Canadian businesses plan to expand online banking
June 28, 2012
Many businesses find managing their company bank accounts is made much simpler by accessing the information over the internet and through an accounting software program. As new technologies arise that make the process simpler, a number of firms have pledged to expand their online banking plans in the next year.
Canadian banking survey
The BMO Bank of Montreal recently released its Annual Business Survey, which records the banking habits of 500 small business owners. The financial institution discovered 61 percent of small Canadian businesses regularly bank on the internet to more effectively manage their cash flow.
Banking online has inherent features that make the process lucrative for companies. For example, as most online banking is done on the cloud, owners would be able to handle funds remotely while away from the office. Checking corporate accounts on the computer would also help update the latest news concerning the business' funds in real-time.
The group explained in its report that use of the internet to bank and tie into accounting software could greatly help a small business manage its finances. It recommended owners of smaller companies look into setting up forms of electronic payment, automating delivery of files to accounting programs, investing and attempt cash forecasting, among other actions.
Implications for the future
The survey also revealed 31 percent of respondents plan to use the computer for banking more in the coming year. "Business owners are increasingly looking for ways to better manage their cash flow, both to help them meet their obligations and give them more time to focus on growing their businesses," BMO Bank of Montreal vice president of commercial banking Cathy Pin explained.
Because owners would be able to bank remotely, this could greatly increase productivity. The StarPhoenix reported the small business sector is falling behind other industries in Canada in terms of production, with the output per hour increasing by only 1 percent year-over-year.
The source suggested leaders may consider advocating for a reduction in regulations that restrict business in various fields, such as trade, taxation and other financial realms. Because productivity is often affected by government red tape, the StarPhoenix indicated many small businesses generally do not expand much during their life cycles.
Should business owners lobby for changes in the numerous tax rates that affect a small business, especially concerning investments, Canadian companies will most likely be able to better compete with their American counterparts, the source claimed. As such, owners will be well-prepared to deal with rate changes, increases in revenue and new vendor relationships that accompany expansion if they have invested more in banking programs.