2017-03-29 00:00:00 Bookkeeping English Learn how to separate the financial records for your online and in-person sales, and review reasons why separating records helps with... https://d1bkf7psx818ah.cloudfront.net/wp-content/uploads/2017/06/08213937/Business-Owners-Should-Segregate-Online-Sales-From-In-Person-Sales.jpg Segregating Online Sales From In-Person Sales

Segregating Online Sales From In-Person Sales

1 min read

If you sell items in a brick-and-mortar store as well as on a website, you may want to separate the financial records of these two revenue streams. Separate records pave the way for insightful financial analysis of your business. For example, if you separate the income and expenses for both your online shop and your brick-and-mortar location, you can analyze the profit margins separately and make business decisions based on that information. To separate revenue streams for online and in-person sales, consider using accounting software such as QuickBooks Online that lets you 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. To get an accurate view of the payroll hours devoted to each part of your business, you may want to code employee hours based on whether your employees are working 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.

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Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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