Ways Financial Technology Can Boost Performance

how to track expenses for small business

Financial technology, commonly referred to as Fintech has enabled a myriad of benefits for businesses, including increased accessibility to useful tools, speed for business activities, and free business expense tracking software. Thanks to fast internet connections, big data computing, and 24/7 mobile connectivity, business owners have access to all they need to grow their brands and make profit. FinTech continues to wax stronger, featuring rich financial software that far surpasses what was available a decade ago.

IT installations that cost millions of dollars ten years ago are now available at a much high standard for less than 30% the cost. These innovations give you an edge in the race towards financial independence and make business owners lives a lot easier. This article will help provide answers to business-related questions you have like how to track expenses for small business.

Here are some reasons why you should employ financial technology to help boost your business performance.

  1. Get Access to Funds
  2. Use Cloud Accounting
  3. Payment Automation
  4. Expense Tracking
  5. Expands Business Boundaries
  6. Blockchain Technology

Get Access to Funds

SMEs know the importance of cash flow towards growth and development of the business. It is the determinant factor of how well a business grows and whether or not it is going to last. There are many things that impact cash flow in a business, including customers, products, and service. Large, well-established businesses do not have to worry much about cash flow because expenses are significantly reduced than in the growing stage.

SMEs need to incur expenses and make investments before they can achieve higher revenue and cash flow. Financial technology has made it easier to access funds to start up your business and minimize stress. Crowdfunding is one of the ways to get funds that has become quite popular in recent times. You can reach out to a multitude of people; supporters and clients to contribute small amounts of money to reach a monetary goal. For example, if you need $10000 to expand your business, you can prepare a compelling pitch to the public convincing them to support your company. A donation of $20 each from 500 persons is all you need to get the funds.

Another way that FinTech has made funds easily accessible is through online lending, which is much easier than traditional bank loans. Reports have shown that simple online application processes can help you get the assistance you need. This is a convenient money lending medium that can be done through your mobile phone, tablets, or laptops. Online lending saves you the stress of going to the bank, lugging boxes of paperworks, and a rigorous screening process that will most likely result in a denial.

FinTech simplifies the funding process for small businesses and helps you avoid the lengthy and quite frustrating process of traditional bank loans.

Use Cloud Accounting

FinTech has made a type of accounting system available known as Cloud accounting. It is an upgraded version of traditional accounting system with multiple benefits. The system can only be accessed via the internet which means they are available round the clock and can be accessed anywhere and on any device with a working internet connection. The software uses encryption to move and store data, which makes it more reliable than manual records.

You do not have to worry about delay or errors in the records. It allows you to keep track of your financial information in real time and to monitor how you’re doing with your cash flow forecast. This helps you make quality cash predictions, how to track expenses for small business, and take corrective steps quickly. Investing in cloud accounting will significantly improve your company’s growth. Another FinTech accounting innovation is the free business expense tracking software that help control company’s spending like small business travel expense management.

Payment Automation

Technology has made the world into a global village, which means there is a close in gap between countries. Thanks to FinTech, global payment systems have made it possible to send and receive money from anywhere in the world and in no time. Mobile phones, tablets, and laptops have turned into point of sales (POS) systems to manage cash flow better and receive payments. International transfers use to cost a lot for business owners, but thanks to FinTech, this electronic payment is far cheaper than paper checks.

This is a great opportunity for all sizes of business; whether big or small to save more and increase cash flow. A bonus is that electronic payments are more secure than paper, as reports have shown that most financial related frauds involved traditional payment methods.

Automated payments also saves time as they transactions can be completed in less than a minute. This allows suppliers to get paid faster decreasing their day sales outstanding (DSO), which can strengthen supplier-consumer relationship.

Expense Tracking

Are you finding it difficult to keep track of all your work expenses? Did you know that FinTech can help you with your small business travel expense management. One important FinTech innovation are user-friendly and free business expense tracking software that help reduce the burden of accounting, giving you time to focus on other work activities.

If you need help with how to track expenses for small business, you can use the software to keep an extensive record of photos of receipts, invoices, and reimburse expense reports. Using this software will help reduce administrative work and save more. Also, a company that requires sending employees on frequent work trips will need to take small business travel expense management seriously to reduce costs and avoid ill feelings among the staff.

In case you’re now wondering how to find the expense tracker app, which will fit your needs, we’ll send your time and nerves by introducing Expense Sensei. The application provides the complete and smooth flow for all team members of your company, be it a bookkeeper or copywriter. You can easily submit expenses on the go and manage your reports as well.

Expands Business Boundaries

Without FinTech, most businesses had only customers limited to their geographical zones because of the high fees charged for overseas payments. Thanks to FinTech, this has become much easier and cheaper, increasing your audience to persons outside your principal place of business. Across border payments have become a norm, hence increasing cash flow for SMEs and large businesses alike.

Blockchain Technology

Blockchain technology is a medium of payment involving encrypted records and sensitive data. This is a tested and trusted form of payment with the least security risk, as there is little to no chance of a successful cyberattack. Blockchain uses secure communication techniques known as cryptography, which encrypts information and only allows the sender and Intended recipient view the content. Blockchain technology is the backbone of many cryptocurrencies like Bitcoin.

We are starting to witness a gradual recognition of digital currencies, and there is no doubt that the sky is only the starting point for this virtual currency. Countries are beginning to recognize Bitcoin as a legal tender and businesses are offering it as a payment option. It helps eliminate many of the processing steps and transaction charges.