Sign up for the latest in ecommerce  finance

Subscription Form
Our newsletter is packed with the latest and greatest in ecommerce finance. Learn more about ecommerce M&A, leading technology, best practices and industry trends.
Mike P - Green background
Michael Pignatelli, CPA
CEO, Unloop

Category: Accounting

Starting a business is a risk. However, it is exciting and it might be tempting to swim ahead into new waters in an attempt to achieve success. Unfortunately, small business owners will have a million things to do. The process of creating a product to sell is only one facet of a business. There's finances, marketing, and advertising, and business owners only have themselves to rely on most of the time. 

You often need a second set of hands to help you run a business. Moreover, if there are areas of the business that you're not familiar with, getting an expert may be a wise move for your success. But many business owners are reluctant to hire professionals because of the cost. o you really need one? 

Here are some important questions to ask yourself to help you decide if you need a professional accountant. 

1. Can I handle my own accounting for a small business?

If you're a certified accountant, managing your business finances will be easy. But let's say you're a beginner in the ecommerce industry. Can you do the accounting by yourself? Assess how much you know about accounting and how sure you are that you can handle your finances efficiently and error-free. 

When you encounter double-entry bookkeeping, income statements, cash flows, accounts payable and receivable, and fixed expenses, can you differentiate and identify their purposes? Business finance covers many things, so make sure you can handle whatever applies to your business if you opt not to hire a professional. 

2. Can I dedicate time out of my day for accounting? 

If accounting for small businesses fits in your skill set, the next thing you need to ask yourself is if you can dedicate time to manage your finances. As a business owner, you have to oversee the different parts of your business, and business owners often get heavily involved in different processes of their business

Tasks like talking and striking deals with your suppliers, picking up goods from warehouses, fulfilling deliveries, meetings with potential partners, managing your business webpage, and answering messages about your products are just a few of the jobs you must complete daily—especially if you work alone.

After all these tasks, can you still see yourself managing your finances? Finances require accuracy and complete concentration. After a tiring day, are you still up to the task?

accountant assessing data 

3. What do I know about taxes? 

Handling finances also means managing your taxes. Even seasoned people in the business dread managing taxes. There are many taxes levied when you start a business, and different taxes require different declarations and forms. How well-versed are you when it comes to business taxation? 

Do you know how to file income taxes? How about sales tax? Do you know the sales tax rate and laws? Do you know how sales tax collection works? You should also be familiar with filing due dates, depending if you file taxes annually or quarterly. 

Furthermore, there are also tax exemptions. Do you know the laws that make your products eligible for exemption? Tax exemption can lessen the taxes you pay to the collection agency. You can allocate these funds to further develop your business through investments. 

4. Can I afford to hire professional accountants? 

Professional accountants do have a standard rate. It may vary depending on whether you hire from accounting firms or look for a private accountant. Of course, the more experience the accountant has, the higher they will charge. 

Budget is one of the factors why many business owners opt to forgo hiring professionals. On average, an accountant's hourly rate is $117. Other services like small business bookkeeping cost an average of $200. Research shows that business owners spend anywhere from $1,000 to $20,000 on accounting annually. 

This price point may be daunting for individuals fresh on the market. One thing you can do is hire accountants in a part-time position. This way, you'll still get the help you need without breaking your budget. You can create a schedule when you need your accountant, instead of having them on-call five days a week. 

5. Do I need other services instead? 

It's easier to handle finances at the beginning of your business. But maybe you need help in other things like organizing and keeping your records clean. An accountant is distinct from a bookkeeper. A bookkeeper does not need to pass state-mandated licensing examinations or a professional accounting degree.

Bookkeepers are trained to organize and record your business’s cash flow. They record all the financial transactions so you can track the money that goes in and out of your business. In addition, they can produce financial statements and reports which can say a lot about the health of your industry. 

They can provide you with balance sheets to see if your expenses are parallel with your sales so that you can plan your finances strategically. In addition, bookkeeping costs significantly less than accounting, and there are even automated bookkeeping software that won’t break the bank. 

However, bookkeepers can't do what accountants do. Their main goal is to record all your financial transactions; it is an accountant's duty to interpret and analyze the data. So maybe once a month or every quarter, have your bookkeeper meet a professional accountant for a consultation. 

6. What are the roles of an accountant in a small business? 

Bookkeeping for small businesses is an advantage, but a bookkeeper’s role is limited to your cash flow—no more, no less. So what difference does a certified accountant make? Here are some of the crucial duties a qualified accountant has to perform for your business. 

  • The accountant ensures that all financial documents are accurate and comply with tax laws and possible changes. 
  • Accountants are primarily responsible for managing your business's taxes. They make calculations to ensure you pay the right tax and file it on schedule to avoid penalties.
  • Accountants can assess your financial data. With this, they can give you tips to further your business growth, and they can identify potential issues and give you solutions to help you strategize. 
  • Accountants can do business forecasting, which is useful for planning. They can also do risk assessments, cost reductions, revenue development, and income maximization. 
professional accountant checking statement 

Final Thoughts 

Ask yourselves again, “Do I need an accountant for my small business?” It's not a requirement for every business, but it's a huge advantage. At the beginning, hiring an accountant may seem unnecessary. But as your business grows and a lot of cash comes in and out, an accountant will make sense of all the financial data to make sure your business’s overall financial health is in order. 

If you’re considering getting an accountant, Unloop offers the best services for ecommerce sellers. We have professionals that can help you navigate different aspects of your business. Our services include payroll management, income tax, sales tax, accounting, and bookkeeping. 

Book a call with us now and consult with our experts. Let us help you carve your way to success.

Business Inquiry: Do I Need an Accountant for My Small Business?
Watch Now

Starting a business is a risk. However, it is exciting and it might be tempting to swim ahead into new waters in an attempt to achieve success. Unfortunately, small business owners will have a million things to do. The process of creating a product to sell is only one facet of a business. There's finances, marketing, and advertising, and business owners only have themselves to rely on most of the time. 

You often need a second set of hands to help you run a business. Moreover, if there are areas of the business that you're not familiar with, getting an expert may be a wise move for your success. But many business owners are reluctant to hire professionals because of the cost. o you really need one? 

Here are some important questions to ask yourself to help you decide if you need a professional accountant. 

1. Can I handle my own accounting for a small business?

If you're a certified accountant, managing your business finances will be easy. But let's say you're a beginner in the ecommerce industry. Can you do the accounting by yourself? Assess how much you know about accounting and how sure you are that you can handle your finances efficiently and error-free. 

When you encounter double-entry bookkeeping, income statements, cash flows, accounts payable and receivable, and fixed expenses, can you differentiate and identify their purposes? Business finance covers many things, so make sure you can handle whatever applies to your business if you opt not to hire a professional. 

2. Can I dedicate time out of my day for accounting? 

If accounting for small businesses fits in your skill set, the next thing you need to ask yourself is if you can dedicate time to manage your finances. As a business owner, you have to oversee the different parts of your business, and business owners often get heavily involved in different processes of their business

Tasks like talking and striking deals with your suppliers, picking up goods from warehouses, fulfilling deliveries, meetings with potential partners, managing your business webpage, and answering messages about your products are just a few of the jobs you must complete daily—especially if you work alone.

After all these tasks, can you still see yourself managing your finances? Finances require accuracy and complete concentration. After a tiring day, are you still up to the task?

accountant assessing data 

3. What do I know about taxes? 

Handling finances also means managing your taxes. Even seasoned people in the business dread managing taxes. There are many taxes levied when you start a business, and different taxes require different declarations and forms. How well-versed are you when it comes to business taxation? 

Do you know how to file income taxes? How about sales tax? Do you know the sales tax rate and laws? Do you know how sales tax collection works? You should also be familiar with filing due dates, depending if you file taxes annually or quarterly. 

Furthermore, there are also tax exemptions. Do you know the laws that make your products eligible for exemption? Tax exemption can lessen the taxes you pay to the collection agency. You can allocate these funds to further develop your business through investments. 

4. Can I afford to hire professional accountants? 

Professional accountants do have a standard rate. It may vary depending on whether you hire from accounting firms or look for a private accountant. Of course, the more experience the accountant has, the higher they will charge. 

Budget is one of the factors why many business owners opt to forgo hiring professionals. On average, an accountant's hourly rate is $117. Other services like small business bookkeeping cost an average of $200. Research shows that business owners spend anywhere from $1,000 to $20,000 on accounting annually. 

This price point may be daunting for individuals fresh on the market. One thing you can do is hire accountants in a part-time position. This way, you'll still get the help you need without breaking your budget. You can create a schedule when you need your accountant, instead of having them on-call five days a week. 

5. Do I need other services instead? 

It's easier to handle finances at the beginning of your business. But maybe you need help in other things like organizing and keeping your records clean. An accountant is distinct from a bookkeeper. A bookkeeper does not need to pass state-mandated licensing examinations or a professional accounting degree.

Bookkeepers are trained to organize and record your business’s cash flow. They record all the financial transactions so you can track the money that goes in and out of your business. In addition, they can produce financial statements and reports which can say a lot about the health of your industry. 

They can provide you with balance sheets to see if your expenses are parallel with your sales so that you can plan your finances strategically. In addition, bookkeeping costs significantly less than accounting, and there are even automated bookkeeping software that won’t break the bank. 

However, bookkeepers can't do what accountants do. Their main goal is to record all your financial transactions; it is an accountant's duty to interpret and analyze the data. So maybe once a month or every quarter, have your bookkeeper meet a professional accountant for a consultation. 

6. What are the roles of an accountant in a small business? 

Bookkeeping for small businesses is an advantage, but a bookkeeper’s role is limited to your cash flow—no more, no less. So what difference does a certified accountant make? Here are some of the crucial duties a qualified accountant has to perform for your business. 

  • The accountant ensures that all financial documents are accurate and comply with tax laws and possible changes. 
  • Accountants are primarily responsible for managing your business's taxes. They make calculations to ensure you pay the right tax and file it on schedule to avoid penalties.
  • Accountants can assess your financial data. With this, they can give you tips to further your business growth, and they can identify potential issues and give you solutions to help you strategize. 
  • Accountants can do business forecasting, which is useful for planning. They can also do risk assessments, cost reductions, revenue development, and income maximization. 
professional accountant checking statement 

Final Thoughts 

Ask yourselves again, “Do I need an accountant for my small business?” It's not a requirement for every business, but it's a huge advantage. At the beginning, hiring an accountant may seem unnecessary. But as your business grows and a lot of cash comes in and out, an accountant will make sense of all the financial data to make sure your business’s overall financial health is in order. 

If you’re considering getting an accountant, Unloop offers the best services for ecommerce sellers. We have professionals that can help you navigate different aspects of your business. Our services include payroll management, income tax, sales tax, accounting, and bookkeeping. 

Book a call with us now and consult with our experts. Let us help you carve your way to success.

Read more

Invoicing is a business essential and a feature included in the best accounting software. Business owners like you looking for software with invoicing are probably wondering which between Sage and QuickBooks Online is the better option. Both of these programs will have unique offerings, but in the end, one will be better for your business.

In this blog post, we'll compare Sage Accounting vs. QuickBooks to show you which one is best for you. But first, let’s get to know the types of invoices in accounting and your store’s finances. 

The Types of Invoices

An invoice can be a hard copy or digitized document that contains information about the seller and the buyer, the date of the transaction, and payment details. There are different types like:

  • Pro forma: This is the invoice sent to buyers before they receive their goods, even in international transactions.
  • Timesheet: This includes work hours rendered by the seller.
  • Commercial: This is used for international deals submitted to the Bureau of Customs.
  • Retainer: Sent for advanced payments.
  • Recurring: Scheduled invoices consistently sent on the same date. 
  • Credit: Sent for expenses like returned and damaged goods.

These invoices serve as documentation that will help in income and expense tracking and cash flow management. With the right software, you can collect the details from these invoices for categorization and later run a report for analysis. 

The good news is that the comparison between Sage accounting software vs. QuickBooks Online isn’t too drastic, as both offer competitive invoicing features. Either will be a great choice. Nevertheless, you only need one accounting software for your business, so we’ll help you decide.

sage accounting vs. quickbooks

Sage Invoicing Features

Sage/Sage50 Cloud/Peachtree stands out among the many choices of accounting and financial management tools because of its industry-based assistance. The software assists accounting for companies in construction, real estate, human resources, manufacturing, chemical, wholesale, food and beverage, and even in the nonprofit sector. It addresses different small business accounting software needs, especially with its invoicing feature.

Online Invoicing

Say hello to Sage’s business cloud accounting invoicing. In only a few clicks, you can generate invoices and send them to customers. You surely won’t miss the traditional way of sending hard copy invoices which takes time for data entry, printing, and delivery. 

Receive Payments

When your customers receive their invoices, they can send their payments online. The Sage accounting software partners with Stripe, an online payment processing software. After paying, the money will be transferred into your business account. The customer’s payment and your receipt will be done without any hassle. 

Data to Invoices Quickly

You can automatically turn the estimates and quotes you have into invoices and send them to your customers in just a few clicks. Regular invoice creation can also be done quickly because the data you need, from the customer’s contact information, your business details, and the details of the products, are all stored in the online accounting software.

Easy Mobile Access

Sage50 Cloud used to only be for desktop use, but now, it is also available on mobile. So, if you ever need to generate invoices or stay on top of your small business’s financial management, you can easily do it on your phone. This data is kept safe as Sage is a cloud-based accounting software.

sage accounting software vs. quickbooks

QuickBooks Invoicing Services

Meanwhile, Intuit QuickBooks is also a great choice for your business’s accounting and financial management. It has a live bookkeeping service that keeps all financial transactions up-to-date. Payroll and payment tracking, bank accounts, credit cards, integrations with other applications, project management, and inventory management are some of the accounting tasks this tool can accomplish. For invoicing, here is what QuickBooks Online offers:

Bulk Invoices

QuickBooks Online can generate invoices, but more than this, the software can also send bulk invoices as the system can store all customer and product information. You can save a lot of time doing this instead of creating invoices one by one.

Recurring Invoices

If you have regular transactions, skip the hassle of creating invoices again and again or forgetting to send one through the help of recurring invoices. This accounting feature schedules the sending of the invoice. It also avoids late payments as customers can send their payments timely as well.

Invoice Setup Training

If it is your first time creating an invoice or using accounting software, QuickBooks Online can assist you through the Priority Circle. This training tool is completely free for those using QuickBooks Pro/Advanced. With Priority Circle, you’ll learn how to create different invoices, make templates, and send them to customers. QuickBooks also offers customer support for your invoice and accounting-related questions.

Different Payment Methods

The “Pay Now” link can work magic in encouraging customers to pay on time. Since QuickBooks welcomes integration with various payment methods, your customers can pay in ways convenient to them. The money goes straight to your account and reflects on your bank feed with no hassle!

Invoice Creation on Mobile

QuickBooks Online is on par with Sage50 Cloud regarding software mobile access. You can create and send invoices as long as you have your phone and an internet connection. You’ll also have your business’s financial information in your pocket anywhere you go. 

Sage vs. QuickBooks: The Verdict

Both are great accounting software, but when it comes to Sage/Peachtree vs. QuickBooks for small businesses, we believe that QuickBooks Online takes the top spot. QuickBooks has more advanced features like invoice training that is much needed by beginners, and it allows the creation and sending of bulk invoices. The accounting software also has more choices when it comes to payment methods.

Of course, your store may have unique needs that could sway you towards choosing Sage. But for the average small business, QuickBooks Online is likely the better option for invoicing and beyond. 

If you need assistance with keeping your books in order, Unloop offers bookkeeping services. We have a team of professionals well-versed with QuickBooks and other accounting and bookkeeping tools like Xero. Be sure to give us a call—we’d love to discuss our offers with you.

Sage vs. QuickBooks: Which Accounting Software Offers Better Invoicing?
Watch Now

Invoicing is a business essential and a feature included in the best accounting software. Business owners like you looking for software with invoicing are probably wondering which between Sage and QuickBooks Online is the better option. Both of these programs will have unique offerings, but in the end, one will be better for your business.

In this blog post, we'll compare Sage Accounting vs. QuickBooks to show you which one is best for you. But first, let’s get to know the types of invoices in accounting and your store’s finances. 

The Types of Invoices

An invoice can be a hard copy or digitized document that contains information about the seller and the buyer, the date of the transaction, and payment details. There are different types like:

  • Pro forma: This is the invoice sent to buyers before they receive their goods, even in international transactions.
  • Timesheet: This includes work hours rendered by the seller.
  • Commercial: This is used for international deals submitted to the Bureau of Customs.
  • Retainer: Sent for advanced payments.
  • Recurring: Scheduled invoices consistently sent on the same date. 
  • Credit: Sent for expenses like returned and damaged goods.

These invoices serve as documentation that will help in income and expense tracking and cash flow management. With the right software, you can collect the details from these invoices for categorization and later run a report for analysis. 

The good news is that the comparison between Sage accounting software vs. QuickBooks Online isn’t too drastic, as both offer competitive invoicing features. Either will be a great choice. Nevertheless, you only need one accounting software for your business, so we’ll help you decide.

sage accounting vs. quickbooks

Sage Invoicing Features

Sage/Sage50 Cloud/Peachtree stands out among the many choices of accounting and financial management tools because of its industry-based assistance. The software assists accounting for companies in construction, real estate, human resources, manufacturing, chemical, wholesale, food and beverage, and even in the nonprofit sector. It addresses different small business accounting software needs, especially with its invoicing feature.

