are many advantages to using process automation in accounting. Some of the most important advantages include: 

Improved efficiency and productivity

Automation can help to streamline and automate many of the manual tasks that are involved in accounting, such as data entry, invoice processing and reporting. This can free up employees’ time to focus on more strategic and value-added tasks. 

Reduced costs

Automation can help to reduce costs by eliminating the need for manual labor and by improving efficiency. According to a research study, 90% of spreadsheet errors come from manual processes. Automating a process can help to reduce the number of errors that are made, which can save money in the long run.


Improved accuracy and compliance

Automation can help to improve the accuracy of accounting data and processes. This is because automation can be programmed to follow specific rules and procedures, which can help to prevent errors.  


Better customer service

Automation can help to improve customer service by providing faster and more accurate responses to customer inquiries. For example, automation can be used to create self-service portals where customers can find answers to their questions without having to contact a customer service representative. 


Increased employee satisfaction

Automation can help to increase employee satisfaction by reducing the amount of repetitive and tedious work that employees have to do. This can free up employees to focus on more challenging and rewarding tasks, which can lead to increased job satisfaction. 


Read: Future-Proof Your Firm: Preparing for Accounting Automation 


What is manual processing? 

According to Lawinsider, manual processing is the process of authorising the payments for a transaction manually without any electronic confirmation. 


The limitations of manual processes 

Manual processes are the traditional way of performing tasks and processes.  

Some of the limitations of manual processes include: 

  • Lack of data insights: Manual processes do not provide businesses with access to real-time data and insights. This can make it difficult for businesses to make informed decisions. 
  • Error-prone: Manual processes are more prone to errors than automated processes. This is because they involve human intervention, which can lead to mistakes when entering data and processing transactions. 
  • Time-consuming: Manual processes can be time-consuming, especially when there is a lot of data to be processed or when the process is complex. This can lead to delays in completing tasks and can make it difficult to meet deadlines. 


Read Next: 4 Accounting Firm Troubles Solved Through Process Automation 


So, which one is right for your firm, automated process or manual process?  

The answer depends on the specific needs of your business. If you are looking for a way to save time and money, improve accuracy and provide better customer service, then automated processing may be the right choice for you. 

However, if you are concerned about the cost, flexibility or security of automated systems, then manual processing may be a better option.  

To make the best decision for your business, it is important to carefully consider the benefits and limitations of both automated and manual processes. By understanding the pros and cons of each approach, you can determine which one is the right fit for your specific needs. 


If you are not sure which approach is right for your firm, it is always a good idea to consult with an expert. D&V Philippines can help you to assess your needs and develop a customized solution that meets your specific requirements. Contact us today to learn more about how we can help you improve your accounting processes. 

You can also read our whitepaper, D&V Philippines: Your Talent Sourcing Partner, to learn how D&V Philippines, a trusted finance and accounting outsourcing powerhouse, can help you access top talents to guide you towards the best approach. 

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