Digital technology and digital transformation are both themes on the radars of modern businesses.
The capabilities that web-based and mobile technology offer are countless. They provide new ways of interacting with customers, selling products and providing services, and allow businesses to operate more efficiently and effectively.
As an example, the UK government Making Tax Digital programme, which now requires small businesses file their VAT returns digitally, could deliver an annual productivity benefit of £1.6 billion to businesses in London, increasing to £6.9 billion to business across the wider UK.
According to the research commissioned by accounting software provider Intuit Quickbooks, Making Tax Digital could catalyse up to £57 billion in productivity gains for UK SMEs over the next five years. This would see net gains of £46 billion in turnover and growth for the UK economy.
Obviously, this is just one example of how digital technology has the potential to boost small businesses, but it shows the scale of what can potentially be gained by adopting digital technology.
Digital technology provides the means to run businesses more efficiently. Whether it’s improving collaboration through various tools, such as web conferencing, messaging tools and cloud computing, or making processes more streamlined through automation and artificial intelligence, there are numerous possibilities.
Embracing digital technology can also help small businesses with their marketing efforts, through social media, email campaigns or blogging platforms. And it can improve the quality and availability of customer services via tools like chatbots, and other alternative ways to solve customer issues.
Company finances are another area that can be made more efficient through the use of digital technology. In terms of day-to-day tasks, cloud-based accounting and ERP tools can boost finance teams in terms of internal processes and financial management.
The benefits of these tools can be further increased through integration with virtual banking.
Thanks to being built on web-based technology, virtual bank accounts can be easily integrated with modern digital and cloud-based finance tools, ensuring internal and external financial business activity can be smooth and efficient, with repetitive tasks kept to a minimum.
Virtual bank accounts can also be accessed by a range of connected devices, making it easy and straightforward to view and manage company finances.
And this approach to banking also supports the introduction of digital payments and a cashless way of doing business. Virtual bank accounts support e-commerce through payment buttons that can be easily and cost effectively added to company websites.
They’re also a good fit for in-store digital payment methods, including contactless and mobile payment. Low-cost card readers connected to mobile apps from the likes of iZettle and PayPal, make it easy to introduce digital payments, without the need to invest in expensive payment technology.
People are using cash much less to pay for even the smallest items, meaning the ability to introduce digital payments methods will serve small businesses well, both now and in the future.
In modern business, it’s hard to argue against the benefits that digital technology can bring to businesses, whatever their size. And while digital transformation can be a complex undertaking, moving to virtual banking doesn’t have to be.