Crunching numbers may not be your forte, but every online business needs a strong eCommerce accounting plan. You\u2019ll thank yourself later for enlisting some help to record and analyze your revenue, expenses, debts, and deductibles.<\/p>\n\n\n\n
Tracking your financial matters helps you understand the health of your business and ultimately allows you to make decisions based on real numbers, not just feelings.<\/p>\n\n\n\n
Ecommerce businesses face their own unique set of challenges such as retaining customers, understanding the cost of goods sold. to name a few. <\/p>\n\n\n\n
If you have record sales, but your customer acquisition costs and operating expenses are more than total sales volume, you are still on a fast track to business failure.<\/p>\n\n\n\n
Whether you\u2019re selling products through Woocommerce or opencart you are going to need a good system in place to manage your finances. Here are some of the main benefits of building out solid bookkeeping processes from the get-go. <\/p>\n\n\n\n
Bookkeeping is the foundation of a strong, viable business. If you have a system for recording all transactions and expenses, you can get clear insights into how your business is operating at any time. You can get in front of any unpleasant surprises at the end of the month when it is time to pay your employees and contractors or the tax bill. <\/p>\n\n\n\n
Once you know your numbers, you can then create projections that predict your business\u2019s future activity. This will enable you to plan better and work smarter. <\/p>\n\n\n\n
Solid bookkeeping processes will save you a lot of time and headaches when it comes to filing your taxes each year. By maintaining your financial records, you will be able to act in accordance with federal and state tax laws and comply with all relevant sales tax regulations.<\/p>\n\n\n\n
In addition, planning ahead also allows you to work with your accountant to help you save money on your taxes.If you wait until the last minute, you might not have time to do all of the tax planning to ensure you maximize your deductions. <\/p>\n\n\n\n
Having a clean Profit & Loss Statement is critical if your goal is to eventually sell your eCommerce business.<\/p>\n\n\n\n
There are however several other reasons why you should use eCommerce accounting software.<\/p>\n\n\n\n
By using eCommerce accounting software that\u2019s integrated with all your other systems, you\u2019ll have a complete overview of your business\u2019s finances in one place. This makes it easier for you to see whether your business is on track and to manage your finances without switching applications.<\/p>\n\n\n\n
Through its ability to make managing your business\u2019s finances easier, eCommerce accounting software can simplify the process of cash flow management. This is simply because it shows you what you\u2019re earning, what expenses you have, and how profitable your business is.<\/p>\n\n\n\n
And when you properly manage your cash flow, you\u2019ll be able to buy stock when you need to, invest in other tools to further simplify your processes and always have cash on hand for emergencies. In turn, this helps you to grow your business.<\/p>\n\n\n\n
Another reason to use eCommerce accounting software is that it gives you the ability to analyse your business\u2019s data. And when you analyse this data, you\u2019ll get deeper insights into your business processes, its performance, and where you\u2019ll be able to improve.<\/p>\n\n\n\n
For example, when you analyse your sales data, you\u2019ll be able to see what products are selling well and what products or not. In this way, you\u2019ll then be able to focus on those products that sell, and you\u2019ll end up saving money because you won\u2019t stock products that don\u2019t sell well.<\/p>\n\n\n\n
Moreover, by analysing your data, you\u2019ll be able to keep track of key performance metrics like your total sales, customer profitability, cash flow, and others. This allows you to see how your business is growing and track your improvement over time which also allows you to implement measures and strategies to ensure further improvement.<\/p>\n\n\n\n
Simply put, in a competitive market, it\u2019s vital that your pricing is competitive. In other words, your products should be priced to not only attract new customers but also retain existing ones.<\/p>\n\n\n\n
The problem is that, as a business, you still have expenses. This means you can\u2019t price your products too low, and you\u2019ll have to develop a pricing strategy where you\u2019re still competitive while still being able to make a profit.<\/p>\n\n\n\n
eCommerce accounting software gives you this ability. It lets you see exactly how much you\u2019re spending to buy stock and how much profit you make from every sale. According to these, you\u2019ll then be able to determine the best price point to maximise profit while still offering value to your customers.<\/p>\n\n\n\n
It goes further than this, though. When using eCommerce accounting software, you\u2019ll also be able to determine where you can implement savings in your supply chain to maximise profit even further.<\/p>\n\n\n\n
When you use an accountant for your eCommerce business, and you should, you\u2019ll typically need to share data with them every month. This will enable them to do your business\u2019s accounting effectively. The thing is, getting all your financial information together every month can be a cumbersome and time-consuming process.<\/p>\n\n\n\n
Fortunately, eCommerce accounting software streamlines this process because it allows you to share all your financial data with your accountant effortlessly. It\u2019s as simple as exporting your business\u2019s financial data on-demand. This, in turn, saves you a lot of time which you could rather spend on growing your business.<\/p>\n\n\n\n
WooCommerce\u2019s flexibility makes it popular with smaller eCommerce merchants. <\/p>\n\n\n\n
However, it doesn\u2019t automatically manage your business\u2019s accounting needs. By linking WooCommerce with Xero will allow you to streamline your accounting and ensure you are up-to-date on your reports, inventory tracking, billing, and more. <\/p>\n\n\n\n
Xero for WooCommerce gives you the ability to set up automatic creation of invoices in Xero for ecommerce sales. After the module is installed and configured, each order placed in your WooCommerce store is securely sent to your Xero account to keep records up to date.<\/p>\n\n\n\n
All product, shipping, discount, and tax data is sent to Xero. When payments are made, they are applied to the appropriate invoice to keep everything in balance.<\/p>\n\n\n\n
\nTeam Oasis recommends to integrate your e-commerce with an accounting software to scale your businesses.<\/em><\/p>\n<\/blockquote>\n\n\n\n
\nOasis Web Asia is able to provide XERO with Productivity Solutions Grant PSG package that defray up to 80% of your cost and our consultant will be able to help you to set up or migrate your ledger and journal over easily to the cloud.<\/em><\/p>\n<\/blockquote>\n\n\n\n
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