Influence of Information Technology on Finance
The way good and services are exchanged in the current world has undergone major changes due to evolution and increase understanding of mankind. Considering increase needs of people that require them to engage in various activity to satisfy them, has lead to changes in the way they conduct their business to promote efficiency . People are known to have used different ways as media of exchange to promote their survival, in this case, looking for a common media that will unify them. Moreover, these exchange of good and services are the economic drivers of any society that rely on each other for survival.
Appreciating the need for technology that has been the key driver in influencing economic development cannot go without a notice. One of the challenges that many companies experience is the availability of capital for the starters and working capital management for the already established companies. For companies to realize growth and development, they have to incorporate new innovations and ideas so as to ensure production is at maximum. Without human capital into consideration, companies cannot experience the development of any kind, therefore, it is important for the company to put into consideration its input.
Capital invested in any given company has to show result by producing income for the company for it to survive in the market. Businesses has changed the way they transact over the years due to improved technology, therefore, rendering to changes in the structures to suit the changes. Institutions such as banking have been affected adversely by the improved information technology that has promoted to changes in their structures to be at par with technology. Online banking is one of the impacts of improved technology that has made user-friendly by the improved information technology where clients have easy access to their accounts. Company should incorporate technological advancement in ensuring accountability of the resources and company finance.
It is important for any given company to have a good planning on how much it spend to ensure minimal resource wastage. One of the source of information that has rendered to be of great importance in planning in any given company is how good and services move in the market. To ensure appropriate action is taken during the financial crisis, people need to equip themselves with the right skills and knowledge that the technology has to offer. Information available on the online platform that is up to date has rendered useful over the years for the purpose of ensuring one has to come up with informed decision on market trends, in this case, making conclusion on the financial management is usually simplified. Advocating for financial literacy has been easier due to availability of vast information on the internet .