The discovery of computers has transformed the financial industry and how business deals are transacted. It is possible for accountants to keep large amounts of data, conduct intricate calculations and manage financial transactions all from a computer. Computer technology today enables global economic capabilities that were impossible only a few decades ago, and computers now influence both business as well as personal financial management.
Ease of Communication
Computers enhance financial communication within members of an organization through a network system connecting various departments. With the use of computers, key financial decision makers are able to send financial reports and strategies instead of holding meetings. This system allows people in the finance sector to get updates on world stock exchange, and price changes affecting their business. The use of email also enables financial professionals to inform other departments and consumers of key policy changes, such as price modifications on products and goods.
Spreadsheet software influences the way both large and medium-sized firms, as well as individuals, key in and organize financial data. Spreadsheet applications are used to run day-to-day financial tasks, such as compiling financial data, presenting the data in an organized manner through the use of charts and graphs, drawing budgets and calculations of complex transactions. This application comes with computer programs, such as Microsoft excel, that enables organizations and individuals to plan finances without wasting too much time.
Computerization makes data storage manageable and less bulky. Computers enable organizations to store large amounts of files in a small space, allowing us to have a large track of historical transactions, while avoiding consumption of space that would otherwise be consumed by piles of files in cabinets. Keeping financial records is critical for organizations, as well as individuals, as it allows tracking of payment records, debts owed, purchases done and bank transactions made. Having detailed financial records helps an organization to continually audit and analyze business performance.
Computerized financial software conducts programmed business and accounting transactions. Most finance departments utilize accounting applications, such as QuickBooks, to perform financial transactions and to manage a company’s income and expenditure. These programmed applications enable an organization or individuals to keep track of financial operations and also conduct complex transactions effortlessly without consuming a lot of time and labor that would otherwise be used in case of manual transactions. Organizations can purchase software depending on nature of work; other applications include Grant Management application and payroll software.
Computers have enhanced access to wide financial information through internet access. Business operators or individuals can now access information on investment prospects, and conduct detailed research on its profitability. There is also a wealth of financial information available on the internet, such as world prices, tax changes, inflation rate and currency exchange rates that make it easier for institutions and individuals to make informed financial decisions. The internet also provides a wide source of information and access to specific financial reports of companies in trade.