Tired of shopping in a heavy crowded street? Do you badly need to shop with class, no stress and convenience? Here is to a classy, safe and more convenient method which saves a lot of time and gives you more collections to choose from.
The unexpected happening around this world affected day to day routine, business sectors also. People with hectic schedules or old age people choose online shopping instead of going directly. Most of the people in this era go with new technology and internet support prefer conventional shopping due to its vast benefits. It is providing high comfort to its customers, by letting the buyers save the product either in cart or wish list bag to buy it later. Your product may cross towns, states, countries or more borders. Convenience, easy gifting, no crowd, no time are why people prefer online. Entrepreneurs show much interest in opening online ventures or expanding their physical stores to online. All these require accounting for their businesses, no matter where, how and when the transaction happens.
E commerce accounting
Ecommerce, also called electronic commerce or internet commerce is buying and selling of products or providing services with the use of internet. E commerce has grown in a way where products are discovered easier. Based on how you are managing your cash flow, let your ecommerce business to live or die . If you only record sales value and leave to record the other operating expenses which costs higher,you are on a loss track. About one in every four people online shopping and this impressive ecommerce has reached 2.8 trillion USD in 2018 which is further estimated to reach 4.6 trillion USD in 2021. Must know the basics of accounting e commerce business to make it alive.
Challenges in ecommerce accounting
As same as a physical store, these ecommerce businesses have to stick with the same rules of accounting. It is unique but more challenging than a ground based store. There is a chance of sales tax to be confused and a complex inventory management occurs. No one has said accounting is easy either it is a ground or online store.
A major challenge of every ecommerce business is tracking stocks, in and out moves and costs. Even selling your products online requires making products available at the right time and tracking where your product is kept. If unable to make products available or failed to track the products, together with money loss, loss of reputation happens.
Once the order is placed, in the site checkout – payment has to be done following the package of products, shipping and then delivery.
One product may reach several hubs, from dispatching to delivery that makes inventory management quite confused and difficult.
Softwares made ecommerce accounting better
Usage of certain software with knowledge of how to handle it in an effective and understanding manner breaks down the complexity of ecommerce accounting. Advancement of ecommerce accounting technology is a simpler process now.
- Buy accounting software for your online business. Choose it from various softwares available either free or paid.
- Upload and record all the sales done with proper time and date.
- Also record expenses made for package, shipping and inventory.
- Softwares calculate tax rates and act as a reminder that reminds you of tax payments.
- It helps you analyse the balance sheet at the end of every week or month or annually based upon you.
Hire accountants who know traditional accounting and can work on digital software is an added advantage. If you are looking for someone expert in eCommerce accounting, you can call +971 50 452 0632 (Beyond Numbers) and get a free consultation.