E-commerce Accounting Services
As online stores become more popular amongst consumers, scaling your online business is more critical now than ever before. Our team of expert ecommerce accountants will customize a financial strategy aimed to reach your goals.
We offer a multitude of services that can not only help scale your business but increase your profits!
01
Bookkeeping
Our professional bookkeeping services include management of your accounting records and preparation of key financial statements on a monthly basis. Our bookkeepers ensure the accuracy and timeliness of your financial data. We’re efficient and make accessing your e-commerce books easy and from any device with the use of top accounting software with cloud-based technology such as QuickBooks Online, Xero and FreshBooks.
02
Tax Preparation
Whether you file Form 1120 or 1065, your e-commerce business is required to file an IRS tax form every year. If you’re behind on your taxes, it’s important to get caught up to avoid possible penalties. Our team of CPAs, tax consultants, and IRS experts will take care of that as we will help you stay compliant while also maximizing your deductions. Our team will also help you tax plan that considers your individual tax return.
03
CFO Services
CFO services take managing your business finances to the next level. Our ecommerce accounting team provides you with financial projections and budgeting reports that help predict your sales and expenses. As an ecommerce seller, you will have the information you need to keep the right amount of inventory on hand to meet demand. With these tools and the expertise of our team, your business will operate more efficiently.
Are You Running An E-commerce Store?
Establishing an ecommerce business is indeed an exciting venture for anyone. Imagine your products being viewed by millions of potential customers out there 24/7 and all year round, who wouldn’t be hyped up? However, aside from picking the best ecommerce platforms, setting up your website, choosing the best products to offer, and promoting your business- there’s still one important task you shouldn’t forget. And that is having a sound financial plan.
As an ecommerce business owner, you might not have a brick and mortar store but it doesn’t mean that your inventory management and financial report creation should be any different. It doesn’t matter what the nature of your business is. All businesses need to keep track of what’s going in and out of their business’ bank accounts to make smarter, better decisions. And of course, this is to keep your business from failing because of bad handling of finances. In regards to ecommerce businesses, once your store is up and running, you need to make sure that you have an overview of your stock levels, sales and expenses among everything else. Whether you choose to sell on Amazon (using FBA), Etsy, BigCommerce or Shopify, you will need an effective accounting system to help you manage your finances.
Can you do this on your own? Well, you can. But think about this. Starting from calculating your sales taxes, to figuring out shipping logistics, to inventory management, running an online store comes with a lot of financial tasks that you need to regularly attend to. So if you’re solely managing your ecommerce business, this could bring some problems to you. In addition to that, you will need to allot time in preparing financial reports such as balance sheets, income statements and cash flow statements. Doing all of these tasks along with running the business operations all by yourself, full-time, can eventually lead to burn out.
But don’t fret, we have the perfect solution for that! Our e-commerce accounting services.
What The Numbers Say About E-Commerce Accounting
Whether your e-commerce business is B2B, B2C, C2C, or C2B, you need to have an accounting process in place that manages all of your transactions, handles payouts, takes care of applicable sales tax and income tax, and promotes growth and profitability. Consider these facts:
› 8 out of 10 businesses fail due to lack of financial management
› 50% of small businesses have a CFO managing their accounts
› 89% of business owners see more success working with an accountant
E-commerce accounting is not only for online retailers. It’s for businesses with brick-and-mortar locations with an online presence too. E-commerce accounting is necessary for business owners who want to take control of their business finances and make better business decisions. If you sell just online, or just in the store, or a combination of both, your accounting solution needs to be tailored to fit your needs and meet your goals.
Schedule a Free Consultation Today.
How Does An E-commerce Business With Great Financial Management Looks Like
You might be wondering, how would you know if your ecommerce business is considered as a financially savvy business?
A clear answer would be, if you have a well-defined bookkeeping or accounting system and a set of processes for it. You can use a simple calendar together with Excel to keep track of the transactions and expenses that you make everyday or every month. Or, you can also opt for a more accurate cloud-based accounting system such as QuickBooks, Xero and FreshBooks- the choice is yours. You see, it doesn’t matter how simple your system is or how robust you choose it to be, it will all boil down on how streamlined your process is.
Why, you may ask?
For one, setting up clear processes will help you in improving the efficiency of your ecommerce business. You will know exactly where your finances go- how much do you earn, what are the products that are worth investing, and what are your biggest expenses. Getting a broader view of these things will help you manage your ecommerce store better. Also, it will save you time and money in the long run.
