FinTech companies have been lauded for their ability to provide companies and individuals access to monies they urgently need, without having to go through a lot of red tape. Neither do they have to wait for weeks, which can severely affect their operations because of the inaction. Now FinTech has been gaining attention for its ability to streamline, speed up, and make efficient a lot of accounting tasks that, while important, can occupy resources and the attention of personnel best used elsewhere. For example, without these financial tools that FinTech provides, executives and their managers can spend days analyzing numbers and statistics; with the financial tools, they can finish that job in a couple of days at best, freeing them to do what they are supposed to and which they are good in doing: run the company and make it earn.
Small-to-medium-sized businesses in particular can leverage on these FinTech financial solutions to make their financial statements clearer and more concise. They can use them during their brainstorming and strategy-planning to make forecasts for the business, without having to pore through piles of documents or browse through Excel sheets. They can see how much the company is earning and/or losing, accounts receivables and potential sales from the new leads, and the bottomline that they either have to improve, build on, or enhance.
The Business Insider cites a report from the U.S. Small Business Administration which shows how integral or vital small-to-medium-sized businesses are to the U.S. economy. These firms, which are often managed by a very small team, compose 99 percent of American businesses, provide 55 percent of all jobs held by the American people, and generate 54 percent of all the sales activities happening in the country.
Their empowerment by FinTech tools can only make them more competitive, agile, and financially robust.
One example is the services that FinTech company AutoBooks provides these companies. Their tools trace receivables, payments, and payables and correlate them with each other to give an overview of the company’s real-time cash flow. They also issue invoicing forms to facilitate the speedy payment by clients who can send the money online. A transparency template also shows the organization leaders their financial status at any given time, as well as the status quo of the specific financial aspect of the organization. No one is left in the dark.
Benzinga gives us as another example: Technavio’s accounting software processes which helps companies monitor, process, and scrutinize the progress of all their financial transactions. This real-time evaluation is also available on mobile devices. CEO’s and investors can click on them during out-of-office meetings or business conferences. The Accounting Manager can likewise check on them while he is facilitating documents in the Bureau of Internal Revenues or other similar institutions.
FinTech can also automate the simple yet almost innumerable accounting tasks, freeing the financial executives to focus more on strategic planning and network building. As cited by CBR Online, FinTech startup Blackline assumes repetitive tasks such as the inputting of figures at day’s end and calculating them. The accountants and other financial professionals in the office would be freed of the mundane burden of doing the encoding themselves. Instead, they can just check on the figures at the end of the day, analyze and interpret them, and give management their insights of the overview.
These are just some of the few advantages that FinTech solutions can provide small-to-medium-sized business owners and their accounting team who seem to get bogged down by the dozens of tasks involved in the company’s accounting processes. Helped by FinTech, these executives and their people can abstain from being human calculators and emerge stronger as strategic business partners.