Our team members manage their own Amazon/Shopify stores or have helped immediate family members manage their Amazon/Shopify stores. We don’t just work with clients in eCommerce; we live and breathe it day to day just like you do!
The Problem: Similar to our startup clients, most founders choose a DIY approach for their accounting and make the classic mistake of doing everything in their business to save money. We understand where you’re coming from. You want to keep your expenses low and preserve cash. We get it.
Although saving a bit of money in the short term is tempting, we believe this can be a costly decision in the long term. Here is why:
You might spend 20 hours each month doing your accounting and save $300 by not paying for an outsourced bookkeeper or CFO. But have you ever wondered what would happen if you spent 20 hours per month getting new customers or increasing sales in your business instead of bookkeeping?
If you can spend 20 hours and make an additional $1,000 in revenue for your business, it’s a no-brainer. You’ve basically paid for the cost of outsourcing bookkeeping at $300 and made an extra $700.
The opportunity cost of outsourcing your accounting comes down to the old adage “In trying to save a few pennies, don’t be penny wise and pound foolish.”
Bookkeeping for eCommerce
Bookkeeping for eCommerce businesses is quite unique. Our professionals understand the importance of keeping track of inventory and payments from marketplaces like Amazon and Shopify.
We take the time to understand your eCommerce business to ensure that we develop a bookkeeping solution that utilizes technology and apps to make the process automatic, accurate, and seamless.
We will design an accounting tech stack for you based on three pillars:
- Record accounting transactions (Xero, Quickbooks online)
- Keep track of expenses (Dext, Hubdoc)
- Integrate marketplace payments (A2X, Taxomate)
Amazon and Shopify Integration for eCommerce
It’s crucial that your bookkeeping software and the marketplace where you sell your products is well integrated.
For Amazon sellers, you need a solution that will keep track of all your sales on Amazon, including all of the expenses you pay to Amazon for FBA, shipping, advertising, etc.
Moreover, Amazon collects sales taxes on your behalf, which requires tracking in your bookkeeping software when filing your GST/HST return. We integrate your bookkeeping software and the marketplace where you sell your products using software such as A2X or Taxomate.
Inventory Management for eCommerce
Keeping track of inventory and Cost of Goods Sold (COGS) on Amazon isn’t easy. You’re trying up your profits in inventory to make sure you can increase your sales, and you need to keep track of which products are selling well so you can double down on your most successful products. We get it; it’s a lot to keep track of.
We use the average cost method to record COGS, which allows you to smooth out pricing differences between multiple SKUs. As part of our service offering for FP&A for eCommerce sellers, our professionals can do a SKU analysis to help you determine which of your products have the highest margin and sales velocity so that you can improve your profitability and grow your income.