Online Invoicing

Say hello to Sage’s business cloud accounting invoicing. In only a few clicks, you can generate invoices and send them to customers. You surely won’t miss the traditional way of sending hard copy invoices which takes time for data entry, printing, and delivery. 

Receive Payments

When your customers receive their invoices, they can send their payments online. The Sage accounting software partners with Stripe, an online payment processing software. After paying, the money will be transferred into your business account. The customer’s payment and your receipt will be done without any hassle. 

Data to Invoices Quickly

You can automatically turn the estimates and quotes you have into invoices and send them to your customers in just a few clicks. Regular invoice creation can also be done quickly because the data you need, from the customer’s contact information, your business details, and the details of the products, are all stored in the online accounting software.

Easy Mobile Access

Sage50 Cloud used to only be for desktop use, but now, it is also available on mobile. So, if you ever need to generate invoices or stay on top of your small business’s financial management, you can easily do it on your phone. This data is kept safe as Sage is a cloud-based accounting software.

sage accounting software vs. quickbooks

QuickBooks Invoicing Services

Meanwhile, Intuit QuickBooks is also a great choice for your business’s accounting and financial management. It has a live bookkeeping service that keeps all financial transactions up-to-date. Payroll and payment tracking, bank accounts, credit cards, integrations with other applications, project management, and inventory management are some of the accounting tasks this tool can accomplish. For invoicing, here is what QuickBooks Online offers:

Bulk Invoices

QuickBooks Online can generate invoices, but more than this, the software can also send bulk invoices as the system can store all customer and product information. You can save a lot of time doing this instead of creating invoices one by one.

Recurring Invoices

If you have regular transactions, skip the hassle of creating invoices again and again or forgetting to send one through the help of recurring invoices. This accounting feature schedules the sending of the invoice. It also avoids late payments as customers can send their payments timely as well.

Invoice Setup Training

If it is your first time creating an invoice or using accounting software, QuickBooks Online can assist you through the Priority Circle. This training tool is completely free for those using QuickBooks Pro/Advanced. With Priority Circle, you’ll learn how to create different invoices, make templates, and send them to customers. QuickBooks also offers customer support for your invoice and accounting-related questions.

Different Payment Methods

The “Pay Now” link can work magic in encouraging customers to pay on time. Since QuickBooks welcomes integration with various payment methods, your customers can pay in ways convenient to them. The money goes straight to your account and reflects on your bank feed with no hassle!

Invoice Creation on Mobile

QuickBooks Online is on par with Sage50 Cloud regarding software mobile access. You can create and send invoices as long as you have your phone and an internet connection. You’ll also have your business’s financial information in your pocket anywhere you go. 

Sage vs. QuickBooks: The Verdict

Both are great accounting software, but when it comes to Sage/Peachtree vs. QuickBooks for small businesses, we believe that QuickBooks Online takes the top spot. QuickBooks has more advanced features like invoice training that is much needed by beginners, and it allows the creation and sending of bulk invoices. The accounting software also has more choices when it comes to payment methods.

Of course, your store may have unique needs that could sway you towards choosing Sage. But for the average small business, QuickBooks Online is likely the better option for invoicing and beyond. 

If you need assistance with keeping your books in order, Unloop offers bookkeeping services. We have a team of professionals well-versed with QuickBooks and other accounting and bookkeeping tools like Xero. Be sure to give us a call—we’d love to discuss our offers with you.

Read more

Ecommerce accounting can be tedious, time-consuming, and error-prone, especially if you’re just new to the industry. Automated ecommerce accounting software, like A2X eCom Accounting, are just the thing you need to ease your worries. And we’ll tell you why.

Plenty of tools are available online, and there’s more being developed, but in this blog post, we'll discuss why A2X remains one of the best accounting software options available. What makes A2X stand out?

Let’s take a deeper look at what A2X Accounting is, its features, and its possible lowlights to determine if this is the right choice for your ecommerce business.

The Basics of A2X eCom Accounting Software

Businesses are already aware of the income-generating potential of online selling. If you are one of the brave souls to venture into the ecommerce space, you can rely on A2X as it is specifically designed for ecommerce sites. 

A2X for Amazon accounting covers your basic needs on the world's largest ecommerce site, but it also assists traders and auctioneers with their products on eBay. Likewise, A2X supports selling on other ecommerce channels like Walmart, Etsy, and Shopify.

Besides multi-channel support, A2X also caters to a range of business sizes and types, from businesses that have just opened their first ecommerce store to those that have already successfully scaled their ventures. 

The table below will give you an overview of what A2X can offer.

Mini Starter Standard Premium 
$19/month$49/month$69/month$139/month
1 Shopify/Amazon Marketplace Unlimited marketplaces per region Unlimited marketplaces per region Unlimited marketplaces per region 
200 orders/month1000 orders/month5000 orders/month10,000 orders/month 
3 months of transaction history 12 months of transaction history 24 months of transaction history Maximum number of transaction history 
Email support Email, live, tickets, and chat support Email, live, tickets, and chat support Email, live, tickets, and chat support with priority 

What Can A2X Accounting Do For Your Business?

The inclusions listed above are just the tip of the A2X iceberg. There are many more ways the accounting software can elevate your business and bring it to success. 

To give you a glimpse of its magic, here are eight reasons why the A2X Accounting software is an excellent addition to your business's financial management tools:

Reconcile Financial Data

Accurate ecommerce accounting is a must for every online business. It can tell you if your business is generating a profit, taking a loss, or if there are any discrepancies in your business finances. You can count on A2X to automatically reconcile the transactions in your online store platform to your accounting system.

Financial reconciliation also extends to your bank account. You can ensure that your sales are deposited to your bank accounts and spot if there are missing amounts before they can do damage to your business.

Support Multi-Sales Channels

A dedicated ecommerce business owner will find a way to generate more sales. Hence, most online retailers have more than one Amazon account. Another excellent business strategy is to sell on different marketplaces simultaneously.

While these game plans can undeniably increase sales, monitoring additional accounts and sites can be confusing. Thankfully, A2X would be of great help. 

A2X accounting can support up to five Amazon accounts and reconcile all your financial data in one accounting software. In addition, A2X tracks all the essential data from different sites and allows you to reconcile and migrate your data from two different ecommerce platforms. 

For example, if you have Shopify store sales and accounts and Amazon accounts, A2X can track the finances of both platforms and import the data on the software.

Generate Detailed Monthly Reports with Accurate Data

For a small business, detailed reports of ecommerce financials are a starting point for improvement. These reports are essential for gauging your company’s financial performance and growth accounting.

You can count on A2X to produce tidy summaries of finances at the end of each month. Whether it's reporting inventory, a record of sales or expenses, a balance sheet, or other business matters, keeping track of your operations becomes easier and more accurate. 

You can connect A2X to your ecommerce seller account to acquire data. A2X will then categorize the numbers it gets according to the details you want to see. Below is a step-by-step guide from A2X itself on connecting the tool to your Amazon Seller Central account.

Support Multi-Currency Payments

Shopify, Amazon, and other ecommerce platforms are available globally. You may expand your consumer base internationally, and A2X can simplify managing payments for your company. 

A2X can handle and recognize different currencies regardless of the default currency of the originating sales transactions.

Moreover, A2X also lets users manage tax liability more effectively. Different countries have various rates when it comes to sales and fees. A2X automatically deducts the correct sales tax and records it on the system to avoid confusion during tax season.

Inventory Management and Sales Margin Monitoring

You can keep track of how many inventory stocks you have in various locations thanks to A2X’s inventory management tool. It can give you detailed inventory reports and show you which products run out faster and which stay in your inventory longer.

With this feature also comes monitoring your business's sales margin. The accounting software will show you if your sales record matches your cost of goods, enabling you to create strategies for poor-performing and top-performing products.

Smooth Integration With Your Main Accounting Tool

Perhaps you manage more businesses, including physical stores and online selling sites not included in A2X's services. 

You'll find the best accounting tools like Quickbooks, Xero, and Sage business cloud accounting more helpful because you can integrate these three premium tools with A2X. With all your business data in one place, you can have a holistic view of your finances in a single click. 

If you want a side-by-side comparison of your stores to see and learn from each account's highlights and areas for improvement, you should utilize this A2X feature.

To give you an overview of the feature, check out the tutorial below on integrating Xero with A2X.

Customer Support Availability

Not every Amazon FBA seller or eBay seller dives into business bookkeeping and accounting equipped with knowledge and training. Also, not all accounting tools include teaching sessions in their program. So, eCommerce sellers often rely on self-education or paid tutorials. 

When you use A2X, you can also utilize its live chat support and customer service to assist you. This service is included in all plans, so you do not have to guess or learn from your mistakes. You can do your monthly bookkeeping and accounting swiftly with available customer support. 

Partnering With an Accounting Firm

Besides ecommerce sellers, A2X is also reliable for accounting firms. If your plate is full of tasks in running your ecommerce business, you can delegate bookkeeping and accounting to expert ecommerce accountants. 

Pick a firm that uses A2X, especially if your accountant uses a cloud-based accounting software that extracts data from your Amazon, Shopify, Etsy, Walmart, and eBay accounts. 

You can rely on the firm for data accuracy and timely financial updates with the proper software. You can also check other accounting tools your partner firm uses. Seeing Quickbooks, Xero, and Sage accounting tools is a good sign that the agency knows what they're doing. 

Are There Possible Downsides When Using A2X Accounting?

A2X accounting software sounds like the perfect tool to manage ecommerce accounting. To some, A2X is even the gold standard. However, there may be features that can be off-putting to some users. Consider those first before using this software.

Difficulty Learning the Interface

Most people that use A2X are accounting firms and professionals. According to some ecommerce business owners, learning and understanding how to use and navigate the interface takes some time. If you subscribe to the Mini plan, you must experiment and learn the software independently.

However, when you subscribe to higher plans, you can enjoy one-on-one onboarding with an A2X specialist to teach you how to use the software and its features. So if you have the budget to upgrade your plan, go for it!

Expensive Compared to Other Accounting Software

A2X could be pricey if you run a small business. There are free accounting software options, and some software starting plans are not more than $5. A2X software's most basic plan starts at $19 a month. Their pricing is almost four times more compared to other software.

However, A2X is very convenient for Amazon and Shopify sellers. Its features are designed to automate and address your accounting needs with just a few clicks. If you can stretch your budget a few more dollars, you'll know that your accounting is in good hands with A2X.

Source: Photo by fauxels from Pexels.com

Maximize the Power of A2X Accounting With Unloop

A2X Accounting is a great tool for managing your business finances, and we highly recommend using it. It offers a wide range of features, including integration with other financial management tools, generating detailed reports, inventory management, financial reconciliation, and more. 

In addition, the customer support team is available 24/7 to help you with any questions or problems that may arise. So, if you're looking for a way to keep track of your business finances, give A2X Accounting a try! 

Suppose you don't feel confident implementing these changes yourself, no problem! Unloop can help. 

We have a team of bookkeepers well-versed with A2X, and we also use reliable accounting tools, including Quickbooks and Xero. We would love to partner with you to take your ecommerce businesses to the next level. So call us today, and we'll let you know how we can help!

A2X eCom Accounting: The Ultimate Business Financial Management Tool
Watch Now

Ecommerce accounting can be tedious, time-consuming, and error-prone, especially if you’re just new to the industry. Automated ecommerce accounting software, like A2X eCom Accounting, are just the thing you need to ease your worries. And we’ll tell you why.

Plenty of tools are available online, and there’s more being developed, but in this blog post, we'll discuss why A2X remains one of the best accounting software options available. What makes A2X stand out?

Let’s take a deeper look at what A2X Accounting is, its features, and its possible lowlights to determine if this is the right choice for your ecommerce business.

The Basics of A2X eCom Accounting Software

Businesses are already aware of the income-generating potential of online selling. If you are one of the brave souls to venture into the ecommerce space, you can rely on A2X as it is specifically designed for ecommerce sites. 

A2X for Amazon accounting covers your basic needs on the world's largest ecommerce site, but it also assists traders and auctioneers with their products on eBay. Likewise, A2X supports selling on other ecommerce channels like Walmart, Etsy, and Shopify.

Besides multi-channel support, A2X also caters to a range of business sizes and types, from businesses that have just opened their first ecommerce store to those that have already successfully scaled their ventures. 

The table below will give you an overview of what A2X can offer.

Mini Starter Standard Premium 
$19/month$49/month$69/month$139/month
1 Shopify/Amazon Marketplace Unlimited marketplaces per region Unlimited marketplaces per region Unlimited marketplaces per region 
200 orders/month1000 orders/month5000 orders/month10,000 orders/month 
3 months of transaction history 12 months of transaction history 24 months of transaction history Maximum number of transaction history 
Email support Email, live, tickets, and chat support Email, live, tickets, and chat support Email, live, tickets, and chat support with priority 

What Can A2X Accounting Do For Your Business?

The inclusions listed above are just the tip of the A2X iceberg. There are many more ways the accounting software can elevate your business and bring it to success. 

To give you a glimpse of its magic, here are eight reasons why the A2X Accounting software is an excellent addition to your business's financial management tools:

Reconcile Financial Data

Accurate ecommerce accounting is a must for every online business. It can tell you if your business is generating a profit, taking a loss, or if there are any discrepancies in your business finances. You can count on A2X to automatically reconcile the transactions in your online store platform to your accounting system.

Financial reconciliation also extends to your bank account. You can ensure that your sales are deposited to your bank accounts and spot if there are missing amounts before they can do damage to your business.

Support Multi-Sales Channels

A dedicated ecommerce business owner will find a way to generate more sales. Hence, most online retailers have more than one Amazon account. Another excellent business strategy is to sell on different marketplaces simultaneously.

While these game plans can undeniably increase sales, monitoring additional accounts and sites can be confusing. Thankfully, A2X would be of great help. 

A2X accounting can support up to five Amazon accounts and reconcile all your financial data in one accounting software. In addition, A2X tracks all the essential data from different sites and allows you to reconcile and migrate your data from two different ecommerce platforms. 

For example, if you have Shopify store sales and accounts and Amazon accounts, A2X can track the finances of both platforms and import the data on the software.

Generate Detailed Monthly Reports with Accurate Data

For a small business, detailed reports of ecommerce financials are a starting point for improvement. These reports are essential for gauging your company’s financial performance and growth accounting.

You can count on A2X to produce tidy summaries of finances at the end of each month. Whether it's reporting inventory, a record of sales or expenses, a balance sheet, or other business matters, keeping track of your operations becomes easier and more accurate. 

You can connect A2X to your ecommerce seller account to acquire data. A2X will then categorize the numbers it gets according to the details you want to see. Below is a step-by-step guide from A2X itself on connecting the tool to your Amazon Seller Central account.

Support Multi-Currency Payments

Shopify, Amazon, and other ecommerce platforms are available globally. You may expand your consumer base internationally, and A2X can simplify managing payments for your company. 

A2X can handle and recognize different currencies regardless of the default currency of the originating sales transactions.

Moreover, A2X also lets users manage tax liability more effectively. Different countries have various rates when it comes to sales and fees. A2X automatically deducts the correct sales tax and records it on the system to avoid confusion during tax season.

Inventory Management and Sales Margin Monitoring

You can keep track of how many inventory stocks you have in various locations thanks to A2X’s inventory management tool. It can give you detailed inventory reports and show you which products run out faster and which stay in your inventory longer.

With this feature also comes monitoring your business's sales margin. The accounting software will show you if your sales record matches your cost of goods, enabling you to create strategies for poor-performing and top-performing products.

Smooth Integration With Your Main Accounting Tool

Perhaps you manage more businesses, including physical stores and online selling sites not included in A2X's services. 

You'll find the best accounting tools like Quickbooks, Xero, and Sage business cloud accounting more helpful because you can integrate these three premium tools with A2X. With all your business data in one place, you can have a holistic view of your finances in a single click. 

If you want a side-by-side comparison of your stores to see and learn from each account's highlights and areas for improvement, you should utilize this A2X feature.

To give you an overview of the feature, check out the tutorial below on integrating Xero with A2X.

Customer Support Availability

Not every Amazon FBA seller or eBay seller dives into business bookkeeping and accounting equipped with knowledge and training. Also, not all accounting tools include teaching sessions in their program. So, eCommerce sellers often rely on self-education or paid tutorials. 

When you use A2X, you can also utilize its live chat support and customer service to assist you. This service is included in all plans, so you do not have to guess or learn from your mistakes. You can do your monthly bookkeeping and accounting swiftly with available customer support. 

Partnering With an Accounting Firm

Besides ecommerce sellers, A2X is also reliable for accounting firms. If your plate is full of tasks in running your ecommerce business, you can delegate bookkeeping and accounting to expert ecommerce accountants. 

Pick a firm that uses A2X, especially if your accountant uses a cloud-based accounting software that extracts data from your Amazon, Shopify, Etsy, Walmart, and eBay accounts. 

You can rely on the firm for data accuracy and timely financial updates with the proper software. You can also check other accounting tools your partner firm uses. Seeing Quickbooks, Xero, and Sage accounting tools is a good sign that the agency knows what they're doing. 

Are There Possible Downsides When Using A2X Accounting?

