Outline the Importance of Data Accuracy when Processing Accounts Data

First you might ask what data accuracy is.

This is how close the results or observations are accepted as being true. For example if a bank had a glitch with keeping its records of people accounts, which meant their customers accounts where giving false balance figures. This could possibly mean their customers would switch to a different bank.

Also money is an important factor when considering data accuracy. Since money goes in and out of a business, the firm needs accurate accounts. If the firm doesn’t have the accuracy in this field of work it could potentially ruin a business. Take for example if an employee is entering figures into the accounts and accidentally adds an extra zero to a figure of €10,000 for vat. The figure would then be €100,000 and scare the owners of the business wondering where this figure came from. While the problem would eventually be picked up, it could cause mass confusion and annoyance for the firm as a whole.

There is also the importance of tracking expenses, debtors, creditors, tax and other dealings which a firm could avoid penalties and might even save some money. If there was a problem when processing of the accounts such as not up to date accurate figures. It might cost the firm in the long run.


Click on these links to see an example of why data accuracy is important:
http://www.irishexaminer.com/archives/2012/0623/ireland/ulster-bank-confusion-over-card-system-198518.html

http://www.bloomberg.com/news/2012-02-14/china-starts-system-to-raise-data-accuracy-statistics-head-says.html