How do e-commerce businesses track their income & expenses?

First, open a business bank account to separate your personal and business cash. Next, is to categorize the business expenses to know where you're spending your money. A great tip is to use small business accounting software like Quickbooks, and Freshbooks that make tracking of income easier.

Its not recommended to have both your business and personal finances in the same bank account. Separate them by opening a business bank account where all incomes are received and expenses are paid. The next step is to track your business' income and expenses. You can use apps like Quickbooks, Freshbooks and Wave or track manually in an Excel sheet.

Pay yourself a certain amount every month like a salary to avoid spending the business revenue.