How to Avoid Common Online Store Accounting Mistakes

When running an online store, you need to keep your eye on the numbers. Otherwise, your business will fall victim to common financial issues like running out of cash or pricing and costing problems.

Ecommerce accounting is more complex than traditional business accounting, and it takes a little extra skill to get it right. To avoid these issues, you’ll need to make a few key investments upfront.

Getting started with clean, accurate records is essential. You’ll also need a reliable, cloud-based solution that prioritizes accuracy, so your numbers always work. With this foundation in place, you’ll be well on your way to avoiding the most common ecommerce accounting mistakes.

The first step is setting up a business bank account. This ensures that your ecommerce transactions are recorded correctly, and it will help you avoid having to revisit your personal bank accounts to break out the store’s earliest sales.

Once you have a bank account, the next step is to set up ecommerce accounting software. A quality system like Finaloop allows you to choose between accrual and cash-basis accounting, as well as gives you a prebuilt, thorough ecommerce-focused chart of accounts for flawless categorization.

Another important aspect of ecommerce accounting is tracking inventory. Rather than using the traditional method of recording purchases on your bank statement and then matching them up to your ecommerce platform of choice (like Amazon or Shopify), use software like TallyPrime that automatically updates inventory levels in real-time. This gives you full visibility into your supply chain and keeps you from overspending on orders or running out of top selling items. You’ll also need to manage sales taxes, which are a significant compliance responsibility for ecommerce businesses. This involves determining which states you have economic nexus in, then collecting and remitting sales tax to those states, as well as filing quarterly sales taxes returns. счетоводство на онлайн магазин