Going online does not always equate to convenience. This is especially true for businesses that have shifted their cash flow management online. Instead of working with manual, paper documents, they can process financials online at the click of a button.
However, while it is the present and future of business transactions, online processes are not entirely scot-free. They are prone to cyberattacks, privacy issues, or even the occasional locked account due to a forgotten password.
In an increasingly digital world, we need the following management tips so e-businesses can stay on top of their cash flow.
When Doing Business Abroad, Be Cautious
However, while the Internet can put you in touch with new partners and clients, it can also open you up to scammers and hackers.
The best way to prevent such attacks is via background checks of potential partners. This can take the form of checking their credit score and verifying their identity via critical documents. Verification can be done via webcams, video calls, and any other means of digital communication.
This also applies when hiring an accountant for e-commerce.
Use Virtual Security Programs
A study by Hiscox, a business insurer, found that companies lost $1.8 billion back in 2019 to cyber thieves. Cyberattacks are the biggest problem for e-businesses today. You need to set up proper protection systems to protect your company. For example, you can use firewalls, anti-malware, or two-factor authentication systems.
You can also make use of the cloud to store data securely. If you’ve hired an accountant for e-commerce, ensure that only they and key people in your organisation have access to financial information stored online.
Create Solid Internal Processes
To ensure you maximise cash flow, you also need strong internal controls. These are meant to protect your business in case of cyber heists or other calamities.
For example, you can set up a cash management policy and ensure it gets signed by staff every month. In the case of new staff, you should ensure they undergo proper training. These are the duties of a manager, not an accountant for e-commerce.
Use a Good Cash Management System
Taking your cash flow online may not be enough to secure the increasingly competitive business landscape you found yourself in. It’s time to secure your power in the industry with a solid cash management system.
This includes sound accounting software to keep tabs on your cash flow, as well as a look at the latest automated accounting and artificial intelligence developments.
Operate with Physical and Digital Means
Most businesses still rely on paper to handle cash flow, so your accounting software needs to handle digital and traditional mediums such as accounting for physical cash and non-cash receivables and payments.
In extreme cases, physical copies will help your team backtrack when online systems are suddenly down.
Set Payments on a Schedule
Don’t be late with payments. Automate them so you’re not scrambling to pay the bills on time. For example, you can schedule them on a specific day or the first of every month. You can also set up recurring transactions to pay bills like insurance, utilities, salaries, and so on.
In Conclusion: Let It Flow
There is no denying that accounting for cash flow is a delicate process. However, using the above management tips can ensure you are on top of your resources. This will ensure that you can keep your business going strong all year round!
Suppose you need an accountant for e-commerce businesses that can help with your finances, check out The ECommerce Accountant right now! We are a firm of business advisors providing services for online stores and influencers to do what they do best. Chat with us to answer all your questions about this exciting new method.