Quiz 16: Using Computer Technology in Small Businesses

Business

The small business owners plan the structure of the business as per the business nature and size. While planning the business model, they plan the management system as well. Being owners of the business, they keep regulatory authorities with themselves. Management is considered as an integral part of the business and it makes rules and regulations for the employees. The whole management works under the guidance of the owner. Some of the management decisions which must be made by small business owners are as follows: • The use of technology in data collection should be made mandate. • A customized Management Information System (MIS) should be made as per the needs of the business. • Regular tracking of accounting should be made compulsory to avoid problem of cash flow. • A structure of immediate feedback should be designed to take suggestions for improvement from the customers. • Keeping records of each business detail must be made compulsory. Taking care of all above details make the business process easy and flexible. The owners are required to adopt balanced approaches. The policies and the implementation should always be made on a strict note while the way of achieving goals and objectives should be made flexible. Management should be structured to meet the demands of both the customers and the employees.

The small business owners take some important management decisions when they plan business development strategies. These decisions are taken to make the functioning of the company smooth. The decisions are based on data collected using different technological sources. These decisions are formulated for the betterment of all the stakeholders of the business. The information which is needed by the business owners to make managerial decisions is broadly classified under two categories. These are as follows: Records of services provided to customers : The information of cash and check received when the products are sold is must to take efficient managerial decisions. Summaries of sales and sales tax are recorded in journals. All the information is analyzed and observed to take decisions related to management. Records of services performed for the business : The inventory purchased for the business and all other additional costs of doing business are recorded and analyzed to get the detailed information. Using the same information, the decisions are made to improve the performance graph of the business. Formal system for record-keeping is needed by all the business owners of present times. The information regarding work improvement and easing work process for the employees help in better management decisions. The management is the link between the employees and the employers. The authoritative personnel are required to fulfill the needs of both the employees and the customers. These managers use the relevant information to take productive decisions.

Information is the most essential resource for a small business. There are many questions related to the business's performance and its growth which can be answered only if the information is relevant. Queries regarding product selling, cash-flow, employees' compensation, and employment taxes all can be answered if relevant sources of information are present. The main tool which can be beneficial in providing the needed information is Technology. Some of the technological sources which can provide needed information are accounting software, inventory software, payroll, invoicing, security, word processing files, and drafting. All these services are offered to the small business owners in the form of packages if the services are bought from an authentic computer integrated services store. Other source which is used for collecting business data on a daily basis is MIS (Management Information System). MIS is designed to collect, process, and record the data so that it can be converted into a perfectly suitable form. All the employees dealing with such data fill in the details daily and the details are cross verified by the employee holding the authority to do so. It is presented in a excel sheet to make the information available at one glance. Hence, it can be concluded that the information can be collected efficiently with the help of technology. Many services are exclusively designed for small business owners. They are required to choose the perfect package as per business needs and make their work-process feasible.