MANAGE: Financial Management

Keeping the money side of your business organised

As an online business develops, money may arrive through several channels while costs build up across subscriptions, suppliers and other services. A workable financial system helps you understand what has been earned, what has been spent and which payments still need attention.

Start with the tasks you need to manage

Your first requirement may simply be sending invoices and keeping income and expense records. Selling through several platforms, working with affiliates or running paid campaigns introduces other tasks. Choose tools around the way your business operates, then add features as those needs develop. You may find that one service already covers several of the jobs described below.

Keep everyday records in order

Bookkeeping tools help you record transactions, organise expenses and keep supporting documents together. Accounting services can build on those records with reports and other financial functions. Consider how information will reach the system: bank connections, shop integrations, receipt uploads or manual entry. A connection to the services you already use can reduce repeated work.

Make quotes, invoices and payments easier

If you work directly with clients, you may need to prepare quotes, send invoices and follow up on unpaid balances. Look for a process that makes the amount, payment terms and next steps clear to the customer. Check whether payment collection is included, which payment methods are supported and whether processing fees are charged separately from the software subscription.

Understand where your returns come from

Revenue figures show money earned, but they do not explain all the costs involved in earning it. Tracking tools can help you compare products, sales channels or campaigns. Check what each report includes and how it handles fees, refunds and other costs. Use consistent definitions when comparing results so that differences between reporting systems do not give a misleading impression.

Organise affiliate payments and commissions

Running your own affiliate programme creates another set of records to manage. You need to connect referrals with sales, calculate commissions and track what has been approved or paid. Affiliate programme tools support this work, with different options for online shops, subscriptions and other business models. This section concerns managing your own programme; tools for earning commissions as an affiliate are covered under Grow.

Choose tools that fit your tax requirements

Tax software varies by country, business structure and the records or submissions it supports. Check that a service covers your circumstances before choosing it. If you work with an accountant or bookkeeper, ask which systems and export formats they can use. Keeping records accessible throughout the year can make it easier to supply the information they need.

Check how the tools work together

Before adding another subscription, check whether an existing tool already provides the required function. Compare the full cost, including extra users, connected shops, transaction allowances and payment processing. Use a trial to follow a typical transaction through the system, and check whether you can export your records if you later move elsewhere.

How we classify our listings

Each listing carries a label showing the level of work behind it. Inclusion in the directory does not, by itself, mean we have tested or recommend a tool.

• ✓ Personally tested — We have used the product ourselves. Any accompanying review explains what we tried and the limits of that experience.
• ◇ Research reviewed — We have examined product information and relevant research in more depth, without claiming first-hand use.
• ○ Directory listing — An introduction based on available information. No hands-on testing or in-depth review is implied.

Use the descriptions to identify options worth exploring, then check the provider’s current features, prices and terms against your own requirements.