How to Track Sales & Expenses in an Online Business: A Guide for Kids & Parents

Starting an online business is exciting, but one of the biggest mistakes young entrepreneurs make is not tracking their money properly.

If you don’t know:
✔ How much money is coming in (sales)
✔ How much money is going out (expenses)
✔ How much profit you’re making (what’s left after costs)

Then, you won’t know if your business is actually making money!

💡 In this guide, kids and parents will learn:
✔ The difference between sales, expenses, and profit
✔ How to track sales efficiently
✔ The best ways to keep track of expenses
✔ Simple tools to manage finances without stress
✔ How to use this information to grow the business

By the end of this guide, young entrepreneurs will be financially organized and ready to scale their business to success! 🚀

1. Understanding Sales, Expenses & Profit

To track your money, you first need to understand three key financial terms:

✅ 1. Sales (Revenue) 💰

✔ This is the total amount of money you make from selling products.

📌 Example: If Leah sells 5 bracelets for $10 each, her total sales = $50

✅ 2. Expenses (Costs) 🛒

✔ These are the costs of running the business, including:
✔ Materials & Supplies (Fabric, beads, paper, ink, etc.)
✔ Shipping Costs (Postage, boxes, envelopes)
✔ Website Fees (Shopify, Etsy, or domain hosting)
✔ Marketing (Ads, social media promotions)

📌 Example: If Leah spends $20 on materials, $5 on shipping, and $10 on website fees, her total expenses = $35

✅ 3. Profit (What’s Left Over) 💵

✔ Profit is what’s left after expenses are paid.

📌 Formula:
Profit = Sales – Expenses

💡 Example:
✔ If Leah made $50 in sales and spent $35 on expenses, her profit = $50 - $35 = $15

This means Leah keeps $15 as her earnings!

🔹 Lesson: The goal of a business is to increase profit while managing expenses wisely.

2. How to Track Sales Effectively

It’s easy to lose track of sales when selling multiple products online.

📌 3 Simple Ways to Track Sales

✅ 1. Keep a Sales Log 📜

✔ Write down every sale you make, including the date, product, and amount earned.

📌 Example: Leah’s sales log for the week:

✔ Keeping a sales log helps track patterns, so you know which products sell the most!

✅ 2. Use Spreadsheets 📊

✔ A Google Sheet or Excel file is a great way to organize sales data automatically.
✔ This helps track daily, weekly, or monthly sales trends.

✅ 3. Use E-Commerce Platform Reports 🛒

✔ If selling on Etsy, Shopify, or Amazon, these platforms automatically track sales.
✔ They also provide insights on best-selling products & customer trends!

💡 Tip: Check your sales report weekly to see how your business is growing!

3. How to Track Expenses the Right Way

A successful business doesn’t just track sales—it also tracks expenses carefully to avoid spending too much money.

📌 3 Steps to Track Expenses Properly

✅ 1. Keep ALL Receipts 📄

✔ Save receipts for materials, shipping costs, website fees, and ads
✔ This makes calculating profits easier and helps with taxes later.

✅ 2. Categorize Expenses 📂

✔ Break down costs into categories to see where most of the money goes.

📌 Example: Leah’s Monthly Expenses Breakdown

✔ This helps identify where to save money!

✅ 3. Use Budgeting Apps 📱

✔ Free apps like Wave, QuickBooks, or Google Sheets can automate expense tracking.
✔ Helps young entrepreneurs stay on top of spending!

💡 Lesson: If you spend more than you make, the business isn’t profitable! Keep expenses low to maximize profit.

4. How to Use This Data to Grow the Business

Once kids track their sales and expenses, they can use this information to make smarter business decisions.

📌 3 Ways to Use Sales & Expense Data to Grow

✅ 1. Identify Best-Selling Products

✔ If bracelets sell more than necklaces, Leah should make more bracelets!

✅ 2. Adjust Prices If Needed

✔ If expenses are too high, increase prices slightly to boost profit.
✔ If customers complain about high prices, try reducing costs.

✅ 3. Cut Unnecessary Expenses

✔ Spending too much on ads but not getting enough sales? Reduce ad budget.
✔ Find cheaper suppliers for materials to lower costs.

💡 Lesson: Small changes in tracking and adjusting finances can turn a small business into a BIG success! 🚀

🚀 Get Leah’s Online Store – Instant Digital eBook! 🚀

📚 A must-have guide for young entrepreneurs who want to master online business success!

✔ Learn how to track sales & expenses like a pro!
✔ Discover how to price products & boost profits!
✔ Get expert tips on marketing, branding, & selling online!

👉 Click here to download now!
🔗 www.childrentowealth.com/product-details/product/leahsonlinestore

Turn your child’s online store into a profitable success today! 💰📱