E-commerce bookkeeping is not only about recording and maintaining financial records, it’s about handling finances for better decision-making.
Many businesses feel they can handle bookkeeping for e-commerce by doing their expenses and other things in business themselves.
Why do they need an e-commerce accountant? Most of our clients frequently ask this question before realizing how they messed up their books due to a lack of e-commerce bookkeeping knowledge. It affects sustainability and growth.
Thus, even if you are in the early stages of growth, having an outsourced e-commerce accountant can help you understand the unique aspects of e-commerce accounting.
Different businesses have different accounting requirements. However, there are a few factors you should consider while searching for an e-commerce accountant.
The difference in e-commerce accounting is that the financial activity flows via sales channels, not bank accounts. A deposit on a bank account from Amazon or any e-commerce platform doesn’t provide you with a complete view; evaluating additional details is necessary.
An e-Commerce accountant must know how to extract accurate financial data through the sales channel. He/she must be familiar with tools like A2X, which connects Amazon seller Central to Xero.
E-commerce bookkeeping requires qualified, expert CPAs and certified accountants with experience in e-Commerce bookkeeping.
Online payment processors can be a hassle for e-Commerce accounting, depending on the collection of payments. They charge fees that should be tracked and reconciled with sales channel reports and bank statements; to ensure your account is credited with the correct amount.
E-commerce businesses use a lot of technology. E-commerce bookkeeping will require dealing with a lot of technology, so the accountant for e-Commerce needs to be tech-savvy. They should be updated with cloud accounting software such as Xero or QuickBooks Online. This accounting software also needs integration with sales tax, payroll, and inventory.
Outsourcing an e-Commerce accountant is best for bookkeeping for e-Commerce at affordable rates. At Meru Accounting, our team can assist with in-depth inventory and COGS accounting.
Gross margin is very important for an e-Commerce accountant. 90% of the business decisions are based on gross profit margin. Gross profit is the difference between the revenue and COGS. Understanding the COGS calculation per SKU and when to record COGS on the books is important. Your accountant for e-Commerce should understand these items thoroughly.
We work with small and medium-sized businesses to help them make informed decisions by keeping a solid grip on their finances. Our dedicated and experienced team of CPAs, CAs, and accountants enables you to provide accurate financial insights that help the business grow.
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