May 2021, 24

Financial Management in E-Commerce

Feyza Uzun
| Blog
Financial Management in E-Commerce

In order to have a long-term and sustainable company in the field of e-commerce and to increase the profitability of your company, you should take the right steps in financial management in e-commerce. In this article, we tried to address the issues that companies should know and pay attention to in e-commerce financial management for companies that want to build their future on solid foundations in the field of e-commerce.

Identify The Different Expense Items That Are Relevant To Your Company

In the management of the company, expenses as well as revenues should be kept under meticulous control. Determining your expense items and keeping records of the monthly, quarterly, semi-annual and annual amounts of each of these items will make your job much easier.

It is normal for your expense items to vary over time. You can use your historical records to detect your expenses that have increased more than necessary, and you can prevent unnecessary expenses with restrictions when necessary.

Report Your Monthly Income

An important part of financial management in e-commerce is the recording of revenues and reporting them on a regular basis. The data you can obtain in this way; are important data such as your periodic profit, your customers' purchase amounts and basket averages. With the data you have, you can also determine the strategies to be applied to increase the amount over the basket average of your users.

Take Note Of Your Profitability

After recording your expenses and income, you have all the data you need to calculate your company's monthly, quarterly and annual profitability. In this way, it is possible to see at what scale your company is growing.

The profitability of your company may experience changes and fluctuations depending on the products you offer periodically. In which event or period these changes and fluctuations occurred, you should also record them. The records you keep will also help you to take precautions against possible negativities that may occur in the coming years.

Keep A Close Eye On Your Taxes

Undoubtedly, one of the most tedious tasks in company management is to declare taxable income and expenses, to follow up the payment periods of the accrued taxes and to make the due tax payment. In cases where the declaration and follow-up process is not managed correctly, the process should be carried out very sensitively due to the possibility of facing serious penalties by the tax offices. Do not forget to include your documentable expense items in your return to organize your tax payments.

Calculate Warehouse And Product Inventory Costs

As in every company, pay attention to the storage and stock costs, which constitute the majority of expense items. Correct warehouse and stock management is an important part of financial management in e-commerce. If your company owns real estate and is suitable for use as a warehouse, taking this opportunity will significantly reduce costs.

In addition to the follow-up of the salaries and insurances of the employees, there is also additional rental cost for those who go to the rental route. Correctly managing your warehouses ensures a smooth stock management and correct planning of your purchasing process. Properly planned purchasing processes have a positive effect on your cost per unit.

By using Comwize, Turkey's first and only e-commerce erp software, you can have many modules and services that you can use in the financial management process in e-commerce. In the integrated modules offered to its users, you can see the financial status, income and expenses of your company with one click, as well as modules where you can control the purchasing process such as the control of your company's warehouses and the status of stocks.

Tools are waiting for you to carry out tax follow-up and personnel transactions with Comwize, which we have mentioned from time to time in our article and try to emphasize the importance of your sensitivity.

Please feel free to contact us via our website to get more detailed information about Comwize, Turkey's first and only e-commerce erp software, to submit your questions and suggestions, or to take advantage of Comwize privileges.