The 5 Biggest Pain Points: in the Finance Management of Online Shops
Created by Gründerszene.de
Online shops have to keep an eye on vast numbers of payment streams every – that’s not always easy. These blunders are to be avoided at all costs.
Gründerszene.de on 8 February 2018: A partner for finance management is like a good painkiller
Close your eyes and hope for the best – many online shops have made this their motto when it comes to finance management. A big mistake, because a tiny unnoticed minor detail can quickly turn into a huge problem. In the mega-business that is e-commerce, with its mass-volume payment transactions, shop operators have to stay on top of things. But how?
A partner that monitors and supports the finance transactions can take away a lot of work from online shops: operators continue to keep an eye on all payments but can concentrate on the actual core business. Widespread but actually fatal errors in finance management are thus a thing of the past.
Are you only too familiar with breaking out into a cold sweat and a state of panic with regard to your finances? You’ll find information on the outsourcing of your finance management with nexnet here!
The following scenarios demonstrate that a partner for your finance management is the best medicine.
5 Painful Scenarios in the Finance Management of Online Shops
Pain Point #1
International Growth is Underestimated
Your shop is growing – it should be a reason to be happy. Unfortunately, many operators underestimate the enormous accounting effort behind growth and internationalization. When your company is about to make the step onto the global online market, not only do you have to manage different currencies. Contact with new payment service providers (PSPs) and their payment method usually doesn’t come off as smoothly as assumed either. The payment types are different here – the information on the evaluation of the relevant data thus differs very widely as a rule from the German standard. This means greater hassle and occasionally misunderstandings with serious consequences.
The Painkiller: A Mediator between shop and PSP. A partner that mediates between your shop and PSPs is worth its weight in gold. nexnet offers exactly this service and even goes one step further –providers and logistics specialists further involved in the transactions are also included in order to allow all data and processes to be administered centrally.
Pain Point #2
The Processes Become Too Complex
It’s no longer obvious how much money is missing from which PSP? If the financial transactions are too complex the financial management will become unclear or even incorrect. This is a major pain point in e-commerce in particular: From certain size, companies can simply no longer handle all of the to-ing and fro-ing that comes with posting money. The hidden danger emerges when the auditors come knocking – if the company can no longer give a convincing explanation for the figures, there will be devastating consequences. “The worst-case scenario is when the auditors can no longer confirm the annual financial statement, when the company founders simply don’t believe the figures any more”, explains Ingo Hentschel, head of key accounts and sales at nexnet GmbH.
The Painkiller: Accounting suitable for mass data. Credit management is one of the most important components of accounting. After all, this involves the monitoring of the payment moral of customers and PSPs, and thus of one’s own liquidity. nexnet’s credit management brings along 15 years of experience and ensures that the accounting grows with your requirements.
Pain Point #3
The data sets are piling up
The office walls are already papered with Excel tables and there’s still no room for all of the data? When online shops grow, the datasets grow with them – in effect, exponentially. In such a case, simple data processing programmes no longer suffice in order to handle the accounting in a technically correct way. By the time they come to the annual financial statement at the latest, shop operators break out into a panic – when it’s often already too late.
The Painkiller: A Certified Annual Financial Statement.
In order to meet not only one’s internal requirements, but also the statutory ones, a certified annual financial statement is a must. By these means, operators not only satisfy the auditors but also safeguard the shop’s own finance management.
You won’t have to complete the annual financial statement yourself ever again? With its Payment Clearing solution, nexnet offers its business customers certifiable annual and monthly financial statements. You’ll find more information here!
Pain Point #4
The PSPs are trusted blindly
The payments of the end customers are dutifully monitored – and there are still shortfalls in the finances at the end? This is often due to an inadequate checking and processing of the payments of the PSPs. Costs and security deposits for the case of insolvency have to be broken down into the individual purchase transactions. Sales expert Hentschel comments: “If I’m a very solvent shop operator and people know me, then the security deposit tends towards zero. But if my shop is smaller, then the PSPs like to hold a lot of sway.” The corresponding calculations are mostly made summarily, and at a certain point this simply isn’t enough anymore. When filing doing their accounts, shops should thus bear in mind that the cashflow doesn’t automatically correspond to the turnover – and that’s forgotten all-too-often.
Der Pain Killer: The payment monitoring of end customers as well as PSPs. It’s not only in the case of shop customers that you are well-advised to exercise caution. The payment streams of the PSPs must also be watched just as carefully. External partners like nexnet can help you to ensure that the money ultimately does end up in your company account.
Pain Point #5
There’s not enough time for the core business
An invoice here, a dunning letter there – financial transactions and accounting procedures are laborious and consume a lot of time. Time that is then lacking for the core business and damaging for the shop. Those who want to hold their own in the e-commerce shark tank have to invest all of their resources in the further development of their shop and in the marketing of their products. If that’s not possible, they not only lose potential customers, but also quickly lose their market position.
The Painkiller: A partner for the finance management.
No more tiresome writing of invoices trouble with customers unwilling to pay. Neutral Partner gives shop operators the opportunity to concentrate on extending their reach and sales while the financial streams are quietly but effectively taken care of in the background.
You’re looking for a partner for your finance management? nexnet will help you to get to grips with all of your finance streams. You’ll find more information here!