As an entrepreneur, never take sales reports lightly when doing business, no matter how small your business. Because, whether the business you are building is healthy or not can be seen from this financial report.
Like what Metha Ayu Ningtias did, a housewife who also opened an online business. Initially, he only sold negligees which were mothers' favorite wardrobe.
"Just selling negligees. The price is also quite cheap, depending on the material, starting from IDR 45,000. But it turns out the profits are quite exciting," said Metha.
Indeed, he said, making sales reports requires persistence and consistency. However, he is aware of the importance of recording his financial flows. He wants to know the development of his business from day to day. Moreover, since his business has developed, and his products have increased.
"It's just a headache when I have to make a sales report. Because I only record it in a book. Then, the numbers also have to match what I'm doing, including the amount of money I hold," said Metha about the ups and downs of making financial reports.
Metha wrote a sales report in a book and she made it as simple as possible so it could be read easily. He hopes that with this convenience he can quickly control his business.
"I make it in a regular book. It only contains reports of money coming in and going out. I record the number of items that were sold today. Usually, every day someone orders even just one piece. When I run out, I usually immediately buy another item from the capital money I spent. From there, I can see which items are my favorites and the profits I get," said Metha.
Actually, what is the meaning of a sales report?
Sales reports are one of the instruments of financial reports. Reports are not the same as accounting records, but are simple records of sales or a collection of all sales information that is compiled and informed as material for recording and analyzing sales.
In short, a sales report is an instrument that will provide a general overview of the state of sales activities in a company. So the report should become an SOP (standard operating procedure) for all entrepreneurs, including MSMEs. Not only busy restaurants, mini markets, but also building shops, even goldfish sellers in the market.
The Importance of Sales Reports
Sales reports have an important function for entrepreneurs. But is it that important?
Very important, because sales are the spearhead of your business. Through sales reports, you can assess the progress of your business from day to day to year.
Marketing expert and Managing Partner of Inventure, Yuswohady, said that the end of profit is sales. Therefore, an entrepreneur must have financial reports, at least sales reports.
Through financial reports, you can find out how many sales and profits are generated.
"Usually for MSMEs or start-up business people, their finances are mixed with personal finances and they never calculate how many sales, how much costs and how much profit. If we don't have records, we don't know whether our business is progressing or not. This year is better than last year. What usually happens is that they use feeling," said Yuswohady when contacted by Qasir.
"In fact, good MSMEs or business people are those who have a growth mindset," he continued.
Wallstreetmojo said that sales reports are very important for the life and death of a business. There are 6 functions of sales reports that make them important for your business, namely:
Monitoring Business
Through sales reports, you can see whether the business you are running is stagnating, progressing or going backwards.
When you build it from the ground up, of course you hope everything runs smoothly. However, there were several unexpected things when starting out. These losses or deficiencies can be seen in the sales report.
Product Quality Control
Sales reports can also be used as quality control for products. When you see sales decreasing, you can check the quality of the goods, whether they are guaranteed or not.
Accountability
Sales reports provide detailed information for you. Especially for parties related to your business, for example investors.
Make a Budget
Sales reports can also be a reference in making a budget. This means the budget amount for future purchases is based on current costs. For example, from last month's report, you can estimate the price or purchase of new stock.
Evaluation
You can also evaluate your ongoing business through sales reports. The summary of this data can also determine future direction, especially for making decisions.
For example, expenses that contribute to increasing sales are considered profitable expenses. You can make a decision to add products.
Control Cash Flow
Money coming in and going out can be controlled by taking into account the number of sales you make.
To make it easier to compile sales reports, of course you must have complete proof of transactions. For example, goods purchase receipts, delivery service receipts, and proof of transfers from consumers. From these references, you can then calculate the amount of profit.
Proof of transactions must also be validated. One of the easiest ways to get neat and validated transaction records is to use the Qasir point of sale application. Qasir allows all its users to be able to calculate transactions when buying and selling occurs, record transactions neatly and accurately, and check them again in the form of prepared reports.
To get it all, download Qasir FREE here.
Check Regularly for Maximum Progress
Even though it is important, quite a few entrepreneurs are not diligent in checking reports regularly. The reason is, I don't have time, I'm lazy and I don't want the hassle.
A businessman from Bandung, Ujang Hermanto, admitted that he rarely checks financial reports, including sales reports. The man who sells t-shirts entrusts the management of sales reports to his wife, even though his business is starting to grow to the point of being able to create new jobs for residents around his house.
"I rarely check reports. Just trust my wife's work," said Ujang.
The reason is, laziness.
You are aware that being lazy about checking sales reports can be dangerous for your business.
Yuswohady confirmed this.
"Usually successful people aren't smart. It shouldn't be like that, but people who dare to take a risk, you know, are usually good at selling and operating a business, but don't want to bother with administration. This is the practice, yes, in theory it shouldn't be like that," said Yuswohady.
Apart from that, entrepreneurs who are still in survival mode don't care about financial reports. Because their priority is running the company, they don't care about performance.
He added that usually, entrepreneurs don't care about financial reports because they are still in survival mode.
In addition, discipline matters are important. When you have prepared financial or sales reports, you must be disciplined not only in recording. But also checking.
"In financial reports, discipline is important. If you have prepared your finances, budget, marketing plan, then every week, every month, every quarter, you have to check it, so you know how our business is developing, whether it's on track or not. Usually if you're not disciplined, you'll just check it tomorrow, then again the next day, in the end it won't be checked," said Yuswohady.
Then, what components must be in your sales report?
Yuswohady said there are at least two components that you must include in your sales report. First, sales results and second, costs incurred.
"Still, costs have to be recorded. Costs have to be controlled, right. Even if there is no formal report, sales figures and costs have to be recorded. This month the cost is 100, next month it's 120. You have to check why this has increased. What will be the relationship later, with whether the price needs to increase or not if the cost increases," he explained.
Sales reports follow the size of your business. The more advanced the company, the more components there are. Therefore, he recommends recruiting accountants when the business is already advanced.
According to him, you can take advantage of today's technology if you haven't been able to recruit an accountant.
"Nowadays there are lots of applications, especially if they're not expensive, you have to have your own application. Therefore, if it's complicated and you don't have the money, that's not an excuse," said Yuswohady.
Want it Easy? Use Qasir
Qasir, currently, has an Automatic Sales Report feature which can make it easier for you to compile financial reports. The business report will be sent to your email, without needing to access your account or open the dashboard from Backoffice.
To do this, simply open the incoming email notification via the device you are using. Click the email, the report will appear and you can see it anywhere, anytime.
There are several types of report periods that you can get, namely:
- Daily: Report will be sent the next day
- Weekly: Reports will be sent Monday every week
- Monthly: Reports will be sent every 1st of the month
- 3 Months: Reports will be sent every 1st every 3 months.
To learn more about Automated Sales Reports, read the guide by clicking this link.
Not only numbers, graphs of increases and decreases will also be displayed in your report. This simple sales report for the last 30 days at Qasir can be accessed at no cost or free. Meanwhile, if you need a longer report, you can access it by subscribing to Qasir Pro, Qasir's subscription service for free, unlimited access, for only IDR 1,000 per day.
To find out about Qasir Pro and how to subscribe to Qasir Pro, click this link.
Managing your business can be this simple and easy if you use Qasir. Just touch your finger, bye-bye hassle!