6 Tips for Managing Your Craft Business Finances Using M-Pesa

May 2, 2025 David Sam

Running a craft business requires more than just creativity. To ensure that your handmade creations thrive, managing your finances effectively is key. M-Pesa, Kenya’s leading mobile money platform, provides a simple, secure, and fast way to handle your business transactions. Whether you’re receiving payments, paying suppliers, or tracking expenses, M-Pesa can be an invaluable tool for managing your craft business finances.

In this post, we’ll share 6 practical tips for managing your craft business finances using M-Pesa.

1. Use Separate M-Pesa Accounts for Business and Personal Transactions

One of the most important aspects of managing finances is keeping personal and business expenses separate. This prevents confusion and helps you better track your business’s financial performance.

How to Implement:

Create a separate M-Pesa account for your craft business transactions. This will help you easily monitor sales, payments, and expenses without mixing them with your personal funds.
Use your business M-Pesa number for receiving customer payments, paying suppliers, and handling business-related transactions only.

Why It’s Great:

Clear financial records: It makes it easier to track your income and expenses, which is vital for budgeting and tax purposes.
Organized finances: Separating business and personal finances helps you maintain a more professional approach to your business.

2. Set Up Lipa na M-Pesa (Till Number) for Payments

If you haven’t already, setting up a Lipa na M-Pesa Till Number for your business is a great way to manage your finances and streamline customer payments. This option is easy to use and trusted by both small and large businesses.

How to Implement:

Register for Lipa na M-Pesa via Safaricom’s Business Portal and set up a Till Number.
Share your Till number with customers when they make purchases so they can easily pay directly into your business account.

Why It’s Great:

Easier to track payments: Each payment made via your Till number can be tracked, allowing you to monitor sales more efficiently.
Increased professionalism: A dedicated Till number helps establish trust and a sense of legitimacy with customers.

3. Use M-Pesa Paybill for Supplier Payments

If you’re dealing with multiple suppliers, paying them through M-Pesa Paybill is an efficient and secure way to handle these transactions. M-Pesa’s Paybill feature can be used to make payments to various businesses, ensuring that all your expenses are recorded electronically.

How to Implement:

Set up a Paybill number for your suppliers and add them to your business M-Pesa account.
When you need to pay for craft materials or other services, simply make the payment via M-Pesa using the Paybill option.

Why It’s Great:

Convenience: Paying suppliers is simple and fast through M-Pesa, eliminating the need for physical cash or bank transfers.
Payment tracking: Each Paybill transaction is recorded, so you can keep a clear record of your business’s expenses.

4. Regularly Check Your M-Pesa Transaction Statements

To stay on top of your business’s financial health, it’s crucial to regularly review your M-Pesa transaction history. This allows you to monitor your income and expenses, and to spot any discrepancies or errors quickly.

How to Implement:

Use the M-Pesa app or SMS service to check your transaction history regularly.
Keep track of all incoming and outgoing payments, such as customer payments, supplier purchases, and business-related withdrawals.

Why It’s Great:

Improved budgeting: Reviewing your transaction statements helps you create a realistic budget for your craft business.
Better financial planning: You can identify patterns in spending and income, helping you plan for future expenses and investments.

5. Save a Portion of Your Income for Business Growth

One of the key financial habits for business owners is setting aside money for growth and emergencies. M-Pesa makes it easy to create a savings plan for your business, ensuring that you’re prepared for future needs such as new supplies, marketing campaigns, or equipment upgrades.

How to Implement:

Use the M-Pesa savings feature to transfer a fixed percentage of your earnings into a separate account.
Set up automatic transfers to your savings account on a weekly or monthly basis.

Why It’s Great:

Financial cushion: This gives you a safety net for unexpected expenses or slow sales periods.
Sustained growth: Having funds set aside ensures that you can reinvest in your business to expand your operations and reach more customers.

6. Use M-Pesa’s “Lipa na M-Pesa” for Mobile Advertising Payments

If you use mobile advertising platforms like Google Ads or social media ads (Facebook, Instagram), M-Pesa allows you to easily pay for these services and manage your marketing expenses efficiently.

How to Implement:

Link your M-Pesa account to your mobile ad accounts (such as Facebook Ads or Google Ads) for quick payments.
Monitor your advertising spending through M-Pesa to ensure that you stay within your marketing budget.

Why It’s Great:

Instant payment processing: M-Pesa’s fast payment processing helps you run ads without delay.
Simplified financial management: Tracking advertising expenses through M-Pesa ensures that your marketing efforts are aligned with your business goals and budget.