4 Ways The Internet Has Changed Our Financial Management

Financial Management

You’re in the minority if you don’t use the internet to manage your business’s money. People are moving away from cash, checks, and credit cards in favor of internet-based technologies that are increasingly secure and convenient.

If you aren’t using the internet to manage your money, consider how you could benefit from these four options.

Apps Make It Easy to Track Business Expenses

Small businesses have always struggled to track their expenses. You might find it’s easy to keep records of recurring expenses, such as rent, utilities, and supplies, but it’s harder to keep track of irregular expenses like equipment repairs and travel. If you don’t have accurate records, you can’t deduct all your expenses when you file your taxes online with Turbo Tax.

Today’s mobile apps make it easier for you to track all your business’s expenses. Here are some of the most popular options:

  • Expensify
  • Mile IQ
  • Shoeboxed

Make sure to review several apps before you decide which one you want to download. Software developers often create apps to fulfill specific needs. Shoeboxed, for instance, is designed to help you scan and organize receipts. Mile IQ has unique features that make it useful for small companies that send employees on business trips.

Manage Your Accounts Online

Just a couple of decades ago, you had to visit the bank when you wanted to deposit money or get cash. The internet has changed that by giving you ready access to your account. Instead of driving to the bank, you can just log in to your account to make and review deposits and payments. According to the Federal Reserve, 39 percent of people who own smartphones have used their devices for mobile banking within the last 12 months. Most of them just use their phones to check account balances, but 61 percent have transferred money between accounts, and 51 percent of them have deposited checks.

You can even manage your business accounts with online accounting software like Sage One. It gives you all the features needed to handle your business’s cash flow, generate invoices, and find ways to generate and save money. As long as you have internet access, you can access your account to manage your company’s money.

Use Your Smartphone to Pay for Purchases

Forget about stopping at the ATM to withdraw cash. You don’t need it when you have a smartphone equipped with one of these apps:

  • Google Wallet
  • Apple Pay
  • PayPal
  • Samsung Pay

You get more than just convenience when you pay for purchases with your smartphone. Mobile payment apps are more secure than cash and credit cards. A thief who steals your wallet can spend the cash anywhere he pleases. Credit cards, while a little more secure than cash, are also relatively easy for thieves to use. In one case, police say, thieves took only a few minutes to charge $18,000 to a Nashville resident’s stolen card.

With smartphones, you get added protection from encryption and your passkey. If someone steals your smartphone, he or she will need to waste time trying to break into it. While people often worry about internet security, this is an example of when you can trust the cloud more than you can physical cash and cards.

Order Merchandise and Supplies Online

A lot of times, you don’t even have to go to a retail store to purchase merchandise and supplies for your business; you can order them online instead. Large warehouses use online catalogs to help clients buy supplies. If you need to make a smaller purchase, you can just order items from an online retailer such as Amazon. Depending on where your business is located, you could get your shipment from Amazon on the same day you place the order.

Whether you run a business with a thousand employees or work as a freelancer, it makes sense to manage your money online. Most people find that doing so helps them save time while giving them greater convenience and more accurate tracking. As long as you choose the right internet-based services, the internet can help your business thrive.

Image via Flickr by MattHurst

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