However, as we’ve mentioned in the sections above, doing all of these on your own can be quite overwhelming. This is especially true for handling your business’ financial records. If you’re too tired from attending the business’ operations, it will be easy for you to overlook some numbers. So do yourself a favor- get the help of an expert ecommerce accountant for your financial management.
Getting the help of an ecommerce accountant will provide a clearer understanding of your ecommerce profitability. You no longer have to worry about overlooking and miscalculating your finances, especially your taxes. Hitting the payroll each month will no longer be a challenge for you. You’ll know exactly which products or services you should invest in more and which ones to pull out.
Better preparation for the future of your business.
Looking at accurate financial reports such as the profit and loss statement, balance sheet, and cash flow statement will help you plan your next move. You can easily work within your budget, and manage your resources well. But that is, if you have a skilled e-commerce accountant to help you.
So now back to the question above, “How does an e-commerce business with great financial management look like?” If you, as the business owner, looks less stressed because of your finances and are more productive with what you do, then you have great financial management.
The key to achieving this is by getting the services of an e-commerce accounting expert.
For one, setting up clear processes will help you in improving the efficiency of your ecommerce business. You will know exactly where your finances go- how much do you earn, what are the products that are worth investing, and what are your biggest expenses. Getting a broader view of these things will help you manage your ecommerce store better. Also, it will save you time and money in the long run.
However, as we’ve mentioned in the sections above, doing all of these on your own can be quite overwhelming. This is especially true for handling your business’ financial records. If you’re too tired from attending the business’ operations, it will be easy for you to overlook some numbers. So do yourself a favor- get the help of an expert ecommerce accountant for your financial management.
Getting the help of an ecommerce accountant will provide a clearer understanding of your ecommerce profitability. You no longer have to worry about overlooking and miscalculating your finances, especially your taxes. Hitting the payroll each month will no longer be a challenge for you. You’ll know exactly which products or services you should invest in more and which ones to pull out.
Better preparation for the future of your business.
Looking at accurate financial reports such as the profit and loss statement, balance sheet, and cash flow statement will help you plan your next move. You can easily work within your budget, and manage your resources well. But that is, if you have a skilled e-commerce accountant to help you.
So now back to the question above, “How does an e-commerce business with great financial management look like?” If you, as the business owner, looks less stressed because of your finances and are more productive with what you do, then you have great financial management.
The key to achieving this is by getting the services of an e-commerce accounting expert.
Benefits Of E-Commerce Accounting Services
By prioritizing e-commerce accounting, you will be able to develop a predictable and measurable way to grow your business. Specifically, you will be able to:
Make profitable decisions based on accurate financial statements
Are you familiar with the term cost of goods sold (COGS)? It refers to the direct cost of producing the product or service that is being offered by a company. And it is related to ecommerce accounting because it helps you to determine whether a product or service is worth investing in or not. This cost of goods sold data, along with the financial reports, are essential in helping you to come up with smart moves for your business. Our ecommerce accounting services will help you make better decisions by creating financial reports with the aim of growing your business profit.
Spend more time working on other areas of your business
Are you running your ecommerce business by yourself? If you do all of the accounting tasks on your own, can you still find the time to run your business? Think about it. Once your website is up and orders start to come in, you’ll have to process it right away. Otherwise, your customers might cancel their order or worse, never purchase from you again. However, your finances should also be kept up-to-date. Our team of expert accountants will take care of your finances so you can focus on running and promoting your business.
Spend more time working on other areas of your business
Are you running your ecommerce business by yourself? If you do all of the accounting tasks on your own, can you still find the time to run your business? Think about it. Once your website is up and orders start to come in, you’ll have to process it right away. Otherwise, your customers might cancel their order or worse, never purchase from you again. However, your finances should also be kept up-to-date. Our team of expert accountants will take care of your finances so you can focus on running and promoting your business.
Stay compliant on applicable tax requirements
Everyone needs to deal with taxes- individuals and businesses alike. It’s an obligation that you can’t afford to overlook or else you will pay penalties. Spending money on these tax penalties is such a pain. Instead of using that hard-earned money for something that will give you profit in the future, you’ll have to use it for penalties which could have been avoided if only you have managed your tax obligations on time. As business owners ourselves, we don’t want that for you. So when you get our accounting services, we will help you manage sales tax compliance and filing the sales tax returns.
