From calculating the tax on online sales to managing inventory to figuring out logistics for shipping, managing an online shop comes with numerous issues and concerns. The bookkeeping system you use must be able to cope with the demands. If you manage your bookkeeping using accounting software, employ a professional bookkeeper or employ the services of a bookkeeper, the solution you choose should be capable of handling the complexities of bookkeeping for Ecommerce Accounting Company In Uk that includes: This way, your records, along with your financial statement (like the Balance Sheet or Statement of Cash Flows), are both accurate and complete, ensuring that you can make informed financial decisions for your business.
The article below will discuss seven important aspects to consider when it comes to online bookkeeping. We also discuss three essential features to consider when choosing the bookkeeping software for your online business.
Important Things to Consider for E-Commerce Bookkeeping
Handling Merchant Fees
If you have your online store using an e-commerce platform such as Shopify or BigCommerce, charges for merchants must be part of the package. Setting up your store on these platforms provides many advantages, from a faster launch to a simple search engine optimization. However, the e-commerce platform and payment processors need to take a tiny portion of each sale that you generate online to provide those benefits. This is the way they earn profits.
Using Third-Party Tools and Issuing Refunds
In addition to the e-commerce platforms, third-party tools such as payments processors (think Stripe and PayPal) can complicate the record-keeping process. This is particularly relevant when it comes to tracking exchanges and returns.
For instance, if you sell on Shopify’s platform for payment, that transaction is handled through Stripe (and remember the section above, there is a transaction fee).
Tracking Inventory Across Sales Platforms
A lot of e-commerce platforms incorporate inventory management into their products. It makes it simple to monitor and manage inventory for sales online through your store. However, suppose you are selling on different online locations such as, for instance, via your Shopify website and on Amazon. In that case, the platform won’t keep track of any inventory changes that result from sales outside of your site. Thus, Amazon sales won’t show into the stock that Shopify tracks.
Accounting for Alternative Sales
Chartered Accountant For Small Business will be made through credit cards for customers, as opposed to other types of payment However, you can opt to accept different payment methods (especially when you offer sales in person).
Certain e-commerce platforms can monitor sales from checks, cash, gift card purchases, and credit. So, if you’re planning to accept these types of payments, you’ll need to ensure your system can handle those sales.