A2X accounting software sounds like the perfect tool to manage ecommerce accounting. To some, A2X is even the gold standard. However, there may be features that can be off-putting to some users. Consider those first before using this software.

Difficulty Learning the Interface

Most people that use A2X are accounting firms and professionals. According to some ecommerce business owners, learning and understanding how to use and navigate the interface takes some time. If you subscribe to the Mini plan, you must experiment and learn the software independently.

However, when you subscribe to higher plans, you can enjoy one-on-one onboarding with an A2X specialist to teach you how to use the software and its features. So if you have the budget to upgrade your plan, go for it!

Expensive Compared to Other Accounting Software

A2X could be pricey if you run a small business. There are free accounting software options, and some software starting plans are not more than $5. A2X software's most basic plan starts at $19 a month. Their pricing is almost four times more compared to other software.

However, A2X is very convenient for Amazon and Shopify sellers. Its features are designed to automate and address your accounting needs with just a few clicks. If you can stretch your budget a few more dollars, you'll know that your accounting is in good hands with A2X.

Source: Photo by fauxels from Pexels.com

Maximize the Power of A2X Accounting With Unloop

A2X Accounting is a great tool for managing your business finances, and we highly recommend using it. It offers a wide range of features, including integration with other financial management tools, generating detailed reports, inventory management, financial reconciliation, and more. 

In addition, the customer support team is available 24/7 to help you with any questions or problems that may arise. So, if you're looking for a way to keep track of your business finances, give A2X Accounting a try! 

Suppose you don't feel confident implementing these changes yourself, no problem! Unloop can help. 

We have a team of bookkeepers well-versed with A2X, and we also use reliable accounting tools, including Quickbooks and Xero. We would love to partner with you to take your ecommerce businesses to the next level. So call us today, and we'll let you know how we can help!

Read more

Disclaimer: Please note this article is not financial advice. The purpose of our blog is purely educational, so please consult a professional accountant or financial advisor before making any financial decision.

Most business owners and experts agree that payroll management is tough, but it doesn't have to be. Take advantage of technology and use an employee payroll management system. 

Learn the key benefits of payroll management software and why you should invest in one for your small business now. 

An Overview of Payroll Software 

What exactly is payroll software? To simplify things, it manages everything that has to do with payroll. Payroll software automates everything from employee pay to attendance and all other necessary human resource records. 

In other words, it elevates the basic payroll functions and makes the entire payroll management process easier and faster for employers and business owners. To give you a bit of reference, check out the usual payroll flow below.

short graphic showing the steps of payroll processing

Some steps may take hours to fulfill with manual payroll management. However, by using payroll software, employers can accomplish these tasks in a flash with just a few clicks.

Not only can a payroll system save time for human resource personnel, but they are also less likely to make errors with such software. With this, employees are more likely to be satisfied with the management of their pay. Applications such as these make it convenient to run a business. 

Different companies offer online payroll management systems. If you are interested in getting one for your business, there are two things to look for: 

  1. Reliability:. The brand has to have positive feedback from business owners to ensure its effectiveness. 
  2. Customizability: The software should be able to cater to your business's needs. For example, it should manage all employees—full-time, part-time, and temporary. In addition, it should offer a trial to ensure all your payroll concerns are covered. 

What Are the Advantages of Payroll Software? 

As your business grows and employees increase, the human resource department will only get more swamped. Payroll software will lessen their workload and let them focus on other aspects of employee management. Here are reasons to ditch manual payroll and switch to automated payroll systems. 

Ultimate Time-Saver 

On average, HR personnel may spend up to 21 days annually on payroll processing alone. However, this much time can be spent on other areas of your business. For example, many successful companies allocate a chunk for employee development, goal setting, and strategic planning. 

Take advantage of the convenience of payroll software so you can focus more on how to develop and grow your business further. Payroll software helps you skip manually entering long pay stubs, doing calculations, and individually depositing pay into your employees’ accounts. This lets you go through your usual payroll routine hassle-free and more quickly.

Transparency 

Payroll software promotes transparency that can help build trust among your employees. The software lets your employees see how much they are paid and the breakdown of any deductions, giving them confidence that they will always receive their pay on schedule. 

But don't worry; even if your employees can track their records, you can still restrict access to important information like attendance, benefits, and time logs. They can view them, but only the admin can make changes. 

Reduces Errors and Increases Security

Every year, numerous employees are affected by errors made by manual payroll processing. To make matters worse, these payroll errors take days for management to fix. Payroll problems can be frustrating for both the side of the management and employees. 

An employee payroll management system can significantly decrease the risk of making errors from manual payroll processes. You can ensure that your employee receives the exact amount of their salary every pay period. 

Additionally, using the best payroll solution with top-notch security can ensure that payroll data is only accessible to the human resources department and other authorized personnel. After all, the payroll employee database contains sensitive information such as addresses, birth dates, bank account numbers, Social Security numbers, and more. 

Easier Employee Monitoring 

If you have many employees, keeping track of them all can be challenging. It will be more difficult if your employees work remotely and have irregular schedules. Payroll software can do the tracking for you. It can store your employee's time data, whether they have to work overtime or under time, and note days when they are late or out from work. 

Moreover, payroll software can track your employees anywhere around the globe. So if you have a big business or an international branch, you can manage all the payroll in one software even when you're not in the same locale.

shot of a human resource personnel using payroll management system software on their computer

What To Expect in Payroll Software 

If this is your first time hearing about payroll software companies and their tools, you obviously have little to no idea how it works. To convince you to get an automated payroll manager for your business, here are five of the best features of payroll software. 

Easy Payroll Management 

The software can easily do all the calculations for you. From bonuses, holiday pay, employee benefits, tax deductions, overtime, to other factors that can affect an employee's salary. You can also print payslips provided by the software once the payment is processed. 

Moreover, you can print checks directly from the software for employees whose pay is not directly transferred to their bank accounts. 

On-Time Direct Deposit 

Payroll software can manage direct deposits of your employee's pay. All you need to do is input the important details of the payment and when it's scheduled. From there, the software will do it all for you. So you don't have to worry if the payment has been processed on time or if you missed an employee on payday. 

Automated software is less prone to errors, so you can avoid issues that translate to employee confidence in the system and the company's management. 

Attendance and Time Tracking

Attendance is the number one factor that affects the employee's pay. Therefore, it will be a great convenience for the HR department when you consolidate attendance checking with the pay. In addition, with this feature, the HR department will have an easier time in case employees have inquiries about certain deductions and changes in their pay. 

Tax Filing 

Managing employee and payroll taxes is another headache for the human resource department. Payroll services can handle all tax calculations, including an employee's withholdings, insurance, and other necessary contributions. It can also generate tax forms and records of tax payments. 

These are necessary documents for income tax filing, so you file and remit properly. 

Self-Checking of Records 

Several payroll services allow employees to update their information anytime. So, for example, if there are any changes in their bank forms or errors in the information, employees can immediately change them without going through the many requests and processes. 

This transparency can answer minor inquiries from employees regarding their pay without needing to talk directly to someone from the HR department. 

closeup shot of an employee opening an envelope with their paycheck inside

Tips for a Smoother Payroll Management Process

To make your company’s payroll process even more efficient, we’ve made a list of tips from top payroll specialists. With these tips, you can make accurate payroll computations and avoid payroll processing errors.

Automate Your Payroll Management System With Cloud-Based Tools

If you want to make your payroll processes easier while reducing the risk of human error, you should consider automating your payroll system with cloud-based tools. With these tools, you’re sure to pay employees accurately and on time.

Additionally, cloud-based tools can help improve compliance with government regulations. With real-time updates and automatic filings, businesses can be confident that they are always up to date with the latest requirements.

Establish Strict Payroll Policies

Establishing strict payroll policies helps ensure that all employees are treated fairly and helps avoid the likelihood of workplace disputes. This will also promote a culture of transparency and trust within your company.

With firm payroll policies, you can ensure that accurate records are kept for each employee and that they are paid promptly. Additionally, it can reduce accounting and administrative costs while avoiding disruptions and maximizing efficiency.

Stay Updated on Tax Laws

Staying up-to-date on tax laws and regulations can be challenging because they are constantly changing. However, by ensuring that you know the latest changes, your company can maintain its compliance with the law, and your employees can get the right calculation of tax withheld from their paychecks.

Finally, staying up-to-date on tax laws can help you identify potential deductions and credits that your company may be eligible for.

Manage Payroll in a Breeze With Unloop 

The automated payroll managing software is a huge convenience for your business. It makes the flow of money in your business smoother and error-free. If your business is continuously growing, investing in a web-based payroll management system is a step forward in handling your business better. 

If you have decided on getting an automated payroll software, experts at Unloop can help you run your payroll process smoothly. Our experts will link your payroll to cloud-based software so that we can do everything for you. Our software also generates reports you can use for proper tax filing.

Book a call with us now and put your payroll needs in our hands!

Key Benefits and Features of a Payroll Management System
Watch Now

Disclaimer: Please note this article is not financial advice. The purpose of our blog is purely educational, so please consult a professional accountant or financial advisor before making any financial decision.

Most business owners and experts agree that payroll management is tough, but it doesn't have to be. Take advantage of technology and use an employee payroll management system. 

Learn the key benefits of payroll management software and why you should invest in one for your small business now. 

An Overview of Payroll Software 

What exactly is payroll software? To simplify things, it manages everything that has to do with payroll. Payroll software automates everything from employee pay to attendance and all other necessary human resource records. 

In other words, it elevates the basic payroll functions and makes the entire payroll management process easier and faster for employers and business owners. To give you a bit of reference, check out the usual payroll flow below.

short graphic showing the steps of payroll processing

Some steps may take hours to fulfill with manual payroll management. However, by using payroll software, employers can accomplish these tasks in a flash with just a few clicks.

Not only can a payroll system save time for human resource personnel, but they are also less likely to make errors with such software. With this, employees are more likely to be satisfied with the management of their pay. Applications such as these make it convenient to run a business. 

Different companies offer online payroll management systems. If you are interested in getting one for your business, there are two things to look for: 

  1. Reliability:. The brand has to have positive feedback from business owners to ensure its effectiveness. 
  2. Customizability: The software should be able to cater to your business's needs. For example, it should manage all employees—full-time, part-time, and temporary. In addition, it should offer a trial to ensure all your payroll concerns are covered. 

What Are the Advantages of Payroll Software? 

As your business grows and employees increase, the human resource department will only get more swamped. Payroll software will lessen their workload and let them focus on other aspects of employee management. Here are reasons to ditch manual payroll and switch to automated payroll systems. 

Ultimate Time-Saver 

On average, HR personnel may spend up to 21 days annually on payroll processing alone. However, this much time can be spent on other areas of your business. For example, many successful companies allocate a chunk for employee development, goal setting, and strategic planning. 

Take advantage of the convenience of payroll software so you can focus more on how to develop and grow your business further. Payroll software helps you skip manually entering long pay stubs, doing calculations, and individually depositing pay into your employees’ accounts. This lets you go through your usual payroll routine hassle-free and more quickly.

Transparency 

Payroll software promotes transparency that can help build trust among your employees. The software lets your employees see how much they are paid and the breakdown of any deductions, giving them confidence that they will always receive their pay on schedule. 

But don't worry; even if your employees can track their records, you can still restrict access to important information like attendance, benefits, and time logs. They can view them, but only the admin can make changes. 

Reduces Errors and Increases Security

Every year, numerous employees are affected by errors made by manual payroll processing. To make matters worse, these payroll errors take days for management to fix. Payroll problems can be frustrating for both the side of the management and employees. 

An employee payroll management system can significantly decrease the risk of making errors from manual payroll processes. You can ensure that your employee receives the exact amount of their salary every pay period. 

Additionally, using the best payroll solution with top-notch security can ensure that payroll data is only accessible to the human resources department and other authorized personnel. After all, the payroll employee database contains sensitive information such as addresses, birth dates, bank account numbers, Social Security numbers, and more. 

Easier Employee Monitoring 

If you have many employees, keeping track of them all can be challenging. It will be more difficult if your employees work remotely and have irregular schedules. Payroll software can do the tracking for you. It can store your employee's time data, whether they have to work overtime or under time, and note days when they are late or out from work. 

Moreover, payroll software can track your employees anywhere around the globe. So if you have a big business or an international branch, you can manage all the payroll in one software even when you're not in the same locale.

shot of a human resource personnel using payroll management system software on their computer

What To Expect in Payroll Software 

If this is your first time hearing about payroll software companies and their tools, you obviously have little to no idea how it works. To convince you to get an automated payroll manager for your business, here are five of the best features of payroll software. 

Easy Payroll Management 

The software can easily do all the calculations for you. From bonuses, holiday pay, employee benefits, tax deductions, overtime, to other factors that can affect an employee's salary. You can also print payslips provided by the software once the payment is processed. 

Moreover, you can print checks directly from the software for employees whose pay is not directly transferred to their bank accounts. 

On-Time Direct Deposit 

Payroll software can manage direct deposits of your employee's pay. All you need to do is input the important details of the payment and when it's scheduled. From there, the software will do it all for you. So you don't have to worry if the payment has been processed on time or if you missed an employee on payday. 

Automated software is less prone to errors, so you can avoid issues that translate to employee confidence in the system and the company's management. 

Attendance and Time Tracking

Attendance is the number one factor that affects the employee's pay. Therefore, it will be a great convenience for the HR department when you consolidate attendance checking with the pay. In addition, with this feature, the HR department will have an easier time in case employees have inquiries about certain deductions and changes in their pay. 

Tax Filing 

Managing employee and payroll taxes is another headache for the human resource department. Payroll services can handle all tax calculations, including an employee's withholdings, insurance, and other necessary contributions. It can also generate tax forms and records of tax payments. 

These are necessary documents for income tax filing, so you file and remit properly. 

Self-Checking of Records 

Several payroll services allow employees to update their information anytime. So, for example, if there are any changes in their bank forms or errors in the information, employees can immediately change them without going through the many requests and processes. 

This transparency can answer minor inquiries from employees regarding their pay without needing to talk directly to someone from the HR department. 

closeup shot of an employee opening an envelope with their paycheck inside

Tips for a Smoother Payroll Management Process

To make your company’s payroll process even more efficient, we’ve made a list of tips from top payroll specialists. With these tips, you can make accurate payroll computations and avoid payroll processing errors.

Automate Your Payroll Management System With Cloud-Based Tools

If you want to make your payroll processes easier while reducing the risk of human error, you should consider automating your payroll system with cloud-based tools. With these tools, you’re sure to pay employees accurately and on time.

Additionally, cloud-based tools can help improve compliance with government regulations. With real-time updates and automatic filings, businesses can be confident that they are always up to date with the latest requirements.

Establish Strict Payroll Policies

Establishing strict payroll policies helps ensure that all employees are treated fairly and helps avoid the likelihood of workplace disputes. This will also promote a culture of transparency and trust within your company.

With firm payroll policies, you can ensure that accurate records are kept for each employee and that they are paid promptly. Additionally, it can reduce accounting and administrative costs while avoiding disruptions and maximizing efficiency.

Stay Updated on Tax Laws

Staying up-to-date on tax laws and regulations can be challenging because they are constantly changing. However, by ensuring that you know the latest changes, your company can maintain its compliance with the law, and your employees can get the right calculation of tax withheld from their paychecks.

Finally, staying up-to-date on tax laws can help you identify potential deductions and credits that your company may be eligible for.

Manage Payroll in a Breeze With Unloop 

The automated payroll managing software is a huge convenience for your business. It makes the flow of money in your business smoother and error-free. If your business is continuously growing, investing in a web-based payroll management system is a step forward in handling your business better. 

If you have decided on getting an automated payroll software, experts at Unloop can help you run your payroll process smoothly. Our experts will link your payroll to cloud-based software so that we can do everything for you. Our software also generates reports you can use for proper tax filing.

Book a call with us now and put your payroll needs in our hands!

Read more

Starting an Amazon business requires essential bookkeeping and accounting to support your growth in the highly competitive marketplace. The vast scale of Amazon attracts numerous sellers and buyers, offering significant growth potential. Proper Amazon seller accounting is vital for identifying and capitalizing on these opportunities.

With the potential volume of transactions possible for every Amazon seller, it's important to understand the role accounting and bookkeeping play to ensure a smooth-sailing business. These can be the difference between stagnation and achieving your desired income level.

So let Unloop tackle these important business facets.  

Amazon Seller Bookkeeping Basics

If you're an absolute beginner or have little idea about bookkeeping, you must get educated. Invest time in knowing the basics of bookkeeping and how it works. 

If you have some idea already, reviewing the basics will benefit you when setting up a proper accounting system for your FBA business. Consider the following:

Learn bookkeeping essentials.

Educating yourself with fundamental lessons on bookkeeping is crucial. From there, skim other bookkeeping principles. For example, you can look into the significance of assets, liabilities, and capital and how these three relate to each other. 

You must understand the accounting cycle to get the gist of how bookkeeping services work. Bookkeepers follow the steps of the cycle to ensure proper recording and allocating of income and expenses.

You'll also learn double entry accounting and do trial balances. You can choose whether to dive deeper into the bookkeeping practice once you fully grasp how the accounting cycle works.

Determine your accounting method.

