Selling in a brick-and-mortar shop and on your website gives you more potential sales opportunities, and tracking those sales helps you figure out what works best for increasing your sales and profits. Instead of lumping both sources of sales into one number, you may want to separate the financial records of these two revenue streams.
Why Segregate Online and In-Store Sales
Separate records pave the way for insightful financial analysis of your business. When you separate the income and expenses for your online shop and your brick-and-mortar location, you can analyze profitability of each sales source separately. That helps you make business decisions to continue improving your profitability. You can also spot areas where you need to improve. You might notice that your online sales don’t seem to be growing as fast as your brick-and-mortar sales. Or maybe your profit margin is lower on brick-and-mortar sales because of higher overhead. Separating your sales can help you look for ways to improve your overall business model.
Using Accounting Software
An easy way to separate revenue streams for online and in-person sales is by using accounting software such as QuickBooks Online. You can easily earmark expenses and revenue based on category. For example, you can use one code for in-person sales and expenses and another code for your online activities. With this set up, you can view the numbers individually, but you can also create reports that aggregate the numbers together so you get a comprehensive look at your financials. It’s a versatile way to keep track of your business finances in a variety of ways.
Separating Payroll Hours
You can also get an accurate view of the payroll hours devoted to each part of your business by separating those expenses. To do this, you can code employee hours based on whether your employees work for the online or physical location. For example, time-tracking programs such as TSheets Time Tracking let your employees track their hours based on the client, project or part of your business where they are working. For instance, if an employee does four hours of packing shipping boxes for your online shop followed by three hours of helping customers in the store, your time-tracking software should reflect that so you can allocate the payroll costs accordingly.
However you look at your sales, having efficient software makes the job easier. Keep your books accurate and up to date automatically. Change the way you manage your finances now.