Here’s what the future of your money management might look like
All small businesses look to the future. As a business owner, you not only want to be well-prepared for market changes, but you also want to stay ahead of the curve, putting your best foot forward in terms of providing innovative products and services within the context of your industry.
But what about future trends that could impact your financial and money management systems? Recent technological and business advisory developments could well change the way you invest your returns and manage your entire accounting processes – will you be left behind if your business is not up-to-date?
Cc has been an incendiary and trending topic for a number of years. Despite recent dips in value marking an end to the hey-day of Bitcoin, Ethereum, and Ripple, c currencies still represent the major alternative to business funding divorced from the banking system.
Many small business owners are intrigued by the possibilities of using cc as a means of transacting and investing funds. But savvy business advisors will point to the speculative nature of these currencies. Blockchain technology once seen as the end of banking is now recognised by hundreds of thousands of businesses and is used much like a currency, but is therefore prone to the drop in value that challenges any currency. Moreover, they are often not backed up by banking reserves which small business owners typically understand and are more comfortable with.
But if you and your business advisor have come to understand currency, and see it as a financial tool of the future, there is a bigger question that needs to be addressed. How much of your returns will you see after tax?
This largely depends on whether or not c currency is seen as a currency or an asset in your tax jurisdiction. Is it a capital gain, or does it impose any goods and services tax obligations? This is largely not an issue that has been popularly raised in the media during the c -craze, but it is vital for you and your business advisory team. Your business advisor needs to understand how your currency is used in your company in terms of how it will be taxed, so you can determine whether or not you can rely on it in the long-run as an investment or if you should trade it for a quick cash return.
How AI and software can transform your small business
Crypto might be too obscure to include in the future planning of your business, but technological advancement is not. Every industry understands the impact of software on their particular product segments. But how well are you acquainted with the impact of AI and new software on your accounting and bookkeeping procedures?
Cloud computing software such as MYOB, Xero, or Quickbooks are making paper bookkeeping redundant, and moving towards transaction documentation focused around mobile phone records. From OfficeTools Workspace to Amazon Workspaces or from Chime to Citrix Workspace and XenApps, there are a plethora of dashboards out there that effectively create a virtual office that can connect you to employees and support staff around the globe.
The Machine Learning capabilities in software such as Receipt Bank can recognise and store invoices automatically, reshaping how much you need to rely on your accountant to keep track of payments. Payroll apps like T-Sheets and logbook apps like Logbook Me are saving time by providing real-time automation for managing your staff hours, payments, and vehicle costs.
With the increasing introduction of Artificial Intelligence, these new options for automating your money and turning over tasks from finance staff to software will no doubt increase in scope in the near future.
Do you still need your accountant?
Will your accountant become redundant if you make use of this new tech?
In an effort to streamline and in some cases even automate the accounting process, new tech is changing accountants into business advisors. Your accountant should be able to focus more on providing advice rather than chasing numbers. Virtual CFOs, business advisors, and business experts will be required, not just accountants who have experienced with tax lodgements and bookkeeping.
cThe future of small business is in the hands of a new generation of accountants and business advisors who have the smarts to function as analysts and strategists, and if your business can turn to these advisors as well as keep ahead of new software, it will be well prepared for the future.