Once you've learned how the accounting cycle works, you can now practice or outsource it. But first, you must decide what accounting method you'll use. There are two:

Cash accounting

This accounting method records the transaction on a cash-received basis. The actual money must be in your bank account to qualify as an official record. 

Microentrepreneurs and other startup enterprises most commonly use cash accounting for its simple, straightforward, and accurate process. It works well for simple business transactions.

Accrual accounting

The accrual method involves a time element. It records transactions based on when the transaction happened, regardless of whether there's money paid or not.

Accrual accounting is more complex, but it provides more information for those who manage businesses involving multiple transactions. Some large-scale companies have more leeway regarding credit, so a big-ticket item sale may inevitably be paid later. 

It's also possible for you to acquire products and pay for them later or in advance before the product arrives. Accrual accounting is useful when reflecting these transactions in your accounting records.

What is Amazon Seller Accounting?

Amazon Seller Accounting refers to the financial management and record-keeping practices that sellers on the Amazon platform use to track and manage their business transactions. It involves:

  • Tracking sales revenue generated on Amazon
  • Recording expenses related to product sourcing, shipping, and fees
  • Calculating profits and losses
  • Managing inventory and cost of goods sold (COGS)
  • Preparing financial statements and reports for tax purposes and business analysis
  • Ensuring compliance with tax regulations and Amazon's policies
  • Monitoring cash flow and budgeting for future growth

Automated Amazon Accounting will give you a quick view of your business transactions and finances. These numbers will then guide you on future steps and whether your current strategies effectively make your business profitable and sustainable.

The Benefits of Accounting on Amazon

Accounting is the backbone of Amazon businesses—of any business, in fact. Monitoring your numbers keeps your online store afloat. But there are other benefits to accounting that every Amazon business owner should leverage.

An infographic about data-filled reports for decision making: Income statement report, Balance sheet, Cash flow statements, Trends, Inventory monitoring, Cash flow forecast.

Data-filled reports for decision making

Once you begin your business accounting, you can get plenty of reports to help you create strategies and make decisions.

  • Income statement report: This report will show you your business gains and losses. 
  • Balance Sheet: This one lists your assets, liabilities, and equity and lets you see your business's financial health.
  • Cash flow statements: Shows you the inflow and outflow of cash assets in different business activities.
  • Trends: A deep dive into the inventory report to show you key consumer behaviors and product performance. This is where you determine your best-selling products and decide where to invest more to get more sales. 
  • Inventory monitoring: As your products move from the Amazon warehouse to your customers, you must also decide when to replenish your stocks. Your inventory data will allow you to determine which products to replenish more or discontinue because of low sales.
  • Cash Flow Forecast: The excellent characteristic of these reports is that they can be stored, so you'll have a resource of historical data to see the progress of your business. With the past and present data, you can also simulate financial business moves to see whether a plan will make your business profitable. Doing your forecasts requires learning how to analyze financial statements.

Address red flags immediately

Your business will only grow and move forward if you manage your money well. Part of proper financial management is quickly knowing the factors that hurt your business so you can inhibit these problems from happening. The key to this is proactive planning.

An infographic about Common problems with financial management: Cashflow, Payment, Payroll, Taxes

Common problems with financial management:

  • Cash flow: Not monitoring the money from sales that come out to pay suppliers and other dues is a common example of cash flow mismanagement. This challenging situation can snowball into more financial challenges in the long run.
  • Payment to suppliers and loans: Cash flow mismanagement can result in late or non-payment of your dues. When this happens, authorities can halt your business operations, and stocks won't come in. Interests from loans may also pile up.
  • Payroll: If you have employees relying on you, accounting mismanagement can also affect payroll processing.
  • Taxes: You'll be in massive trouble if you do not pay your taxes. Taxation is among the first costs you should consider. Cramming only weeks before the tax-paying day can mess up your financial status and result in late payments and incurred penalties.

Your business moves are tied to your financial capability

You can be at peace once you get in-house accountants or a third-party agency offering Amazon seller accounting services. You know your business finances are monitored. There will be individuals who can give you valuable insights about your business's current status and manage your growth. 

With that, you'll have plenty of time for the different areas in managing your Amazon store and other online stores. You can also focus on developing your products to ensure quality and increase sales. All these steps are done with coherence to the financial status of your business.

Some strategies that company executives and accountants use are the Profit First Framework and Traditional Accounting.

  • Profit First Framework: This formula goes like this: sales - profit = expenses. 

If you are increasing your profit, you should set a good amount aside as your earnings first before spending the rest on expenses. 

  • Traditional Accounting: On the other hand, you can also use this formula: sales - expenses = profit. 

Your business financial strategy is like a map. Like any other plans you have for your business, it will serve as a guide to take you to a successful end.

A woman wearing yellow v-neck shirt and a gray apron leans on metal pillar while browsing her tablet

5 Sure Steps To Begin Amazon Accounting

  1. Begin accounting early

When is an early time? It would be best if you start accounting the moment you start your business. Minding this only during tax season is a typical mistake sellers make. Monitoring your assets and liabilities should be done immediately.

The tasks you'll need to accomplish as an entrepreneur never ends, but fulfill first what ensures your business's survival and success. And that is accounting.

Attending webinars and taking courses about accounting will help, especially when you get reports from accountants. Still, it would be best to delegate this task to specialists offering accounting and bookkeeping services. All these details are best accomplished and planned with your store and product launch planning.

  1. Register for business taxation right away

Whether it's an online or physical store, you should register your business for necessary permits as soon as you start the business—this is for taxes and other legal factors. Some sellers get too busy with other tasks to launch their stores that they forget to register for taxation, while some intentionally do not write. Doing this just increases the hassle. Your business will risk getting fined for not paying on time or at all. 

Defining how much tax you must pay also ensures you know exactly how much money will come from your account. This practice will make your Profit First Framework easier to enact.

Amazon sellers, in particular, will encounter issues involving sales tax. All merchants in the marketplace have to remit this to authorities, which means tracking sales tax becomes a crucial part of their business activity. Even if Amazon is the one collecting sales tax, they only give you all the collections in a lump sum, and you still have to determine the portion of the sales tax you should remit to the government.

  1. Delegate the accounting tasks to experts

If you are a trained accountant with experience in handling Amazon Seller Central and other relevant tools, then you can control your own accounting. However, if you do not have a background in this area, it is better to delegate it to experts.

  • Hire in-house accountants: The advantage of having your accountant on your team is that these accountants know the details about your business as they experience it firsthand. Their insights will also be more in-depth. 
  • Partner with an agency: There are already agencies offering Amazon and eCommerce accounting. Delegating it to a third-party agency lifts the load of managing another team in your company. However, you need to explain how your business works so these accountants know what they are dealing with.
  1. Have regular accounting reports

Your period-specific reviews should always have accounting reports. As a business owner you can personalize the reports you want to have and when. Here are some samples:

ReportDetails You Can include
Cash Flow Management ReportQuick ratio, current ratio, cash balance, days sales outstanding, days payable outstanding
Profit and Loss ReportGross profit margin, operating expense (OPEX) ratio, operating profit margin, net profit margin, earnings before interest and tax, income statement, net profit
Financial Performance ReportBalance sheet, assets return, working capital ratio, equity return, debt-equity ratio
Financial Key Performance Indicators ReportCurrent working capital, current liabilities, cash conversion cycle, vendor payment error rate, working capital
Financial StatementRevenue, gross profit, earning before Interest and tax (EBIT), operating expenses, net income, economic value added (EVA), berry ratio, employee satisfaction, customer satisfaction

All these reports will be more pleasing to the eyes and easy to understand if you establish a template and maximize the usage of graphs. In addition, information contained in the reports are not fixed, which means they can change depending on your company’s priorities. 

  1. Automate everything

If you have an automated system, all these reports can be checked anytime—even daily— to acquire the data. If Excel works for you, automation would make your systems a breeze. Still, the most advanced and convenient way to do accounting, especially on Amazon, is through software.

Here are the benefits of using software:

  • Reports on Amazon KPIs
  • Reports are available even on mobile
  • Allows integration not only on Amazon but in other ecommerce platforms

Many software allow a free trial, but most work on paid plans. Your investment is worth it with the automatic insights.

A logo of Intuit on a screen of a horizontally flipped smartphone; at the back is a computer screen showing Intuit’s website homepage.

The Best Accounting Software To Use

Efficient Amazon accounting means choosing the right accounting software for your business. Here are some of our top recommendations:

QuickBooks

Intuit's QuickBooks Online is one of the most popular and user-friendly, cloud-based accounting software out there. With the right third-party app, QuickBooks easily syncs to your Amazon seller central account, feeding the software with business transactions which you or your accountant can easily manage. Most Amazon sellers use this accounting software to handle their business finances.

Fetcher

If you’re only looking into accounting for Amazon FBA, you'll get more with Fetcher. This software can deliver you the following:

  • Generate reports related to your PPC campaigns
  • Track refunds  
  • Give visuals and an idea of your business's status

The order coverage Fetcher offers depends on the plan you will avail of. 

Xero

Another popular choice among accountants and small business owners is the software Xero. You can use the functions of this free accounting software for a time and enjoy essential reports that management needs. Xero can also give you better features if you’re willing to pay.

Taxomate

As the name of this software suggests, Taxomate is a tool that can assist you with all your tax reports. It’s best if you use it hand-in-hand with the software QuickBooks or Xero. Whether you use FBA or FBM or sell in other marketplaces, your tax report will automatically generate. 

GoDaddy

GoDaddy is the tool to use if you are an accounting beginner or would like to give it a try in handling your business accounting while looking for specialists to partner with. You can monitor the following on the platform:

  • Sales and revenue
  • Balances
  • Profit and loss

The software also lets you create invoices if you’re participating in different marketplaces other than Amazon. 

A2X

Another software you'll often hear in the Amazon accounting world is A2X, which should be combined with several other platforms to maximize its accounting capabilities. Note some of the important ones it can link to below:

  • QuickBooks
  • Amazon
  • Shopify
  • Xero 

Everything you need to know about your FBA expenses can be tracked and turned into easy-to-understand reports through A2X. 

What's Next?

Now that you know all these nitty-gritty details about Amazon accounting, it is time to take action. 

If you’re still relying on excel sheets, it’s time to level up your processes and reporting by moving to automated reports from software. 

You have invested so much effort, time, and money to grow your business, so secure the ascension of your sales and growth of your store by ensuring your financial stability. We'd love to discuss how we can help you with Amazon accounting. Contact Unloop now.

A Deep Dive Into Amazon Seller Accounting and Bookkeeping For Small Business Owners
Watch Now

Starting an Amazon business requires essential bookkeeping and accounting to support your growth in the highly competitive marketplace. The vast scale of Amazon attracts numerous sellers and buyers, offering significant growth potential. Proper Amazon seller accounting is vital for identifying and capitalizing on these opportunities.

With the potential volume of transactions possible for every Amazon seller, it's important to understand the role accounting and bookkeeping play to ensure a smooth-sailing business. These can be the difference between stagnation and achieving your desired income level.

So let Unloop tackle these important business facets.  

Amazon Seller Bookkeeping Basics

If you're an absolute beginner or have little idea about bookkeeping, you must get educated. Invest time in knowing the basics of bookkeeping and how it works. 

If you have some idea already, reviewing the basics will benefit you when setting up a proper accounting system for your FBA business. Consider the following:

Learn bookkeeping essentials.

Educating yourself with fundamental lessons on bookkeeping is crucial. From there, skim other bookkeeping principles. For example, you can look into the significance of assets, liabilities, and capital and how these three relate to each other. 

You must understand the accounting cycle to get the gist of how bookkeeping services work. Bookkeepers follow the steps of the cycle to ensure proper recording and allocating of income and expenses.

You'll also learn double entry accounting and do trial balances. You can choose whether to dive deeper into the bookkeeping practice once you fully grasp how the accounting cycle works.

Determine your accounting method.

Once you've learned how the accounting cycle works, you can now practice or outsource it. But first, you must decide what accounting method you'll use. There are two:

Cash accounting

This accounting method records the transaction on a cash-received basis. The actual money must be in your bank account to qualify as an official record. 

Microentrepreneurs and other startup enterprises most commonly use cash accounting for its simple, straightforward, and accurate process. It works well for simple business transactions.

Accrual accounting

The accrual method involves a time element. It records transactions based on when the transaction happened, regardless of whether there's money paid or not.

Accrual accounting is more complex, but it provides more information for those who manage businesses involving multiple transactions. Some large-scale companies have more leeway regarding credit, so a big-ticket item sale may inevitably be paid later. 

It's also possible for you to acquire products and pay for them later or in advance before the product arrives. Accrual accounting is useful when reflecting these transactions in your accounting records.

What is Amazon Seller Accounting?

Amazon Seller Accounting refers to the financial management and record-keeping practices that sellers on the Amazon platform use to track and manage their business transactions. It involves:

  • Tracking sales revenue generated on Amazon
  • Recording expenses related to product sourcing, shipping, and fees
  • Calculating profits and losses
  • Managing inventory and cost of goods sold (COGS)
  • Preparing financial statements and reports for tax purposes and business analysis
  • Ensuring compliance with tax regulations and Amazon's policies
  • Monitoring cash flow and budgeting for future growth

Automated Amazon Accounting will give you a quick view of your business transactions and finances. These numbers will then guide you on future steps and whether your current strategies effectively make your business profitable and sustainable.

The Benefits of Accounting on Amazon

Accounting is the backbone of Amazon businesses—of any business, in fact. Monitoring your numbers keeps your online store afloat. But there are other benefits to accounting that every Amazon business owner should leverage.

An infographic about data-filled reports for decision making: Income statement report, Balance sheet, Cash flow statements, Trends, Inventory monitoring, Cash flow forecast.

Data-filled reports for decision making

Once you begin your business accounting, you can get plenty of reports to help you create strategies and make decisions.

  • Income statement report: This report will show you your business gains and losses. 
  • Balance Sheet: This one lists your assets, liabilities, and equity and lets you see your business's financial health.
  • Cash flow statements: Shows you the inflow and outflow of cash assets in different business activities.
  • Trends: A deep dive into the inventory report to show you key consumer behaviors and product performance. This is where you determine your best-selling products and decide where to invest more to get more sales. 
  • Inventory monitoring: As your products move from the Amazon warehouse to your customers, you must also decide when to replenish your stocks. Your inventory data will allow you to determine which products to replenish more or discontinue because of low sales.
  • Cash Flow Forecast: The excellent characteristic of these reports is that they can be stored, so you'll have a resource of historical data to see the progress of your business. With the past and present data, you can also simulate financial business moves to see whether a plan will make your business profitable. Doing your forecasts requires learning how to analyze financial statements.

Address red flags immediately

Your business will only grow and move forward if you manage your money well. Part of proper financial management is quickly knowing the factors that hurt your business so you can inhibit these problems from happening. The key to this is proactive planning.

An infographic about Common problems with financial management: Cashflow, Payment, Payroll, Taxes

Common problems with financial management:

  • Cash flow: Not monitoring the money from sales that come out to pay suppliers and other dues is a common example of cash flow mismanagement. This challenging situation can snowball into more financial challenges in the long run.
  • Payment to suppliers and loans: Cash flow mismanagement can result in late or non-payment of your dues. When this happens, authorities can halt your business operations, and stocks won't come in. Interests from loans may also pile up.
  • Payroll: If you have employees relying on you, accounting mismanagement can also affect payroll processing.
  • Taxes: You'll be in massive trouble if you do not pay your taxes. Taxation is among the first costs you should consider. Cramming only weeks before the tax-paying day can mess up your financial status and result in late payments and incurred penalties.

Your business moves are tied to your financial capability

You can be at peace once you get in-house accountants or a third-party agency offering Amazon seller accounting services. You know your business finances are monitored. There will be individuals who can give you valuable insights about your business's current status and manage your growth. 

With that, you'll have plenty of time for the different areas in managing your Amazon store and other online stores. You can also focus on developing your products to ensure quality and increase sales. All these steps are done with coherence to the financial status of your business.

Some strategies that company executives and accountants use are the Profit First Framework and Traditional Accounting.

  • Profit First Framework: This formula goes like this: sales - profit = expenses. 

If you are increasing your profit, you should set a good amount aside as your earnings first before spending the rest on expenses. 

  • Traditional Accounting: On the other hand, you can also use this formula: sales - expenses = profit. 

Your business financial strategy is like a map. Like any other plans you have for your business, it will serve as a guide to take you to a successful end.

A woman wearing yellow v-neck shirt and a gray apron leans on metal pillar while browsing her tablet

5 Sure Steps To Begin Amazon Accounting

  1. Begin accounting early

When is an early time? It would be best if you start accounting the moment you start your business. Minding this only during tax season is a typical mistake sellers make. Monitoring your assets and liabilities should be done immediately.

The tasks you'll need to accomplish as an entrepreneur never ends, but fulfill first what ensures your business's survival and success. And that is accounting.

Attending webinars and taking courses about accounting will help, especially when you get reports from accountants. Still, it would be best to delegate this task to specialists offering accounting and bookkeeping services. All these details are best accomplished and planned with your store and product launch planning.

  1. Register for business taxation right away

Whether it's an online or physical store, you should register your business for necessary permits as soon as you start the business—this is for taxes and other legal factors. Some sellers get too busy with other tasks to launch their stores that they forget to register for taxation, while some intentionally do not write. Doing this just increases the hassle. Your business will risk getting fined for not paying on time or at all. 

