The financial system application is a software program that helps in the management of various business processes that involves the handling money. Some of the financial applications that are used by organizations in the world include the accountable payable software, which enables entities to have control over the outstanding payments, making sure that they are paid correctly and on time. The accountable receivables software is another tool that helps in managing the activities of the clients and the automation of the invoice processing helping in a timely collection of the revenue amounts (Zehir & Basar, 2016). The bank reconciliation software helps in making a reconciliation process on a monthly basis through the bank accounts integration.
The financial applications help in the identification of the unrecorded transactions in addition to handling differences between the general ledger and the bank statements. The existence of the financial application systems is essential, for they ensure that there is error-free financial stewardship in a firm and that a business manages to comply with the various accounting standards implemented by the regulatory bodies leading to company growth. The administration applications are policies that are initiated with the desire to ensure that an organization is running its affairs in the right way (Degryse et al., 2019). Businesses should have an effective management systems that ensures that resources are being used optimally and that the workers realize the desired level of output.
When an organization adopts a new form of information technology system, it is likely to experience some major changes that can either build or have some adverse effects on the operations of a company. Some of the costs that an entity is likely to experience includes feeling extra pressure on the financial resources of an entity. The adoption of the latest technological system is an expensive process, and this can diminish the amount of funds available for investment in other sectors of the business operations (Chulkov, 2017). Additionally, the firm may be required to train the workers in the way to use the new system, and this will involve setting aside a given amount of money that will be directed towards the training process.
Another issue that may arise from the adoption of new information technology system is the loss of employment. With the advancement of technology, the system introduced manages to have the ability to handle more workload, and this means that organizations are compelled to trim the number of employees in a company. Despite the assumption that the adoption of the latest technological equipment will improve the quality of output and raise the production levels, it is not all the time that the installation of the tolls leads to business success. Therefore, the installation of new equipment can lead to business collapse if a company is unable to raise the earnings to match the investment used to secure the new technology.
The analysis of the management applications covers the records that are held by a firm that helps in running its affairs. The availability of real-time information helps in the realization of actionable insights, and it supports the decision-making process. The management of a database ensures that a business has adequate information that can be used in the decision-making process, and all the stakeholders interested in the affairs of that entity can rely on those details and make the right conclusions (Lui et al., 2016). In the health care sectors, the analytics process ensures that there is a combination of administrative and financial data that helps in the provision of quality patient care and improvements to the existing procedures.
Some of the notable trends that are realized when adopting management applications include the fact that there is a continuous installation of technology by companies. The advancement in technology means that there is always a more advanced system in the market that organizations can utilize in their production process. When running an organization, it is essential to ensure that the management has an understanding of the market, and they know the systems that are getting introduced. The move will ensure that the leaders know the systems that they can adopt to enable a company to raise the levels of earnings. New applications will always be available in the market, and this is a trend that management should know, and this calls for company officials to ensure that they have adequate funds to install a new system that has a potential to support the expansion and growth of an entity.
Some of the barriers encountered when adopting the applications include the high cost that is involved in making the equipment unaffordable to some of the entities. Additionally, the process becomes more expensive when the workers have to be trained on the way to use a system. Considering that advanced equipment manages to handle more work, an organization may be compelled to lay off some of its employees. It is a move that may demand a business to pay redundancy fees, and all these activities may strain the financial capability of an organization.
It is challenging to know the potential of a new information technology system. The problem is common among the systems that have not been tested and tried (Dithebe et al., 2019). Therefore, if a business is the first to install a system, it may lack knowledge on its potential, and this is a major challenge, considering that a significant amount of money is invested in installing a system. Moving with the trends in the market is a challenge to any company since the process involves setting aside a significant amount of money. If a business fails to move with the latest trends in the market, there is a possibility that it will not remain relevant in the market. There is a possibility that it may lose its clients to rival businesses that are offering quality commodities at lower prices.
Degryse, H., De Jonghe, O., Jakovljevic, S., Mulier, K., & Schepens, G. (2019). Identifying credit supply shocks with bank-firm data: Methods and applications. Journal of Financial Intermediation, 40, 100813. https://doi.org/10.1016/j.jfi.2019.01.004Chulkov, D. V. (2017). On the role of switching costs and decision reversibility in information technology adoption and investment. JISTEM-Journal of Information Systems and Technology Management, 14(3), 309-321. http://dx.doi.org/10.4301/s1807-17752017000300001Dithebe, K., Aigbavboa, C. O., Thwala, W. D., & Malabela, A. T. (2019, December). Descriptive perspective on factors affecting the complete adoption of information technology systems in the construction firms. In Journal of Physics: Conference Series (Vol. 1378, No. 2, p. 022045). IOP Publishing. https://doi:10.1088/1742-6596/1378/2/022045Lui, A. K., Ngai, E. W., & Lo, C. K. (2016). Disruptive information technology innovations and the cost of equity capital: The moderating effect of CEO incentives and institutional pressures. Information & Management, 53(3), 345-354. https://doi.org/10.1016/j.im.2015.09.009Zehir, C., & Basar, D. (2016). The relation between learning orientation and variables of firm performance with strategic human resources management applications in the Islamic banks in Turkey. International Business Research, 9(3), 40-52. https://doi: 10.5539/ibr.v9n3p40
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