Bookkeeping Services For Your e-Commerce Business
Accounting Solutions for Amazon and Shopify Online Sellers
|Bookkeeping Services||Cloud Accounting Integrations||Sales Tax Management|
|Payroll Services||Inventory Control Solutions||And More|
ECOMMERCE ACCOUNTING SERVICES
We will record all income, expenses, assets, liabilities, and equity transactions and create a bookkeeping schedule to meet your company’s needs, including daily, weekly, monthly, and annual tasks.
We believe if you only keep your books for the purposes of filing taxes then you are missing the most important reason to have clean, clear financials. You can’t proactively manage what you can’t see. Having good records for taxes is for sure important but leveraging those numbers to make better business decisions is the only way to drive your business toward a better future.
CHALLENGES WITH E-COMMERCE BOOKKEEPING
E-Commerce presents a world of opportunity. But, not without risk and unique challenges.
You need someone in your corner that understands those challenges and has the knowledge and skill to overcome them.
So, what are some of the challenges of e-commerce?
Sales Tax Liability Can Be Confusing
How do you make sure you are compliant while not paying more than you owe? How do you set up the right system that works in every Canadian province – even those that don’t have HST? In the US, each state has an economic nexus that determines
when you need to register for sales tax. Do you know what it is for every state?
Fees and Software Costs Can Eat Up Your Profit
Amazon charges fees on at least 3 parts of your FBA transactions – Sales Commissions, FBA fees and Advertising. We recommend that each SKU has a gross margin after fees of at least 20% and higher. You must know where you are and fight to improve financial performance but without really good accounting it is nearly impossible to properly manage your products.
Transaction Volume Can Overwhelm Your Accounting System
One challenge with eCommerce is that success often means lots of small transactions with lots of data points. More sales, more transactions, more data. Most good accounting systems don’t handle high-volume detailed transactions well and the system will slow down. This means that you have to find an intelligent way to batch your transactions.
Returns Can Create Problems
Managing returns as an e-commerce seller is challenging especially if you sell on Amazon where customers can return your products without needing much justification. When do you write off the inventory and make sure that the inventory doesn’t get expensed twice? Returns can complicate accounting for your inventory and if you aren’t careful and implement the right system they can make your books worthless.
How Do You Choose The Payment Gateway?
With so many choices, how do you know which is the right option for your online business? Authorize.Net, PayPal, Stripe, SecurePay, 2Checkout – or simply accept credit cards directly through Shopify. Which is the right solution for your online business?
Inventory Management Can Be Complex
How much inventory do you have and what is it worth? Do you need to track inventory levels by SKU? What about Inventory turnover or simply total inventory valuation? Are you using 3PL (3rd. Party logistics) for fulfillment? Do you need to track inventory stored in multiple locations?
What kind of reporting do you need? Do you care more about cash flow or profitability by SKU? Is your priority inventory management or daily sales or month over month comparisons?
And, if you are new to eCommerce here is a great article from QuickBooks on getting started with the right foundation.
MAKING ACCOUNTING TECHNOLOGY BETTER FOR YOU.
We are recognized thought leaders in the accounting technology world, and we work really hard to make accounting and eCommerce technology better for everyone, starting with our clients. We are constantly testing new products, providing feedback to dozens of vendors, and making introductions between vendors to help them create ecosystems that make e-commerce accounting simpler, easier, and better for all small businesses.
WE PROVIDE THE TOOLS AND SUPPORT
Our services include not only the ongoing accounting but also the monthly subscription cost for the cloud tools, and we also provide the technical support related to those tools. We know what tools to use, how to identify if something glitches, and we work directly with the accounting technology vendors to resolve IT issues to keep things running smoothly. Most of our clients don’t even know if or when things go wrong because we take care of the problems as part of our standard daily process.
CASE STUDY OF AN E-COMMERCE CLIENT
You can read this case study of how we were able to help a recent e-Commerce client.
THE FUTURE LOOKS BRIGHT
We believe in the digital economy. The cloud is the ultimate equalizer for small business but it is also critical to get the right information at the right time so you can better manage and navigate your business.
According to the most recent surveys of small businesses in Canada – a business that has access to up to date, accurate financial information to help them make better business decisions is 7 times more likely to still be in business 5 years from now.
We want you to be that business.
If you feel like maybe we are what you’ve been looking for, let’s chat.