Defining how much tax you must pay also ensures you know exactly how much money will come from your account. This practice will make your Profit First Framework easier to enact.

Amazon sellers, in particular, will encounter issues involving sales tax. All merchants in the marketplace have to remit this to authorities, which means tracking sales tax becomes a crucial part of their business activity. Even if Amazon is the one collecting sales tax, they only give you all the collections in a lump sum, and you still have to determine the portion of the sales tax you should remit to the government.

  1. Delegate the accounting tasks to experts

If you are a trained accountant with experience in handling Amazon Seller Central and other relevant tools, then you can control your own accounting. However, if you do not have a background in this area, it is better to delegate it to experts.

  • Hire in-house accountants: The advantage of having your accountant on your team is that these accountants know the details about your business as they experience it firsthand. Their insights will also be more in-depth. 
  • Partner with an agency: There are already agencies offering Amazon and eCommerce accounting. Delegating it to a third-party agency lifts the load of managing another team in your company. However, you need to explain how your business works so these accountants know what they are dealing with.
  1. Have regular accounting reports

Your period-specific reviews should always have accounting reports. As a business owner you can personalize the reports you want to have and when. Here are some samples:

ReportDetails You Can include
Cash Flow Management ReportQuick ratio, current ratio, cash balance, days sales outstanding, days payable outstanding
Profit and Loss ReportGross profit margin, operating expense (OPEX) ratio, operating profit margin, net profit margin, earnings before interest and tax, income statement, net profit
Financial Performance ReportBalance sheet, assets return, working capital ratio, equity return, debt-equity ratio
Financial Key Performance Indicators ReportCurrent working capital, current liabilities, cash conversion cycle, vendor payment error rate, working capital
Financial StatementRevenue, gross profit, earning before Interest and tax (EBIT), operating expenses, net income, economic value added (EVA), berry ratio, employee satisfaction, customer satisfaction

All these reports will be more pleasing to the eyes and easy to understand if you establish a template and maximize the usage of graphs. In addition, information contained in the reports are not fixed, which means they can change depending on your company’s priorities. 

  1. Automate everything

If you have an automated system, all these reports can be checked anytime—even daily— to acquire the data. If Excel works for you, automation would make your systems a breeze. Still, the most advanced and convenient way to do accounting, especially on Amazon, is through software.

Here are the benefits of using software:

  • Reports on Amazon KPIs
  • Reports are available even on mobile
  • Allows integration not only on Amazon but in other ecommerce platforms

Many software allow a free trial, but most work on paid plans. Your investment is worth it with the automatic insights.

A logo of Intuit on a screen of a horizontally flipped smartphone; at the back is a computer screen showing Intuit’s website homepage.

The Best Accounting Software To Use

Efficient Amazon accounting means choosing the right accounting software for your business. Here are some of our top recommendations:

QuickBooks

Intuit's QuickBooks Online is one of the most popular and user-friendly, cloud-based accounting software out there. With the right third-party app, QuickBooks easily syncs to your Amazon seller central account, feeding the software with business transactions which you or your accountant can easily manage. Most Amazon sellers use this accounting software to handle their business finances.

Fetcher

If you’re only looking into accounting for Amazon FBA, you'll get more with Fetcher. This software can deliver you the following:

  • Generate reports related to your PPC campaigns
  • Track refunds  
  • Give visuals and an idea of your business's status

The order coverage Fetcher offers depends on the plan you will avail of. 

Xero

Another popular choice among accountants and small business owners is the software Xero. You can use the functions of this free accounting software for a time and enjoy essential reports that management needs. Xero can also give you better features if you’re willing to pay.

Taxomate

As the name of this software suggests, Taxomate is a tool that can assist you with all your tax reports. It’s best if you use it hand-in-hand with the software QuickBooks or Xero. Whether you use FBA or FBM or sell in other marketplaces, your tax report will automatically generate. 

GoDaddy

GoDaddy is the tool to use if you are an accounting beginner or would like to give it a try in handling your business accounting while looking for specialists to partner with. You can monitor the following on the platform:

  • Sales and revenue
  • Balances
  • Profit and loss

The software also lets you create invoices if you’re participating in different marketplaces other than Amazon. 

A2X

Another software you'll often hear in the Amazon accounting world is A2X, which should be combined with several other platforms to maximize its accounting capabilities. Note some of the important ones it can link to below:

  • QuickBooks
  • Amazon
  • Shopify
  • Xero 

Everything you need to know about your FBA expenses can be tracked and turned into easy-to-understand reports through A2X. 

What's Next?

Now that you know all these nitty-gritty details about Amazon accounting, it is time to take action. 

If you’re still relying on excel sheets, it’s time to level up your processes and reporting by moving to automated reports from software. 

You have invested so much effort, time, and money to grow your business, so secure the ascension of your sales and growth of your store by ensuring your financial stability. We'd love to discuss how we can help you with Amazon accounting. Contact Unloop now.

Read more

Disclaimer: Please note this article is not financial advice. The purpose of our blog is purely educational, so please consult a professional accountant or financial advisor before making any financial decision.

Starting a business requires a lot of courage, effort, and resources. You'll need a solid business plan to see if your idea will work. An important aspect of this plan involves deciding what platform to incorporate into managing your finances. In this context, every business owner needs the Peachtree software, well-known for its excellent accounting capabilities. 

Let’s uncover the various features of Peachtree to determine if it's the right and best accounting software for you and your business.

Essential Software Features: What Factors Should You Look Out For?

Business owners typically have three choices when handling their company's books and managing finances: 

  • hire a CPA firm, 
  • purchase bookkeeping software, or 
  • use a spreadsheet program like Excel.

While they have their respective benefits, their usefulness depends on specific factors. The first option depends on the CPA's time working on the financial side of your business. The second option relies on cost. And for the last option, you must be extremely keen and careful when using the tool. 

Thankfully, a modern accountant's toolkit has developed from pen and paper to sophisticated computer accounting software, like Peachtree (now Sage 50).  

Peachtree accounting software enables small to mid-sized businesses to simplify their accounting processes, detect and reduce accounting issues, and save money in the long run. 

Before discussing what Peachtree can bring, it's best first to learn what makes an accounting solution exceptional. What should small and mid-sized business entrepreneurs consider before purchasing any software?  

The software should possess basic and advanced accounting features, such as

  • Customizable financial reporting
  • Real-time income and expense tracking
  • Organized budgeting and forecasting processes
  • Efficient inventory management
  • Multi-currency support
  • User-friendly interface
  • Robust data security
  • Integration with other essential accounting tools or programs.
🧐 Another component to check is the software’s Enterprise Resource Planning (ERP) systems. The ERP system connects, organizes, and automates essential processes, such as accounting tasks, inventory management, and customer relationship management.

Users can choose among three options, depending on their unique business needs: on-premise, cloud-based, or a combination. On-premise software is directly installed in the company’s systems, while cloud-based accounting software uploads data to a server. 
shot of a person using their computer with their screen showing an accounting software interface

Peachtree Software: The Accounting Software for Midsize Companies & Small Businesses

Let’s now delve into the nitty-gritty of the Peachtree software. What makes it the ideal accounting solution for small and medium-sized businesses? 

This software essentially allows accountants and business owners to monitor, control, and manage a wide range of accounting tasks, including

  • Accounts payable and receivable reconciliation
  • Financial data and auditing invoice generation
  • Banking transactions and payroll management
  • Spreadsheets for data import and editing
  • Integration of scanned documents such as cheques, receipts, and invoices with AutoEntry integration, removing paper from the accounting process

Peachtree can also help you run your business more effectively by offering a time-saving, all-in-one solution for financial statements, customer billing, money flow, stock control, taxes, etc.

Below is a short demo on Peachtree or Sage 50 accounting to give you an overview of how the software functions.

The Benefits of Peachtree Accounting Software

Peachtree is a popular midsize business accounting software because it supplies the basic accounting features they need. But of course, there is more to it than you think.

Here are more benefits of using Peachtree.

Easy to Install

One of the advantages of using Peachtree is that you can set it up in less than 30 minutes. You don't need to understand much about accounting to start running it. To set it up, you must include all information about the following:

  • Your company
  • Clients
  • Distributors
  • Stockpiles or service items
  • Staff members
  • Chart of financial statements
  • Security

On-screen guidelines are also provided for proper setup. Lastly, you can choose from the preloaded account in the general ledger or start creating your own in the Peachtree space.

Easy to Use

The features in this software work like locating buttons on the screen. Peachtree’s ease of use stems from its easy-to-navigate user interface and simple command buttons. When you click a button, it redirects you straight to a corresponding window where you can enter all the requested details.

If you need accounting software that doesn't require a huge learning curve, Peachtree is right for you!

Cost-Effective

An even greater advantage of using Peachtree is it's a low-cost solution. According to Sage, you can pay anywhere from a few hundred bucks to a few thousand dollars depending on the version you buy. This feature is reasonable for the level of performance and efficiency that you get from Peachtree.

Functionality

Peachtree is a complete accounting system. It's designed to handle various aspects of financial management for businesses, including tasks such as:

  • Sending receipts to customers
  • Receiving payments
  • Entering accounts payable to vendors
  • Printing cheques
  • Paying workers
  • Tracking expenses
  • Writing journal entries
  • Performing internal audits to determine errors or discrepancies
  • Generating various preloaded reports

This software aims to provide a complete solution for your accounting needs. 

The Drawbacks of Peachtree

Unfortunately, no software is flawless. Here are the factors and features that the small business accounting software needs improvement on:

It requires basic accounting know-how.

If you're unfamiliar with accounting terms and inexperienced with technology, setting up and using accounting software might be time-consuming and difficult.

It’s less suitable for bigger and faster businesses.

Sage 50 and Sage 50cloud are perfect for small to midsize businesses with a few hundred customers and accounts, but they are not recommended for corporations or fast-growing businesses.

Their customer service needs improvement.

Sage Accounting’s customer service can still be improved. According to some users, they're slow to respond, and some advisors may give conflicting information.

How Peachtree Can Help Make Your Accounting More Efficient

With all its features and drawbacks laid out, it’s time to learn how Peachtree ensures smooth, effortless, and error-free business accounting. 

  • Tailoring to Your Accounting Needs: Peachtree’s dashboard is highly customizable to ensure you access the most pertinent information for your business needs. The software also provides various project management tools to improve productivity.
  • Managing Data and User Security Levels: Modify settings based on your security clearance, especially for changing sensitive information. However, making changes to a prior period will impact your financial statements only within that period. 
  • Generating Insightful Data for Financial Analysis: With Peachtree’s Intelligence Reporting, you won’t miss out on gaining crucial insights and information to make better business choices and improve your company’s overall performance.
  • Ensuring Well-Kept Inventories: Efficiently monitor your inventory levels based on  factors such as color, size, and style to ensure less room for errors and easier replenishment.
  • Accompanying Your Company’s Growth: Easily update and enhance your tools as your business expands with Peachtree’s countless system upgrades, solutions, and integrations. Peachtree also offers around-the-clock online advising and coaching. 

4 Alternatives to Peachtree

Despite these features, Peachtree accounting still has its blind spots. And with something as serious as accounting, blindspots will only hinder accuracy, financial performance, and overall growth. 

For this reason, we’ve listed four ideal alternatives to Peachtree software that can help small to mid-sized companies: QuickBooks online, Xero Accounting, FreshBooks Accounting, and Wave Accounting.

short graphic showing four alternatives to Peachtree Software

Final Thoughts

Like any accounting tool, understanding Peachtree and knowing how to use it efficiently will make you better at recognizing revenue, doing business accounting with confidence, and analyzing the general financial activities of your business.

Even for accounting specialists, managing a company's information and providing accurate financial data on time can be complex and time-consuming. Business management software like Peachtree can make things much easier. 

Its reporting and analysis feature allows you to create annual, quarterly, or weekly financial statements. This software can assist you whether you work for a large corporation, a group of corporations, or a small business. However, it also has limitations, so consider various factors when choosing your accounting software.

If you're having difficulty selecting and using a tool, Unloop is here to help! We deliver customized plans for ecommerce business founders and use the best accounting software to better understand and manage your business finances.

Book a call with us today!

Enhance Accounting Efficiency With Sage 50 (Peachtree Software) + 4 Alternatives
Watch Now

Disclaimer: Please note this article is not financial advice. The purpose of our blog is purely educational, so please consult a professional accountant or financial advisor before making any financial decision.

Starting a business requires a lot of courage, effort, and resources. You'll need a solid business plan to see if your idea will work. An important aspect of this plan involves deciding what platform to incorporate into managing your finances. In this context, every business owner needs the Peachtree software, well-known for its excellent accounting capabilities. 

Let’s uncover the various features of Peachtree to determine if it's the right and best accounting software for you and your business.

Essential Software Features: What Factors Should You Look Out For?

Business owners typically have three choices when handling their company's books and managing finances: 

  • hire a CPA firm, 
  • purchase bookkeeping software, or 
  • use a spreadsheet program like Excel.

While they have their respective benefits, their usefulness depends on specific factors. The first option depends on the CPA's time working on the financial side of your business. The second option relies on cost. And for the last option, you must be extremely keen and careful when using the tool. 

Thankfully, a modern accountant's toolkit has developed from pen and paper to sophisticated computer accounting software, like Peachtree (now Sage 50).  

Peachtree accounting software enables small to mid-sized businesses to simplify their accounting processes, detect and reduce accounting issues, and save money in the long run. 

Before discussing what Peachtree can bring, it's best first to learn what makes an accounting solution exceptional. What should small and mid-sized business entrepreneurs consider before purchasing any software?  

The software should possess basic and advanced accounting features, such as

  • Customizable financial reporting
  • Real-time income and expense tracking
  • Organized budgeting and forecasting processes
  • Efficient inventory management
  • Multi-currency support
  • User-friendly interface
  • Robust data security
  • Integration with other essential accounting tools or programs.
🧐 Another component to check is the software’s Enterprise Resource Planning (ERP) systems. The ERP system connects, organizes, and automates essential processes, such as accounting tasks, inventory management, and customer relationship management.

Users can choose among three options, depending on their unique business needs: on-premise, cloud-based, or a combination. On-premise software is directly installed in the company’s systems, while cloud-based accounting software uploads data to a server. 
shot of a person using their computer with their screen showing an accounting software interface

Peachtree Software: The Accounting Software for Midsize Companies & Small Businesses

Let’s now delve into the nitty-gritty of the Peachtree software. What makes it the ideal accounting solution for small and medium-sized businesses? 

This software essentially allows accountants and business owners to monitor, control, and manage a wide range of accounting tasks, including

  • Accounts payable and receivable reconciliation
  • Financial data and auditing invoice generation
  • Banking transactions and payroll management
  • Spreadsheets for data import and editing
  • Integration of scanned documents such as cheques, receipts, and invoices with AutoEntry integration, removing paper from the accounting process

Peachtree can also help you run your business more effectively by offering a time-saving, all-in-one solution for financial statements, customer billing, money flow, stock control, taxes, etc.

Below is a short demo on Peachtree or Sage 50 accounting to give you an overview of how the software functions.

The Benefits of Peachtree Accounting Software

Peachtree is a popular midsize business accounting software because it supplies the basic accounting features they need. But of course, there is more to it than you think.

Here are more benefits of using Peachtree.

Easy to Install

One of the advantages of using Peachtree is that you can set it up in less than 30 minutes. You don't need to understand much about accounting to start running it. To set it up, you must include all information about the following:

  • Your company
  • Clients
  • Distributors
  • Stockpiles or service items
  • Staff members
  • Chart of financial statements
  • Security

On-screen guidelines are also provided for proper setup. Lastly, you can choose from the preloaded account in the general ledger or start creating your own in the Peachtree space.

Easy to Use

The features in this software work like locating buttons on the screen. Peachtree’s ease of use stems from its easy-to-navigate user interface and simple command buttons. When you click a button, it redirects you straight to a corresponding window where you can enter all the requested details.

If you need accounting software that doesn't require a huge learning curve, Peachtree is right for you!

Cost-Effective

An even greater advantage of using Peachtree is it's a low-cost solution. According to Sage, you can pay anywhere from a few hundred bucks to a few thousand dollars depending on the version you buy. This feature is reasonable for the level of performance and efficiency that you get from Peachtree.

Functionality

Peachtree is a complete accounting system. It's designed to handle various aspects of financial management for businesses, including tasks such as:

  • Sending receipts to customers
  • Receiving payments
  • Entering accounts payable to vendors
  • Printing cheques
  • Paying workers
  • Tracking expenses
  • Writing journal entries
  • Performing internal audits to determine errors or discrepancies
  • Generating various preloaded reports

This software aims to provide a complete solution for your accounting needs. 

The Drawbacks of Peachtree

Unfortunately, no software is flawless. Here are the factors and features that the small business accounting software needs improvement on:

It requires basic accounting know-how.

If you're unfamiliar with accounting terms and inexperienced with technology, setting up and using accounting software might be time-consuming and difficult.

It’s less suitable for bigger and faster businesses.

Sage 50 and Sage 50cloud are perfect for small to midsize businesses with a few hundred customers and accounts, but they are not recommended for corporations or fast-growing businesses.

Their customer service needs improvement.

Sage Accounting’s customer service can still be improved. According to some users, they're slow to respond, and some advisors may give conflicting information.

