The world is going through a digital transformation. Each day, new inventions and innovations are born that have the potential to change the way people live and work. In business, this trend is no different. Technology has profoundly impacted firms of all sizes, and there are no signs of slowing down any time soon.
But what does it mean for the way you handle your business finances? As a business owner or manager, it’s crucial to stay up-to-date on the latest technology trends to take advantage of them to streamline your operations, especially concerning finances. So, here are some investments you should consider for your business.
Income and Expense Tracker
According to a U.S. Bank research, cash flow difficulties got cited by 82% of companies that went bankrupt. That means not having a good handle on your income and expenses might cause your business not to be able to survive.
One of the simplest ways technology can help you with this is by automating your finances tracking. You can do this using an app or software that links to your financial accounts and credit cards. This way, your transactions get categorized and recorded automatically, saving you time and energy.
Another great way to track your finances is using business intelligence tools. These tools take data from your financial tracking system into easy-to-understand visuals. This data can help you spot trends and decide where to allocate your resources.
When you have a clear picture of your business finances, you can make better decisions that improve cash flow and overall financial health.
Digital Payment Systems
If you’re still using paper checks and manual invoicing, it’s time for an upgrade. Not only is it more convenient for you and your customers, but it’s also more secure.
According to a study by the AFP, 59% of organizations experienced attempted or successful check frauds in 2020. This part is where digital payment systems come in handy. You can send and receive payments electronically using platforms like PayPal or Stripe. These platforms are much more secure than checks and often come with fraud protection.
What’s more, customers prefer the convenience of digital payments. 42% of consumers say they would leave a brand they love if it didn’t offer their preferred payment option, according to a study by American Express.
By offering digital payment options, you make it easier for your customers to do business with you. At the same time, you also reduce the risk of fraud and improve your bottom line.
Another way to streamline your business finances is by setting up an automatic deposit. This feature allows you to automatically transfer money from your revenue accounts into your cash reserve after a successful transaction. Many business-friendly savings banks offer this service.
An automatic deposit is a great way to ensure you always have enough cash to cover your expenses. It’s also an excellent way to reduce the temptation of using business revenue for personal expenses. You can also use it to automate your savings goals. For example, you can set up an automatic deposit to transfer 10% of your revenue into a high-yield savings account. This way, you can grow your cash reserve without thinking about it.
Having a cash reserve is essential to cover unexpected expenses or lean times. By automating your deposit, you can ensure your business always has the cash it needs to weather any storm.
Using accounting software is another way to streamline your business finances. This software can automate many tasks, such as invoicing, tracking expenses, and preparing financial statements.
You can also track inventory, manage payroll, and generate reports with accounting software. This way, you have all the information you need in one place to make better decisions for your business.
Accounting software can save you time and money. According to a study by the AICPA, businesses that use accounting software save an average of 20 hours per month on administrative tasks. That’s why it’s no surprise that the global accounting software market is expected to grow to $7.4 billion from 2021 to 2026, at a compound annual growth rate of 9.64%, according to a report by Yahoo! Finance.
So, if you’re not using accounting software yet, now is the time to invest in it. It’ll help you save time and money and streamline your business finances.
Investing in technology is a smart way to improve your business finances. Implementing the above solutions in your business can help you save time and money, reduce fraud risk, and make better decisions. So, don’t wait any longer; invest in technology today. You and your business will be glad you did.