Running a small business is no easy feat. There are several areas of a business that an owner should manage properly to keep their business running smoothly. Managing a company's finances is one of the most difficult aspects of running a corporation. Finances cover a wide area, such as accounts payable, taxes, shipping costs, inventory management, and more.
Many small business owners face difficulties in keeping up with their finances, ultimately leading to their business’s downfall. Fortunately, ecommerce bookkeeping services can organize, sort, and store your financial data for proper analysis. These data can be used to assess the overall health of your business and help you grow your business further.
Considerations You Should Look Into
Bookkeeping services help with the complexities of your finances. But before picking the cheapest bookkeeper, there are a few key attributes you might want to take into account. First, of course, getting a bookkeeping service is an investment. So make sure you get the service worth your money. Here’s how you can do that.
Check the Company’s Experience
You’ll be surprised with just how many companies are offering bookkeeping services, which makes this industry one of the most competitive. While a relatively new bookkeeping service is not bad, the experience an agency has is proof of their high-quality service.
In addition to experience, it’s important to see if qualified professionals will handle your bookkeeping. It does not take professional education to be a bookkeeper but always ensure they have the proper training to give you the service worth your money.
Finally, it will do you well if you check their performance history. A credible bookkeeping company will be happy to show their portfolio. Their portfolio will help you see if they performed well with their previous clients and if their service is suitable for your business.
Compatibility with Ecommerce Platforms
If you’re an online seller, the most common scenario is that you sell your products across multiple ecommerce platforms to gain more customers. It's a great idea for boosting sales and audiences, but tracking your inventory will be more challenging as you sell more products and grow your business.
Look for a bookkeeping service to consolidate all your inventory into a central account. Modern bookkeeping uses automated software for more convenient inventory tracking. As your business expands, be careful to hire an accounting service that can meet your demands.
Don't make compromises on services that limit selling on a single platform. Instead, choose the one that can provide you with services that suit your needs and, if possible, the one that uses the best software with advanced features.
Keeps Up with Modern Technology
The bookkeeping process has changed drastically over the years. From manually recording every entry on books and ledgers (that are usually error plagued and more likely to get lost), computers have made data recording more convenient.
Find a company that takes advantage of technology. Make sure their services can automate your business’s bookkeeping. They should also give you subscriptions to bookkeeping software which you can integrate with your business’s existing software.
Some of the technological advancements you should look for are mobile compatibility, cloud-based bookkeeping, multi-warehouse management, and data analytics.
Payment Processing
Almost all companies accept a variety of payment options to make it simple for their clients. Payments are financial transactions that are the primary data of the bookkeeper's record. Ensure that the bookkeeping service can track and record every payment in your business, so your records are accurate, and your sheets are balanced.
Customers can make payments through a variety of means in addition to cash, like debit cards, credit cards, Apple Pay, Google Pay, and many more. If your bookkeeping service integrates software, ensure that the software identifies and records all of your payment options, so you won't have to revert to manual data entry.
Refunds, Returns, and Exchange Tracking
Data shows that up to $428 billion worth of products are returned or refunded yearly. Dealing with returned items also costs sellers. It's an additional expense, especially when the item is defective. These additional expenses should also be transparent in your financial records.
Returns and refunds can hurt small businesses. That's why it's important that your bookkeeping service can track all of these expenses. Then, you can use the data to address certain issues and look for solutions to lessen the return cost so you can profit more.
In addition, shipping fees should also be included with expense tracking. Your customers' fee does not necessarily mean you pay the same cost as your courier. However, shipping is a form of expense in businesses, and accurate tracking of these expenses can help see if you're overspending.
Inventory management
One of the advantages of professional bookkeeping solutions is inventory management. You can manage your inventory more effectively by keeping track of your inventory. The system will tell you if you are running low on products that need restocking, so you can deliver to customers on time.
Inventory management can also tell you which of your goods run out faster, which you can take advantage of and stock more of to increase your sales. If you're selling on multiple platforms, ensure your bookkeeping service can track all your inventory across the platforms for a smoother supply chain.
Sales Tax Management
Almost all the goods you sell are levied with sales tax. As a seller, you collect sales tax and remit it to the government tax collection agency. You should know that the payment you receive from your buyers is not completely yours. The buyers shoulder the sales tax, so a portion of your total sales should go to taxes.
One thing to look for in a bookkeeping service is sales tax management. With this service, it will be easier to remit the taxes with fewer errors and without having to guess the right amount. Failure to comply will mean fines and penalties, which are unnecessary expenses that can be avoided.
Moreover, proof that your business is paying the correct amount will be helpful when someone audits your business. A spotless record also draws investors, which is advantageous for growing your business.
Unloop: The Bookkeeping Company Perfect for Small Businesses
Several firms offer bookkeeping for small and ecommerce businesses. But if you're unsure where you can get the best service possible, try Unloop's bookkeeping services. Our experts work extensively with ecommerce and inventory businesses to ensure your needs are met.
Here are some of the things you can expect from our bookkeeping services:
- Accurate balance sheets, cash flow, and income statements monthly.
- The best bookkeeping software for ecommerce. Our experts set up the data for you, and everything is automated from then on.
- Financial statements done with the use of accrual accounting methods.
- Analysis and KPIs that directly apply to your business.
- FIFO and WAC methods for inventory management and COGS.
- Unlimited customer support via Slack.
Takeaway
Bookkeeping is a tremendous help in keeping your funds organized. Your business's performance can be inferred in large part due to the statistics from your sales, costs, and taxes. That is why getting a trustworthy bookkeeping firm that accurately records and manages all your financial data is important. Make sure to take note of these considerations when looking for a bookkeeping service for your business. Bookkeeping is just one service Unloop can offer. Your growing business needs more than just clean books and records. Our services also include accounting, payroll management, forecasting, and managing your taxes. So give us a call right now, and let's discuss what we can do for your business.