Micro, small and medium enterprises (MSMEs) should adopt digitalization, exploring in particular how digital finance tools can support their operations, reduce their costs, and help their business thrive, according to finance and technology experts.
Certified public accountant Aris Casera in a recent presentation said digital financial tools can support business operations by enabling a seamless flow of transactions, streamlining processes, and reducing the chances of errors and delays.
The use of digital tools can also lead to greater business expansion and development, boost productivity, and provide affordable, convenient and secure digital services to individuals, while also benefiting the government in obtaining records from taxpayers.
Casera said digital financial tools are defined as technology-based solutions that streamline financial transactions and management for individuals and businesses. These tools leverage the power of digital platforms to provide convenient and accessible financial services, such as budgeting, savings, payments, and investing, all in one place.
Financial tools for business help maintain the financial health of the organization by planning, organizing, controlling, and monitoring financial transactions, added Casera, who spoke at the hybrid seminar on financial fitness conducted on 25 October by the Department of Trade and Industry-Philippine Trade Training Center.
To maximize profits and cost savings, a steady cash flow needs to be maintained. By using the right tools in financial management, businesses can keep tabs on the inflow and outflow of cash and budget future expenses, according to Casera.
He said some examples of digital financial tools include online banking, file management systems, point-of-sale (POS) systems, payroll systems, accounting systems, purchasing and operations systems, budgeting systems, inventory management systems, mobile payment facilities such as GCash and Maya, and automated teller machines or ATMs.
Aiko Reyes, chief operating officer and co-founder of Peddlr, a free-to-use POS mobile app for small businesses in the Philippines, noted in the same seminar that many MSMEs are still using pen and paper to record sales, log expenses, and track inventory.
This leads to time wasted, unmonitored growth, and even the possibility of business closure, she said.
Reyes recalled the case of a small merchant who thought they were doing well because there was always a small but steady profit at the end of each day. However, because they were not keeping records and doing inventory, they did not notice that their volume was slowly shrinking until they were eventually forced to close shop.
Both Casera and Reyes observed that a stumbling block to the use of digital financial tools by MSMEs is the inability to adapt to change. Many entrepreneurs and business owners are hesitant to adopt these tools due to fear of technology, concerns over security and privacy, or reliance on traditional methods.
Reyes urged MSMEs to start using digital finance tools, arguing that “there is no other way because we are in a digital age right now. We have to force ourselves to adopt digitalization for efficiency and more income.”
To get started on their digitalization journey, she said MSMEs can use free-to-download mobile POS mobile apps like Peddlr to manage their operations better. These tools can offer benefits such as improving control over business, maximizing efficiency, and enhancing enterprise image.
Such apps can also assist MSMEs through their online community groups that can provide knowledge sharing, skills development, and mentorship and guidance.
