Opening up an online business is easier than ever, thanks to the evolution of technology in the modern world. There are a great many tools readily available for entrepreneurs looking to find their place in the market.
Here are some effective techniques to help you track your business better, thus ensuring greater success in the long run.
1) Track Your Expenses Properly
In order to get a hold of your business, the first task should be to track your expenses properly. This will allow you to observe the growth of your business, keep record of financial statistics, and prepare financial statements based on those statistics. You should establish a proper system for receipt-keeping so that you always have record of your company’s spending. There are a number of expenses which need to be taken into account. For example:
Entertainment receipts: it is beneficial to allocate a budget for entertainment related activities, such as dining out with the team or hosting a leisure group activity. Be sure to document such expenses properly.
Web expenses: You will definitely incur web costs when running an online business. You need to account for the various domains bought and the marketing activities carried out (PPC, for example). Tracking these expenses will give you a clear picture of your spending and return-on-investment so that you can alter your strategy accordingly if needed.
Travelling receipts: You may have an online business, but a physical space is often utilized for employees to work and meet. Be sure to account for the expenses related to travelling to and maintaining this space.
Office expenditure receipts: These expenses might include rent of the physical space you occupy, the cost of your internet service subscription, the free hot and cold beverage service you offer, etc. which are all part of your office environment. Accounting for these properly will enable you to allocate the proper budget, which in turn would maximize efficiency levels.
2) Establish a Bookkeeping System
Bookkeeping refers to recording your daily transactions and integrating your bank statements with the acquired data. It doesn’t have to be complex. You can use a simple Excel sheet to store and update your data. You always have the option of choosing between an in-house bookkeeper (relatively expensive), outsourcing your bookkeeping activities to an external entity, or doing it yourself if you have the knack for it.
Taking into account the cash or accrual method of accounting is also important, especially if your company is operating in America. The cash method necessitates you record your expenses and revenue at the time of actual payment, whereas the accrual method entails you record in accordance with when the transaction is made, even if the money hasn’t been received yet.
3) Invest in a Formidable Internet Service
Running an online business requires you to be online at all times. Whether it’s a service you are offering or you are selling a physical commodity, your customers will have questions, your taskforce might face problems, and your expense sheets might need sorting. As a business owner, you need to become aware of and be responsive to these things in a timely manner. A dependable internet service helps you achieve that. Don’t hesitate investing in decent internet service providers to support your business the right way.
4) Utilize Applications/Software
There is a wide variety of online tools at your disposal, many of which can assist you in exercising better control over your online business. Trello is one great example of a tool which can help you keep track of various work activities by assigning boards and tickets. As such, your entire workforce can be monitored and assisted through these tasks using the application. And this is just one example. There are countless other tools available which can address an array of tasks. If your company grows big enough, you can resort to various ERP solutions as well, which can prove to be a great addition as far as keeping check of various activities and commodities.
5) Be Aware of Your Taxes
It is important to be aware of any tax your online business might incur. You might have to send commodities abroad or import them to your own country. It is important you take into account the tax system of your country, as well as the place you plan to export commodities or services to. Use a duty calculator before exporting/importing in order to get an estimate beforehand so you don’t fall prey to any unexpected costs. Transactions and payments received/delivered are also subject to taxes based on the nature of the transaction and the vicinity.
Implementing these steps will help you gain a more firm grip over your business activities. When we refer to a sound grip, it doesn’t imply you’re limiting your business. It only means you’re ensuring every resource is monitored with the objective of being allocated in the most efficient manner.
