technology

Question 1

technology used

Answer 1

— spreadsheets
— internet banking
— BACS payments
— Sage software
— EFTPOS

Question 2

spreadsheets

Answer 2

Spreadsheets allow margins of error to be reduced and allow a greater accuracy when producing financial sums. They are also much quicker to use than calculating financial sums manually. 2 examples of spreadsheets are: profit and loss statements and balance sheets

Question 3

internet banking

Answer 3

• Fund transfers can be made instantly and more conveniently as they are completed through phone apps or by using computers.
• Finance departments can also use online banking to import banking information into their accounting software. Increased computer security is required to safely process information and banking can only be processed if the technology is working.

Question 4

BACS payments

Answer 4

BACS payments allow a company to transfer money securely and quickly between bank accounts. They are used by the finance department to pay staff wages or to pay suppliers.

Question 5

sage software

Answer 5

SAGE software – SAGE is a software package that is used by many businesses to manage and process financial information. The finance department can use it to:

• generate invoices
• manage payroll
• complete tax returns

Question 6

EFTPOS

Answer 6

Electronic funds transfer point of sale (EFTPOS) is an electronic method of paying for goods exactly where you purchase them. This can be done through:

• debit card
• credit card
• contactless
• app payments such as Apple Pay and Google Pay

This is advantageous for the finance department as there is less cash within the business, leading to greater security.

Question 7

benefits of using technology in finance