Finance is the life and blood of a business. No firm can function efficiently with a shortage of funds. Therefore, for a business to sustain, run smoothly, and be successful, finance function plays a key role. Out of all the factors that make finance function work for an organization, technology plays a key role.
The Role of Technology
Over the years, technology has transformed the way businesses work. From manufacturing to marketing, automation has entered every step of the business operations and revamped it for good. And, so is the case with financial management. The accountants these days rely heavily on technology, mainly in the form of cloud computing.
Let’s see how technology can give a foolproof finance function to businesses:
No More Red Tape In Budgeting
Higher the amount of the budget to be passed, the longer it takes to get an approval. A budget proposal has to follow a certain hierarchy where it passes through a series of administration levels before it gets the final approval. This process, when done manually, can take several days. Same is the case with capital expenditures.
If done digitally, with the help of technology, budgeting and Capex approvals can be acquired in less time. With everything stated clearly on-screen, it gets easier for officials to go through the key information and previously made suggestions quickly, making way for faster approvals.
Farewell Traditional Accounting Methods
A large number of businesses and individual accountants still rely on traditional methods for accounting. These businesses when introduced to the cloud, can speed up their accounting tasks, add efficiency to the process, and witness a great scope for streamlining their day-to-day tasks. Automation in accounting and financial management is an efficient and effortless way of taking your finance function to the next level.
Easy Monetary Reimbursement To Employees
If you are running a small or medium-sized business, you must be aware that your employees often seek monetary reimbursement for a series of expenses, such as for the money spent on travel for work. Managing these requests can often be a time-consuming and an unproductive process. Further delays can take place in case the manager handling these requests is not sure which requests can and can’t be approved, which ones are critical, and which ones can wait. Once automation is introduced into the system with clear parameters, it can speed up the process. Reimbursements can be handled quickly, both for making automatic rejections where necessary and for approvals.
No More Dealing With Write-offs Manually
Business organizations often write-off certain expenditures from their annual revenue to calculate their taxable income. Doing this manually can take up a lot of time of the tax personnel and it serves as a welcome note for confusions, errors, and inaccuracies. By letting automation handle them, firms can finish writing-off their tax deductions in less amount of time, without errors, and with more clarity.
It is high time for businesses to move past traditional practices. A lot is possible with the latest technology that traditional accounting software cannot do. Therefore, for firms who wish to enjoy greater efficiency and get the most out of their investments, embracing technology seems to be the most feasible option.