Over the past couple of decades, the finance sector has changed dramatically. Technological developments have helped to revolutionise the sector, delivering a wide range of benefits.
Here, we’ll look at the top five benefits the digital revolution has had on financial management.
1. Fewer errors experienced
One of the major benefits the digital revolution has had on the finance sector, is the reduction of error. Even the most well-skilled humans don’t always get it right. So, the development of automated software has had a particularly positive effect on the sector. With fewer errors experienced, it allows for much smoother, stress-free business operations.
Similarly, it’s really helped to reduce fraudulent cases. Banks and financial services have benefitted from advancements in technology, helping them to better detect and combat fraud.
2. Simplicity and efficiency
Digital financial management has also helped to simplify and improve efficiency within the sector. Common finance tasks can now be completed quickly online. Businesses can now get paid electronically, as well as handle all invoices online. This has sped up the payments process, with many banks now offering instant transactions.
Accounting has also been sped up and simplified. Using RSM digital services for example, enables businesses to have their accounts taken care of completely online. This means there’s no papers to file and all of the company’s financial information can be stored and viewed within the Cloud.
3. Helping to better secure funding
Improvements in digital services have meant it’s now easier for businesses to secure the funding they need. Not only can they find suitable lenders to match their requirements, but the internet has also opened up a multitude of alternative lending options.
Businesses can be matched to suitable investors, with platforms such as peer to peer lending now available. This means even those with a poorer credit rating can still find the funding they need. They can also compare different lenders before applying.
4. Enhanced decision making
All financial information can now be viewed instantaneously thanks to technology such as the Cloud. This means businesses can now make much better financial decisions in real time. They’ll also be able to use the information stored to make better decisions regarding the future finances of the company.
5. Mobile working
The fifth benefit the digital revolution has introduced, is mobile working. At one time, all financial records were kept in physical storage. However, as everything can now be viewed online, mobile working has become a possibility.
This has been a particularly great benefit for those running an international business. It’s provided great opportunities for expansion and more flexible working. It also allows you to outsource financial services much easier.
As you can see, the digital revolution has delivered a lot of benefits into the business and financial sectors. From simplicity and efficiency, to easier access to information, online financial management can prove invaluable to businesses today. If your business hasn’t taken advantage of digital financial management, now’s definitely the time to consider utilising it.
Ingrid Maldine is a business writer, editor and management consultant with extensive experience writing and consulting for both start-ups and long established companies. She has ten years management and leadership experience gained at BSkyB in London and Viva Travel Guides in Quito, Ecuador, giving her a depth of insight into innovation in international business. With an MBA from the University of Hull and many years of experience running her own business consultancy, Ingrid’s background allows her to connect with a diverse range of clients, including cutting edge technology and web-based start-ups but also multinationals in need of assistance. Ingrid has played a defining role in shaping organizational strategy for a wide range of different organizations, including for-profit, NGOs and charities. Ingrid has also served on the Board of Directors for the South American Explorers Club in Quito, Ecuador.
