Financial management is critical for the success of any business, no matter the size. Today’s businesses have access to many tools that support effective financial management. What is financial technology, and how can it transform a business? Take a closer look below.
What Is Financial Technology?
Financial technology, often referred to as “Fintech,” is any technology used to digitize, streamline, or automate financial processes in business. These technologies come in either software or software as a service (SaaS) form. The programs can digitize or automate a number of financial tasks every business must handle, such as:
- Tracking income and expenses
- Sending invoices or payments
- Collecting data for analysis or reporting
- Creating in-depth expense reports
- Budgeting and forecasting
Accounting technologies are a huge part of the financial technology field, and perhaps the most utilized and valuable type of Fintech. According to some studies, 83 percent of accountants agree that accounting technology increases productivity.
When Does a Business Need to Use Financial Technology?
Even though not every business starts with financial technology, in the modern landscape, inception is the best place to start. The more organized finances are from the beginning when growth is often at its largest, the more likely a business will succeed. The best technologies make tracking finances more efficient and free up time for staff to focus on running the business.
Nevertheless, if the business doesn’t start with good technology in place, a few pertinent events should spur the adoption of financial programs, such as:
- The business is going through a rapid period of growth
- The current accountant or accounting department is overwhelmed with daily tasks
- The business sees a major uptick in the number of expenses or invoices
Is Financial Technology Necessary If a Business Has an Accountant?
Even with an accountant, financial technology serves a valuable purpose.
Accountants handle bookkeeping, ledger balances, and drafting financial documents among many other tasks. Financial technology complements the work of an accountant. With the right technology in place, accountants spend less time on mundane tasks like data entry and reporting. Therefore, the professional has more time to focus on other finance-related tasks that require human input or attention.
Likewise, financial technologies benefit the entire financial sector of the business, all the way to the Chief Financial Officer (CFO). For example, something like expense tracking software gives the CFO valuable data that could help with strategic future planning.
A Look at Some Top Financial Technology Providers
A few key Fintech providers stand out because they are trusted by so many organizations. Below is a look at some top providers we recommend:
Bill.com automates business payments to simplify accounts payable and receivable processes. From one platform, recurring bills can be paid, payments can be accepted, and payment activity is logged for record-keeping purposes. Bill.com also integrates seamlessly with other top financial technology software like QuickBooks and Sage Intacct.
Expensify is a pre-accounting and expense management software. Built to help keep company expenses in check, the program allows users to track expenses, generate invoices, and submit expense reports. However, Expensify also offers corporate cards for owners to give to staff members for easy business expense management.
Sage Intacct is a cloud-based financial technology designed for accounting and financial management. The software is sometimes deemed as a “step-up” from QuickBooks, as it offers a few more valuable options. Sage Intacct automates accounting processes, offers multidimensional reporting, and makes entity consolidations a spreadsheet-free process.
QuickBooks is one of the most recognized software names in financial technology. The software automates things like invoicing, making and tracking payments, accounting entries, and more. This traditional accounting software has evolved over the years. There is now a cloud-based subscription QuickBooks, and the subscription is scalable for businesses of different sizes.
Modernize Your Business with the Best Financial Technology
The right financial technology revolutionizes the efficiency of financial management within a business. The A Team’s Technology division helps you find the right financial technology for your business. Let’s discuss how the right programs could free up your time to focus on day-to-day business.
