Like spreading wildfire, eCommerce businesses have continued to expand and grow, therefore causing the need for efficient and accurate accounting software solutions to become increasingly important. 

E-Commerce accounting software solutions over the years have aided businesses in automating financial processes, tracking sales and expenses, managing inventory, and generating financial reports.

However, choosing the right eCommerce accounting software for your business can be overwhelming. 

This guide will explore nine criteria to consider when choosing the perfect eCommerce accounting software solution for your business. 

The online/offline decision 

This is the first question you should ask yourself before setting up your accounting software, as it affects all processes involved in the business. 

Do I want online or offline-based software?

It seems like a simpler question than presented, but it goes far deeper than that. The online software system, which is more advantageous, demands a lot of power and internet supply. They are commonly used in situations  where backup and real-time financial tracking is required. 

On the other hand, offline or desktop-based software is the cheaper option and remains the most popular across businesses. However, it is unsuitable for businesses that require real-time information. 

This system is often used by smaller retailers that get a few  sales transactions daily. Choosing between both options lies in the hands of the business owner or accountant.

Integration with eCommerce Platforms

After making your accessibility decision, the next criterion is the assurance that the accounting software integrates with your eCommerce platform. 

These software solutions are meant to serve as help, so a good eCommerce solution software should be able to automatically sync sales data, customer information, and product inventory from your eCommerce platform to the accounting software. 

This will automate the work process, as the need for manual data entry is evaded and, simultaneously, reduce the risk of errors.

Most accounting software solutions have recently created their liaisons with popular eCommerce platforms such as Shopify, QuickBooks, WooCommerce, Magento, and BigCommerce. 

However, checking whether the integration is seamless and supports all transactions across different eCommerce platforms is important. For example, data syncing, which helps match various sales platforms’ requirements, is a key feature of credible accounting software and can be necessary if you sell your goods on multiple sales channels such as Amazon and eBay. 

In such cases, you should choose an accounting software solution that supports multi-channel sales data syncing.

Simplicity and Ease of Use

How simple and easy to use is the accounting software? A solid eCommerce accounting platform should have an intuitive user interface that is uncomplicated and easy to understand.

There should be no need for extensive training or technical knowledge required to use it. Ideally, the software should have a user-friendly dashboard that provides a quick overview of the financial health of your business.

In addition, automated accounting processes should be made available on the software, as they make work simpler and faster. For example, recurring payment slips, deposits, invoices, and bank reconciliations should have already set templates that automatically  get filled when needed. 

This will save you time and reduce errors while allocating room to allow you to focus on other important aspects of your business.

Smart tip: If you find your accounting software solution difficult to understand and use, you can hire a professional virtual accounting solution instead. These experts will manage your finances and help you save a ton of time. 

Easy Customization

Every eCommerce business is unique and has specific accounting requirements. The software should offer customizable settings that allow you to tailor the software to your business needs. 

It is hence necessary for accounting software to have its unique appearance and appeal, as they attract customers that come in contact with it and make the work easier and better to understand. 

For example, the software should allow you to customise simple features like a specific number of rows and columns per page, a chart of accounts, and interface colour. It should also help automated functions like creating custom invoice templates and generating custom reports.

Additionally, the software should allow you to set up different user roles and permissions to control who has access to sensitive financial data.

Tax Compliance and Security

Ensure the software you choose can handle tax calculations and help you comply with local and state tax laws. This will save you time, risks, errors, and council fines. 

Access and control to all financial data must remain discreet and highly confidential. All eCommerce business information is and should be regarded as sensitive, as they contain customers’ payment information and bank account details. 

Therefore, choosing an accounting software solution with robust security features is crucial. The following three security features are crucial for eCommerce accounting software solutions to avoid jailbreaks and software hacks. 

•  Data encryption: All sensitive data should be encrypted before it leaves your computer or server so that it cannot be read by third parties if intercepted during transmission. 
•  Multi-factor authentication: Requiring users to provide multiple pieces of identification (i.e., password plus PIN) helps prevent unauthorised access from hackers who might try to guess or steal passwords through phishing attacks. 
•  Secure data storage: Your accounting software should use secure databases with strong passwords that are regularly updated; look for solutions that encrypt all customer information stored in these databases.

Scalability and Regular Updates

You also need to consider the scalability of the accounting software. Growth brings about change, and accounting requirements are no exception to this theory. 

A good eCommerce accounting software should accommodate the growth of your business without requiring a complete overhaul.

The software should be able to handle increased transaction volumes, support multiple currencies, and integrate with additional sales channels. Additionally, the software should allow you to change your subscription plan based on your business requirements. 

It is also necessary to perform software updates, as it indicates that the business is growing. However, if you use software that doesn’t support these functions or provide seamless operations, you can jump ship before it causes serious organisational problems. You are not indebted to a particular software and don’t fear taking on a new one. 

Customer Support

The accounting software provider usually offers customer support to all its users. The software should come with comprehensive documentation and tutorials that help you get started and troubleshoot common issues. 

Also, note that tutorial videos should be the first thing the customer sees when logging in to the program. It provides a sense of connection between both parties.

Furthermore, the provider should offer reliable customer support channels like phone, email, and chat. The support team should be knowledgeable, responsive, always active, and able to resolve your issues quickly.

Choosing a virtual finance team can help you avoid solutions with terrible customer support. Having a hands-on team that’s available whenever you need them can benefit your business during a crisis. 

Cost

The final criterion to consider is the cost of the accounting software. While choosing a software solution that meets all your business requirements is important, it should also be cost-effective. Price and maintenance requirements should be within your budget.

Final Thoughts

In conclusion, choosing the ideal eCommerce accounting software solution is vital for the success of your business. Carefully consider each factor before selecting the program that best suits your requirements. 

With the proper software, you can improve your financial reporting, optimise your accounting procedures, and make well-informed decisions to expand your company. If you’re struggling to decide about which accounting software to go with, contact us.