Are you selling both business-to-business (B2B) and business-to-consumer (B2C)? If you are and you’re using the same payment platform to handle your B2B and B2C transactions, you may have realized that reconciling your books can be a complicated affair. After all, without separating your different sales channels, it’s hard to tell which market is contributing more to your business.
If the above situation sounds familiar to you, it could be time to separate the different channels you sell on for clearer bookkeeping. All it takes is getting a payment gateway designed for the B2B workflow like TradeGecko Payments. You’ll be able to reconcile your books easily, as TradeGecko Payments keeps track of all your credit or debit card charges, and matches these with invoices and sales orders so that you’ll always know exactly where your revenue came from.
On top of that, we looked at the data and discovered that merchants who use TradeGecko Payments get paid 3x faster. TradeGecko Payments decreases your invoice settlement time by making it easy for your customers to pay. All they have to do is click the “Pay Invoice” button, fill in their credit or debit card details, and they’re done.
As a business owner, you’re processing many orders every day, across different sales channels. These may range from shopping cart platforms like Shopify, to marketplaces like Amazon. If you’re selling B2B as well, you may even be using B2B eCommerce platforms like TradeGecko’s B2B eCommerce Store. Manually managing your inventory and accounts across different channels can be challenging and time consuming, as you’ll need to match your sales orders to payment records.
For business owners selling on multiple channels, knowing which channels to invest in or divest is extremely valuable. After all, every channel requires different marketing tactics and you want to get maximum returns for your effort. With business intelligence, you’ll be able to keep track of your business’s performance across the different channels and identify new opportunities for growth. Maybe your Shopify sales have stayed constant while your sales on the B2B side of things are growing. In this case, you may choose to take the opportunity to build up a different aspect of your business.
With TradeGecko Payments, it’ll be easy for you to monitor your B2B transactions. On the TradeGecko Payments dashboard, you’ll be able to see your total balance, your available balance, your next payout, along with a record of all your payouts. If you’re using TradeGecko to manage your B2C eCommerce orders as well, you’ll be able to see your sales orders across all channels and identify trends in customer purchases.
TradeGecko's B2B payment gateway automates tedious payment processes so you can save time and grow your business!
Through inventory and order management software like TradeGecko, which integrates with accounting software like Xero or QuickBooks, you’ll be able to maintain a record of all transactions across your different sales channels. Accounting software helps you to collect a record of all your business transactions so you can analyze and interpret this information to make better business decisions about your finances.
For a start, you may want to look at your working capital ratio.
Basically, the working capital ratio shows the ability of a business to pay for its current liabilities (such as purchase orders and salaries) with its current assets. You should be aiming for a working capital ratio of around 2.0, as this would suggest your business has good short-term liquidity.
In addition, you can also consider your cash ratio for a more conservative estimate of your company’s ability to pay off its liabilities in the short term. You can calculate your cash ratio by dividing your cash (actual cash and cash equivalents) by your current debts.
When evaluating your cash ratio, the higher the number, the healthier your company is. This way ,you’ll have a quick insight into how well your business can pay off its current liabilities.
Regardless of whether you’re settling your accounts and taxes personally or if you have a dedicated accounts person, a clear record makes filing tax returns easier, especially if all your transactions are clearly matched with the right sales order. Moreover, you’ll be able to start making future financial plans for your business, as you’ll have a clear picture of your finances across the board. After all, the clearer your financial statements are, the easier it’ll be to evaluate your company’s financial performance.
If you’re selling wholesale and retail, going through transactions and attributing these to individual sources can be tedious and time consuming. On top of that, when you’re selling wholesale, you may find yourself spending up to 10% of your time on creating and sending invoices. With TradeGecko, you’ll be able to automate this and send all finalized invoices in bulk to be paid using TradeGecko Payments, where your wholesale customers just have to enter their credit details and they’re done.
As mentioned above, using TradeGecko Payments for B2B also comes with the bonus of enabling you to separate your wholesale and retail transactions effortlessly. That way, you’ll be able to enjoy an easier and more accurate accounting process.
Enable your wholesale customers to pay online so you can get paid faster.