7 Ways Fin-Tech Accounting Software Can Empower Your Small Business

Jan 14, 2022
4 min read

Fin-Tech has brought numerous innovations to advance the business and banking world. Accounting software is one of such revolutionary tools that can scale up your business game. As we know, accounting is a critical pillar of any business. However, you cannot deny that it is a complex and challenging job. Taking this into account, businesses are now incorporating accounting software into their team.

You will be amazed how quickly you can pull off all the tedious tasks with it. Besides this, it can simplify all your bookkeeping processes including invoices, transaction-tracking, decision-making, and reporting.

Well! There are many reasons why it can act as a trump card for your business productivity. Here I will be discussing 7 ways it can power your business and keep you ahead in the growing competition.

1. Business Intelligence for Reporting

The accounting software uses Business Intelligence (BI) technology to analyze the data for effective decision-making. Business reports are crucial for maintaining your financial health. They help you track performance, flag issues, and take decisions accordingly. Then you can map out better plans and strategies to increase your revenue. Furthermore, if you have proper reports, you can breeze through tax filing and loans processes without any worry.

But you need to compile, compute and calculate data for all these. It is indeed a long challenging process. However, you can lighten your head using BI technology. Most of the software offers a dashboard that is both informative and interactive. The dashboard includes tables, graphs, reports, KPIs, and all the metrics to monitor your financial standing.

It shows all the transaction records, financial statements, and reports at your fingertips. You can also track cash flow, inventory, assets, sales, exchanges, and almost everything in it.

2. Save Your Time

Technology coupled with automation gives you the privilege to accelerate the processes and save hours for better things. Repetitive tasks like invoicing, payment reminders, journaling, calculations, and data entry can be time-taxing.

But a businessman should invest time in new ideas, strategies, customers, and sales rather than wrestling with sheets. With the new age software, you can automate almost all such tasks. Everything is organized and automated so you can relax and see your work getting done.

3. Secure Your Business Data

Data security is a matter of concern even for big firms like Google and Facebook and so definitely for small businesses. Any data breaches or data corruption can prove to be very costly and time-consuming for you. Additionally, this can also affect your reliability as a brand. So you should be careful about your transaction records and customers’ data.

Fin-Tech can shield your business from such risks. It provides a convenient defence system to prevent serious risks using various technologies:

i)Tokenization: This method uses special words or symbols instead of original sensitive information.

ii)Encryption: It converts the normal readable text into ciphertext. The ciphertext is the random code that only authorized users can decrypt. It means only those who have confidential keys or passwords.

iii)Cloud storage: It is based on cloud computing technology. It saves your data on the internet (remote servers) and lets you access it via the internet or a dedicated private network.

They are much better than sensitive storage mediums like hard drives, selves, and even spreadsheets. Further to this, automation also makes things safer from manual interference. With this software, you can carry on your transactions and tasks without worrying about any cyber threats.

4. Accessibility Anywhere

It won’t be wrong if I say, technology has free up human beings from limitations. Gone are the days when you had to be tied to your desk and cupboard to control your finances. Now, a cloud storage system lets you access the business from anywhere and anytime.

Whether you are in a flight, café, bedroom, or office, you can carry all the data and documents in your pocket. You only need a device to be it an android phone, tablet, or laptop to check your financial reports, send invoices, track inventory, receive payments, and do many more tasks.

5. Reduce Errors and Improve Accuracy

A major part of accounting tasks involves data entry and calculations. There are records to add, modify and compute. An accountant or businessman must be aware of the struggle when balancing takes hours just because of a minor error. We know it well that manual methods are subject to mistakes.

However, the advent of automation has gifted us an errorless work environment. Accounting software uses machine learning and artificial intelligence to monitor your actions. In accounting software, AI can correct errors as per your previous data. It can also auto-modify your financial statements. On top of this,  calculations of totals and taxes are no more on your shoulders

6. Easy Invoicing System

Invoicing plays a crucial role in timely payments and maintaining the cash flow. Some prefer to use excel or word or even hand to create invoices. It can be enough for a few customers. However, if you are dealing with a lot of customers, it can result in errors, design inconsistencies, and a huge time sink.

Accounting software can make invoicing a cakewalk for you. You can create well-structured and accurate invoices in just a few minutes. Plus it is packed with many amazing features:

  • Customize the colour, font, fields, and logo to give you brand look.
  • Send/download the invoice directly from the software
  • Invoice templates for different industries
  • Track paid/unpaid invoices

The accounting software is not limited to just invoicing. Some of them also include other documents like quotations, export invoices, estimates, proforma, and many more.

7. Backup System

Another perk of cloud-based software is a backup system. Traditional storage is not only prone to data loss but very expensive too. In contrast, the computerized method allows you to save all your financial data safely with backup. You can also set automatic backup in small intervals so you can restore data anytime. It let you backup both online as well as in local drives.