Ecommerce

Accounting Service for E-Commerce Businesses

Sheldon Bookkeeping provides accounting services to ecommerce businesses operating in the US.

We understand and use cloud technology to deliver complete accounting services for starting and growing an e-commerce growing business. From set-up to maintenance, we can help guide you through inventory control, accounting workflow, and expansion to new sales channels. We work with different payment platforms and selling platforms.

Built on our expertise as a Certified QuickBooks ProAdvisor and our participation as a part of .QuickBooks Business Affiliate Program, we integrate the various pieces you need to operate a thriving e-commerce enterprise.

Successful Ecommerce Businesses

There are several types of e-commerce businesses that have been successful in recent years. Here are some examples:

1. Dropshipping: This is a business model where you set up an online store and sell products without holding inventory. Instead, you source products from a supplier who ships them directly to your customers.
2. Subscription-based services: This involves providing products or services on a regular basis for a monthly or yearly fee. Examples include meal delivery services, software subscriptions, and beauty box subscriptions.
3. Online marketplaces: These are platforms that allow multiple sellers to list their products and services in one place. Examples include Amazon, Etsy, and eBay.
4. Niche e-commerce: This involves selling products or services that cater to a specific audience. Examples include pet products, sustainable clothing, and gourmet food items.
5. Digital products: This involves selling digital goods such as e-books, courses, software, and music.

Ultimately, the success of an e-commerce business depends on several factors, including market demand, product quality, marketing strategy, and customer service.

Tracking Inventory Basics for E-commerce

Tracking inventory is an essential part of running an e-commerce business, especially if you sell physical products. Here are some steps you can take to track inventory in your e-commerce store:

1. Choose an inventory management system: There are many inventory management software solutions available, some of which integrate directly with popular e-commerce platforms like Shopify, WooCommerce, or Magento. Choose a solution that fits your needs, budget, and e-commerce platform.
2. Set up product SKUs: SKUs are unique identifiers that help you track your products. Assign a unique SKU to each product and variant in your inventory.
3. Set initial inventory levels: Once you’ve added your products to your inventory management system, set initial inventory levels for each product and variant. This will help you keep track of your stock levels and prevent overselling.
4. Track sales and shipments: As you sell products, track sales and shipments in your inventory management system. This will help you keep track of stock levels in real-time.
5. Conduct regular inventory audits: Conduct regular inventory audits to ensure that your stock levels are accurate and that your inventory management system is working correctly.
6. Set up low-stock alerts: Set up alerts in your inventory management system to notify you when stock levels reach a certain threshold. This will help you avoid stockouts and prevent overselling.

By following these steps, you can effectively track inventory in your e-commerce store and ensure that you have accurate stock levels at all times.

Payment Platforms

An e-commerce payment platform is a system that enables online businesses to accept payments from customers electronically. It is essentially a payment gateway that processes transactions between a customer and an online store, allowing for secure and convenient online payments.

E-commerce payment platforms typically provide a range of payment options, such as credit card, debit card, bank transfers, and digital wallets like PayPal, Apple Pay, and Google Pay.

In addition to processing payments, many e-commerce payment platforms offer features such as fraud detection, chargeback protection, and transaction reporting. These features help online businesses manage their finances and protect themselves against fraudulent transactions.

Some popular e-commerce payment platforms include PayPal, Stripe, Square, and Authorize.net. These platforms typically charge a fee for their services, which can vary depending on the transaction volume and payment methods used.

Using an e-commerce payment platform can help online businesses streamline their payment process and increase their sales by offering customers a convenient and secure way to pay for products and services.

Sheldon Bookkeeping works with these and other payment processors:

Popular E-Commerce MarketPlaces

An e-commerce marketplace is an online platform where multiple vendors can list their products or services for sale to a large audience. E-commerce marketplaces offer a centralized location for consumers to browse and purchase products from a wide range of sellers, making it convenient and efficient for both buyers and sellers.

Some of the most popular e-commerce marketplaces include Amazon, eBay, Etsy, and Alibaba. These marketplaces typically provide sellers with tools to manage their listings, track sales, and communicate with customers, while also providing buyers with a streamlined shopping experience with features such as reviews, ratings, and a secure payment system.

