Using Tech and AI To Manage New Business Finances
For aspiring entrepreneurs, the launch of a new business is often the culmination of a lifelong dream, the realization of a goal that you have been working toward for years. Your business isn’t just a business: it’s your baby.
However, ensuring your baby grows and thrives takes far more than simply offering a terrific product and unsurpassed service. The success of your new business is also, inevitably, going to be determined by how well you manage your company’s finances.
The good news, though, is that you don’t have to have an MBA from Wharton to ensure your new business stays flush. Instead, to optimize your financial management processes, you need only to unleash the power of financial technology (fin-tech).
Financial Management and Fin-Tech
There’s really no overstating the importance of keen financial management in any business, particularly during those critical first five years, when so many small businesses fail.
Financial management not only enables business owners to monitor the performance of their operations; it also supports them in strategic decision-making and long-term planning. After all, you need to know exactly what products and services are profitable, what departments or divisions are most cost-efficient, and where, exactly, the market is headed if you want to position your company for continuous growth.
Financial management is also about protecting your new business. There are, after all, immense financial obligations that accompany the operation of a business, from local, state, and federal taxes to payroll to debts owed. You need a good management strategy to ensure that your financial processes are well-organized, that your records are complete, secure, and accessible, and that all your financial obligations are met in a timely manner.
The Magic of Mobile Accounting
No matter how much business experience you have, no matter whether your new company is the first or fiftieth enterprise you’ve launched, any time you start a new company, you are, in essence, flying blind for a while. You are likely to have some pretty comprehensive, evidence-based forecasts as to how the new business will perform, but until you actually get the company off the ground, you can never be sure if your predictions were on target.
This is where the tremendous benefits of mobile accounting technologies really shine through. Mobile fin-tech applications allow you to securely track your new company’s financial status anytime and anywhere. This means that you will always have the data you need to make informed, just-in-time decisions to support your young company’s success. As a result, your business will be more agile and responsive, adapting to ever-evolving market conditions instead of being undermined by them.
Fin-tech and Customized Financial Management
In addition to mobility, one of the greatest benefits that modern fin-tech offers for business owners and consumers alike are that of customization. Fin-tech systems allow users not only to monitor their financial performance over time but also to analyze it.
Artificial intelligence (AI) technologies, for example, can collect massive volumes of financial data in mere seconds. AI systems can then deploy machine learning capabilities to analyze this data to identify an organization’s unique strengths, weaknesses, opportunities, and threats (SWOT), and then use this analysis to formulate customized, evidence-based strategies for improving a business’s financial performance. In essence, AI-based fin-tech is like having the world’s most knowledgeable financial consultant at your fingertips!
Automating Accounting Processes
Another important benefit of fin-tech is its capacity to automate your new business’s accounting processes. For example, paperless payroll systems tend to be far more efficient, reliable, and cost-effective than traditional paper-based methods. In addition, such technologies also greatly enhance record-keeping, automatically generating and securing archiving financial records. Because the lack of sufficient records can pose a significant threat to your business, automating and digitizing your accounting documents can offer security, convenience, and peace of mind.
The Takeaway on Business Finances
Launching a new business is no small endeavor. You’re required to wear many hats, from recruiter to strategist to accountant. How you manage your fledgling company’s finances, however, may well determine whether your company survives and thrives or withers and dies. The good news is that a wide array of financial technologies is now available, giving you unprecedented power to manage your business finances and, consequently, position your company for extraordinary success and longevity.
Check out this article, How to Stay Organized With a Startup Business
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