Advancement in technology has seen many industries evolve and make significant profits. Businesses and enterprises have invested in online networks as a strategy of maximizing sales. Through such online forums, the firms can access a wider client base. However, the “brick and mortar” businesses are widely used especially in the third world countries that have not embraced technology adequately. The flow of income in an online business is high compared to a “brick and mortar” business. The paper is a review of the difference between the revenue cycle activities of an online business and “brick and a mortar” enterprise (Botelho 2016).
A “brick and mortar” business refers to the traditional picture of a business that is a physical location with offices and employees working for long hours usually five days a week. When an enterprise is located at a physical place, daily transactions of the business are recorded in receipts and other books of account manually. At times, the process of recording such transactions manually proves to be tiresome and cumbersome. However, when using the online platform, sales are enhanced since there are efficient modes of currency transfer such as PayPal, that provide individuals easy access to their cash making them able to manage it accordingly. Also, the online platform provides accounting soft wares’ that enhance financial management and transactions.
Online businesses are characterized by a cash flow that is constant and significant. Also, with time the client base increases since the online platform links the business with global customers. Means of billing and shipping have been incorporated making the forum efficient since the goods purchases can be delivered to the buyers’ address efficiently. In the traditional enterprises, the case is different since the customer needs to get to the physical location of the enterprise and personally purchase the commodity.
Through the online platform, one can earn more since the currency rates are international. The platform proves to be efficient since there are minimal deductibles such as taxes. On the other hand, physically located enterprises tend to incur expenses such as rents and rates which lower their revenue. Also, the “brick and mortar” businesses tend to be exposed to calamities such as clashes in the region which affect the client base which is not the case in online business since it is global.
References
Botelho, C. (2016). The Pros and Cons of Online Retailers vs. Brick-and-Mortar Stores | Punchbowl. Punchbowl.com. Retrieved 14 May 2016, from https://www.punchbowl.com/trends/blog/post/pros-cons-online-retailers-verse-brick-and-mortar-stores
