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Small business owners should be mindful of these 7 finance trends

Posted by Shivali Anand

November 11, 2021    |     4-minute read (632 words)

Although no entrepreneur has a crystal ball that can predict the future, most small firms would love to gain a head start on emerging trends. This is especially true when it comes to finance activities, such as banking accounting, security, payroll and anything else involving money.

Take a look at the burgeoning finance trends projected to become even stronger as the decade progresses. You can use the information to assess whether any of these trends provide an opportunity for your business. 

  1. Big data
Even though big data has been around for some time, its value is likely to only increase in the future. Big data is helping financial organizations and their clients make better financial decisions by projecting cash flow and market performance, anticipating when enormous costs will be incurred and assessing future trends. Your employees might also benefit from big data in various ways, including analyzing their 401(k) possibilities.

  1. Mobile transactions
Customers now deposit checks, conduct stock transactions, check account balances and pay bills using their phones. Banks can now manage practically all banking and financial services via a mobile format. Customers' mobile devices can also be an excellent source for reporting possible account breaches. When a possible cybersecurity breach occurs, the problem can be swiftly discovered and resolved by messaging consumers. Many organizations are also making their HR portals mobile-friendly so employees can check vacation hours, perks and other features from their mobile devices.

  1. Payroll automation
Companies that still do their payroll by hand are possibly squandering time and setting themselves up for errors. Automated payroll solutions are the way of the future. Automation allows businesses to compute salary or hourly pay while factoring in state and federal taxes and other considerations. It also allows businesses to eliminate the time-consuming procedure of physically sending checks to their employees.

  1. Improved security
Businesses that deal with financial data increasingly employ artificial intelligence-based systems that hunt for anomalies to prevent fraud. When potential fraud is detected, these tools enable financial service businesses to respond quickly, and clients can be notified of issues sooner. Furthermore, financial institutions are beefing up cybersecurity measures to avoid large-scale assaults and keep clients' cash safe from hackers and other fraudsters.

  1. Financial services outsourcing
More companies are outsourcing their financial services to save time and guarantee that their transactions are compliant with tax regulations and performed securely. When companies employ a financial outsourcing provider, they can be sure their transaction-level operations will be handled by specialists, allowing business owners to focus on other vital tasks.

  1. Software integration
When it comes to software, many businesses are still very compartmentalized. While the HR department may be using one application, the benefits vertical may rely on an entirely different and incompatible platform. To enhance efficiency in handling personnel data and financial information, organizations will see more connections across software systems in the future.

  1. Increased reliance on cloud and AI technologies
The days of storing financial data on a single person's office computer are long gone. Your staff members may access financial, payroll, accounting and other data in real-time from anywhere using cloud-based financial solutions. These solutions also aid in the protection of on-premises financial software from cybercrime.

In today's data-driven world, analyzing the massive volumes of financial data created daily has become critical. Artificial intelligence may help with this by offering actionable insights that can help shape a company's finances, detect nonessential spending, and add to the company's overall performance.

AI may assist in automatically categorizing personnel and ensuring that they are assigned the appropriate tax rates. AI chatbots can also be used to respond to non-urgent queries from employees. Your firm can adapt to the changing payroll landscape by staying on top of these new developments on your own or by employing an outsourcing provider to do it for you.

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