To have a long-term and sustainable company in the field of e-commerce and to increase your company's profitability, you need to take the right steps in e-commerce financial management. In this article, we have tried to address the topics that companies looking to build a solid foundation for their future in e-commerce should know and pay attention to regarding financial management in e-commerce.
Identify the Different Expense Items Related to Your Company
In company management, expenses must be meticulously controlled, along with revenues. Identifying your expense items and keeping a record of their monthly, quarterly, semi-annual, and annual amounts will greatly simplify your work.
It is normal for your expense items to show variations over time. To identify expenses that increase excessively, you can use your past records and impose restrictions as needed to prevent unnecessary expenditures.
Report Your Monthly Revenues
An important part of financial management in e-commerce is recording revenues and reporting them at regular intervals. The data you can obtain in this way includes important information such as your periodic profit, your customers' purchase amounts, and average cart sizes. With the data you have, you can also determine strategies to increase the amount through your users' average cart size.
Record Your Profitability
Once you have recorded your expenses and revenues, you will have all the data you need to calculate your company's monthly, quarterly, and annual profitability. This will allow you to see the scale at which your company is growing.
Your company's profitability may fluctuate depending on the products you offer periodically. You should also record any events or periods during which these changes and fluctuations occurred. The records you keep will help you take precautions against potential adversities in the future.
Closely Monitor Your Taxes
Undoubtedly, one of the most tedious tasks in company management is the declaration of income and expenses subject to tax, tracking the payment periods of accrued taxes, and making tax payments when due. The process must be handled with great care due to the possibility of facing severe penalties from tax authorities if the declaration and tracking process is not managed correctly. Don't forget to include your documented expense items in your declaration to organize your tax payments.
Calculate Warehouse and Product Stock Costs
As with any company, pay attention to storage and stock costs, which constitute a large part of expense items. Proper warehouse and stock management is an important part of financial management in e-commerce. If your company owns real estate suitable for use as a warehouse, taking advantage of this opportunity will significantly reduce costs.
However, for those who choose to rent, there is also the additional cost of rent, along with tracking employees' salaries and insurance. Properly managing your warehouses ensures seamless stock management and allows you to plan your purchasing process accurately. Properly planned purchasing processes will have a positive effect on your unit costs.
By using Comwize, Turkey's first and only e-commerce ERP software, you can access many modules and services that can be used in the financial management process in e-commerce. In its integrated modules offered to the user, you can see your company's financial status, income, and expenses with just one click. Additionally, there are modules that allow you to control your company's warehouses and monitor the status of stocks, enabling you to manage the purchasing process.
The tools you need to handle tax tracking and personnel processes, which we have occasionally highlighted as important in this article, are also available in Comwize.
If you would like to get more detailed information about Comwize, Turkey's first and only e-commerce ERP software, submit your questions and suggestions, or take advantage of the privileges of Comwize, please do not hesitate to contact us through our website.
