Disclaimer: Please note this article is not financial advice. The purpose of our blog is purely educational, so please consult a professional accountant or financial advisor before making any financial decision.
As an ecommerce business owner, you know that it's important to keep the sales coming in if you want your business to thrive. That's why it's imperative to have a few tricks up your sleeve to help maintain the ascending trend of sales. As you do so, you also need to keep track of all the sales to manage your company finances and take care of your taxes.
In this blog post, we’ll share some tips on how you can increase your sales and reach your targets. We’ll also give you the basics of sales tax as an introduction to what you can expect.
Tips to Keep the Sales Coming
There are plenty of ways to keep the sales coming, but the tips below are irreplaceable. They include prioritizing customers, handling competitors, advertising and marketing, feedback, and checking your finances. Let’s take a look at all these factors one by one.
- Focus on customers
There are a lot of sayings going around about how customers are the lifeblood of businesses, and they are all true. With that, invest time and effort in getting to know your customers through market research. Know what they want and need so that you can tailor fit your product to your target audience. Establish a customer care system to ensure all customer concerns and queries are entertained.
- Get to know your competitors
After researching the demographics of your target customers, you have to learn about your competition. Here’s how:
- Conduct competitive analysis by first narrowing down your top competitors.
- Check out the stores selling the same products you sell, know their marketing strategies, and find out their loopholes and weaknesses.
- Outdo their strategies and find your edge, so you can highlight them, attract more customers, and increase your sales.
- Advertising and marketing
Plan your branding well so that when your name and product are out, you can consistently communicate in various mediums. Consistency is the key for customers to remember you. Above all, focus on the story. Find something that appeals not only to your customers’ minds but also to their hearts. Invest in videos, as studies showed they are a more effective medium than others.
- Encourage and be open to feedback
Utilize surveys and interviews, or rely on social media or review sites to get feedback. Feedback is essential for you to know your clients' experience in using your products. The positive reviews will let you know what you are doing right, while the complaints or the negative ones will allow you to improve your products.
- Do regular sales and finance checks
To know whether the ways mentioned above are working, you need to watch your sales. It is best to make reports as often as weekly if you are running a small business, so you can adjust your game plan immediately and start hitting your goals. Aside from sales, you can also keep yourself from cramming during tax season when you track all business income and expenses.
Sales Tax Must-Knows
As soon as you start getting sales and stabilizing your revenue because of your superb customer service, effective ads and marketing, and continuous improvement from feedback, you should begin with bookkeeping services for small businesses. You will thank yourself later when you start bookkeeping early as when tax season comes, you do not need to rush and risk an inaccurate tax report. Here are some of the sales tax must-knows:
Sales tax is prone to changes.
One of the challenging parts about sales tax is that they vary per place and are controlled locally. As a result, they are more prone to changes, so small business owners like you should always be updated to make the proper sales tax computation.
Sales tax bases vary.
Also, take note that sales tax bases vary per area too. Some areas base their sales tax on the package's destination, while others base the rate on the origin of the order. It is best to check the rules and regulations to know for sure and make the right computation.
Some individuals and products are exempted from sales tax.
Business owners like you should also know that there are situations when buyers are exempted from sales tax. For instance, if the buyer is not the end-user, they can send a tax-exempt certificate for the sales tax to be waived. Particular groups and individuals can also be tax exempted depending on the rules, so checking is paramount.
Assistance in software and small business bookkeeping services
Taxation is already complicated as it is. Aside from sales tax, it helps to be well-versed in income taxes as a business owner. Getting assistance from bookkeeping services for small businesses would be of great help. They have trained bookkeepers and accountants, and they have efficient software, which makes sales tax updates and computation stress-free.
Get Assistance from Unloop!
As a small business, it is important to stay on top of your sales and finances. The tips we’ve outlined above should help you maintain a healthy revenue stream while staying compliant with sales tax laws. Remember that sales taxes are prone to changes and vary per area. Unlike other types of taxes that are more stable, it’s important to stay updated with the latest sales tax rules, especially in the area where your target customers are located.
If you need more assistance, Unloop offers bookkeeping services for small business, income tax, and sales tax services that can take the burden off your shoulders. Contact us today at 877-421-7270 if you want a more detailed explanation of our services. We’ll be happy to assist you!