How Peachtree Can Help Make Your Accounting More Efficient

With all its features and drawbacks laid out, it’s time to learn how Peachtree ensures smooth, effortless, and error-free business accounting. 

  • Tailoring to Your Accounting Needs: Peachtree’s dashboard is highly customizable to ensure you access the most pertinent information for your business needs. The software also provides various project management tools to improve productivity.
  • Managing Data and User Security Levels: Modify settings based on your security clearance, especially for changing sensitive information. However, making changes to a prior period will impact your financial statements only within that period. 
  • Generating Insightful Data for Financial Analysis: With Peachtree’s Intelligence Reporting, you won’t miss out on gaining crucial insights and information to make better business choices and improve your company’s overall performance.
  • Ensuring Well-Kept Inventories: Efficiently monitor your inventory levels based on  factors such as color, size, and style to ensure less room for errors and easier replenishment.
  • Accompanying Your Company’s Growth: Easily update and enhance your tools as your business expands with Peachtree’s countless system upgrades, solutions, and integrations. Peachtree also offers around-the-clock online advising and coaching. 

4 Alternatives to Peachtree

Despite these features, Peachtree accounting still has its blind spots. And with something as serious as accounting, blindspots will only hinder accuracy, financial performance, and overall growth. 

For this reason, we’ve listed four ideal alternatives to Peachtree software that can help small to mid-sized companies: QuickBooks online, Xero Accounting, FreshBooks Accounting, and Wave Accounting.

short graphic showing four alternatives to Peachtree Software

Final Thoughts

Like any accounting tool, understanding Peachtree and knowing how to use it efficiently will make you better at recognizing revenue, doing business accounting with confidence, and analyzing the general financial activities of your business.

Even for accounting specialists, managing a company's information and providing accurate financial data on time can be complex and time-consuming. Business management software like Peachtree can make things much easier. 

Its reporting and analysis feature allows you to create annual, quarterly, or weekly financial statements. This software can assist you whether you work for a large corporation, a group of corporations, or a small business. However, it also has limitations, so consider various factors when choosing your accounting software.

If you're having difficulty selecting and using a tool, Unloop is here to help! We deliver customized plans for ecommerce business founders and use the best accounting software to better understand and manage your business finances.

Book a call with us today!

Read more

Shopify is one of the biggest ecommerce platforms that allow millions of merchants to sell their goods online. As of now, the Shopify platform has merchants in 175 different countries. Starting your online selling business is the easy part. You can start selling by determining the products to sell and setting up your account. But keeping your business running is an entirely different story. 

If you're a merchant, you know that most goods are levied with taxes. But depending on where in the world you are selling, the tax rates may differ, and you must get them right when setting up your taxes in your Shopify admin profile. Understanding and managing your taxes will help you collect them easily and properly. 

Here’s a quick guide to help you tax set-up in different locations. 

Setting up Your Tax Rate on Shopify 

The platform automatically collects Shopify sales tax to help merchants manage tax collection conveniently. But for this to work, you must input the correct information in your set-up process. Here are some important guidelines you should know of. 

For Shopify sellers in the United States 

For sellers in the United States, you have two options upon setting up your taxes. You can select automatic tax collection if it applies to your location, and the other option is manually specifying the tax rates depending on your state. From here, your tax setting can be: 

  • Destination-based: In this setting, you'll need to provide your zip code and economic nexus, but the sales tax computations will base on where your buyers are purchasing the product. 
  • Origin-based: In this setting, your sales tax calculations will be based on the tax nexus you belong in. So it doesn't matter where your buyers are coming from. Instead, your sales tax depends on the origin of the goods. 

For Shopify sellers in Canada 

Suppose you're a Shopify seller in Canada. In that case, it's your responsibility to go directly to your local agencies and determine if you can charge your customers' sales tax, and identify the proper rate so you can collect the taxes properly. From here, you need to set up a GST/HST account under the following conditions:

  • You sell taxable goods. 
  • Your income from your sales in the past four calendar quarters or the current calendar quarter is more than 30,000 Canadian dollars. 
  • If you're not from Canada but sell taxable products that originate from a warehouse located in Canada. 

After setting your GST/HST account, you start collecting taxes for your Shopify products. Shopify tax documents are available in your admin account. You can use these tax reports to file and remit your tax collection to your local tax revenue agency. 

For Shopify sellers outside the United States and Canada 

Shopify is also available to countries outside the US and Canada. You can check their list to see if the country you're in makes you eligible to start a Shopify business. The process is almost similar to Canadian sellers. You must also determine if you can charge sales tax on your goods. Similarly, different countries also vary in tax rates, so check with your local government or consult a tax professional to help set up your account properly. 

files on taxes

3 Tax Application Software to Help You Manage Tax Reporting 

Does Shopify collect sales tax for you? Yes! Almost all ecommerce selling platforms automatically collect sales tax once your customers check out their item. All you need to do is file and remit the sales tax to the revenue agency. Unfortunately, everything involving taxes is confusing and involves a lot of work. Good thing that there are taxation software options that can help automate your tax reports and other taxation workloads. 

Let's check the three best tax software compatible with the Shopify platform. 

TaxJar 

TaxJar is a great application if you want help ensuring that you charge the correct tax rate on your products. Although Shopify provides documents for tax collected, they’re not as detailed as what TaxJar can give. TaxJar can automatically publish detailed tax reports, which can help you file your taxes appropriately. In addition, this application can show the information on charged taxes no matter where state or country you sell your products. 

Avalara 

Avalara is another tax application that helps automate reports you can use for filling. This software syncs all your sales data to determine when you must file for your tax and how much you are due in that specific filing period. Moreover, Avalara is compatible with almost all ecommerce platforms. This application can consolidate all your sales from different selling platforms so you can file all your sales taxes in a single report. 

This application will help you swiftly organize your taxes, especially if you sell products on different platforms. 

Quaderno 

Having the Quaderno is like hiring your personal, professional accountant. This application can do so much to help with managing your business. Quaderno is an all-around tax assistant. This application can take care of your invoices and can do bookkeeping for your business. In addition, this application is highly customizable so that you can use it depending on your business's needs. 

Conclusion 

Collecting tax is a crucial part of online business wherever in the world you are selling. There's also no denying that managing taxes is one of the most confusing and time-consuming parts of running a business. No proper tax management can be the reason for your business's downfall, so it is crucial to be very keen on taxes upon starting. 

We hope this guideline gives you a clearer view of setting up your taxes. If you still find it too hard to manage, check out Unloop services that will run your Shopify tax reporting. We have professionals who are well-versed in the ecommerce market, so you will always be on top of your taxes. 

Don't forget to book a call with us today and start your business’s growth in our hands.

Understanding Shopify Tax Reporting for Sellers Around the Globe
Watch Now

Shopify is one of the biggest ecommerce platforms that allow millions of merchants to sell their goods online. As of now, the Shopify platform has merchants in 175 different countries. Starting your online selling business is the easy part. You can start selling by determining the products to sell and setting up your account. But keeping your business running is an entirely different story. 

If you're a merchant, you know that most goods are levied with taxes. But depending on where in the world you are selling, the tax rates may differ, and you must get them right when setting up your taxes in your Shopify admin profile. Understanding and managing your taxes will help you collect them easily and properly. 

Here’s a quick guide to help you tax set-up in different locations. 

Setting up Your Tax Rate on Shopify 

The platform automatically collects Shopify sales tax to help merchants manage tax collection conveniently. But for this to work, you must input the correct information in your set-up process. Here are some important guidelines you should know of. 

For Shopify sellers in the United States 

For sellers in the United States, you have two options upon setting up your taxes. You can select automatic tax collection if it applies to your location, and the other option is manually specifying the tax rates depending on your state. From here, your tax setting can be: 

  • Destination-based: In this setting, you'll need to provide your zip code and economic nexus, but the sales tax computations will base on where your buyers are purchasing the product. 
  • Origin-based: In this setting, your sales tax calculations will be based on the tax nexus you belong in. So it doesn't matter where your buyers are coming from. Instead, your sales tax depends on the origin of the goods. 

For Shopify sellers in Canada 

Suppose you're a Shopify seller in Canada. In that case, it's your responsibility to go directly to your local agencies and determine if you can charge your customers' sales tax, and identify the proper rate so you can collect the taxes properly. From here, you need to set up a GST/HST account under the following conditions:

  • You sell taxable goods. 
  • Your income from your sales in the past four calendar quarters or the current calendar quarter is more than 30,000 Canadian dollars. 
  • If you're not from Canada but sell taxable products that originate from a warehouse located in Canada. 

After setting your GST/HST account, you start collecting taxes for your Shopify products. Shopify tax documents are available in your admin account. You can use these tax reports to file and remit your tax collection to your local tax revenue agency. 

For Shopify sellers outside the United States and Canada 

Shopify is also available to countries outside the US and Canada. You can check their list to see if the country you're in makes you eligible to start a Shopify business. The process is almost similar to Canadian sellers. You must also determine if you can charge sales tax on your goods. Similarly, different countries also vary in tax rates, so check with your local government or consult a tax professional to help set up your account properly. 

files on taxes

3 Tax Application Software to Help You Manage Tax Reporting 

Does Shopify collect sales tax for you? Yes! Almost all ecommerce selling platforms automatically collect sales tax once your customers check out their item. All you need to do is file and remit the sales tax to the revenue agency. Unfortunately, everything involving taxes is confusing and involves a lot of work. Good thing that there are taxation software options that can help automate your tax reports and other taxation workloads. 

Let's check the three best tax software compatible with the Shopify platform. 

TaxJar 

TaxJar is a great application if you want help ensuring that you charge the correct tax rate on your products. Although Shopify provides documents for tax collected, they’re not as detailed as what TaxJar can give. TaxJar can automatically publish detailed tax reports, which can help you file your taxes appropriately. In addition, this application can show the information on charged taxes no matter where state or country you sell your products. 

Avalara 

Avalara is another tax application that helps automate reports you can use for filling. This software syncs all your sales data to determine when you must file for your tax and how much you are due in that specific filing period. Moreover, Avalara is compatible with almost all ecommerce platforms. This application can consolidate all your sales from different selling platforms so you can file all your sales taxes in a single report. 

This application will help you swiftly organize your taxes, especially if you sell products on different platforms. 

Quaderno 

Having the Quaderno is like hiring your personal, professional accountant. This application can do so much to help with managing your business. Quaderno is an all-around tax assistant. This application can take care of your invoices and can do bookkeeping for your business. In addition, this application is highly customizable so that you can use it depending on your business's needs. 

Conclusion 

Collecting tax is a crucial part of online business wherever in the world you are selling. There's also no denying that managing taxes is one of the most confusing and time-consuming parts of running a business. No proper tax management can be the reason for your business's downfall, so it is crucial to be very keen on taxes upon starting. 

We hope this guideline gives you a clearer view of setting up your taxes. If you still find it too hard to manage, check out Unloop services that will run your Shopify tax reporting. We have professionals who are well-versed in the ecommerce market, so you will always be on top of your taxes. 

Don't forget to book a call with us today and start your business’s growth in our hands.

Read more

Disclaimer: Please note this article is not financial advice. The purpose of our blog is purely educational, so please consult a professional accountant or financial advisor before making any financial decision.

It's easy to familiarize yourself with your state's tax laws and apply these duties to the sales you make. But what about other states' sales tax regulations such as the Amazon Marketplace Facilitator Tax? As you expand your business, your sales tax obligations scale as well.

You may be wondering if Amazon is collecting sales tax and other duties. Getting these details right is crucial to your business because you can accurately jot down details on the books. Also, you can declare your correct taxable income when tax season comes.

Let Unloop help you by answering the most pressing questions about Amazon taxes and duties. So whether you're an Amazon newbie or a seasoned seller who has some questions, this post has got you covered!

The Amazon Marketplace Facilitator Tax: Does Amazon Collect Sales Tax For Sellers?

As a seller, it would be best to know the ins and outs of sales tax collection, but if you are still learning, there is no need to halt your plans for your Amazon business. 

The Marketplace Facilitator law assigns Amazon as a marketplace facilitator. All marketplace      facilitators have a sales tax collection obligation. This means they must collect and remit sales tax to authorities on the sellers' behalf.

The eCommerce giant will handle sales taxes for you in the following sales tax nexus where the Marketplace Facilitator Laws are in effect:

  • Alabama
  • Hawaii
  • Massachusetts
  • North Dakota
  • Utah
  • Alaska
  • Idaho
  • Michigan
  • Ohio
  • Vermont
  • Arizona
  • Illinois
  • Minnesota
  • Oklahoma
  • Virginia
  • Arkansas
  • Indiana
  • Mississippi
  • Pennsylvania
  • Washington DC
  • California
  • Iowa
  • Nebraska
  • West Virginia
  • Colorado
  • Kansas
  • Nevada
  • Rhode Island
  • Wisconsin
  • Connecticut
  • Kentucky
  • New Jersey
  • South Carolina
  • Wyoming
  • Louisiana
  • New Mexico
  • South Dakota 
  • Florida
  • Maine
  • New York
  • Tennessee
  • Georgia
  • Maryland
  • North Carolina
  • Texas
  • Puerto Rico*** (US territory)

With your sales taxes handled, you can focus on optimizing your store and growing your business.

Does Amazon sales tax collection vary depending on the state?

Each US state has its Marketplace Facilitator legislation for remitting sales tax. For some states like the ones below, the sales tax rate is destination-based.

  • Delaware
  • Maryland
  • North Dakota
  • Louisiana
  • New Hampshire
  • Michigan
  • Vermont
  • Washington
  • Oregon
  • Wisconsin
  • West Virginia
  • Alabama
  • Alaska
  • North Carolina
  • Florida
  • Kansas
  • Hawaii
  • Massachusetts
  • Indiana
  • Arkansas
  • South Dakota
  • Connecticut
  • Minnesota
  • New Jersey
  • Wyoming
  • Colorado
  • Idaho
  • Montana
  • Maine
  • Iowa
  • South Carolina
  • Rhode Island
  • Georgia
  • Nebraska
  • Nevada
  • Kentucky
  • New York
  • Oklahoma

Meanwhile, sales tax rates for these states are origin-based.

  • Virginia
  • Missouri
  • Illinois
  • New Mexico
  • Utah
  • Tennessee
  • Mississippi
  • Arizona

Some states, like the ones below, have unique sales tax laws that govern the remittance of their local sales taxes.

  • Guam*** (US territory)
  • Ohio
  • Puerto Rico*** (US territory)
  • Washington DC
  • Pennsylvania
  • California
  • Texas

Sales are sensitive to change, so seek assistance when it comes to identifying sales tax you must remit. It's a good thing that the marketplace facilitator has a tax monitoring system capable of detecting these changes. With this, remitting sales tax will always be accurate.

How Do I Find Out How Much Sales Taxes Amazon Has Remitted?

You can access the Marketplace Tax Collection Report and other sales tax reports on your Amazon Seller Central account. You can check out this report to see how much sales taxes Amazon has remitted to various tax authorities. 

To access it, click the "Reports" category and "Tax Document Library." Next, choose "Marketplace Tax Collection Report" after clicking the "Generate a tax report" button.

You can use the data you will get in various ways, but initially, you'll get an idea of how much sales taxes you will collect if you are selling on other platforms. Then, through it, you can generate your after-tax income.

What Duties Do I Have to Pay as a Third Party Seller?

As third party sellers on Amazon, taxes you need to pay are among what you need to check during tax season. Amazon will monitor your gross third party sales. If it reaches $20,000 and beyond 200 transactions, Amazon will report it to the Internal Revenue Service (IRS) through the 1099 form.

The form includes all your self-fulfilled or Amazon FBA sales, buyers' shipping and gift-wrapping payments, and promotional rebates.

This will be the basis of your income tax. However, you have to note that Amazon reports unadjusted gross sales. The platform includes refunds, but with the help of accountants, you can reconcile your final income to be taxed.

It's important to note that third party sellers can be exempted from sales tax liability. Sellers can check if they are eligible for sales tax permits before they pay sales tax.

How Do I Access Form 1099?

Log in to your Amazon Seller Central account as a primary user so you can click the "Tax Document Library" in the "Reports" category. Then, pick the year you wish to see and the "Form 1099." You'll only get the report when you've reached $20,000 or more than 200 transactions. 

While accessing it online is the most encouraged form of 1099 acquisition, Amazon can also send the form via email and delivery. Just make sure to indicate this request during the tax interview. Provide valid email and physical addresses to ensure you'll receive the form.

Get Assistance from Unloop!

Amazon seller sales tax and duties can be daunting, but we hope this article has answered some of your questions. If you still need assistance or have more questions, our team here at Unloop would be happy to help you navigate these waters and ensure sales tax compliance. We have a team of bookkeepers and accountants ready to assist you in your bookkeeping, accounts payable, forecasting, payroll, and tax needs. Feel free to give us a call. We'd love to discuss all the details with you!

Amazon Marketplace Facilitator Tax for Sellers: 4 Essential Questions Answered
Watch Now

Disclaimer: Please note this article is not financial advice. The purpose of our blog is purely educational, so please consult a professional accountant or financial advisor before making any financial decision.

It's easy to familiarize yourself with your state's tax laws and apply these duties to the sales you make. But what about other states' sales tax regulations such as the Amazon Marketplace Facilitator Tax? As you expand your business, your sales tax obligations scale as well.