E-commerce marketplaces can be beneficial for sellers, as they provide access to a large customer base and a pre-built platform for listing and selling products. For buyers, marketplaces offer a wide range of products, competitive pricing, and a trusted platform for making purchases.

However, there are also some potential drawbacks to using e-commerce marketplaces, such as increased competition, fees, and limited control over the customer experience. Some sellers may choose to build their own e-commerce store to avoid these potential issues.

Overall, e-commerce marketplaces have become an important part of the online retail landscape, providing a convenient and efficient way for both buyers and sellers to participate in e-commerce.

Shopify and QuickBooks Online Integrations

A Shopify and QuickBooks integration is a connection between an online store created on the Shopify platform and the QuickBooks accounting software. The integration allows for the automatic synchronization of sales data, financial transactions, inventory levels, and other business data between Shopify and QuickBooks.

With this integration, Shopify store owners can streamline their accounting and financial management processes, avoid manual data entry, and reduce the risk of errors. Some of the key benefits of a Shopify and QuickBooks integration include:

1. Automatic syncing of data: Sales, inventory, customer, and financial data can be synced automatically between Shopify and QuickBooks, reducing the need for manual data entry.
2. Better financial reporting: QuickBooks can generate detailed financial reports, including profit and loss statements, balance sheets, and cash flow statements, based on data from the Shopify store.
3. Improved inventory management: QuickBooks can provide real-time visibility into inventory levels, helping store owners manage their stock levels and avoid overselling.
4. Simplified tax compliance: QuickBooks can help store owners track and calculate sales tax owed, making it easier to comply with tax regulations.

There are several tools and apps available to help with the integration between Shopify and QuickBooks, including QuickBooks Sync by Bold, Webgility, and Connex for QuickBooks. These integrations can help store owners manage their finances more effectively and efficiently.

Sales Platforms

A sales platform in e-commerce is a software or website that facilitates the buying and selling of products or services online. It can be a standalone platform or a feature within an e-commerce website. The purpose of a sales platform is to provide a user-friendly interface for buyers to browse and purchase products or services, and for sellers to manage their online storefront and sales.

Sales platforms typically include features such as a shopping cart, secure payment processing, product listings, inventory management, and order tracking. Some sales platforms also offer additional features like marketing tools, analytics, and customer relationship management (CRM) tools.

There are many different types of sales platforms in e-commerce, including:

1. Online marketplaces: Platforms like Amazon, eBay, and Etsy provide a space for multiple sellers to list and sell their products to a large audience.
2. E-commerce platforms: Platforms like Shopify, Magento, and WooCommerce allow businesses to create their own online store and manage all aspects of the sales process.
3. Social media platforms: Platforms like Facebook, Instagram, and Pinterest offer e-commerce features that allow businesses to sell products directly to their followers.
4. Mobile apps: Platforms like UberEats and Grubhub enable customers to purchase products or services from local businesses through a mobile app.

Overall, sales platforms in e-commerce provide a way for businesses to reach a wider audience, streamline the sales process, and manage their online sales more efficiently.

Best Accounting Practices for ECommerce Businesses

Proper accounting practices are essential for any e-commerce business to ensure financial stability and compliance. Here are some best practices for e-commerce accounting:

1. Keep accurate records: It’s important to keep track of all financial transactions, including sales, expenses, and taxes. Use a reliable accounting software to record and reconcile transactions on a regular basis.
2. Separate personal and business finances: Create separate bank accounts and credit cards for your e-commerce business to avoid mixing personal and business finances. This will simplify accounting and make it easier to track your business expenses.
3. Track inventory: If you sell physical products, it’s important to keep track of your inventory levels. Use inventory management software to track stock levels, monitor sales trends, and reorder products when necessary.
4. Monitor cash flow: Keep an eye on your cash flow by monitoring your incoming and outgoing payments. This will help you identify potential cash flow problems and make informed decisions about your business finances.
5. Hire an accountant or bookkeeper: Consider hiring an accountant or bookkeeper to help you manage your e-commerce accounting. A professional can provide valuable advice on tax planning, financial reporting, and other accounting issues.

By following these best practices, you can ensure that your e-commerce business stays on track financially and complies with all relevant accounting regulations.

We Speak Ecommerce

We partner with several ecommerce backend platforms, including Shopify.

Let us harness the power of today’s cloud-based E-commerce software to bring you a fully functioning integrated accounting system with your business operation.