Cheaper Temporary Workers vs. Digitalization: Why (Not) to Digitize? Is Manual Work Really Cheaper?

We often hear claims from potential customers: “We tried tools similar to Digitoo.ai, but after our calculations, we found that manual processing by a temporary worker and accountant is cheaper.” However, this opinion overlooks the entire document processing workflow. Clients often focus solely on one part of the process — entering the document into the accounting system, which is actually the final step. This leads to the misconception that manual processing is cheaper.

Manual Processing: The Real Costs

Adding up the costs of manual invoice processing reveals the truth: handling an invoice manually can cost up to 690 CZK per piece. Invoices arrive by email or physically, requiring the following:

- Sorting emails or physical mail.

- Scanning documents, identifying each invoice, verifying them, and saving them to SharePoint.

- Transcribing data into Excel.

- Printing invoices and preparing them for approval by responsible parties.

- Managers manually approving invoices, taking up valuable hours each month.

- Entering documents into the accounting system manually.

- Sorting and verifying documents by accountants.

- Communicating with accountants about lost documents and other discrepancies.

Approvals are often done on paper or via email. If invoices are approved by email or printed from email for approval afterward, you are likely not meeting the electronic document standards required by Act No. 235/2004 Coll. on Value Added Tax.

Risk of Penalties for Email Approvals

Additionally, the Accounting Act mandates that documents must be approved, i.e., signed by the person responsible for accounting and the person responsible for the specific transaction (the one who ordered the goods or services). If this form of approval is missing or would be difficult to prove, you risk a penalty of up to 3% of your assets’ value. In case of an audit, you’ll need to retrieve all related emails and present them, adding further time and administrative burden.

Employee Fraud: A Costly Lesson

Lack of proper control and manual approval processes can lead to serious issues. For instance, in one company, an employee retained a known vendor on an invoice but changed the bank account to their own. This change went unnoticed because invoices were approved manually or via email, enabling the fraud. The company lost 2.5 million CZK before discovering the problem.

Digitoo.ai: A Cheaper and Safer Alternative

With Digitoo.ai, manual hassle disappears. Why are we better?

- Invoices arrive directly from suppliers and are monitored via an audit log.

- Data is verified through systems like ARES, VIES, and the tax authority.

- Bank accounts are checked against VAT numbers in the tax authority database. The system alerts you if the bank account doesn’t match the supplier.

- Approvals are conducted online—quickly and from anywhere. They comply with both the Accounting Act and VAT Act. Each invoice shows who approved it and who recorded it in the accounting system.

This ensures legal compliance, saves time, and eliminates errors associated with manual work.

The Most Compelling Reason to Digitize

For me, the strongest reason to digitize is simple: we are witnessing a revolution in technology. We are at the peak of technological evolution, and the world of AI is advancing so rapidly it’s hard to keep up. Without digital data, you won’t be able to leverage AI assistants and other technologies that can transform your life.

We tested an AI assistant with Deloitte that analyzed data and instantly generated tables, charts, and everything you needed to know. Imagine AI helping you manage your business, flag risks, create reports, and much more.

Don’t fall behind! Harness the potential that can propel your business to the top. AI can be your partner—and that’s exactly where Digitoo is heading. With Digitoo.ai, you can transform your business and become a pioneer of technological evolution. Don’t fall behind—rise to the top!

Karin Fuentesová