You will see 6 essential steps to carry out this process correctly. But first, better understand what it is and how important it is to have financial control of your e-commerce.
What is business financial control and why is it important?
To begin with, it is important to know what business financial control is. It can be understood as the analysis of the financial results of a business, approached from different perspectives and at different times.
For this, the process involves the evaluation of financial reports, the control of cash inflows and outflows and the analysis of financial results statements (DREs). It also includes checking equity data and financial reconciliation , among other steps.
Thus, it is possible to understand whether the store is moving towards its short, medium and long-term organizational objectives. If any failures are identified that could jeopardize their plans, the manager can take the necessary measures to correct them in a timely manner.
In addition to making it possible to assess the company’s current performance and detect possible problems, financial control serves to make predictions and projections. This way, the store can plan its expansion carefully and thus grow sustainably.
Having good business financial control also allows you to determine the origin and destination of each revenue. Thus, you can identify which products are more profitable, as well as those with fewer outputs to create more efficient marketing strategies, for example.
In addition, this initiative can bring more security to your store. That’s because, by knowing the origin and destination of each revenue, you can be aware of your business’s financial availability. With this, you understand the limit of commitments you can assume, avoiding the contraction of debts.
How to do the financial control of the online store in 6 steps?
Now that you understand what financial control is and its importance, it’s time to find out how to do it in your online store.
So check out the following 6 essential steps to perform this process correctly!
1. Constantly monitor your cash flow
The starting point for financial control of your online store is to understand the current situation of the business. To do so, it is necessary to record and monitor your daily inflows and outflows through the cash flow.
This process allows you to understand income and expenses and design short, medium and long-term plans. In addition, with it, it is possible to understand whether the cashier has a positive or negative balance and, then, make more solid decisions to maintain the financial health of your store.
2. Classify costs and revenues
After registering all the entrances and exits of your store, it is essential to classify them. This makes it possible to identify which are the product lines that have generated the highest sales volume , as well as those with low output. Thus, it is possible to draw up more effective marketing strategies.
From this classification, you can also understand which are the groups of expenses that have not brought a good return for your store. Then it is possible to cut non-essential costs, ensuring good savings and favoring cash flow.
But how to classify expenses and income? Typically, receipts can be separated into receipt categories. Meanwhile, expenses are usually organized into fixed (they are stable and predictable) and variable (they fluctuate according to production and sales).
3. Have efficient stock control
Monitoring your stock is another important step towards financial control of your online store. This is because it helps to understand how long the products need to be replenished, which is crucial to avoid supply problems.
In addition, with stock control, you ensure that demands are met without excess, avoiding losses. It also makes it impossible for double sales to occur — which would lead to the need to cancel orders, damaging its image with the customer.
4. Build a budget
After knowing the finances of the online store, you need to build a financial budget. It allows estimating the input and output of resources in a given period. In this way, the company can know if it will be able to pay future expenses and if there are opportunities for growth.
Then make a prediction of how much will come in and out of the cashier. You can do this from your store’s sales and expense history. However, remember to consider periods of seasonality and unforeseen events that may occur in order to arrive at values closer to reality.
5. Assemble a financial plan
The next step in taking financial control of your online store is to set up a plan . With it, you can optimize the use of your money to achieve the desired results in the future. To set it up, you must define the objectives and goals for your business.
Then, based on the accuracy of sales and expenses, analyze the possibilities of realizing your plans with the store’s own revenues. If this is not possible, identify expenses that can be eliminated or find ways to increase cash to make the company’s projects viable.
6. Perform financial reconciliation
The last step to make a good financial control of your online store is to carry out the financial conciliation. This is a process that serves to verify that there are no inconsistencies between the recorded data and reality.
In this way, it is possible to have a more effective control of the store’s financial transactions and make processes related to finance more robust. With conciliation, for example, it is also possible to improve planning and cash flow forecasting , as it allows you to have a real view of the business situation.
As you’ve seen, financial control of your online store is essential to make good decisions and achieve the best results. With the help of these 6 steps and, above all, a financial conciliation tool, it will be possible to put it into practice!