eCommerce cashflow


20th November, 2023

How to master eCommerce cashflow 

From treading water to riding high — the difference software can make

What’s the key difference between riding high on the eCommerce wave and feeling like you’re constantly treading water? Simple — cashflow.

If you’re running a business without enough cash on hand, it can be really stressful.

You can’t buy the stock you need, pay your bills on time or chase opportunities when they come knocking. 

Whether you’re just starting or want to fine-tune your finances, here’s a look at why eCommerce cashflow is so important and how to manage and forecast it effectively.

eCommerce cashflow

The importance of eCommerce cashflow management 

Cashflow management isn’t about whether your business is profitable – although that certainly helps. It’s about having cash on hand when you need it.  

When you have your cashflow under control, you have the confidence to make strategic decisions, invest in growth, and steer your business towards success.  

But despite its importance, 82% of businesses struggle with poor cashflow management.

Usually, it’s from not forecasting their cashflow, or relying on manual, error-prone spreadsheets.

The solution? Specialised software to accurately and automatically track and predict what’s coming in and going out. 

Leveraging cashflow technology 

With Amaka’s MYOB integrations for e-commerce, you can track your finances. Amaka integrations automatically sync sales and payments transactions from your eCommerce platform into MYOB.

You can customise your account mapping in MYOB, meaning you can track products by product or category. This gives you a more in-depth understanding of your sales.

Then, you can integrate your MYOB platform with the specialised cashflow analytics tool Syft Analytics.

This gives you a clear picture of how money moves in and out of your business so you can make smarter decisions about when to invest, save and spend.  

It also helps you predict financial trends and spot potential problems early to plan for busy seasons or likely dips in cashflow. 

Perhaps most importantly, it frees your time and mental energy.

Instead of manually tracking every transaction, the software does it for you, leaving you more time to focus on growing your business and serving your customers. 

How to forecast your cashflow 

Forecasting your eCommerce cashflow starts with knowing how much you’ll have in the bank at the beginning of the month.

Then, you predict what money will be coming in and out in a best-case, typical and worst-case month.

Consider any seasonal or economic factors — do you see an uptick in sales over school holidays? Does the weather make a difference? The more realistic you can be, the more valuable your forecast.

While your business may not always grow consistently, your accounting software can generate a detailed cashflow statement, helping you fine-tune your forecasting. Ideally, you should do this monthly.   

And at the end of each month, compare your predictions with the actual money that came in and went out. That way, your forecasting will improve as you go along.  

Maintaining healthy cashflow 

Predicting cashflow is an important first step, but there are other things you can do to keep the cash flowing. 

  • Be smart with stock management: Avoid overstocking and promote less-popular items to keep your inventory turning over.  
  • Keep customers coming back: build customer loyalty with special offers, discounts on repeat orders and upselling.  
  • Go for high-impact marketing: look for low-cost, high-impact marketing initiatives like email and loyalty programmes. 
  • Make the most of early-payment discounts: Pay suppliers on time, or earlier if you’ll get an early payment discount. 
  • Cut costs where it counts: Look at your expenses and eliminate unnecessary costs. Focus on investments that will give you the most bang for your buck.  
  • Flexible payment options: For big purchases, consider offering options like payment plans or rentals so customers are more likely to buy now.  
eCommerce cashflow

Cashflow mastery 

In the fast-moving world of online business, managing your cash is the key to making it work.

Also, if you understand how money flows in and out, use tools that predict your finances, and follow smart money habits, you’ll gain the power to strategically plan for expansion and boost your earnings.

Finally, with MYOB’s cashflow tools, you can plan for growth and make more money in the online world. 

Ready to master your eCommerce cashflow? Sign up for MYOB Business today.