Going online has become increasingly popular and is also very successful. However, when it comes to managing one’s cash flow, it can become a little tricky. Knowing what to consider and how to organise your data is key.
Our Best Tips
There are numerous ways to manage your cash flow, from bookkeeping and accounting software to finding an eCommerce accountant. Here are our top tips:
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Integrate All Payment Processors Into One Accounting Platform
One of the first things you’ll need to think about is systemising all of the revenue in your accounting. All payment processors have very different amounts for their fees, and every platform you use has different transfer fees and receipts.
This is all data you will need to keep track of, and instead of manually entering this data into books, you should automate the whole process. Doing so will save you time and minimise the risk of any errors.
You can do this by connecting your payment processors to your accounting platform. Then all your data will be in one spot, making everything much easier for you!
Correct Bookkeeping Is Essential
If your bookkeeping is accurate, it will guarantee that your financial reports will be precise. If all of your payment data is adequately categorised, preparing your financial reports will be much easier.
You should include the customer, product, fee, location, and tax in your bookkeeping. This way, you can get an idea of who your loyal customers are, profitable locations, and high-demand products.
You can use bookkeeping software or hire a bookkeeper to have complete detailed data.
Organise Multi-currency Transactions
Most e-commerce businesses accept multi-currency payments. This is a great way to get more clients, but accepting these multi-currency payments can be challenging as you need to count fees and taxes and track currency rates.
Using good accounting software can make all of this much easier and more accurate, as the software will use official exchange rates that banks have provided. They also automatically apply taxes and check if the transactions were correctly recorded.
Automate Your Regular Payments
It is best to minimise your overall involvement in all payment processes to have more time to focus on business growth and development. You can make sure payments are automatic and independent, especially standard and regular purchases.
You can do this by creating invoices and applying recurring invoices to your regular payments. Another great way to do this is to include payment links on your social media accounts and website.
The benefit of this is that the automatic receipts will automatically reflect in your bookkeeping.
Regular Financial Reports
Your financial reports are essential. You can use them to analyse your profits and expenses, which will help you make decisions and optimise all of your finances.
You can use various accounting software which will track all of your expenses and sales and prepares and categorises a lot of the data for you.
The software can also make detailed reports for you using all of the data. These reports can give you a good idea of where your product or service is most in-demand and various other helpful insights.
Ensure Clients Pay in Time
The best way to manage your cash flow is to keep track of all of your deadlines. Payment delays result in you not being able to cover certain expenses, which can cause a lot of trouble for you. It is best to be financially stable.
Set up a payment reminder to avoid delays and set up automatic thank you responses.This will leave a very positive impression and will better customer loyalty.
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Schedule All of Your Business Expenses
It is highly recommended that you schedule all outgoing payments following your incoming payments. This way, you can be sure that you will be on top of your payments, and it will be easier to manage.
Online sales can be fantastic, and it is all about finding the best way to manage them to make them sustainable and function properly.
Your online store will not survive without proper management, especially cash flow management. So ensure that it is done correctly; it will benefit you in multiple ways and make business operations smoother.
Managing cash flow is essential to keeping your business afloat, so find a system that works for you, and you will be good to go!