With eCommerce solutions streamlining business operations, it has become seamless for everyone to run a successful eCommerce store and earn a good amount of profit. However, while you can efficiently and effectively manage your products and other important things, it is imperative to have accurate facts and figures about your business handy with the help of a proper accounting system in place.
It might seem to be a daunting and tedious task initially; however, you can do it effortlessly with simple and easy-to-use tools like eCommerce accounting software. Additionally, proper bookkeeping would prevent you from future legal complications.
However, there are a few best practices to follow before you set up your eCommerce accounting solution. Here’s taking a look at them.
Follow these 5 simple steps before setting up eCommerce accounting
Make sure it is compatible with all your devices
Does the program work with all of the devices you plan to use? How many users can be simultaneously logged in? Can your international team members log in, too?
Consider the cost
Many options have a free plan, but the pricing goes up as your business scales and grows.
Look for support options
What are the customer service options? Does the program offer expert bookkeepers and accountants you can hire to take on the work when you are ready to delegate? Can they help you file your taxes?
Look for add-ons
All of the programs offer basic bookkeeping and financial reporting, but what kind of extra offerings does the software have? Some eCommerce trends include hefty employee management solutions to help with payroll, time tracking, and benefits, while others may offer project management tools. Some offer payment processing through third-party partnerships.
As your eCommerce business grows and you decide to sync your eCommerce software with your accounting software, there are many aspects of eCommerce and accounting that you will want to keep in mind for this integration. For example:
- Inventory Management – You will want to be able to connect multiple sales channels such as your brick & mortar’s Point of Sale, your Online Store, and your Pop-up location to ensure stock levels always stay up-to-date.
- Choosing the correct payment gateway – Does the available option match your needs? Will the international business be supported?
- Tax settings – How does the software help you with your sales tax reporting? What role does it play in monitoring important tax deadlines?
Sync your eCommerce accounting software with your eCommerce program
Make sure the two programs sync so you can limit the amount of data entry you are doing. Ideally, you will be able to eliminate manual data entry of sales, invoices, customers, products, and more.
Most popular eCommerce software options, such as Shopify, integrate easily with third-party app plug-ins compatible with accounting programs like Dext. Once synced, your inventory, orders, customers, and shipping can be automatically updated and will stay accurate. And getting started is easy! Most of these integrations only require a quick authorization and a few clicks to import your eCommerce data into your accounting program.
While you may be making a good profit out of your e-commerce business, improper bookkeeping can push you into serious legal trouble. You may not be able to calculate your exact earnings and expenses and continue running your business without knowing the exact profit your business is making.
This is not a healthy practice as it can drag your high-profit business to a loss-making one in just a couple of days. Therefore, it is important to stay on top of facts and figures about your eCommerce business with the help of plugins and software. Dext offers some of the best features for e-commerce systems for seamless payment activity and inventory management.
Check eCommerce accounting system by Dext now!