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May 06, 2019

How Does Technological Advancement Affect Business' Finance?

Technology is constantly revolutionizing business operations, business models and even business financial management. For most business owners, not keeping up is simply out of the questions.

To help you stay updated, we listed some of the things that innovations brought in the financial affairs of businesses.

Safe Online Payments

Whether it is an e-commerce store, an on-demand marketplace or a crowdfunding platform, a flexible and online payment solution can help businesses scale faster and more efficiently. It also makes the lives of customers easy. Especially for small businesses, a fast and reliable way of collecting payments can make all the difference when improving your cash flow.

Quick and Accurate Reports

From organizing financial paperwork, tracking inventory, computing payroll and preparing income tax returns, the advancement of accounting software has given headway to the automation of finance.

With this technology, accounting software systems can generate an accurate and detailed report by simply clicking a button.

Modern Billing and Invoicing

Due to the modern collection payment, billing and invoicing are more manageable than ever. Real-time and flexible, this means more sophisticated and effortless handling of business transactions.

This kind of automation is succeeded by connecting online payment solutions through accounting software or through integration. From scheduling bank payments for business expenditures to collecting payments from customers, it revolutionizes the way that the financial department operates.

Receptive Analysis and Forecasting

Softwares not only save time in handling the cash flow but also helps business owners in making well-informed decisions.

Using these tools, companies can formulate their estimates and set up a feasible and optimistic milestone. It also generates reachable sales targets. This advanced financial forecasting helps companies to develop their business operations and even change their business strategy if needed.

Acquiring Of Customer Data

Gathering customer data has never been easier with the advancement of technology. For one, e-commerce businesses have found their way to understand how customers think and what they like. With this new stream of granular, real-time customer data, they can determine a pattern and give their customers the services and goods they like.

In a nutshell, figuring out the consumers and their behaviors helps the financial side of businesses to make an informed decision in their outflow. They know what improvements they need to make, what investment is worth pursuing and what practices they should implement.

Automated Inventory Management

Proper financial management plays a big role in Inventory management. It assists in handling the movement and availability of products to prevent overstocking or under stocking. Advanced inventory management can also track orders, sales, deliveries and inventory levels. It unloads some responsibilities from the business finance effortlessly.

Increasing Risks of Fraud or Identity Theft

Although the internet has brought a lot of innovations in finance, it’s now causing an increase in cases of fraud or identity theft. It is crucial to put maximum efforts in protecting financial data to prevent it from falling into the wrong hands or getting lost by mistake. Especially if this is stored in a cloud where cybercriminals can “back door” into systems, companies need to put added protection and build internal security structure to safeguard data.

Cyber attacks not only can steal financial data but also can affect a business’ credibility. Due to these online assaults, companies may find it hard to apply for loans. Under the federal Fair Credit Reporting Act (FCRA), invaded businesses will be listed in the database of ChexSystems. For some time, they might face difficulty in getting loans. Thankfully, not all banks depend on ChexSystems. For example, if you’re based in Colorado, simply look for Colorado Non-ChexSystems banks, research procedures and give it a shot.

As a last resort, some companies keep an extra hard copy in case of cyber attacks.

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