Role of Technology in Small Business Accounting

Role of Technology in Small Business Accounting In today’s economy, there are a lot of entrepreneurs and business people who engages to small and medium enterprises for them to be able to gain full control of their resources, operations and systems with the end result of consolidating their own business profit. Thus having a small business is not as easy as it seems, it requires proper knowledge and skills to be able to successfully pull it of. Also, added technology is needed for it to reach its full product quality, service efficiency and cost-effectivity. Based on a five-country survey of more than 600 Microsoft small business specialists, Microsoft found that the major concerns driving SMB (Small and Medium Businesses) technology investments are declining revenue, competition from larger businesses, and general economic difficulties. In response, many SMBs are focusing on IT investments that directly benefit their bottom line – either by reducing operating costs, improving employee productivity, or acquiring and retaining customers (AccountingWEB, 2005). Given such findings, we can therefore say that a small business does need to invest money on technology. Technology may be a capital-extensive investment thus it also realigns the process management of the business in a more productive and time-effective operation coupled with great quality product or service. To eventually expand your small business, technology can surely help a lot on this endeavor not to mention the aid of this technology on giving the business an avenue for TQM (Total Quality Management). As we may repeatedly notice, technology is often associated with quality which would therefore result into attracting more customers and retaining existing one’s that would leverage your brand image and strengthen customer relationship. Reference: Small businesses are using technology to cut costs and grow business, AccountingWEB, March 25, 2009, Retrieved April 28, 2011 from http://www.accountingweb.com/item/107274