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According to a 2018 report by the U.S. Small Business Administration (SBA), small businesses accounted for two-thirds of new jobs and 44 percent of economic activity. And while big businesses get a lot of attention, small businesses are the ones that drive innovation and growth.
That’s why small businesses must stay ahead of the curve, embracing e-finance. The use of e-finance can dramatically improve efficiency and decrease costs of internal business functions. Read on to find out how e-finance can benefit your small business.
What is e-Finance?
E-finance is the term used for financial transactions and processes carried out electronically. This can include anything from digital banking and investing to electronic insurance and mortgage lending.
Examples of e-finance in widespread use today are online banking, PayPal, and Venmo. But the potential applications of e-finance are much broader.
The Benefits of e-Finance for Small Businesses
There are many benefits of e-finance for small businesses. Perhaps the most obvious is the reduction in transaction costs. With e-finance, there is no need to pay for paper checks, money orders, or wire transfer fees.
E-finance can also speed up document sending and processing times, speeding up many business functions. This is because documents can be transmitted electronically without the need for postal mail or courier services. For example, if you need to submit expense reports or manage contracts, you can do so without having to fill out paperwork or make endless phone calls.
Another benefit of e-finance is that businesses have instantaneous access to information. This is because data can be stored electronically and accessed instantly, rather than having to be physically retrieved from files. This can be a major time-saver when you need to make decisions quickly.
Furthermore, e-finance gives small businesses in the U.S. ease of transacting with other businesses and clients from around the world. For instance, a small U.S. business can easily work with a client or business partner in Singapore with funds transferred through the UOB app.
In general, business processes that traditionally took weeks with a lot of manpower hours spent can now be done in a matter of hours. The cost savings and efficiency translate into higher productivity, customer satisfaction, and better profitability.
How to Get Started with e-Finance
If you’re ready to start taking advantage of e-finance for your small business, there are a few things you need to do to get started.
First, you need to find an e-finance platform that meets your needs. There are many platforms available, so it’s important to do your research and choose one that is right for your business.
Once you’ve selected a platform, you’ll need to create an account and link it to your existing bank account. This will allow you to start making and receiving payments electronically.
Finally, you’ll need to familiarize yourself with the platform and how it works. This includes understanding the fees associated with using the platform and how to send and receive payments.
E-finance can be a great way to improve the efficiency of your small business. By taking advantage of the benefits of e-finance, you can save time and money while staying ahead of the competition.
Tips for Using e-Finance Safely and Securely
While e-finance offers many benefits, it’s important to use it safely and securely. Here are a few tips to help you do just that:
Keep your software and operating system up to date.
Updated software and operating systems can help protect you from security threats by patching known vulnerabilities. They can also help protect your data by providing additional security features.
Use only e-finance platforms, secure devices, and networks.
Use a reputable e-finance platform. Do your research to make sure you choose a platform that is safe and secure. Check reviews and compare features to find a platform that meets your needs.
Access e-finance platforms only from secure devices and networks. Make sure the device you’re using is protected with security software and that you’re connected to a secure network before entering any sensitive information.
Avoid using public Wi-Fi hotspots. Public Wi-Fi hotspots are convenient, but they are also unsecured networks that can be easily exploited by hackers. If you need to use public Wi-Fi, be sure to connect to a Virtual Private Network (VPN) first.
Use strong passwords and two-factor authentication.
Strong passwords are the first line of defence against hackers. Do not use passwords such as “123456” or dates associated with your milestones. It’s safer to combine numbers, letters, and special characters. Additionally, never share your password with anyone.
Two-factor authentication adds an extra layer of security by requiring you to enter a code from your mobile device in addition to your password.
Keep an eye out for scams.
There are many scams associated with e-finance, so it’s important to be aware of them. If something seems too good to be true, it probably is.
Links and attachments in emails, instant messages, and online posts can be used to deliver malware or redirect you to phishing websites. When in doubt, don’t click.
Keep your personal information private.
Be cautious about the information you share online, especially on social media. Avoid sharing sensitive information such as your home address, date of birth, or financial information. Make sure you only share information with trusted sources.
E-finance can be a great way to improve the efficiency and profitability of your small business. By taking advantage of the benefits of e-finance, you can save time and money while staying ahead of the competition. Following these tips can help keep your data safe and secure while benefiting from e-finance.