Our world now rotates with a cellphone in hand, revolves with the internet in our mobile devices, and spins in the orbit of network connection. Everyone is connected nowadays, using the general platform we all know as social media. Together with these connections, even buying and selling of products are now just at the tip of our fingers. You tap it, scroll for information, buy now, and let the company on the other side deliver the product for you. Going vice versa, you’ll just approve it, send thru a courier, and let the money being directed to your account. This is just simply how e-commerce business works.
As a day-to-day transaction, with thousands of taps in your cellphones, thousands of clicks on your computer, it’s quite hard to maintain or track your income. This is true as three-fourths of businesses now are having a problem with keeping their records. Bookkeeping then comes in.
As derived from the word itself, bookkeeping keeps records in your books. This is systematic, organized, and proper documentation of your financial transactions to prevent misinformation and confusion in the future. This should be done regularly as products and services are purchased every day.
Bookkeeping is not a very strenuous task. But an expert can provide more. Here are some of the list that might come in handy:
Grasp Knowledge About Fees
As you’ll be selling your products online using known platforms such as Shopify, or eBay, or Amazon, and one should have an understanding when it comes to the CUT of these platforms. You should realize by now that to keep these platforms alive is to take a cut on every purchase made online.
Utilizing Software And Applications
365KPO, recommend the use of Quickbooks, Xero, or Wave for proper performance in this field. An expert can help you understanding Amazon central's settlement report and its reconciliation with accounting records, including API integration with apps like A2X, Taxomate, Entrywise, Webgility, etc.
Routes To Take For Proper Process
IT IS VERY IMPORTANT TO CETRALIZE THE DATA. This cannot be done through basic knowledge. Routes to take are from different platform involving Shopify, and others. If you intend to make different paths on a different platform, guess what could happen. If keeping it in one globe, you wouldn’t have to worry about a thing as it is enveloped in a layer that protects information from spilling outside.
Accumulating The Correct Income
Since e-commerce is a business, don’t forget about the tax. Filing the correct taxation on each purchase must be done. This will track your record on how much will be the total income you might get after the tax has been deducted from your total sales. an expert will help you with registration, collection, and further filing and reporting.
Bookkeeping is not just keeping records, but also maintaining the correct balance in your total expense. The kept records will hold the value of your previous records to the current one and ensure that you are on the right track. Thus, these records or books can now be called Financial Statements. These are explained in detail in our previous post about KPIs.
Keeping on track is like keeping accuracy. The finer you trim down the finances, the more preferable it is to become a better and healthier business. We encourage e-commerce businesses to do daily, weekly, monthly, and annual tasks on keeping their records for proper contrast on the latest one.
The financial roadmap will serve as our way to our goal. Daily objectives can be done to keep you on foot. Clearing any disturbances will provide a good road and creates a map to locate the whereabouts of the target.
There are a lot of methods out there that you can incorporate with regards to your business. Remember that business doesn’t have the same identity, you have to make one. Setting the targets first, knowing their interests, whom to sell it, will ensure that the method you are using is fit to your business.
Comprehension in how the business should run is a must, as always. Knowing where to ship the products, when will it arrive, ensuring the quality are the best ways to increase your potential to sell it.
Not just the products are needed to be tracked down, also the money that you are going to receive. Are you sure you have received your money? Ask your bookkeeper.
Keeping The Charge Of Charges And Taxes
Acknowledging the tax increase or decrease can be your way to receiving a good profit. As discussed above, these taxes are used by the platforms to run their website and applications, same goes with the taxes you are paying since you have a business.
E-commerce business is a fit business you must have because of what happened during COVID-19 Pandemic. This can either be retail, wholesale, dropshipping, crowdfunding, subscription, physical products, digital products, or services. In case you are wondering, there are different types of a model when doing e-commerce business, but whether what kind it is, one requires a bookkeeper.
Keep on track, record it wisely, be vigilant. Data is never enough if not recorded.
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365KPO gives business owners and professionals peace of mind and confidence by providing quality Accounting & Bookkeeping services that allow entrepreneurs to focus on the areas of their business that need them the most. With years of experience building and shaping successful practices, you couldn’t ask for a better outsourcing partner.
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