Technology continues to evolve and reshape businesses of all shapes and sizes. When it comes to vital business processes, one of the most important ones is undoubtedly finances. This is where modern fintech comes to aid, especially to small businesses that are oftentimes in desperate need of financial assistance.
Automation and improvements of entire workflows help SMBs not only save money and cut costs but also help them make more strategic decisions. What’s more, it also helps them remain compliant with various rules and regulations.
The main reason this is important is that it helps companies avoid crucial financial mistakes. That said, a financial mistake in the business world can easily become fatal for an entire company.
With the emergence of digitized finance processes, such as automated and digitized payroll processes, small companies can now ensure their employees are paid in full and on time. With that in mind, let’s have a look at the major changes that digitized finances processes are causing within the small businesses.
No More Manual Payroll Calculations
When it comes to manually calculating employee payrolls, the most common issue is human error. You were almost certainly in a situation where your salary was miscalculated once or twice. That said, everyone knows how frustrating it can be, especially since such errors tend to happen at the most inconvenient of times.
Make no mistake, inconvenience is there for both businesses and employees when such errors occur. That’s why many SMBs are starting to rely on personalized employee income cards. The way it works is that cards can be integrated with any payroll process and payroll provider.
Simply put, the process becomes automated, and it minimizes or eliminates the human error altogether. The system allows your business to vastly reduce costs, whereas your employees can spend their salaries with ease, since the system doesn’t have an impact on credit.
No More Paper Archives
Technology, in general, helped small business eliminate paper and create a completely paperless environment. With the aid of technology, such as cloud computing, your business can improve much more than financial processes.
As a matter of fact, cloud services, such as SaaS (Software as a Service) can help you subscribe to any software solution needed in your company both financial and otherwise. However, the main advantage of cloud services is online storage.
In other words, you can digitize any file or document and safely store it in the cloud, which means no more paper piles and paper archives for people to get lost in for an eternity. Anything on relevance can be in the cloud for as little as $10 monthly subscription fee and all information is accessible from any device, anywhere in the world.
No More Waiting in Lines
If there’s any benefit to technology and digitized financial processes, it’s not having to wait in lines anymore. Everything else fails in comparison. Jokes aside, waiting in line at a bank to conduct money transfers is now pretty much history and good riddance.
Whether you’re a business owner or an employee, waiting in lines for financial transactions is a major waste of both time and your mental health. With services, such as Transferwise, for instance, you can now conduct international money transfers with ease.
You can rest assured that your money will reach whomever you intended safely and on time, while you won’t have to pay high transfer fees. The best part is that you can do all of this and more from the comfort of your home. Want to order stuff from China? No problem, you can do it from your bedroom should you feel too lazy to get up.
Time Tracking Software
One of the greatest advantages of digitized financial processes for small business comes in the form of time tracking software. Most people believe this software is primarily designed to spy on employees.
There’s a bit of that, of course, but that’s not the real purpose of this software solution. The fact of the matter is that you can use this software to accurately track the amount of time spent on every project. This helps you manage your time more efficiently and help you bill your clients more precisely, as well.
Combined with the accounting and tax software, which some time tracking solutions include, you can take your financial management to a whole new level. Investing in such a solution pays for itself as you’re able to calculate both work and tax-related obligations without making any mistakes in the process.
Nowadays, small businesses are faced with major changes induced by modern technology and market trends. SMBs that don’t adapt to changes will lose their relevance and their competitiveness. Aside from that, technology and its solutions may be disruptive at first but the advantages and benefits it will provide cannot be easily dismissed, especially when it comes to business finances.
About the Author
Lauren Wiseman is a marketing specialist and contributor to bizzmarkblog.com. She helps clients grow their personal and professional brands in the fast-changing and demanding market, strongly believing in a holistic approach to a business. Connect with her on LinkedIn and Twitter.