Revenue expenditure management is always known as one of the factors determining the business performance of a store. How to manage revenue and expenditure accurately and effectively to make the appropriate estimates is an important thing that business owners need to master.
So how to manage revenue and expenditure correctly and what is the deciding factor for a revenue and expenditure management software to bring the most optimal efficiency?
1. What are the sales and costs in the store?
Sales of goods and services are the entire proceeds or will be collected (after eliminating sales taxes such as VAT or excise tax) from transactions and transactions. revenue generated such as selling products, goods, providing services to customers, including surcharges and additional charges in addition to the selling price (if any).
Business costs are considered all the expenses, material and labor waste that the store has to spend to organize and implement the activities in its period.
For the store, the cost will be divided into the fixed and mobile costs incurred during the period. Fixed costs are all default expenses in the month such as: premises rent, electricity, water, … In addition, expenses such as staff salaries, advertising costs, repair costs, … arising during the period.
Difference between capital expenditure and revenue expenditure
2. Factors affecting the store’s revenue and cost
2.1 Quantity of products consumed
Obviously, for the store’s business, the number of products consumed will directly affect the store’s revenue. The more products sold, the greater the sales of the store.
Along with that, the costs needed to sell products also increase such as operating labor costs, management costs, storage costs or advertising costs. That is the reason that revenue and cost always go hand in hand in the store’s business.
2.2 Product Quality : capital expenditure and revenue expenditure
Product quality has a great impact on the price of products and services as well as the revenue of the business. By simply understanding, a good product or service will be the deciding factor for customers’ choice. That is why selling needs to go hand in hand with the process of ensuring quality, products and services.
Consumers may be interested in many external factors when deciding to buy a product, but the quality of the product will determine their ability to return as well as satisfy their needs. Competition by product quality is a sustainable factor that helps stores to stand firmly in the market.
2.3 Product price
Product pricing is never easy for business owners to get started. Because selling prices are influenced by a lot from the market, import costs, operating costs as well as competitive prices in the market.
Inappropriate pricing will directly affect the cost and revenue of the store. That is the reason that depending on the period or each market, the business owner needs to set the right price to stimulate demand as well as bring the best revenue for his store.
2.4 Distribution channel and after-sale service
A product or service can reach potential customers as well as succeed in consuming the product, need to define distribution channels. Organizing good distribution channels will speed up the consumption of products and goods of enterprises, expand markets and stimulate consumer demand.
After-sale service is counted as all factors related to customer service, ensuring a smooth shopping process. Especially flexible in the payment methods, freight forwarding and bring satisfaction when shopping for their customers.
3. The process of managing revenue expenditure at the store:
A reasonable revenue and expenditure management process will help the store to optimize its operation and control the source of money in and out clearly. From there, evaluate business efficiency and adjust the operation of the parts to optimize performance. So how is the process of managing revenue and expenditure the most suitable for a business store?
3.1 Check transaction information
Always keep and check transaction information, because this is a very important factor that helps business owners control all the store’s revenue and expenditure in all activities. From there, balance and make more reasonable adjustments in their operation.
3.2 Cash collection
In this process, the salesman needs to prepare a receipt when a transaction takes place, based on the existing data and information of the transaction. After collecting money, employees need to record accurately and in detail the amount transacted in the book if they have not used sales management software.
3.3 Cash payment
Similar to cash collection, cash payments require a check with clear information. The recorded amount will then be carried out by the sales clerk or the sales accountant.
3.4 Reports of revenues and expenditures
Based on the balance sheet, the sales accountant can prepare a revenue and expenditure report for the store. From there, it is easy to grasp the situation and make a more reasonable plan for revenue and expenditure in the future.
4. The meaning of revenue expenditure management software for business activities
4.1 Help business owners be financially aware and manage cash flow
Using revenue and expenditure management software in business will help business owners track all arising transactions, daily sales and expenses, thereby promptly detecting the risk of overspending of the store. .
Controlling costs not only saves you money, but also helps you think about other investment directions as well as boost development for other departments.
4.2 Better preparation for tax inspection seasons
It’s not hard to run into tax problems on year-end occasions. This is the time when business owners need to prepare all invoices and documents for the inspection to go smoothly.
Keeping all invoices and documents with revenue and expenditure management software will help you compare, prepare reports as well as track and pay debts most accurately.
4.3 Determining the profitability of the store
As a business owner, you need to always calculate the source of the profits you earn = Revenue – Cost. This data will let you know whether you are making money from this business or not, thereby bringing the business plan more suitable.
Many business owners often find it difficult to calculate profits because they do not calculate and track the exact sales and expenses of the store. That’s why keeping track of your entire business report at all times with revenue and expenditure management software is the best way to determine the profitability of your business.
Along with that, many business people often have problems with profitability guesswork. This means that they see the sales coming to the store but do not track the expenses incurred in the business, leading them to think they are more profitable than they really are.
4.4 Develop a pricing strategy
Lots of stores whose revenue depends on their pricing policy. Because you cannot prevent customers from comparing the prices of your products or services with those of your competitors. Therefore, having your revenue affected by customer reluctance can help you to re-examine the problem and develop the right pricing policies.
4.5 Defining the market segment
A business owner will understand that you cannot exploit a market forever when your revenue changes in a downward direction. The first thing you need to do is to expand your market segment and develop new markets to increase sales for your store.
4.6 Classification of goods and services
For stores that trade in multiple products, managing the sales of each item can help business owners evaluate the effectiveness of each item. From there, offering more optimal methods of consumption for low-margin products.
5. The most useful revenue expenditure management software for business owners
No more worrying about storing documents, invoices or managing sales, a revenue and expenditure management software for the store will help you control the entire cash flow and update each transaction.
5.1 Ability to store all arising transactions
Revenue and expenditure management software with the ability to quickly automatically calculate and print invoices for customers helps the store to save maximum time and make the sales process easier.
Along with that, the operation of order recognition, automatic and accurate payment, and integration of many payment methods helps store owners as well as sales staff to minimize errors, mistakes, and record collection – spending in all transactions incurred.
5.2 Integrating sales on Facebook and centralized management
Not only effectively supporting in-store sales, but also supports business owners to sell online on Facebook and centrally manage them at one point. This helps business owners manage all orders as well as customer liabilities in many sales channels.
5.3 Debt Management
The system of clear and detailed receipts and payment slips for each transaction helps business owners easily manage daily, monthly and quarterly revenue and expenditure with customers or suppliers. Along with that is the ability to closely track the source of goods, the import process to not cause any unnecessary losses to your store.
5.4 The most detailed and complete sales report system
Business owners track effective details and types of sales reports, detailed sales reports, easy to understand with intuitive charts.
Along with that is the ability to track the cash register, debt, and cash flow accurately right on the store management software.
Detailed revenue and cost reports are also factors that help business owners compare business performance by product, time frame or sales channel to come up with suitable business strategies. Best.
5.5 Statistics of revenue and expenses from time to time
The store’s revenue or cost will be listed for each transaction, from time to time. With the same compatibility with all mobile devices, business owners can easily follow up on the management software.
Managing income and expenses in business is never an easy story for every store. The effective monitoring of revenues and expenditures with revenue and expenditure management software will be the most important factor to help business owners closely monitor revenue and expenses. At the same time, accurately estimating the important factors that may occur, thereby making the right business policies, eliminating risks and rapidly increasing sales.