The introduction of technology has improved the world of business for good. According to recent research by Deloitte, 85 percent of small business managers say that the use of technology has helped them improve their business performance and competitiveness. Approximately 99 percent of small business managers say they use at least one digital tool every day, and large corporations continue to invest billions of dollars in capital into business technology – all with the aim of improving their business efficiency and bottom line. Tech-savvy businesses are three times more likely to experience revenue growth and two times more profitable. Whether it is reducing costs or removing inefficiencies across business operations, the use of technology in your business can help you boost your productivity and profitability across the board.
Better Financial Management With Accounting Software
Financial planning and management are key to business survival and profitability. According to a U.S. Bank study, 82 percent of businesses fail due to poor understanding of cash flow management, while 78 percent fail due to the lack of a properly developed business plan, including money required, pricing, and market conditions. The use of small business accounting software like QuickBooks, Xero and Wave not only simplifies the financial recording and management process; it helps business owners track their financial performance and identify areas for improvement such as cost control. With such useful advice, businesses can then implement strategies to boost their profitability over time.
Automated accounting software also improves business cash flow with the help of real-time data analysis and forecasts. With this, businesses can cut down on invoicing and processing times, which means they can make business decisions faster. Finally, over 20 percent of financial planners now use financial planning software to provide financial planning advice to business clients. With its use, financial advisers can cut through any overwhelming amounts of data to give insightful business moves to help businesses achieve their goals.
More Accurate Resource Planning Using Time And Resource Management Systems
Poor resource planning can be disastrous for a business’s bottom line and long-term goals. Inadequate tracking and allocation of business resources can be an easy way to put an unnecessary burden on your workforce, produce unnecessary errors, and create inefficiencies in business processes. With these problems, adherence to a business’ budget becomes increasingly difficult. In a past study by Deltek, 38 percent of businesses admitted that they always go over their business budget due to scope creep. Indeed, Journyx note the importance of enterprise resource planning software to give businesses the ability to track project expenses and key cost influencers such as employee hours to reduce the risk of this happening. With this, businesses can integrate this data with their other business functions and pinpoint the exact timeline when their profit margins are affected.
Improved Customer Engagement And Marketing With Segmentation And Data Analysis Tools
Another way technology is helping businesses boost their profitability is by improving their ability to connect with customers. Market research is paramount in achieving business success. A business must not only know, but be able to anticipate its target market’s needs. Customer engagement platforms like Pipedrive and Intercom helps businesses manage their customer relationships and improve their conversion rates.
With the use of the right technology, businesses can capitalize on new opportunities to achieve their business goals – including a better profit margin. Whether it is improving your resource allocation to reduce inefficiencies or improving customer engagement and conversion rates, businesses can find the right fit for them and their path to profitability.