You may be wondering if Amazon is collecting sales tax and other duties. Getting these details right is crucial to your business because you can accurately jot down details on the books. Also, you can declare your correct taxable income when tax season comes.

Let Unloop help you by answering the most pressing questions about Amazon taxes and duties. So whether you're an Amazon newbie or a seasoned seller who has some questions, this post has got you covered!

The Amazon Marketplace Facilitator Tax: Does Amazon Collect Sales Tax For Sellers?

As a seller, it would be best to know the ins and outs of sales tax collection, but if you are still learning, there is no need to halt your plans for your Amazon business. 

The Marketplace Facilitator law assigns Amazon as a marketplace facilitator. All marketplace      facilitators have a sales tax collection obligation. This means they must collect and remit sales tax to authorities on the sellers' behalf.

The eCommerce giant will handle sales taxes for you in the following sales tax nexus where the Marketplace Facilitator Laws are in effect:

  • Alabama
  • Hawaii
  • Massachusetts
  • North Dakota
  • Utah
  • Alaska
  • Idaho
  • Michigan
  • Ohio
  • Vermont
  • Arizona
  • Illinois
  • Minnesota
  • Oklahoma
  • Virginia
  • Arkansas
  • Indiana
  • Mississippi
  • Pennsylvania
  • Washington DC
  • California
  • Iowa
  • Nebraska
  • West Virginia
  • Colorado
  • Kansas
  • Nevada
  • Rhode Island
  • Wisconsin
  • Connecticut
  • Kentucky
  • New Jersey
  • South Carolina
  • Wyoming
  • Louisiana
  • New Mexico
  • South Dakota 
  • Florida
  • Maine
  • New York
  • Tennessee
  • Georgia
  • Maryland
  • North Carolina
  • Texas
  • Puerto Rico*** (US territory)

With your sales taxes handled, you can focus on optimizing your store and growing your business.

Does Amazon sales tax collection vary depending on the state?

Each US state has its Marketplace Facilitator legislation for remitting sales tax. For some states like the ones below, the sales tax rate is destination-based.

  • Delaware
  • Maryland
  • North Dakota
  • Louisiana
  • New Hampshire
  • Michigan
  • Vermont
  • Washington
  • Oregon
  • Wisconsin
  • West Virginia
  • Alabama
  • Alaska
  • North Carolina
  • Florida
  • Kansas
  • Hawaii
  • Massachusetts
  • Indiana
  • Arkansas
  • South Dakota
  • Connecticut
  • Minnesota
  • New Jersey
  • Wyoming
  • Colorado
  • Idaho
  • Montana
  • Maine
  • Iowa
  • South Carolina
  • Rhode Island
  • Georgia
  • Nebraska
  • Nevada
  • Kentucky
  • New York
  • Oklahoma

Meanwhile, sales tax rates for these states are origin-based.

  • Virginia
  • Missouri
  • Illinois
  • New Mexico
  • Utah
  • Tennessee
  • Mississippi
  • Arizona

Some states, like the ones below, have unique sales tax laws that govern the remittance of their local sales taxes.

  • Guam*** (US territory)
  • Ohio
  • Puerto Rico*** (US territory)
  • Washington DC
  • Pennsylvania
  • California
  • Texas

Sales are sensitive to change, so seek assistance when it comes to identifying sales tax you must remit. It's a good thing that the marketplace facilitator has a tax monitoring system capable of detecting these changes. With this, remitting sales tax will always be accurate.

How Do I Find Out How Much Sales Taxes Amazon Has Remitted?

You can access the Marketplace Tax Collection Report and other sales tax reports on your Amazon Seller Central account. You can check out this report to see how much sales taxes Amazon has remitted to various tax authorities. 

To access it, click the "Reports" category and "Tax Document Library." Next, choose "Marketplace Tax Collection Report" after clicking the "Generate a tax report" button.

You can use the data you will get in various ways, but initially, you'll get an idea of how much sales taxes you will collect if you are selling on other platforms. Then, through it, you can generate your after-tax income.

What Duties Do I Have to Pay as a Third Party Seller?

As third party sellers on Amazon, taxes you need to pay are among what you need to check during tax season. Amazon will monitor your gross third party sales. If it reaches $20,000 and beyond 200 transactions, Amazon will report it to the Internal Revenue Service (IRS) through the 1099 form.

The form includes all your self-fulfilled or Amazon FBA sales, buyers' shipping and gift-wrapping payments, and promotional rebates.

This will be the basis of your income tax. However, you have to note that Amazon reports unadjusted gross sales. The platform includes refunds, but with the help of accountants, you can reconcile your final income to be taxed.

It's important to note that third party sellers can be exempted from sales tax liability. Sellers can check if they are eligible for sales tax permits before they pay sales tax.

How Do I Access Form 1099?

Log in to your Amazon Seller Central account as a primary user so you can click the "Tax Document Library" in the "Reports" category. Then, pick the year you wish to see and the "Form 1099." You'll only get the report when you've reached $20,000 or more than 200 transactions. 

While accessing it online is the most encouraged form of 1099 acquisition, Amazon can also send the form via email and delivery. Just make sure to indicate this request during the tax interview. Provide valid email and physical addresses to ensure you'll receive the form.

Get Assistance from Unloop!

Amazon seller sales tax and duties can be daunting, but we hope this article has answered some of your questions. If you still need assistance or have more questions, our team here at Unloop would be happy to help you navigate these waters and ensure sales tax compliance. We have a team of bookkeepers and accountants ready to assist you in your bookkeeping, accounts payable, forecasting, payroll, and tax needs. Feel free to give us a call. We'd love to discuss all the details with you!

Read more

Shopify is another excellent online platform where you can start your ecommerce business. Shopify has different programs and features that help small businesses reach potential customers to make sales and pave their way to business success. But, of course, as you reach more buyers and earn more, you shouldn't forget about your obligations: taxes. 

Paying and sorting your taxes is a tedious part of owning an ecommerce business, and since you run the business yourself, there are no people that handle the taxes for you. If you're a newbie in the ecommerce market, familiarizing yourself with the taxes of selling platforms and how to set them up is essential for your success. 

Neglecting your taxes can be the start of your business's downfall. So if you want to grow and succeed in Shopify, here are some beginner basics you should note when it comes to Shopify’s taxes. 

ecommerce tax 

What are my tax obligations in Shopify? 

When you start a selling business, whether you have a physical store or an online selling profile, all the items you sell are levied with taxes according to your government's law or the selling platform's policies. 

If you are planning to start selling on the Shopify platform, here are some of the taxes you should note. 

Sales tax 

Sales tax is levied on every tangible item you sell in your ecommerce business. For example, have you ever gone shopping for groceries and noticed that there's an additional sales tax in the receipt once you get out your goods? That's exactly the situation with the items you are selling. As a Shopify seller, it's your duty to collect sales taxes and remit them to the proper tax collection agency. 

But, before you start to collect sales tax for your goods, you should have the correct rate applied to your items. If you are selling your products from the United States, the sales depend on what state you are located in. For example, if your merchandise is in New York, there's a 4.25% sales, while in Los Angeles, it's 9.5%. So make sure to know the proper state tax rate to collect the proper taxes. 

Income tax

Your total income from the platform and other earned money is levied with an income tax at the end of the fiscal year. There are seven different tax percentage brackets in the United States you can fall under depending on how much your income is. If you earn $10,000, you are levied with a 10% tax, and as your income goes higher, the percentage rate also increases. 

You will have to file an income tax return to know the final tax payment. Income taxes can also be confusing, and filing wrong can incur penalties. If you're new to all of this, it is best to hire a professional accountant to keep up with your income taxes. 

Getting Started: How to set up taxes on Shopify?

To collect the proper sales taxes and keep on top of your tax obligations, you have to set up your taxes in your Shopify admin account. Here are the important steps to follow when setting up your taxes in Shopify. 

Create your shipping zone 

When you set up your Shopify admin account, you must determine your shipping zone. There are different rates of shipping taxes across different states. Make sure to select the regions you will potentially ship your items so the platform can add the corresponding shipping rates once your customer checks out their item. 

Set up automatic tax rate collection 

Setting-up automatic tax rate collections will be helpful for the collection of taxes. The platform will automatically add the amount of taxes when your customers check out. But before you can set up, you now have your sales tax nexus. To calculate the sales tax, you must first determine if your business is destination-based or origin-based. 

Destination-based depends on tax calculations on the location of your customer. While the origin-based depends on tax calculation on where the items are coming from. You have to check which category you fall in with your state laws. 

Set-up tax exemptions 

Some items are eligible for tax exemptions. In some cases, exemptions are mandated by the national government, but some states give tax exemptions to some products. For example, any footwear product less than $50 is exempted from taxes in Connecticut. 

These exemptions can change from time to time, so it's important to keep updated with these tax law changes to apply for the following exemptions. There are also local tax professionals who can help you with these exemptions to help you properly collect your sales tax. 

taxation software and services 

Keeping Track of Your Taxes 

Now that you know how to add taxes on Shopify, it’s also important to keep track of your collection to know if you’re doing it right. Here are some practices that can help you manage your taxes on Shopify. 

Shopify tax report 

Everything is recorded under your seller's profile whenever you collect a sales tax and your total earnings. Take advantage of your transaction records to organize your taxes. You can download all your financial reports from shipping, sales, and taxes. 

Use Shopify plug-ins 

There are plug-ins compatible with Shopify to help you keep track of your taxes. For example, applications like TaxJar and Quaderno can automatically collect and summarize all your financial transactions and keep and organize records you can use for your filing process. In addition, there are several softwares you can integrate into your Shopify account, like Quickbooks, that record your sales and help you keep track of your inventory. 

Use the software to simplify the taxation aspect of your business to help you get organized and be on top of your taxes. 

Hire professionals 

If managing your taxes is simply too much and too confusing, you can hire tax professionals to handle it for you. When it comes to a reliable professional, Unloop can help you with your ecommerce business. Our tax professionals can help you manage your sales tax to help collect the remit properly. We also have professional bookkeepers that can help you manage all your financial transactions and inventory. 

Rest assured, these professionals can handle all your tax needs and help you strategize and make plans to help your business grow further. 

Final Thoughts 

Creating your seller account and deciding on the trendiest product to sell on Shopify are the easier parts of starting your ecommerce business. Keeping the financial records, keeping up with your product inventory, and managing your Shopify taxes are much harder, but all essential to the growth and success of your business. We hope the overview of the taxes helps you better understand your tax obligations and help you set up your taxes on Shopify so that you can sell your products smoothly and properly. If you are in need of professional help, don’t forget to book a call with us now!

Beginner Basics: Everything You Need to Know Setting Up Shopify Taxes
Watch Now

Shopify is another excellent online platform where you can start your ecommerce business. Shopify has different programs and features that help small businesses reach potential customers to make sales and pave their way to business success. But, of course, as you reach more buyers and earn more, you shouldn't forget about your obligations: taxes. 

Paying and sorting your taxes is a tedious part of owning an ecommerce business, and since you run the business yourself, there are no people that handle the taxes for you. If you're a newbie in the ecommerce market, familiarizing yourself with the taxes of selling platforms and how to set them up is essential for your success. 

Neglecting your taxes can be the start of your business's downfall. So if you want to grow and succeed in Shopify, here are some beginner basics you should note when it comes to Shopify’s taxes. 

ecommerce tax 

What are my tax obligations in Shopify? 

When you start a selling business, whether you have a physical store or an online selling profile, all the items you sell are levied with taxes according to your government's law or the selling platform's policies. 

If you are planning to start selling on the Shopify platform, here are some of the taxes you should note. 

Sales tax 

Sales tax is levied on every tangible item you sell in your ecommerce business. For example, have you ever gone shopping for groceries and noticed that there's an additional sales tax in the receipt once you get out your goods? That's exactly the situation with the items you are selling. As a Shopify seller, it's your duty to collect sales taxes and remit them to the proper tax collection agency. 

But, before you start to collect sales tax for your goods, you should have the correct rate applied to your items. If you are selling your products from the United States, the sales depend on what state you are located in. For example, if your merchandise is in New York, there's a 4.25% sales, while in Los Angeles, it's 9.5%. So make sure to know the proper state tax rate to collect the proper taxes. 

Income tax

Your total income from the platform and other earned money is levied with an income tax at the end of the fiscal year. There are seven different tax percentage brackets in the United States you can fall under depending on how much your income is. If you earn $10,000, you are levied with a 10% tax, and as your income goes higher, the percentage rate also increases. 

You will have to file an income tax return to know the final tax payment. Income taxes can also be confusing, and filing wrong can incur penalties. If you're new to all of this, it is best to hire a professional accountant to keep up with your income taxes. 

Getting Started: How to set up taxes on Shopify?

To collect the proper sales taxes and keep on top of your tax obligations, you have to set up your taxes in your Shopify admin account. Here are the important steps to follow when setting up your taxes in Shopify. 

Create your shipping zone 

When you set up your Shopify admin account, you must determine your shipping zone. There are different rates of shipping taxes across different states. Make sure to select the regions you will potentially ship your items so the platform can add the corresponding shipping rates once your customer checks out their item. 

Set up automatic tax rate collection 

Setting-up automatic tax rate collections will be helpful for the collection of taxes. The platform will automatically add the amount of taxes when your customers check out. But before you can set up, you now have your sales tax nexus. To calculate the sales tax, you must first determine if your business is destination-based or origin-based. 

Destination-based depends on tax calculations on the location of your customer. While the origin-based depends on tax calculation on where the items are coming from. You have to check which category you fall in with your state laws. 

Set-up tax exemptions 

Some items are eligible for tax exemptions. In some cases, exemptions are mandated by the national government, but some states give tax exemptions to some products. For example, any footwear product less than $50 is exempted from taxes in Connecticut. 

These exemptions can change from time to time, so it's important to keep updated with these tax law changes to apply for the following exemptions. There are also local tax professionals who can help you with these exemptions to help you properly collect your sales tax. 

taxation software and services 

Keeping Track of Your Taxes 

Now that you know how to add taxes on Shopify, it’s also important to keep track of your collection to know if you’re doing it right. Here are some practices that can help you manage your taxes on Shopify. 

Shopify tax report 

Everything is recorded under your seller's profile whenever you collect a sales tax and your total earnings. Take advantage of your transaction records to organize your taxes. You can download all your financial reports from shipping, sales, and taxes. 

Use Shopify plug-ins 

There are plug-ins compatible with Shopify to help you keep track of your taxes. For example, applications like TaxJar and Quaderno can automatically collect and summarize all your financial transactions and keep and organize records you can use for your filing process. In addition, there are several softwares you can integrate into your Shopify account, like Quickbooks, that record your sales and help you keep track of your inventory. 

Use the software to simplify the taxation aspect of your business to help you get organized and be on top of your taxes. 

Hire professionals 

If managing your taxes is simply too much and too confusing, you can hire tax professionals to handle it for you. When it comes to a reliable professional, Unloop can help you with your ecommerce business. Our tax professionals can help you manage your sales tax to help collect the remit properly. We also have professional bookkeepers that can help you manage all your financial transactions and inventory. 

Rest assured, these professionals can handle all your tax needs and help you strategize and make plans to help your business grow further. 

Final Thoughts 

Creating your seller account and deciding on the trendiest product to sell on Shopify are the easier parts of starting your ecommerce business. Keeping the financial records, keeping up with your product inventory, and managing your Shopify taxes are much harder, but all essential to the growth and success of your business. We hope the overview of the taxes helps you better understand your tax obligations and help you set up your taxes on Shopify so that you can sell your products smoothly and properly. If you are in need of professional help, don’t forget to book a call with us now!

Read more

QuickBooks Online (QBO) and Xero are two of the best accounting applications dominating the business industry. Both have excellent things to offer and investing in them can make a difference in streamlining your venture's financial management. But what if you must choose only one? This Xero vs. Quickbooks guide can help you decide!

Choosing between two excellent accounting software can be a real dilemma, so let this article give you a better understanding of Xero accounting vs. QuickBooks Online. Keep reading!

The Key Features of Xero Accounting Software

Xero is a New Zealand-based company and one of the fastest-growing and most popular accounting software in the market, with over 3.7 million subscribers worldwide. A two-time holder of the title "World's Most Innovative Growth Company" by Forbes, Xero has a cloud-based system for startups and small businesses. Users can enjoy a more streamlined financial workflow with Xero through the following helpful features.

  • Double-entry accounting: With Xero, business owners can record transactions using double-entry accounting software, ensuring accounts payable and receivable are tracked.
  • Collaboration: Small business owners use the program to handle their accounts individually and collaborate with outsourced accountants, as the popular Xero supports unlimited users.
  • Mobile use: Xero's mobile app allows access from any location anytime—tracking suppliers and customers, inventory management, invoicing, managing bank transactions, and many more!
  • Reporting: Generate full financial reports by selecting "All Reports," and access data such as business performance, balance sheet, cash flow statement, and bank feeds.
  • Payroll premium: Manage payroll effortlessly with Xero by providing your company information, payout schedule, and employees’ details. Set up tax requirements and choose the payment account with ease. Use time tracking data and scheduled runs.
  • User-friendly Interface: Xero's intuitive interface includes "Bills You Need to Pay" and "Pay" sections on the right side, and you can also customize the displayed modules. If you still need help navigating it, there are online courses on Xero’s website. 
  • Create invoices: You can create and send invoices seamlessly through Xero. Just add bank details and design invoices in the Accounts section.
  • Unlimited accounts: Offering a bottomless space for accounts if you manage multiple businesses is Xero's major advantage against other accounting platforms.

