Online businesses do run in cyberspace, but their finances still have to be managed in a real and orderly way to stay successful. Take it easy, for that you do not have to necessarily be an expert in accounting or finance. There are several simple and effective ways you can do to find out the income generated from selling online bookkeeper eastern suburbs.
Come on, read these 4 tips to manage online business finance:
1. Record transactions regularly
You need to record all transactions details both income and expenses regularly. Revenues such as product sales, capital from investors, commissions from producers, and many others. Meanwhile, expenses included among others the cost of creating an e-commerce website, operational laptops, electricity, and delivery of goods. In accounting, these records are referred to as general journals that are used to record the company’s financial transactions chronologically by mentioning accounts that are debited or credited.
2. Calculate the cost of production
Unlike recording transactions in and out of business funds, production costs focus on how much it costs to produce a unit of product. In this case, you need to calculate all fixed costs and variable costs. Fixed costs do not change with the number of items produced. Non-permanent expenses that must be paid by online store owners to get the product or service they are going to market are considered variable costs. If all production costs have been neatly recorded, it will be easier to determine product prices and calculate sales profits later.
3. Calculating the amount of profit and loss
The last step that must be done is that you must know the profit and loss of the online business that you run. Simply put, reduce your online business sales by the total cost of production. If you want to increase profits, make an extra effort to increase sales, and reduce production costs.
4. Separating between personal finance and business
Remember, never mix business finance with personal finance. When starting by running a small business, you might think that this business is not profitable and then the results of the online business are used for personal needs. Be careful, do not let this habit continues until the time your online business gets bigger.