Ecommerce Financial Management 101 and Bookkeeping Toronto Solutions

Michael Pignatelli
Aug 27, 2021

Suppose you are a Toronto business that opens up an eCommerce store. You realized how exciting the opportunity is: putting up your products in a potentially lucrative space, making them available 24/7 and accessible to customers worldwide. Ecommerce marketing is already a significant part of effective branding strategies, so you wanted to build and grow a strong online presence.

Building an eCommerce store doesn't come for free. You need to shell out a fee in return for something profitable. From purchasing domain names to dealing with bookkeeping duties, you will need to prepare a solid financial system to work these things out. Once your store gets launched online, you need efficient bookkeeping solutions to manage your finances. Ensuring your expenses are tracked, recorded, and sufficient is one of the fundamentals of bookkeeping. 

Bookkeeping is a significant task. However, it also takes up a lot of your time, so you might not have enough room for other aspects of your eCommerce business. What's worse, you might overlook other matters that can massively affect your business. So, before things get out of hand, we recommend hiring bookkeeping services. Unloop will walk you through eCommerce bookkeeping essentials and how our services can be of great help—whether you're doing bookkeeping in Toronto, bookkeeping in Canada, or bookkeeping in the U.S.

ecommerce bookkeeping toronto essentials

Ecommerce Bookkeeping Essentials

With eCommerce bookkeeping, you usually have a computer screen to view and work on all financial data. It might seem easier since you have everything stored in one device, but that is only possible if you handle bookkeeping correctly. Here's an overview of things you should focus on in eCommerce bookkeeping. 

Inventory Management

Managing inventory is necessary to find out your online store's sales. Installing a tracker in your eCommerce platform makes this job easy, but it gets complicated once you start selling in multiple online marketplaces like Amazon. In addition, the tracker from your eCommerce website won't include external sales records.  

Multiple Currencies

Foreign currencies are a challenge to an eCommerce business. While platforms make international selling and shipping easy, they are complicated to work on books. The difference in conversion rates such as gross sales, merchant fees, and other related factors can cause an error in account reconciliation. You need accurate information on the conversation rate your platform uses in converting currencies to reconcile foreign sales successfully.

Tracking Fees

Miscellaneous fees aren't easy to track. Ecommerce platforms have different fee structures, so some are manually manageable while others are more accessible with automation. Usually, you would be charged a monthly fee for the listing, transactions, advertising, fulfillment, and more. However, some platforms don't provide a detailed breakdown of these costs, so planning your budget can be difficult. 

Handling of Returns

A product return is an inevitable part of eCommerce, so you need an excellent strategy to reduce its negative impact on your accounting procedures. Returns prompt required adjustments to the inventory, which mess up your books. You must have an agreeable return policy that ensures returns are recorded, verified, and processed well.

Data Entry

Data entry is extremely time-consuming, and the amount of information you need to record manually grows when your business does. Items like seller fees, shipping fees, and local sales taxes can be overwhelming and vulnerable to errors. Using an automated accounting software or outsourcing to a bookkeeping team makes things a lot easier for you. 

bookkeeping toronto team concept

Bookkeeping Solutions With Unloop

We understand the challenges you face with eCommerce bookkeeping. Technology isn't always quick and easy to learn, but you want to minimize bookkeeping mistakes and not waste too much time learning the fundamentals. With Unloop's bookkeeping services, you can operate eCommerce accounting smoothly and steadily.

A Business Partner Who Helps You Grow

Unloop is as invested in the business as you do. We handle bookkeeping and income sales taxes efficiently in collaboration with partner accounting firms. We ensure that your small business is growing and let you know how you can develop it further.

A Consistent Bookkeeping Team

We are committed to helping you grow your business, which is reflected in our provision of financial reports. We make sure that you are receiving consistent and accurate financial statements to minimize the risks of data error and incorrect sources of financial information. 

Cost-Saving But High-Quality Solutions

As your business partner, we understand the need for affordable and high-quality bookkeeping services. If you're a small business bookkeeping in Toronto, there's no need to worry about having a tight budget. Unloop is dedicated to providing low-cost bookkeeping services with a high value. 

Tech Experts

Our team is highly skilled when it comes to the latest and most efficient bookkeeping and accounting software. We use top-performing tools to complete your books: Quickbooks, A2X, and Hubdoc are fantastic inclusions from Unloop's bookkeeping plan! 

You Can Count On Us Anywhere, Anytime

Adapting to a world where everyone does most things online, Unloop offers remote services and 24/7 customer support. With this setup, you can save costs with remote outsourcing, stay safe amidst the pandemic, and acquire efficient bookkeeping services in Toronto. We also work with businesses located in other parts of Canada and the U.S.

Conclusion

Ecommerce is a big game-changer in the business world. Retailers can save costs for physical location and workforce because of technology's capabilities. But as good as it gets, there are always challenges to face. Financial management is one of these, so you need an experienced team to rely on bookkeeping and accounting duties. 

Looking for a bookkeeping team is made easy with an online search. Without leaving your couch, you can search using relevant terms, such as bookkeeping services Toronto or small business bookkeeping services Toronto. You might find many options, but many don't always equal good news. You need to review each company to see which meets your needs. If you think Unloop matches the ideal bookkeeper you would like to work with, consider trying out our services for one month, which is free! Get to know more about our team's capabilities in helping you grow your eCommerce business. 

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About unloop
Unloop is the first and only accounting firm exclusively servicing ecommerce and inventory businesses in the US and Canada. With the power of people and technology, our team dives deep into COGS and inventory accounting.. You are paired with a dedicated bookkeeping team that prepares accurate financial statements, financial forecasts, and can also pay bills or run payroll for you. Come tax time, everything is organized and ready to go, so you don't need to worry. Book a call with an ecommerce accountant today to learn more.
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