How to Optimize Bookkeeping for eCommerce Businesses

Omar Visram
How to Optimize Bookkeeping for eCommerce Businesses
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As an eCommerce business owner, you know how vital bookkeeping is to your company's overall success. Bookkeeping gives you the knowledge and power to make wise decisions using solid analysis, and it allows you to forecast your future. 

Bookkeeping is a vital activity for all businesses, even though it can be tedious and time-consuming. Luckily, we have taken a deep dive into the world of eCommerce bookkeeping and have come up with six fundamental ways to optimize your processes.

#1 - Choose a cloud-based accounting software program

Using a cloud-based accounting software program is one of the best choices that you can make for your business. Not only does it offer more flexibility and reliability than traditional desktop software, but it offers a whole range of other benefits as well:

  • It is easily accessible - Working on the cloud means that you can access your financial data anytime, from anywhere. You can also provide access to other team members or your accountants, making sharing important data much more effortless and allowing you to work in real-time all the time.
  • It is secure - Using the cloud means that your data has been backed up and encrypted with the highest level of security. Your data is always kept safe and secure in the cloud.
  • It reduces paperwork - If your dream is to become a paperless business, using the cloud can help. Not only will it eliminate waste, but the cloud also makes searching for specific data much more accessible than shuffling through piles of paperwork and reports.
  • Information is easy to integrate—When using the cloud, it is effortless to integrate data from other bookkeeping tools like your eCommerce or payment platform. In most cases, this data sharing can be set up to be completely automated. This eliminates the amount of work you must do and simplifies the process, leaving less room for error and keeping your records up-to-date.

#2 - Outsource your bookkeeping

Many business owners spend too much time maintaining their own books. Since most don’t specialize in accounting and bookkeeping, they usually aren’t very good at it. In some instances, they may even make critical mistakes. Business owners are also exceptionally busy running their businesses, and bookkeeping tasks are more often than not neglected. This is where the benefits of outsourcing enter the conversation. 

Outsourcing is an excellent option for eCommerce business owners. It usually costs significantly less than hiring a full-time, in-house bookkeeper, helping you save money in the long run.

Outsourcing allows you to utilize help from an expert, leaving your essential financials in capable hands and freeing up your time to focus on more important things like increasing your sales and growing your business.

For a more detailed look at how to outsource your bookkeeping, visit our blog.

#3 - Capture your receipts and documents

Nothing is more tedious than keeping track of receipts and other documents, but luckily Dext Prepare can help with this burden. Dext Prepare allows you to take photos of your receipts with your smartphone, create an appropriate transaction record, and immediately upload the record directly to your online accounting program. With such a simple process, your day-to-day expenses become extremely simple to manage.

#4 - Automate your payments

Most of us already take advantage of automatic bill payments for utility bills in our everyday lives. Why not reap the same benefits of this service when it comes to our business? Paying our suppliers can be made into a stress-free and straightforward process when we get assistance from Plooto. This platform has been specifically designed to handle all of your accounts payable and receivable with an automated process that saves you a considerable amount of time and hassle.

#5 - Evaluate your inventory practices

Keeping things simple, especially regarding your inventory practices, can make a substantial difference in how smoothly your bookkeeping process goes. When evaluating your inventory, try to keep the following in mind:

  • Keep the minimum amount of unsold inventory on hand at all times. Having an excess inventory takes up space and locks up your capital.
  • Get a handle on your inventory. Using a reliable inventory management system will give you current information on your stock levels and the status of your orders.
  • Choose an appropriate target product turnover rate, an ideal inventory system (FIFO vs. LIFO), and a preferred depreciation schedule that adequately meets the needs of your business. These can all have a significant impact on your bottom line. To operate as efficiently as possible, take a look at how other firms in your industry deal with these issues and replicate their practices.

#6 - Manage your sales tax

Worrying about sales tax and tax deadlines can be an issue for any eCommerce business owner. However, tax time can be a much simpler process with a bit of preplanning and some good organizational skills.

  • Keep a detailed log of all products for which taxes must be collected and remitted and those that are exempt.
  • Ensure you know which government agency you must remit the tax to. This will vary depending on your business location and chosen industry.
  • Keep a separate account for all collected sales tax.

Bookkeeping is a vital part of any eCommerce business. Keeping all processes streamlined and organized can help you stay focused on the most important thing — your company's success. Finding ways to optimize all aspects of your business will make the accounting process smoother and easier, giving you accurate and timely data about the financial state of your business at all times.

If you want to find out more about optimizing your eCommerce bookkeeping practices or are looking for the right company to outsource your bookkeeping to, look no further. At Enkel, we have an answer to all of your questions and, as a part of your team, can help you reach new levels of success.

We thoroughly research and test the apps we include in our regular workflow for Client bookkeeping services. After deciding on criteria for evaluating the software and then researching the app itself, we tested the app, noting its strengths and weaknesses. We then work with the app for at least a few weeks before deciding whether to recommend it to our readers. We use the software as it was designed for its intended tasks. For a detailed walk-through of how we select and evaluate software, please see the details of our process.

Looking for bookkeeping support?

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