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IMPORTANCE OF INFORMATION TECHNOLOGY (IT) IN FINANCE AND FINANCIAL MANAGEMENT

The
importance of information technology in finance

became pronounced immediately the line between accounting, finance and InfoTech
was removed from the business world. The advent of information technology
removed boundaries that have for ages been a major barrier to globalized
trading and business. In fact, it is difficult to imagine what business executives
will face if IT is completely isolated from businesses now. I can assure you
that the global business networks will crumble in a twinkle of an eye. Finance and
IT have become manmade Siamese twins that will take divine intervention to
separate.

Though the importance of
information technology in businesses and finances are somewhat obvious, not
everybody appreciates these importances of IT in finance. This article is
written to bring together the importance of InfoTech in finance in such a way
that everybody will understand. The article is divided into two sections; one
section dealing with the positive roles of IT in finance and the other talking
about the negative roles of IT in finance.

POSITIVE
ROLES OF IT IN FINANCE

Under this section, the
praises of IT will be sung. Seriously, we all need to sing this praises as the
introduction of computers, information
processing
equipment and other communication gadgets gave all and sundry
deep signs of relief.

EFFICIENCY IN BUSINESS
OPERATIONS

Efficiency which is one of
the key success factors of a business
strategy
is greatly improved by the use of information technologies in financial management.

Boost confidence

Allows for planning

Creates jobs

Removed guess work

NEGATIVE
ROLES OF IT IN FINANCE

Breeds criminals

Can make businesses more
vulnerable and volatile

Can become cost
ineffective

Posses a treat to business
privacy and trade secret

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