You didn’t start your ecommerce business so you could juggle accounts and balance books. You started it to sell products, serve customers, and make money while you’re at it. But ecommerce bookkeeping is a necessary and important part of keeping your accounts in good shape.
Ecommerce bookkeeping is the process of recording and managing all financial transactions for your business, including sales, purchases, and payments. Bookkeepers track all costs and income to help a company make informed financial decisions.
The goal of bookkeeping is to show you the financial picture of your business, balance your accounts, and improve cash flow management in a strategic way. It helps you understand where your money is going so you can make informed decisions.
Even if you have experience with bookkeeping, there are some important nuances to ecommerce accounting you’ll want to follow. Here, you’ll learn about how to keep books for an ecommerce business, tools to help you, and common mistakes to avoid.
Ecommerce platforms and bookkeeping
The beauty of ecommerce is the wealth of platforms available to sell your products on. Regardless of your ecommerce platform, you’ll need to balance your books. Whether it’s Shopify, BigCommerce, WooCommerce, or Adobe Commerce, you must keep track of income, outgoings, and any relevant taxes.
Many ecommerce platforms offer features to help you keep track of important information you need for bookkeeping, like inventory and sales taxes. While it won’t file your taxes for you, it can help you track your tax obligations and collect the right amount. This makes tax time a lot easier to manage.
Ecommerce platforms often charge merchant fees, which is a unique bookkeeping element online sellers need to track.
The merchant fee will vary depending on the platform you use, but it’s details like this that you need to keep in mind when using an ecommerce platform. Luckily, there’s lots of bookkeeping…
This is only a snippet of a eCommerce Article, please visit the Authors Website and Read the Full Article