Companies can choose to process information in real-time or through batch processing. Real-time processing implies that entries are processed as soon as the data is input. Batch processing means that multiple entries are processed all at once, not in real-time. For example, a company might opt to use batch processing for its EFTs.

Imagine a scenario where a company sends all of its EFTs together at the end of each day. Instead of sending them in real-time, it batches them all together. This process provides the accounting manager with an opportunity to review all of the EFTs before they’re dispatched to ensure there aren’t any errors.