Bookkeeping for Your E-store

Going through an endless list of numbers and calculations is not for everyone. The same is the case for bookkeeping for e-store sellers. It needs special aptitude. It is why many of them hire bookkeeping services to do their books.

Bookkeeping for E-store Seller

As an e-store seller, you are responsible for its financial success. And knowing a few bookkeeping principles is always a positive thing.

Here you will know how an eCommerce store or site's bookkeeping differs from a regular business' bookkeeping. However, it does not mean that you will need to understand different bookkeeping principles.

Here, you will become aware of the aspects directly of the bookkeeping of your e-store. They are as follows:

• Sales tax or GST filing
• Inventory management
• Tax deductions
• Statutory compliance
• Transaction volume
• Fees charged by merchants or platform
• Returns by customers

The above list suggests that to run your e-store correctly, you need to pay attention to its bookkeeping. It means data entry, preparing and sending invoices, calculating and adding sales or GST to the final bill amount, and adjusting transaction records whenever your customers return goods.

It is a tall list of time-consuming tasks. And you need time to grow your business. It means you need an accounting and bookkeeping services provider.

Accounting and bookkeeping services employ a team of experienced bookkeepers and accountants. They take care of various things that crop up during a business's accounting. These professionals help digitise your transaction data, prepare GST reports, and do the taxation for your eCommerce website to ensure statutory compliance.

Benefits of Bookkeeping Services to Your E-store

The bookkeeping services regularly update your books. The latest data is necessary to learn the current financial health of your e-store. It gives you:

• A better idea of your business' cash flow enables you to take decisive steps to protect its future
• Financial insights from actual data for making business decisions. You do not have to depend on your gut feeling
• Calculate taxes like corporate tax, GST, sales tax, etc
• Different tactics to manage cash flow as per the time
• Avoid fines or penalties
• Detect financial frauds
• Detailed accounting info for applying for a loan
• Set clear goals
• Forecast inventory needs
• Prepare financial statements and management reports

Your provider also does certain tasks that bookkeeping for e-store sellers involves. They can go through your data and analyse it to reveal:

• Final costs of products
• Best selling products of the year
• Most productive live sale event of the year, and the money it made
• The amount of money your e-store e-shop made last month
• Stock in inventory, slow and fast-moving items, etc
• Profits or losses per product

If you are running a business, it is given that you need to invest in its bookkeeping and accounting. Experts advise starting it as early as possible, from Day One. However, you must understand these terms differ and cover different aspects of your financials.

eCommerce Sellers can Rely on Bookkeeping Services for

During the bookkeeping, your bookkeeper records the financial transactions of your e-store, and then an accountant evaluates them. It means you can rely on a bookkeeper for:

• Classifying transactions
• Prepare invoices
• Inventory management
• Preparing balance sheets and income statements
• Account reconciliation, including bank
• Accounts payables and receivables
• Cash flow management

Bookkeeping for e-store sellers is a critical task. It tells you the financial status of your business. And they rely on the accuracy of bookkeeping records to prepare financial statements and projections, tax returns, and risk assessments. To grow your business, you need to go beyond bookkeeping services. You will need an accountant to analyse your financial data.