Technological innovation has a huge role in growing businesses. From small companies to big companies, technology has taken the center stage for improving efficiency, productivity, and client relationships.
Having the right set of technological tools is crucial for experiencing financial success in business. Managing finances are difficult for any company.
But when technology is combined with finances, enterprises will gain commercial benefits that are necessary for competing with others in the market. However, not using modern technologies will deny the full growth and prosperity of a business.
Tech Innovations for Managing Your Business Finances
Different kinds of technologies have assisted different elements of businesses. Here are 10 technological innovations that have made managing business finance easier.
1. Cloud telephony
Communication is a crucial factor for interacting with clients and teams. While running a business, there is always sensitive financial information that needs to be discussed with clients. That’s why companies need cloud-based phone systems for handling all business communication.
Cloud phone enables you to deliver timely and relevant financial advice to clients. Keeping a human connection is necessary for making clients comfortable to acknowledge your suggestions.
In the financial sector, the opportunity to develop human connections and provide real-time guidance when clients need is best for both business and clients.
It has features such as call recording, CRM integrations, contact tagging, etc. that are necessary for building a relationship with clients.
This assists you in understanding the client’s true needs and building a company by automating everyday finance administration without wasting too much time on compliance.
Cloud telephony for financial services provides bank-grade security for every interaction between you and your clients. It protects all the data against security and compliance threats ensuring the greatest level of data security for your customers.
2. Accounting software
Accounting is a tough job to do, even for experts. When it comes to bookkeeping, accountants need to be extra careful about keeping records of the total financial affairs of a business. With the introduction of accounting software, bookkeeping is faster and cleaner than ever.
Accounting software eliminates human error and allows accountants to manage their financial affairs in the best way possible. Softwares like Xero offers different packages that include various financial solutions for businesses.
Paying bills, Claiming expenses, Capturing data, Bank reconciliation, managing inventories, tracking inventories, sending invoices, etc., are some of the crucial solutions that accounting software provides.
Furthermore, the software is easy-to-use and accessible on an internet-enabled device. It enhances the performance of the business with a few clicks. Also, the data is securely stored in the cloud, protected with strong encryptions and protocols.
3. Mobile Accounting
People are becoming increasingly dependent on their mobile devices, which is obviously self-evident. Despite their ubiquitous use, mobile devices provide a number of benefits that small businesses have yet to make use of.
Small businesses can use mobile for handling financial tasks like creating and sending invoices, creating expense claims, capturing receipts, and gathering signatures.
There are various mobile applications for smartphones that enable you to accomplish such tasks with few touches and swipes. You can easily use such applications with simple training.
Also, your data will be seamlessly backed up into the cloud, which you can access easily whenever you need them.
Customer service and communication can be improved by using customer management software on mobile devices. Using CRM applications and improved connectivity via mobile devices, you can drastically improve your client Sara Mittal relationships.
4. Optical Character Recognition (OCR)
Optical character recognition (OCR) is a simple yet powerful tool for businesses to handle finance-related documents. Its main function is to scan any type of documents and images then convert them to readable files.
With the addition of OCR in the system, accounting and financial analysts don’t need to worry about old receipts and statements.They can concentrate on more technical elements of their jobs because OCR scans the files and stores them safely in the system.
Rather than the manual skills that most accountants used in the analog era, an increasing number of them are undertaking higher-level tasks because of tools like OCR. It assists in improving the track accuracy and precision of mechanical tasks.
5. Integrated Financial Management
There are some cloud-based solutions that consolidate a company’s whole finances into a single platform. They have a significant impact on businesses for addressing their entire financial structure, especially for small businesses.
Payments, client invoicing, audits, and payroll processing are just a few of the tasks that can be automated using cloud technology.
Businesses can sync bank accounts to set up automatic payments while keeping an accurate record of their expenditure. They will no longer have to go through the paper or electronic receipts to see if the payment of a bill has been done or not.
There are integrated systems that also track employees’ working hours and generate the payroll without any human error. This can save time as well as money for businesses.
The all-in-one solution gives businesses a real-time financial picture which is crucial for accurate cash flow management.
The same technology may be used to identify if a project is on track to be profitable and which products or services the company should prioritize to boost sales.
6. Online Banking Portals
The introduction of online banking brought a plethora of benefits, including the ability to practically eliminate bank lines and allow more people to handle their accounts online. It is also feasible to set up an account online, which is beneficial for those with a busy schedule.
Businesses can use online banking portals to check their account balance using their laptops or smartphones. They can keep track of their prior transactions, online payments, and transfer balances from the office.
An online portal has become a new gateway for businesses to directly add their money to their business account. This enables them to see the total financial structure at a given period of time. These portals have powerful encryption that protects your data from digital threats.
7. Virtual Tax Solutions
Tax is an important aspect of finance. Businesses have to manage taxes in such a way that they properly balance their financial status. There are various tax software that enhance accuracy while lowering margins and mistakes.
Businesses should take advantage of this software to minimize tax penalties and stakeholder conflicts. Better tax software is more efficient and effective, which helps to streamline audits.
There must be a regular meeting among the team members and managers to capitalize on the tax software.
Practicing accountants need to have knowledge of modern accounting software as well as other business and financial models. This is necessary to successfully undertake audits and complete their duties.
In this sector, auditors will have to maintain their professional development and education. One small error can cause a huge issue.
8. Fraud Detection
When it came to fraud detection and investigation, technology has come a long way. There are various strategies that aid in the detection of possible fraudulent transactions.
Fraud-detection professionals evaluate data and determine whether or not the account had been compromised using cyber security softwares.
Artificial intelligence also has a big hand in detecting mischievous things in financial processes. It assists businesses in following the victim’s history, calculating and estimating the likelihood of fraud based on previous trends.
All of this can be done far faster than a human because of AI technology. This implies that many fraud detection teams are not required, and small teams can handle the security.
9. Payroll Management
Managing the business payroll is one of the most difficult tasks on hand. There should be no room for errors, but if there are any, then it could result in a huge loss.
This is not a big issue for small companies, but big companies cannot keep track of all the necessary information. That’s why businesses need payroll management solutions that can be easily integrated into accounting software.
Powerful payroll management solutions are able to incorporate information from both freelancers and office employees. It assists in working with both of them easily. Also, keep track of how they are performing.
10. Inventory Tracking
As we know, there are various softwares to track sales and accounting so find out profit and losses. Likewise, there is a tool that focuses on tracking the inventory.
Monitoring the inventory of one location should not be a problem but monitoring the inventory at multiple locations requires powerful tools. This tool automates the monitoring process that saves a huge amount of time.
These tools provide businesses different benefits like customizable features, real-time inventory visibility, and tracking inventory journey from purchase order to sale. Your point of sale (POS) software should be compatible with the inventory tracking software you choose.
Technological advancements do not appear to be slowing down in any sector. People’s perceptions of business and money have shifted as a result of technological advancements.
The use of financial softwares and tools is a prime example of businesses relying heavily on technology to perform daily financial tasks. These innovations, most importantly, are intended to benefit businesses and provide them with more financial power.