# Survey Finds 1 in 4 SMEs Frequently Face Business Process Errors Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-02-28 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: How Manual Operations are Hurting SMEs' Revenue and Meta Description: Discover the significant risks faced by SMEs still relying on manual business operations. Learn how automation can prevent errors and improve efficiency. URL: https://financedigest.com/survey-finds-1-in-4-smes-frequently-face-business-process-errorshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/business-meetinght2ihkavj-1736844142626-compressed.jpg) Businesses that are carrying out operations manually are frequently facing errors which is affects their reputation, employees and revenue - **45% of SMEs are risking employee satisfaction and salary accuracy through manual accounting and HR procedures** - **22% of SMEs, with an average turnover of £50-999k, said they frequently encounter business process errors** - **50% of [SMEs admitted to carrying out some important](https://www.financedigest.com/the-importance-of-networking-for-smes.html "The Importance of Networking for SMEs") processes manually, e.g. customer relationship management (CRM)** A recent survey by enterprise resource planning (ERP) software provider, Applied Business, discovered that 1 in 4 SMEs frequently face business process errors. This includes essential administrative and operational tasks ranging from payroll to [project management](https://www.financedigest.com/power-management-integrated-circuit-pmic-market-is-projected-to-grow-at-6-4-during-2021-2028.html "Power Management Integrated Circuit (PMIC) Market is projected to grow at 6.4% During 2021-2028"). Respondents who still use manual operations also acknowledged how time-consuming certain processes are; with their operational functionality putting them at risk of an incomplete or error-strewn CRM, improper financial management and, ultimately, delayed [top line growth](https://www.financedigest.com/microbial-rennet-market-overview-2022-2029-top-manufacturers-cagr-value-future-scope-revenue-growth-rate-and-forecast.html "Microbial Rennet Market Overview 2022-2029 (Top Manufacturers, CAGR Value, Future Scope, Revenue, Growth Rate and Forecast)"). ## Poor Time Management Affecting Finances The survey also found that [time management is a significant problem with 45% of SMEs](https://www.financedigest.com/no-time-to-procrastinate-for-smes.html "No Time to Procrastinate for SMEs") (who process operations manually) rating their time management as average.\* 39% of those surveyed confessed that [accounting and invoicing takes up most of their time](https://www.financedigest.com/just-in-time-jit-and-lean-accounting-streamlining-operations-and-reducing-waste.html "Just-in-time (JIT) and lean accounting: streamlining operations and reducing waste"). The time [consumed by manually operating these processes could result in money loss](https://www.financedigest.com/irish-consumer-sentiment-dips-slightly-on-tech-job-losses.html "Irish consumer sentiment dips slightly on tech job losses") and incorrectly allocated expenditure. ## Size and Profit Margins Amplifies Urgency of Improvement 1 in 4 respondents, with 0-100 employees and an average turnover of £50999k, said they constantly or frequently experience manual business practice errors. These statistics indicate that the tight margin limitations for smaller organisations are intensifying the need to eliminate these manual operational errors in order to avoid losing vital business and hindering their [growth potential](https://www.financedigest.com/modified-starch-market-potential-growth-share-demand-and-analysis-of-key-players-forecasts-to-2032.html "Modified Starch Market Potential Growth, Share, Demand and Analysis of Key Players – Forecasts to 2032"). ## Employee Satisfaction and Salaries at Risk [45% of SMEs still prefer to manually operate their accounting](https://www.financedigest.com/top-5-players-to-account-for-45-of-global-consumer-appliance-coatings-market-share-through-2031.html "Top 5 Players to Account for 45% of Global Consumer Appliance Coatings Market Share Through 2031"), HR and payroll procedures, putting them at severe risk of errors affecting their employees. These administrative processes can easily be [automated with enterprise software](https://www.financedigest.com/guide-to-the-most-affordable-marketing-automation-software.html "Guide To The Most Affordable Marketing Automation Software") which embraces the comprehensive management of each team member’s competencies, knowledge and personal attributes in a cost effective and efficient environment. ## Manual Customer Relationship Management Affecting Client Data and Retention Of the 34% of respondents who still carry out manual CRM processes, 50% said this consumes most of their time. Additionally, 28% said manual operational errors are frequently affecting their CRM. The ineffective application of CRM means businesses are failing to [learn and record more about customers’ needs and behaviours in order to develop](https://www.financedigest.com/prioritising-employee-wellbeing-in-finance-firms-through-learning-and-development.html "Prioritising employee wellbeing in finance firms through learning and development") stronger relationships with them. The sector that uses manual processing the most was professional services which equated to almost half (49%) of all respondents. With industries in this sector focused on providing services, mainly to other corporate entities or public bodies, streamlining their CRM management is essential to enable the [delivery a competitive advantage and retaining existing clients through outstanding service](https://www.financedigest.com/online-food-delivery-services-market-will-reach-a-valuation-of-over-us-4212-6-mn-towards-2029-end-fmi.html "Online Food Delivery Services Market will Reach a Valuation of over US$ 4,212.6 Mn towards 2029-end: FMI"). “In our experience, it is still unbelievably commonplace for successful [businesses to be reinforcing their legacy ERP software](https://www.financedigest.com/how-to-choose-the-right-software-architecture-for-your-business.html "How to choose the right software architecture for your business") with manual processes.  This breeds disparate silos of information, leading to multiple versions of the truth across an organisation and repetitive rekeying of data. This increases the chances of mistakes being made at each stage of the process.  Implementing an integrated ERP solution can result in significant [cost savings](https://www.financedigest.com/the-top-strategies-for-saving-money-on-energy-costs.html "The Top Strategies for Saving Money on Energy Costs") as well as noticeable improvements in customer service levels and therefore overall profitability”. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---