Technology is a vital component of any business today, and the rate of technological change is affecting and disrupting business finances like never before. It is vital to understand how these changes are taking place and how it could affect your company’s finances.
Taxes and accounting are one of the most important parts of any business. You need an accurate snapshot of your profits and losses. And you need to know what your monthly cash flow is in today’s world in which business moves faster than ever.
Therefore, it is vital to have the right accounting software. The rapid shift in the internet and web apps has led to various innovations in the accounting industry. Previously, you didn’t have a Quickbooks alternative, but now there are many. And that’s not the only company that has seen competitors spring up and offer better services.
Accounting will always be at the forefront of disruption in finances. After all, failing to pay enough taxes could mean a massive penalty or even jail time for a business owner. And paying too much means you’ve wasted profit that could have been reinvested elsewhere. So be sure to look at your accounting methods and see if there is room for switching providers that may have the features you need.
The rise of big data has led to disruption in software having to do with financial projections. You used to need dense software that was slow and had to be run off a computer with a lot of memory. Luckily, today you can get away with lightweight apps that run in the cloud.
These apps let you quickly forecast your financial projections in an easy to use manner. You can operate it from a central dashboard and see it visually, so you can make better and more instinctive insights about the data you are seeing it navigate and plan the waters ahead.
When Bitcoin blew up on the international scale last year, people who never considered blockchain for their company started to think about it. Even large banks wanted to get in on the action. The power of the blockchain is that it is not something that is easy to hack. It is simply a public ledger, making preventing fraud in finances much easier. This is promising to erase transaction fees and replace some smaller banks in the future as people use technology as trust layer between them and avoiding outsourcing this function to a third party.
In the past, if you wanted to raise a round of financing for your startup, you had limited choices. You either needed to approach your local investors for a small sum or move your operation to Silicon Valley to play in the big leagues. This had a lot of limitations for smaller teams that weren’t looking to build the next Facebook.
Today, it is much easier to get financing for your new company. Using the internet, you can create pitch decks and ask for investment that reaches people all around the world. Anyone can join in. It is essentially using crowdfunding to turn the old model of investment on its head. It means that not only the biggest players can compete, but anyone with a great idea and communication skills to present their idea to the world. It could change local economies as entrepreneurs from less wealthy areas are given the same level of access as others.
When it comes to finances, long gone are the days where a simple document on paper kept track of everything you needed. Today, running a successful business is more complex than ever before, and that can cause a lot of stress and anxiety if you aren’t prepared. Some people resort to “Smart Drugs” (A.K.A. nootropics) to help them focus and work efficiently, but with the right kind technology on your side, you can handle a lot more than you think. Embrace the tech tools of the future and let the stress melt away.