One of the most important skills you can have is to know how to manage money as an online boutique owner. Whether you’re reinvesting in inventory, making your first hire, or updating your branding, understanding how money works in your business is crucial, especially in 2024.
So in this blog post, we’ll share some tips for what to consider, which tools to use, and how to make decisions that grow your boutique.
As a new online boutique owner, it’s important to manage your money responsibly. This means tracking your expenses and revenue closely when starting an online boutique, and using helpful tools and resources to make informed decisions about your store’s financial future.
In this blog post, we’ll discuss some of the key things you need to know as an online boutique owner when it comes to money management. We’ll also provide tips on how to stay financially responsible and keep your business growing!
Find A Good Accountant
One of the first things you should do as a new online boutique owner is to find a good accountant.
A good accountant can help you track your finances, keep tabs on your expenses, make sure that you’re making sound financial decisions for your business and help you prepare for tax time.
It’s one of the most important decisions you’ll make as a new business owner so it helps to shop around. Don’t rush!
Book several meetings with local professionals in your area. See which accountant is most knowledgeable about your type of business and offers advice on how you can reach your goals.
The more familiar they are with what you want to do, the better the recommendations they’ll have.
Use Financial Tracking Tools For Your Online Boutique
There are a number of helpful financial tracking tools available online. These tools can help you track your revenue, expenses, and profitability over time. They can also help you identify certain trends in your business so that you can make informed decisions about where to invest your money.
Some of our favorite financial tracking tools for online boutique owners just starting out include QuickBooks, Xero, and FreshBooks.
All of these services have mobile apps so that you can check your numbers on the go. And can help you get a clear picture of your sales, review transactions and resolve any invoices from vendors.
You just sync your bank account and any other account you’re using for transactions (Paypal, Stripe, etc.) so that nothing gets missed.
Whichever you choose, you want software that’s easy for you to understand and makes it simpler to track your finances consistently. You don’t want to wait a whole year and have to scramble to gather up all your receipts, invoices, and bank transactions.
Being financially responsible as a new boutique owner is all about building good habits. So make sure you’re checking your accounts weekly, if not at the end of each day.
Also, get a separate business banking account if you don’t have one already. It’s best not to commingle your personal and business expenses.
It makes it harder for you to track and is just more of a headache when you have to do proper accounting.
Making Good Financial Decisions as a New Online Boutique Owner
It’s also important to consider the financial impact of your decisions. For example, if you’re thinking about adding new products to your store, you’ll need to factor in the cost of these items and whether or not they’ll be profitable.
You don’t want to make a decision that will put your new boutique in any unnecessary debt!
It’s also smart to start building business credit for your online boutique as early as possible. You don’t want to rely just on your savings (or—if you’re working full time—what you’re putting away from each check).
Being able to access funding can allow you to move much faster. And give you the money you’ll need to spend on inventory, invest in marketing, work with influencers, create content for social media, design your boutique website and so much more.
Lastly, give yourself some grace.
If you haven’t been good with money before or you’re not a ‘numbers person’ then remember it’s a process. The goal is to start building good habits that will carry you as you grow. So start by setting one day a week to review your finances.
Add it to your calendar, set reminders and don’t ignore the alerts! The more familiar you are with your finances, the better you’ll be able to adjust your goals and strategies as you grow.
By staying on top of your finances and making smart decisions, you can keep your online boutique successful for years to come!