Xero's Plans and Pricing

Xero offers a 30-day trial to see if this accounting tool is the one for your business. Growing businesses can invest and upgrade to enjoy more advanced features, from Xero's Starter, Xero Standard, to Xero Premium.

an asset on Xero's plans and pricing

Excellent Accounting Features of QuickBooks Online

Intuit Inc. is an American company known for its financial software, such as TurboTax, Mint, and QuickBooks. QuickBooks, launched in 2002, swiftly gained popularity as accounting software in the United States, holding a 74% market share within three years. By 2019, Quickbooks Online reached a whopping 4.5 million subscribers worldwide.

You may wonder why it quickly became a go-to software for most businesses. Below are reasons they choose Quickbooks Online for their bookkeeping and accounting needs.

You probably wonder why it quickly became a go-to software for most businesses. Below are the reasons they choose Quickbooks Online for their bookkeeping and accounting needs.

  • Cloud-based software: Initially, Intuit offered desktop-based QuickBooks Pro and QuickBooks Desktop to install on Windows computers. Intuit later released QuickBooks Online, an internet-based software to leverage the benefits of the cloud.
  • Receipt capture feature and invoicing: It solves common tax season challenges for small business owners by allowing them to take photos of receipts, automatically scan them with optical character recognition, and use the details for invoices.
  • Data analytics: QuickBooks dashboard offers factual data and analytics that are easy to navigate. 
  • Fully functional mobile app: Small business owners can download QuickBooks’s mobile application to check their accounting transactions wherever they are.
  • Technical Support: QBO offers free support within certain hours, depending on your chosen package.
  • Data-encrypted backup: Quickbooks Online offers automatic backups and feature updates that can restore firm files and make them less prone to corruption.
  • Intuitive interface: QBO is user-friendly. Investing time to familiarize yourself with the software and its functionality will make learning easier.
  • Bank connections: Quickbooks online connects to your bank accounts and automatically downloads and sorts different transactions once you provide your bank details.
  • Data analytics: When you go to the application's homepage, you will see a dashboard that gives you a quick analysis of your income, expenses, bank balances, profit and loss, and sales.

Quickbooks Online Plans and Pricing

You can have a monthly subscription to QBO or choose among the various plans like the QBO Simple Start, QBO Essential, and QBO Plus. Whether income and expense management, financial management reports, and even sales tax tracking, you can find a plan that suits your needs best.

an asset on Quickbook's plans and pricing

Xero and Quickbooks Online Comparison

After knowing the key features above, we can conclude that both Quickbooks and Xero can give your business solid accounting operations. But more important is identifying which of these two top accounting tools can meet your business accounting needs. 

So let's compare the two according to the most important functions any ecommerce business may look for in an accounting tool. One checkmark indicates the feature's presence, while two checkmarks denote a software's dominance over the other:

FunctionXeroQuickbooks
Managing Expenses and Bills✅✅
Integrations✅✅
Tracking✅✅
Technical Support✅✅
Invoicing✅✅
Project Management✅✅
User-Friendly Interface
Multi-Currency
Customizable Dashboard✅✅
Inventory Management✅✅
Scalability✅✅
Bank Reconciliation
Reporting✅✅
Payment Gateways
Multiple User Access✅✅

Let’s further discuss these software features to ensure the software’s suitability to your business needs.

Expense and Bill Management

Both Xero and Quickbooks Online let you scan your receipts and bills for more efficient handling of your income and expenses. They also enable bank reconciliation for seamless expense and bill management. Both accounting tools have an easy process when connecting to banks without compromising the security of their clients.

  • Xero offers extra expense tracking features through an add-on called Xero Expenses. If you have team members reporting expenses to a centralized system, this add-on can make everything faster and easier. 
  • On the other hand, QuickBooks Online offers expense functionality in all their plans.

Tracking and Support Features

QBO remains superior in claiming expenses, transaction tracking tags, customer service, mileage, and time tracking compared to Xero. Quickbooks Online permits users to claim expenses across all of its subscriptions. 

Meanwhile, Xero offers that feature on its highest-tier package. Xero also allows users to generate two active tracking categories (in contrast, QBO allows 40).

Fixed Asset and Inventory Management

If you want a tool to track inventory, Xero is better at inventory management than QBO. The inventory management feature of Quickbooks Online is available only on its high-tier plan. In contrast, Xero makes it available to all of its plans.

Xero is also a step ahead regarding fixed asset management, as the feature is available in all plans. Meanwhile, QBO encourages users to download a third-party add-on or manually set up an asset account.

Ease of Use

QBO and Xero are tied when it comes to the user interface. Both applications are easy to use, and users can easily see results from the dashboard. 

If you must keep your books independently, you can do so with Xero or QuickBooks live bookkeeping. Even without an accounting degree, given the right learning curve, you can figure out how to use the different functions of accounting software through online resources and expert assistance.

different charts coming out of the laptop in front of a man using it

Dashboard Data

Most accounting software dashboards offer a quick overview of how your business is performing and are customizable depending on your needs. However, the respective dashboards of Quickbooks and Xero have a few differences.

QuickBooks Online offers multiple customizability options for clients with unpaid invoices, pending bill payments, cash flow, and more. On the other hand, Xero initially provides you with a minimalist dashboard, which you can customize later on.

Invoicing Features

Issuing invoices shouldn't feel like a chore. It should be fast and accurate. QBO is the dominant one in terms of invoicing because it can support a generation of unlimited invoices. It lets you edit customer information on the invoice page instead of forcing you to navigate to your customer records. This feature can be handy when you need to change the billing address. 

In contrast, Xero allows only 20 invoices. Its invoice page is more straightforward, featuring only the most relevant fields, such as invoice number, issue date, due date, and the client. 

Scalability

Small ventures will eventually grow into mid-sized businesses. As a result, you'll have to process payroll for more employees, cater to more customers, and manage larger inventories. Thus, you must ensure your accounting solution grows with you and your business. 

In this regard, Xero and QuickBooks Online differ slightly. Xero is the go-to choice for rapidly growing businesses and startups because it scales well with them. Meanwhile, solopreneurs and small business owners will find QuickBooks Online more suitable. If you have a bigger business, QuickBooks offers enterprise-level solutions.

Pricing

Comparing the pricing of Xero and QuickBooks Online, Xero is way cheaper than QBO, considering Xero supports unlimited users. Both Xero and QuickBooks Online offer three-tier pricing plans. However, they widely differ in how many features their cheapest online plans provide. 

💡 When choosing which plan is suitable for your business, it would be best to check the specific offers of each plan and not just the costs. You’ll realize that investing not in the cheapest plan but the one that satisfies your business bookkeeping and accounting needs is the wisest choice.

Xero VS. Quickbooks Online: Our Verdict

It's tricky to declare that one software program is inherently superior to another when comparing Xero and Quickbooks. The decision on the Xero VS. Quickbooks Online topic ultimately comes down to your company, your required functionality, your budget, and the features that matter most to you. 

Ultimately, whichever accounting software platform you select—Xero or QuickBooks Online—will enable you to manage and optimize your accounting procedures effectively. Make sure to check out their free trials before subscribing to any plan.

If you are ready to leverage the potential of top accounting software, get started with Unloop! Our team of experts combines their experience in ecommerce bookkeeping and accounting with industry-leading accounting software.

Put your business finances on autopilot. Get in touch with us today, and let our experts do the bookkeeping for you!

Xero VS. Quickbooks—Which One Works Best for Your Business?
Watch Now

QuickBooks Online (QBO) and Xero are two of the best accounting applications dominating the business industry. Both have excellent things to offer and investing in them can make a difference in streamlining your venture's financial management. But what if you must choose only one? This Xero vs. Quickbooks guide can help you decide!

Choosing between two excellent accounting software can be a real dilemma, so let this article give you a better understanding of Xero accounting vs. QuickBooks Online. Keep reading!

The Key Features of Xero Accounting Software

Xero is a New Zealand-based company and one of the fastest-growing and most popular accounting software in the market, with over 3.7 million subscribers worldwide. A two-time holder of the title "World's Most Innovative Growth Company" by Forbes, Xero has a cloud-based system for startups and small businesses. Users can enjoy a more streamlined financial workflow with Xero through the following helpful features.

  • Double-entry accounting: With Xero, business owners can record transactions using double-entry accounting software, ensuring accounts payable and receivable are tracked.
  • Collaboration: Small business owners use the program to handle their accounts individually and collaborate with outsourced accountants, as the popular Xero supports unlimited users.
  • Mobile use: Xero's mobile app allows access from any location anytime—tracking suppliers and customers, inventory management, invoicing, managing bank transactions, and many more!
  • Reporting: Generate full financial reports by selecting "All Reports," and access data such as business performance, balance sheet, cash flow statement, and bank feeds.
  • Payroll premium: Manage payroll effortlessly with Xero by providing your company information, payout schedule, and employees’ details. Set up tax requirements and choose the payment account with ease. Use time tracking data and scheduled runs.
  • User-friendly Interface: Xero's intuitive interface includes "Bills You Need to Pay" and "Pay" sections on the right side, and you can also customize the displayed modules. If you still need help navigating it, there are online courses on Xero’s website. 
  • Create invoices: You can create and send invoices seamlessly through Xero. Just add bank details and design invoices in the Accounts section.
  • Unlimited accounts: Offering a bottomless space for accounts if you manage multiple businesses is Xero's major advantage against other accounting platforms.

Xero's Plans and Pricing

Xero offers a 30-day trial to see if this accounting tool is the one for your business. Growing businesses can invest and upgrade to enjoy more advanced features, from Xero's Starter, Xero Standard, to Xero Premium.

an asset on Xero's plans and pricing

Excellent Accounting Features of QuickBooks Online

Intuit Inc. is an American company known for its financial software, such as TurboTax, Mint, and QuickBooks. QuickBooks, launched in 2002, swiftly gained popularity as accounting software in the United States, holding a 74% market share within three years. By 2019, Quickbooks Online reached a whopping 4.5 million subscribers worldwide.

You may wonder why it quickly became a go-to software for most businesses. Below are reasons they choose Quickbooks Online for their bookkeeping and accounting needs.

You probably wonder why it quickly became a go-to software for most businesses. Below are the reasons they choose Quickbooks Online for their bookkeeping and accounting needs.

  • Cloud-based software: Initially, Intuit offered desktop-based QuickBooks Pro and QuickBooks Desktop to install on Windows computers. Intuit later released QuickBooks Online, an internet-based software to leverage the benefits of the cloud.
  • Receipt capture feature and invoicing: It solves common tax season challenges for small business owners by allowing them to take photos of receipts, automatically scan them with optical character recognition, and use the details for invoices.
  • Data analytics: QuickBooks dashboard offers factual data and analytics that are easy to navigate. 
  • Fully functional mobile app: Small business owners can download QuickBooks’s mobile application to check their accounting transactions wherever they are.
  • Technical Support: QBO offers free support within certain hours, depending on your chosen package.
  • Data-encrypted backup: Quickbooks Online offers automatic backups and feature updates that can restore firm files and make them less prone to corruption.
  • Intuitive interface: QBO is user-friendly. Investing time to familiarize yourself with the software and its functionality will make learning easier.
  • Bank connections: Quickbooks online connects to your bank accounts and automatically downloads and sorts different transactions once you provide your bank details.
  • Data analytics: When you go to the application's homepage, you will see a dashboard that gives you a quick analysis of your income, expenses, bank balances, profit and loss, and sales.

Quickbooks Online Plans and Pricing

You can have a monthly subscription to QBO or choose among the various plans like the QBO Simple Start, QBO Essential, and QBO Plus. Whether income and expense management, financial management reports, and even sales tax tracking, you can find a plan that suits your needs best.

an asset on Quickbook's plans and pricing

Xero and Quickbooks Online Comparison

After knowing the key features above, we can conclude that both Quickbooks and Xero can give your business solid accounting operations. But more important is identifying which of these two top accounting tools can meet your business accounting needs. 

So let's compare the two according to the most important functions any ecommerce business may look for in an accounting tool. One checkmark indicates the feature's presence, while two checkmarks denote a software's dominance over the other:

FunctionXeroQuickbooks
Managing Expenses and Bills✅✅
Integrations✅✅
Tracking✅✅
Technical Support✅✅
Invoicing✅✅
Project Management✅✅
User-Friendly Interface
Multi-Currency
Customizable Dashboard✅✅
Inventory Management✅✅
Scalability✅✅
Bank Reconciliation
Reporting✅✅
Payment Gateways
Multiple User Access✅✅

Let’s further discuss these software features to ensure the software’s suitability to your business needs.

Expense and Bill Management

Both Xero and Quickbooks Online let you scan your receipts and bills for more efficient handling of your income and expenses. They also enable bank reconciliation for seamless expense and bill management. Both accounting tools have an easy process when connecting to banks without compromising the security of their clients.

  • Xero offers extra expense tracking features through an add-on called Xero Expenses. If you have team members reporting expenses to a centralized system, this add-on can make everything faster and easier. 
  • On the other hand, QuickBooks Online offers expense functionality in all their plans.

Tracking and Support Features

QBO remains superior in claiming expenses, transaction tracking tags, customer service, mileage, and time tracking compared to Xero. Quickbooks Online permits users to claim expenses across all of its subscriptions. 

Meanwhile, Xero offers that feature on its highest-tier package. Xero also allows users to generate two active tracking categories (in contrast, QBO allows 40).

Fixed Asset and Inventory Management

If you want a tool to track inventory, Xero is better at inventory management than QBO. The inventory management feature of Quickbooks Online is available only on its high-tier plan. In contrast, Xero makes it available to all of its plans.

Xero is also a step ahead regarding fixed asset management, as the feature is available in all plans. Meanwhile, QBO encourages users to download a third-party add-on or manually set up an asset account.

Ease of Use

QBO and Xero are tied when it comes to the user interface. Both applications are easy to use, and users can easily see results from the dashboard. 

If you must keep your books independently, you can do so with Xero or QuickBooks live bookkeeping. Even without an accounting degree, given the right learning curve, you can figure out how to use the different functions of accounting software through online resources and expert assistance.

different charts coming out of the laptop in front of a man using it

Dashboard Data

Most accounting software dashboards offer a quick overview of how your business is performing and are customizable depending on your needs. However, the respective dashboards of Quickbooks and Xero have a few differences.

QuickBooks Online offers multiple customizability options for clients with unpaid invoices, pending bill payments, cash flow, and more. On the other hand, Xero initially provides you with a minimalist dashboard, which you can customize later on.

Invoicing Features

Issuing invoices shouldn't feel like a chore. It should be fast and accurate. QBO is the dominant one in terms of invoicing because it can support a generation of unlimited invoices. It lets you edit customer information on the invoice page instead of forcing you to navigate to your customer records. This feature can be handy when you need to change the billing address. 

In contrast, Xero allows only 20 invoices. Its invoice page is more straightforward, featuring only the most relevant fields, such as invoice number, issue date, due date, and the client. 

Scalability

Small ventures will eventually grow into mid-sized businesses. As a result, you'll have to process payroll for more employees, cater to more customers, and manage larger inventories. Thus, you must ensure your accounting solution grows with you and your business. 

In this regard, Xero and QuickBooks Online differ slightly. Xero is the go-to choice for rapidly growing businesses and startups because it scales well with them. Meanwhile, solopreneurs and small business owners will find QuickBooks Online more suitable. If you have a bigger business, QuickBooks offers enterprise-level solutions.

Pricing

Comparing the pricing of Xero and QuickBooks Online, Xero is way cheaper than QBO, considering Xero supports unlimited users. Both Xero and QuickBooks Online offer three-tier pricing plans. However, they widely differ in how many features their cheapest online plans provide. 

💡 When choosing which plan is suitable for your business, it would be best to check the specific offers of each plan and not just the costs. You’ll realize that investing not in the cheapest plan but the one that satisfies your business bookkeeping and accounting needs is the wisest choice.

Xero VS. Quickbooks Online: Our Verdict

It's tricky to declare that one software program is inherently superior to another when comparing Xero and Quickbooks. The decision on the Xero VS. Quickbooks Online topic ultimately comes down to your company, your required functionality, your budget, and the features that matter most to you. 

Ultimately, whichever accounting software platform you select—Xero or QuickBooks Online—will enable you to manage and optimize your accounting procedures effectively. Make sure to check out their free trials before subscribing to any plan.

If you are ready to leverage the potential of top accounting software, get started with Unloop! Our team of experts combines their experience in ecommerce bookkeeping and accounting with industry-leading accounting software.

Put your business finances on autopilot. Get in touch with us today, and let our experts do the bookkeeping for you!

Read more

Stop guessing

Know exactly where your ecommerce business stands financially.
+1 877 421 7270
228 Park Ave S #82849
New York, NY 10003
United States
7676 Woodbine Ave #2
Markham, ON L3R 2N2
Canada
228 Park Ave S #82849
New York, NY 10003
United States
7676 Woodbine Ave #2
Markham, ON L3R 2N2
Canada
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.

cross