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After all the hard work you put into your business, seeing getting paid is an incredible feeling. But once you’ve taken some well-deserved time to celebrate your wins, there are a few things to keep in mind when it comes to the money coming in.

From total sales and revenue to your gross profit, in this episode, you’ll learn what you need to know about these figures. You’ll also hear more about the different methods of payment you’ll want to consider offering to your customers, and we’ll break down the cost of each.

Learn how to get set up and start accepting Interac payments: interac.ca/howto

  • Episode Transcript

    Episode four. Money goes in.

    Ahh, nothing sweeter than getting paid for all your hard work. And aside from the thrill from seeing the number in your bank account go up, keeping an eye on all the money that goes into your business can help you plan for the future.

    This is From Dollar One by Interac, and this tip is all about the ins and outs of money.

    The money flowing into your business includes all the money you earned from sales and services you provide, along with any other incoming sources, like loans and grants.

    There are three things you want to keep an eye on with your incoming money.

    One is your total sales. This is the total amount of sales your business generates from the products and services you sell. It’s essentially the money you’ll be using down the line to help make a profit, tally up your income and pay your expenses with.

    Then there’s your total revenue, which is the total money you make in the period of time before your expenses are deducted.

    And finally, then there’s your gross profit, which is your total revenue, minus the cost directly tied to making and delivering your product.

    But why is knowing those things so important? Well, you need to know your cash inflow, for instance, to calculate accounts payables, the money you owe others, and accounts receivables, the money others owe you.

    And perhaps most importantly, you have to know what money you make to calculate your taxes. We have a handy tax prepping guide you can refer to in the link in the description.

    Now when it comes to actually getting paid and flowing that money into your business, the the payment methods you accept can be a make or break moment for sales. And with fewer people carrying cash these days, counting on cash as your sole payment method may result in a lost sale.

    Today’s consumers expect to pay with a card or their mobile wallet. In fact, an Interac survey of 1,000 Canadian adults found that 72% of Canadians want the option to use their debit card when checking out online, making a purchase in app, or paying in store or curbside.

    That’s a strong case for offering and accepting contactless and digital payments like Interac Debit and Interac e-Transfer.

    These payment methods may also be more affordable for your business. For example, Interac Debit charges per transaction are comparatively lower for merchants than alternate payment methods like credit cards, which typically have an average cost of 1.4% of the total transaction value.

    So, let’s say you sell a $500 item, it might cost you an average of $7. But if you sell that over debit, it costs you $0.10.

    That gives you some idea of the magnitude of difference.

    When it comes to Interac e-Transfer, a separate poll conducted by Interac shows that 52% of Canadians said they were just as comfortable paying a small business by Interac e-Transfer as they would be by using other payment methods. In fact, in April 2022, Interac e-Transfer use surpassed over 1 billion transactions over a 12 month period, and almost half of Interac e-Transfer users leverage the service to pay a small business.

    If you want to learn more about how to set up and start accepting Interac Debit and Interac e-Transfer payments, visit our how to hub on Interac.ca/howto to get started.

    Thanks for listening. If you’d like to learn more or sign up for our newsletter, visit Interac.ca/dollarone.

    Okay. Now that we’ve learned about the ins of your money, what about the outs? Stay tuned to find out.

This article offers general information only and is not intended as financial, legal or other professional advice. While information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subject matter discussed. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Interac Corp.