Importance Of Digital Financial Tools For Business Growth

With the rapid advancement of technology and the increasing reliance on digital systems, digital financial tools have become essential for effective money management, allowing businesses to easily track and control their financial activities anytime and anywhere.
A versatile slate of financial management tools can help companies control spend and boost profits. Nigeria is home to over 36.9 million MSMEs, comprising 96.7 per cent of all businesses in Nigeria. However, these businesses need relevant, affordable, and accessible digital financial solutions for them to reach their full potential and drive the country’s development.
Digital financial tools refer to a wide range of software and applications designed to assist individuals and businesses in managing their finances effectively. These tools include budgeting apps, expense trackers, online banking platforms, investment platforms, and digital wallets, among others.
Dr. Timi Olubiyi, an entrepreneurship and business management expert said that driving the adoption of digital tools in Africa’s business ecosystem requires investments in infrastructure, skills, and access to finance.
He added that by harnessing the power of technology, digital financial tools provide convenience, efficiency, and real-time insights for users to make informed financial decisions.
According to him, digital financial tools play a pivotal role in helping businesses or individuals manage their money effectively. Digital financial tools offer numerous benefits in managing personal finances. From budgeting and expense tracking to bill payment and investment management, these tools provide convenience, automation, and valuable insights. By leveraging the power of technology, businesses and individuals can take control of their financial future, build wealth, and achieve financial success.
Benefits Of Digital Financial Management
Digital financial management can bring a lot of benefits to businesses. One of the key benefits is that it eliminates the need to print and store paper documents.
Access to real-time information; All information recorded in the financial management systems can be viewed in real time, which means that it can be used efficiently to support management and decision-making. Indeed, fast access to data provides businesses with tools for developing new ways to use information.
Better Decision-making: When all the relevant financial information is easily accessible, decisions and solutions can be based on facts. Predicting future developments is easier, too. Thanks to easy access to information, your accountants can support you more efficiently.
Freedom: A digital financial management system is with you everywhere you go. You can perform everyday tasks and check reports when and where it suits you. All you need is an internet connection and a computer or mobile device. Many tasks can easily be done on a smartphone. At the same time, outsourcing financial management tasks to your accountants is also easier.
Ease And Efficiency: With digital financial management, you can forget endless piles of paper. Many common tasks can be performed faster or even automated altogether. Receiving and sending invoices is a good example of such tasks. You no longer have to send invoices by post or spend time opening envelopes. Everything can be done with the click of a mouse. This means that you can focus on more important tasks, and it also helps to reduce costs.
Flexibility: Digital systems enable flexible collaboration and interaction with your accountants. Different tasks can be easily modified and reassigned. You can communicate flexibly and conveniently face to face, by email or phone, or via video conferencing.
Transparency of information; All financial management information is available to everyone who needs it. The availability and accessibility of the information can be restricted as necessary. This ensures security and prevents information overload.
Integration of financial management into other business operations; Financial management will no longer be a separate unit within the company. When everyone has access to all the relevant information, it can be used efficiently in all aspects of business. Using their expertise, your accountants can bring a much-needed financial perspective to your business’ decision-making processes.
Mobile Working: Switching to digital financial management helps to make mobile working possible. When all the necessary information and tools can be accessed anywhere, there is no need to bring everyone together in the same place. This opens up new opportunities for managing work and allows for the organisation of work according to the needs of individual employees. This can significantly improve job satisfaction.
Environmental Friendliness: Digital systems reduce paper consumption and printing needs. When information is distributed through digital channels, there is less need for physical deliveries, which helps to reduce traffic-related emissions.