eCommerce Accounting

Knowing where your customers are coming from and what and how much they’re buying is important. This will cycle back into what you want to pay on a customer acquisition cost, and what you’re going to pay for advertising to get those customers to your site. We recommend that eCommerce companies produce three ecommerce accountants near me major financial statements – every month. These are the Income Statement, Cash Flow Statement and Balance Sheet. Having a strategic plan reduces the risk of hurting your business growth. This promotes the likelihood of new opportunities, bringing in more customers, and generating greater profits.

At any moment, executives or team members may own public or private stock in any of the third party companies we mention. Clients who have worked with Kruze have collectively raised over $15 billion in VC funding. It makes a difference to know how to treat the information you are getting from Shopify in your accounting system. If you are an eCommerce vendor that keeps inventory, you may want to consider QuickBooks Desktop. There are plugins to manage your inventory in QBO, but they aren’t perfect yet.

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You can own or rent a warehouse and handle all the inventory responsibilities, or you can hire a third-party logistic provider to manage it all for you. But also, you want to break out your revenue by state and basically show your accountant so they can help you decide if your company will owe tax. Simple and easy to use financial model for technology startups looking to project revenue and expenses. As your startup scales, you’ll need more extensive accounting services. Our entry-level package gives early-stage founders the accounting expertise they need.

• Knowing how to read an income statement is a must for every entrepreneur and startup founder.
• Shopify is a force and the dominant software for the marketplace or for selling goods online – and it seems like new improvements are released every week.
• Technology makes us more efficient, saving our clients money and letting us offer higher value services like FP&A modeling, 409A valuation, and treasury advice.
• All these other pieces are easier to tackle when you have solid, reliable numbers to make good business decisions in real time.
• By categorizing transactions into distinct accounts, it ensures accuracy in financial statements, facilitates tax preparation, and enhances financial analysis and decision-making.
• Our team of seasoned CFOs brings a wealth of experience and a personalized approach to help your business not just grow but scale in a way that aligns with your vision.

We are giving a bear hug to this new accounting approach with expertise in many of the accounting technologies that are improving business finance. In addition, we are familiar with and implement the latest accounting technology to improve our clients’ experience. ECommerce accounting is very different from other types of accounting because the deposits that hit your bank account from your sales channels are NOT your true income numbers. With Fusion CPA’s expertise, you can look forward to not just growing your business, but doing so in a financially smart and tax-efficient manner.

Understands Your World

We go further by analyzing key financial metrics that truly determine the health of your company. These metrics that relate to cash management and profit analysis will help you make effective decisions. Building the bridge to the next stage of growth for your eCommerce business is challenging. You should work with a partner who has clients already at the place you are going.

• Knowing your real-time financial situation allows you to make data-driven business decisions, and proactively solve problems instead of reactively.
• We generally recommend that businesses move away from spreadsheets and into an accounting software as soon as possible.
• But, our ecommerce accounting gurus have worked hard to provide you with the resources you need to get started.
• However, a couple of years ago, the Supreme Court made a decision that changed all that – and today, many smaller ecommerce companies will now owe sales tax in multiple jurisdictions.
• A regular accounting service leaves out a great deal of vital information.

Our highly trained accounting experts will help keep track of your cash flow, give you advice on where to cut costs, and support you along the way. Putting a solid plan in place allows you to see the big picture so you can make long-term plans. This plan shows you how your business can grow its revenues and profits. Our clients have secured Pre-Seed to Series C or Series D funding. We look to partner with our clients, going beyond the typical outsourced accounting relationship and seeking to provide a higher level advisory role.

Why Do You Need a Specialized eCommerce Accountant?

Here is a list of the major payment methods that work inside Shopify. This is as user-friendly and adaptable as possible to suit most SaaS businesses. Grew from a 2-person startup to a NASDAQ listed public company. We set startups up for fundrising success, and know how to work with the top VCs. Get in touch with us today to learn more about our monthly bookkeeping options.

• We accommodate our customers’ unique challenges by using the communication technologies that best suit them.
• We feel honored to be a part of making the world a better place, even if it’s one debit and credit at a time.
• Cash basis accounting – The cash basis method of accounting requires you to add new records whenever you receive cash in your account.
• We go further by analyzing key financial metrics that truly determine the health of your company.
• Our highly trained accounting experts will help keep track of your cash flow, give you advice on where to cut costs, and support you along the way.
• Our practice is built on best of breed cloud accounting software like QuickBooks, Netsuite, Gusto, Rippling, Taxbit, Avalara, Brex, Ramp and Deel.
• At Fusion, our CPAs have helped hundreds of e-commerce furniture retailers overcome accounting hurdles to increase profitability and ensure regulatory compliance.

And when you use us as your bookkeeper, we set up and keep up-to-date a due diligence folder so you can get that next round of fundraising. Each jurisdiction has different thresholds to determine if any sales tax is owed. Because this can get pretty complicated quickly, we usually recommend choosing a sales tax software to help make the recordkeeping and threshold monitoring easier. Currently, the top sales tax software companies are Avalara and TaxJar.

Shopify is a force and the dominant software for the marketplace or for selling goods online – and it seems like new improvements are released every week. Because of this, and the desire to always guide our clients down the path of financial health, our team has come up with the best practices for accounting for Shopify stores. At Kruze we do this, at Kruze, we have a dedicated sales tax team that this is just what they do. And they’ll look and see and look at the laws in different states and the thresholds and figure out if you have to file and pay taxes in those states. We generally recommend that businesses move away from spreadsheets and into an accounting software as soon as possible. Knowing your accounts balance out each day, week, and month is crucial for the smooth operation of your business.