Fulfillment by Amazon (FBA) has quickly become a powerhouse in the world of ecommerce. Small- and medium-sized businesses account for nearly 60% of Amazon’s retail sales, from a whopping 1.7 million sellers on Amazon.
The Amazon FBA business model is unique, and to truly excel requires streamlined processes and an optimized approach. Bookkeeping is no small part of that, and Amazon FBA sellers will find that they can benefit greatly from bookkeeping services for Amazon sellers even more so than generalized ecommerce bookkeeping and accounting services.
So, without further ado, here is everything you should consider as an Amazon FBA seller when it comes to bookkeeping and accounting and finding success on the platform.
Don’t Underestimate the Value of Good Bookkeeping
First things first – it can be easy for sellers to cast aside their bookkeeping and accounting tasks as tedious, legally required chores. The truth is that your books provide many insights into not only the performance of your business, but also how to make decisions that will push your business in the direction you’re trying to go.
Proper ecommerce bookkeeping solutions provide you with an intimate understanding of your cash flow, which is crucial (especially in the beginning stages of building an Amazon FBA business). This is especially helpful in managing inventories and operating expenses.
Keeping organized books gives you a necessary foundation upon which you can make informed business decisions and explore new revenue streams with confidence. Use your bookkeeping as a guide to help you avoid cash flow issues, struggles with suppliers, and any other number of avoidable business hiccups.
Keep It on the Cloud
With an online business model like Amazon FBA, it only makes sense to conduct bookkeeping tasks virtually as well.
Cloud accounting involves employing the latest cloud-based bookkeeping software to meet the specific needs of a particular company. Modern software enables bookkeepers to manage taxes, payroll, budgeting, expenditures, and billing, all completely online to be accessed by authorized users anytime, anywhere.
Let the Pros Do What They Do Best
Since Amazon FBA sellers are ambitious entrepreneurs, outsourcing an aspect of their business operations can feel like a big step. When you’re used to doing it all yourself, it’s hard to let go of the reins a little bit! However, choosing to work with a professional ecommerce bookkeeping service for Amazon sellers is a fantastic way to ensure that your books are pristine, and you have the time and energy to put toward growing your business.
Explore the benefits of professional bookkeeping compared with a DIY approach here.
Reap the Benefits of Virtual Accounting Solutions
Virtual accounting is just how it sounds: accounting and bookkeeping that is carried out over the internet. This allows a business owner to communicate with their bookkeeper, while the bookkeeper employs cloud accounting software to facilitate collaboration and grant the business owners easy access to vital information.
Virtual accounting isn’t just convenient for Amazon FBA sellers, it’s also forward-thinking. One of the biggest advantages to virtual ecommerce accounting solutions is their ability to scale as a business grows. When your company experiences rapid growth, you can simply scale up your current contractual terms of service with your cloud accounting solution to meet your new business needs, rather than struggle to expand your accounting team.
Opting for virtual accounting services provides lowered expenses, reduced administration, enhanced flexibility, and extended security. And the best part? We offer virtual bookkeeping and accounting services for ecommerce and Amazon sellers right here at AIS Solutions.
Contact us today to learn more!