How to Keep Simple Business Records as a Small Online Seller

Many small sellers think they are making money until they add everything up. Records show the truth, and they do not need to be complicated. A notebook or a spreadsheet is enough if you fill it in regularly.

What to write for each order

• The date and an order number or customer name.
• The product and quantity.
• The selling price the customer paid.
• What you paid for the product.
• Delivery charges and any platform fee.
• The result: delivered, refused, returned or cancelled.
• The profit or loss on that order.

What to write for money you spend elsewhere

• Advertising.
• Packaging.
• Phone and internet used for the business.
• Anything else you spend because of selling.

Review weekly

1. Add up delivered orders and their profit.
2. Add up failed orders and what they cost.
3. Add up your other spending.
4. Subtract spending from profit to see what is really left.

Look for patterns

Which product gives the best profit after failures? Which source of customers gives the most refused orders? Which area is hardest to deliver to? These answers guide what to do more or less of.

Keep money separate

Where possible, keep business money apart from personal money, so you can see the business result clearly.

A simple weekly layout

Use one row per order and these columns: date, customer, product, selling price, product cost, delivery and fees, result, profit. At the bottom of each week add a total for delivered profit and a total for losses from failed orders. A second small table lists other spending such as ads and packaging. It takes a few minutes a week and soon becomes a habit.

Keep proof

Save order confirmations, receipts and messages. They help with disputes and with any tax or reporting requirement that applies to you.

Taxes and rules

Tax and registration rules depend on your situation and change over time. This guide does not give tax advice; ask a qualified adviser what applies to you.