Revenue is often said to be the lifeblood of any business, hence why it’s crucial for any business owner to have a full grasp of their business’s revenue stream. This is especially true if you’re an owner of a small to medium-sized enterprise (SME), as your limited resources might mean you need to stretch out your earnings as much as possible to accommodate your day-to-day operations. By understanding your revenue history, you can identify which of your products and services are profitable, optimize your pricing, and control your expenses. This will also allow you to maintain a healthy cash flow, which is vital for business expansion and surviving market fluctuations.
However, managing business revenues also comes with challenges. For example, you may lack the tools to accurately keep track of them. Similarly, you may overlook recording some of the transactions due to being busy with managing other aspects of your business, leading to inaccurate records. Fortunately, these issues can be addressed by a combination of technology and disciplined financial practices. To help you better manage and track your SME’s revenue, here are some tips to keep in mind.
1. Separate Personal and Business Finances
Maintaining separate accounts for your personal and business finances is a must to avoid confusion when tracking revenue. Opening a bank account dedicated to your business, such as a Maya Business Deposit account, lets you isolate your business-related transactions in one place, whether that be profits you’re earning from customers or expenses when paying vendors and suppliers. This will help you keep your business revenue records more accurate while also allowing you to simplify tax computations.
2. Adopt a POS System with Reporting Capabilities
A reliable payment terminal can also be useful in streamlining revenue tracking. Having a point-of-sale (POS) system such as Maya Terminal means you can connect it to your inventory management system. The payment terminal machine can then provide the software with a record of the transactions it receives each day, which is essential for your revenue monitoring and analysis.
Another advantage of Maya Terminal is that it widens your business’s accepted payment methods. With Maya Terminal available in your stores, customers can pay via credit and debit cards, QR Ph, and a variety of e-wallets. This not only encourages more customers to transact with your store as you can accommodate their payment preferences, it also lets you consolidate your transactions into the terminal rather than having multiple physical invoices to keep track of.
Moreover, Maya Terminal’s authorize and capture feature lets you ensure fund availability without charging customers until their order is fulfilled, making it ideal for delayed order fulfillment. Thus, you can lock in the sale in your records with confidence and avoid inaccuracies. An example of this is when a payment for an order wasn’t recorded properly due to delayed fulfillment.
3. Invoice Promptly and Follow Up on Payments
Timely invoicing ensures accurate revenue tracking and reduces payment delays. Online invoicing platforms such as Maya’s Invoice Payments lets you create customized invoices that can be sent via email or messaging apps, thus making it easier for you to collect payments and for your customers to pay you, even if you don’t have a website with a payment gateway. Digital invoices are also much easier to keep track of and can be reviewed easily compared to paper invoices that are prone to getting lost or damaged. Don’t forget to send follow-up reminders on outstanding payments as well to make sure your records won’t have gaps in them due to missed payments.
4. Adopt a Cloud-Based Accounting Software
Cloud-based accounting tools simplify revenue tracking by automating data collection, generating real-time financial reports, and securely storing records. Its accessibility also lets you access your business’s financial information on the go, making it easier for you to stay updated and to make informed decisions about your business finances. In addition, using accounting software eliminates human error, thus reducing discrepancies in revenue reporting.
5. Regularly Analyze Revenue Streams
If your business is relying on multiple revenue streams, then it’s equally important in your revenue management strategy to regularly analyze the performance of those revenue streams. This could mean assessing which of your products, services, store locations, or e-commerce platforms generate the highest income. With these data-driven insights, you can then allocate resources accordingly and boost your business profitability.
6. Prepare for Tax Compliance
Accurate revenue tracking ensures compliance with existing tax regulations. Consider investing in a tax software or hiring a certified accountant familiar with Philippine tax laws to help you arrange any required revenue documentation for tax compliance. This will help you avoid costly penalties while also building your business’s credibility.
Keep Better Track of Your Revenue with Maya Business Solutions
Having a POS system such as Maya Terminal integrated with your inventory management software enables you to automate revenue tracking, thus making monitoring your cash flow more efficient. Sign up for Maya Business today to gain access to Maya Terminal and other business solutions such as Invoice Payments, Payment Links, and Maya QR, among others, all of which you can also manage via the Maya Business Manager dashboard.
Setting up a Maya Business account also lets you open a Maya Business Deposit account that you can use as your settlement account. With an industry-leading 2.5% per annum interest rate, you’ll earn PHP 25,000 in interest per year on a PHP 1 million deposit. Your Maya Business Deposit account also enables you to send money to your partners and suppliers for free via InstaPay and PESONet, thus saving you money on transaction fees.
Signing up also qualifies you for a no-collateral Maya Flexi Loan offer of up to PHP 2 million in just 3 months, which you can then use to grow your business operations. Simply use Maya as your primary processor for all wallet and card payments. The more you use Maya in your business transactions, the better the loan offer will be.
Sign up for Maya Business today and let us upgrade the way you do business today with our Maya Business solutions.
