Accounting Software 101: What’s SalesTracking?
What’s Sales Tracking?
True to its name, sales tracking involves monitoring your transactions. It helps you with keeping tabs on what’s currently happening and forecasting future operations. Every company used to do it manually but today, accounting software, like QuickBooks Pro, automates this business process. Data entry is probably the only thing you’ll have to do by hand.
How to Start the Tracking Process
Begin with identifying your target audience. The rest of your business processes will be easier to plan if you know who your clients are. Next is to name their points of entry. Learn what platforms and keywords your leads frequent and search for the most. If you have a mobile application, you can also try in-app advertisements.
After that, define how they can communicate with you. They can reach you through social media, email, or over the telephone. More channelshelp nurture your leads and convert them into potential customers. Last is to set up the metrics you need to measure consistently, like the amount of traffic your app or website gets or maybe the number of sales for the whole month.
Important Metrics You Should Measure
A good sales tracking system, like QuickBooks Desktop Pro, can help you measure these metrics:
- Average time to close a sale: This metric lets you know how long it takes for a lead to convert into a regular customer.
- Transaction per demographic: This shows how many clients you get from a specific job profile, geography, or age group,which helps you tweak your target audience too.
- Revenue per client:It indicates how much income you gain for each customer you have.
- Churn rate: This lets you figure out at what rate some of your patrons leave and why. With this data, you can then try to win them back or use the information to prevent the same miscalculations from happening again.
- Total sales in a given period: This calculates the number of sales that happened on a monthly, quarterly, or an annual basis. It gives the company a visual representation of the business’ overall performance.
An accounting system needs to be equipped with the following features:
- Easy to use interface. It should be simple enough for you not to waste time in learning how it works.
- Detailed web tracking. It can track every point of entry and contact your clients have with your business.
- Quick customization. You can add fields that make sense to the industry of your business. This helps you have a more proper tracker for your sales cycle.
Overall, an effective accounting software or system, like QuickBooks Pro, can help you have a better grasp on your sales, analyze data, and in some ways, control the outcome of your business’ operations. If you’re interested, there are some programs available that you can search for online.