Information technology (IT) has helped companies in so many ways, especially when it comes to preventing cyberattacks and threat intelligence, improving the way we save our information on the cloud, and transmitting data from one source to another. Businesses across the globe now cannot function without an IT team backing up their servers and protecting important data such as company information, personal data of their employees and clients or customers, and behavioral data for marketing automation tools. IT is now an integral part of any business model, but while companies may understand the importance of IT, they still experience roadblocks like lack of training or underinvestment may have a harder time adapting to the highly digitized world.
Within finance departments, however, there are challenges in streamlining accounting processes. Even with their technology, financial teams may need to speed up and ensure their stakeholders and consumers that the financial data they have are, aside from secured, accessible, understandable, reliable, and comparable to make better decisions for the company.
So where does IT help? Here are 4 areas in finance where information technology can contribute greatly.
1. Access to Information for Bookkeeping Processes
Information Technology simplifies bookkeeping processes and aids you in keeping your financial goals on track. Cloud computing, for instance, gives both the bookkeeper and the business owner access to financial data that are ready for review. This makes it easier for the accounting department and business leaders to make decisions faster.
2. Faster Data Processing for Financial Reports
IT improves the reporting process by making data processing faster and minimizing errors. Aside from those, information technology has made it easier for financial leaders to understand the data with the use of real-time visualization and thus make important decisions for the company immediately.
A good way to see the effective fusion of IT and financial reporting would be how auditors and regulators use information technology to perform audits with state-of-the-art databases and applications to provide high-quality reports more accurately and frequently. Their reporting processes are streamlined and have fewer margins of error, thus increasing work efficiency and allowing these professionals to work in a shorter period of time.
3. Multichannel Borrower Experiences for Mortgage Processing
According to a Fiserv consumer report, around 67% would feel more comfortable applying for a home loan on a laptop or desktop, while 29% prefer doing loan applications on their mobile devices. At times though, the prospective lender will change from one channel to another, such as a social media chatbot and then to a contact center. As long as the application process is streamlined, the loan applicant will have a successful time from start to finish.
This digital shift from paper-based applications improves borrower experiences because it provides more benefits for applicants, from acquiring information faster to improving transparency between the loan applicant and the financial institution.
4. Automating Processes for Risk Management
Risk management relies so much on data that it’s no news that information technology has influenced this aspect of any business. IT facilitates the risk management process, from identification to analysis and evaluation. Through Big Data, analytics, cloud computing, and compliance systems, risk managers are able to organize and improve the business and block any threats that could bring down their revenue.
For instance, data analytics is particularly helpful in market risk analysis, improving processes in:
- Fraud Management – fast fraud identifications
- Credit Management – better predictive capacity
- Operational Risk – improve safety and more control over interaction with clients
Information technology has helped risk management experts evaluate early more often to see if a project should continue or not, and improve communication strategies throughout the organization in order to respond to risks.
Build a Flexible F&A Team with Finance and IT Know-How
While your in-house finance team might know how to work well with financial tasks that involve minimal IT investments, they may need further training, which may be out of your budget or update the entire F&A department with the latest financial technology. To ensure that your finance and accounting tasks are consistently monitored, team up with an F&A solutions partner that can keep up with the latest IT trends that could positively affect your business and improve revenue and overall ROI.
Infinit-O is a trusted F&A solutions partner that can help you build and operate a dedicated team of accounting professionals of every level including certified public accountants designed specifically for your unique needs, with cost savings of up to 70%. We can help you meet your goals, whether they be growth, better productivity or simply bottom-line cost savings. With access to excellent talent who use cutting-edge technology, we provide some of the best strategic solutions for your business. We are ISO-certified and GDPR-compliant, so your company and client data are safe with us.