Technology in Finance Flashcards
what are the disadvantages of using IT?
-initial and ongoing costs or hardware and equipment
-ongoing costs of replacing and upgrading systems
-new furniture to house equipment
-staff training
-loss of efficiency
-teething problems will also contribute to inefficiencies
-computer viruses / hacking
-health and safety issues for staff
what are the advantages to using IT?
-increased efficiency
-increased flexibility
-increase in the amount of data and information that can be handled
-increased customer satisfaction
-competitive edge until customers catch up
-possibility of reduce staffing costs
-creation of home workers
-access to new materials and customers
what does BACS payment allow a company to do?
transfer money securely and quickly between bank accounts
what do companies use BACS for?
to pay staff wages or pay suppliers
what are the advantages of using BACS?
-saves time and administration costs
-improved cash-flow management
-direct cost savings
-cut down on reconciliation
-better payment terms
what is EFTPOS?
an electronic method of paying for goods exactly where you purchase them. done through credit/debit card
whites the advantage of EFTPOS?
-there is less cash within the business, leading to greater security and less chance of theft
-higher efficiency and less chance of human error
what are the advantages to internet banking?
company will save time as it reduces the need for employees to take trips to the bank
what is age accounting software?
a cloud-based accounting and income management solution for small businesses
what are spreadsheets used for in finance?
allow a variety of formulae and functions to prepare financial records this may reduce errors made during calculations
what is word processing used for in finance?
to type up financial reports to be issued to shareholders/management/investors
what is email used for in finance?
to contact many shareholders, managers, regarding the financial portion of the business and attached copies of financial statements