Predict future income and expenses
Isn’t it better to have a broader view of what’s happening with your finances? While using a calculator and Excel is fine, it may not be enough to manage your financial records. What you need is an accurate accounting system to keep track of what’s coming in and out of your business’ finances. Is your profit higher than your expenses? What gives you the most return on investment? How about your biggest expense? No more guessing. With our ecommerce accounting services, you will have detailed financial records that will help you predict your business’ future income and expenses.
Predict future income and expenses
Isn’t it better to have a broader view of what’s happening with your finances? While using a calculator and Excel is fine, it may not be enough to manage your financial records. What you need is an accurate accounting system to keep track of what’s coming in and out of your business’ finances. Is your profit higher than your expenses? What gives you the most return on investment? How about your biggest expense? No more guessing. With our ecommerce accounting services, you will have detailed financial records that will help you predict your business’ future income and expenses.
Schedule a Free Consultation Today.
What Makes Our
E-commerce Accounting Services Perfect For Your Online Business?
E-commerce Accounting Services Perfect For Your Online Business?
E-commerce Businesses Key Performance Indicators
Our Methods To E-Commerce Accounting
Catch Up Your Books
Once you get our e-commerce accounting services, our team will take the time to catch up your books to the present month.
Set Up Chart Of Accounts
This is basically a list of the individual accounts that make up a business’ summary of transactions. It covers everything- from assets and liabilities, to equity, to revenue, and expenses. As your accounting partners, we will make sure to use e-commerce industry standard jargon to set up your chart of accounts. This is to make reviewing your financial statements easier for you and tax return filing a breeze.
Data Entry
We gather data. Whether you use Paypal or a credit card processor, we incorporate this information into your books. We will also connect your financial accounts to your bookkeeping software and begin data entry.
Reconciliation
In accounting, you can’t afford to overlook a single digit. So to ensure accuracy on your financial statements such as your balance sheet, cash flow statement, and ultimately your tax return, we will reconcile your accounts.
Reporting
After reconciliation, our accounting team will now prepare your financial statements. These financial statements include income statements, cash flow statements and balance sheets.
Use Insights
Helping you scale your ecommerce business is one of our goals. Your financial statement will be more beneficial if you know how to interpret and use the figures to your advantage. As your ecommerce accounting partner, we will help you use your financial reports and KPIs to make informed, profitable decisions.
Catch Up Your Books
Once you get our e-commerce accounting services, our team will take the time to catch up your books to the present month.
Set Up Chart Of Accounts
This is basically a list of the individual accounts that make up a business’ summary of transactions. It covers everything- from assets and liabilities, to equity, to revenue, and expenses. As your accounting partners, we will make sure to use e-commerce industry standard jargon to set up your chart of accounts. This is to make reviewing your financial statements easier for you and tax return filing a breeze.
Data Entry
We gather data. Whether you use Paypal or a credit card processor, we incorporate this information into your books. We will also connect your financial accounts to your bookkeeping software and begin data entry.
Reconciliation
In accounting, you can’t afford to overlook a single digit. So to ensure accuracy on your financial statements such as your balance sheet, cash flow statement, and ultimately your tax return, we will reconcile your accounts.
Reporting
After reconciliation, our accounting team will now prepare your financial statements. These financial statements include income statements, cash flow statements and balance sheets.
Use Insights
Helping you scale your ecommerce business is one of our goals. Your financial statement will be more beneficial if you know how to interpret and use the figures to your advantage. As your ecommerce accounting partner, we will help you use your financial reports and KPIs to make informed, profitable decisions.
Take The Next Step Toward Financial Success For Your Online Company!
What are your goals with your e-commerce business? Is it to generate more sales and spend less? Or maybe grow your brand and establish some more additional stores? All of those goals are possible! But there’s a catch. You can only work towards goals like that by having a clear understanding of your finances today. You need to know where your money and resources are going. That’s the only way to take the next, smart move.
E-commerce accounting is what you need. The key to having an effective accounting process you are happy with is by having the right information presented to you through financial statements. With this information, you can plan and execute decisions that are aligned with your business’ goals.
If you are ready to take the next step towards financial success, click the button below! When you work with us, rest assured that we will give you all the information you need to make profitable decisions for your e-commerce company.
Schedule A Call With An Expert Or Talk To An Expert Right Now!
CLIENT TESTIMONIAL
“I had an awesome experience at LYFE Accounting. My accountant was really knowledgeable & professional. She got me the maximum refund possible…I would recommend LYFE Accounting to any & everyone.”
– P. Griffin
