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Michael Pignatelli, CPA
CEO, Unloop

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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.

The Amazon tax calculator is a valuable tool for sellers and buyers on the popular online marketplace. Taxes are complicated—in fact, they’re the most dreaded task for many ecommerce sellers. However, only in understanding taxes can sellers fully comply with applicable policies and continue to run their businesses.

Whether you are a small business owner or an individual seller, the calculator simplifies computing sales tax on your Amazon transactions based on your specific location. It also enables buyers to estimate the total cost of their purchases, including sales tax, avoiding any surprises upon checkout.

The Amazon tax calculator is an essential resource for anyone buying or selling on this widely-used platform. So let's dive into sales taxes and how they are computed in this article.

Sales Tax and Nexus

Before we dive into the Amazon tax calculator itself, let’s first understand the basics of Amazon taxes—sales tax and nexus. You’ll often come across these two in your journey as an Amazon seller. Let us help you shed some light on these terms:

Sales Taxes

In general, sales tax is levied whenever an item is sold or a service is rendered. This tax is imposed on the final consumer during the point of sale. This means the merchant of the goods or services is responsible for collection and remittance.

This tax form makes up a significant amount of the government's revenue, levied in small amounts but compounding from every business exchange between a seller and a final consumer.

Sales Tax Nexus

An economic or sales tax nexus is the state where you do business, initially where your business is registered. However, due to recent changes in how people do business, important revisions have been made to determine an economic nexus, making the process all the more complex. 

For example, sellers in Amazon and other online marketplaces can now merit multiple economic nexuses when they reach a certain threshold in interstate sales.

gavel and a sound block on top of a map

Determining Your Sales Tax Nexus States

Economic nexus in today’s ecommerce markets largely depend on the business relationship between a seller and a state. Physical location takes a back seat as a determining factor. 

Instead, a financial threshold system is utilized, where the annual volume of business transactions becomes the state's benchmark for establishing jurisdiction.

For example, if you do business in Arkansas (AR) and reach more than $100,000 selling to consumers in that state, you'll have to account for sales tax deductions.

Revenue threshold and physical business location are not the only determining factor of economic nexus. The state tax laws vary depending on the state you do business with. If you're huge on Amazon and have a broad scope of operation, you could have multiple economic nexus.

A lot of factors come into play when you determine your nexus state. The primary one is whether the state you're doing business with levies sales tax on the transaction origin or the destination. But there are other factors, such as the following:

  • The specific region where your goods are stored for inventory
  • Whether you have business affiliates from other states
  • Whether you hire remote staff from other states
  • A click-through nexus

FBA and State Tax Nexus

When you use Fulfillment by Amazon (FBA), your inventory is stored in Amazon warehouses across various states. This situation counts as a sales tax nexus and requires you to pay sales taxes accordingly.

You need to get a sales tax permit in your nexus to comply with the laws. After registering, you will receive an Employer Identification Number (EIN) from the state's revenue department, which you will use to file your sales tax returns.

Amazon Marketplace Facilitator Laws

Many states have enacted Marketplace Facilitator laws, shifting the responsibility of collecting and remitting sales taxes from individual sellers to the marketplace—in this case, Amazon. These laws aim to simplify sales tax collection for small businesses, as Amazon automatically calculates, collects, and remits taxes on applicable sales.

But as an Amazon seller, you're still responsible for filing your state sales tax returns and ensuring you're properly registered in your nexus states. An Amazon tax calculator can help you estimate your sales tax liability and stay ahead of due dates.

To generate a date range report, go to your Seller Central account, select Reports, and choose the appropriate filing period. This report will provide you with valuable information on your sales volume and tax amounts, which will help you stay compliant with state tax regulations.

Familiarizing yourself with state tax regulations and monitoring policy changes can be time-consuming and complicated. But remember—it's your responsibility as an Amazon seller to adhere to state tax regulations and maintain accurate records. 

By staying informed and proactive in your tax compliance, you'll protect your business from unexpected tax liabilities and ensure a smooth selling experience.

Amazon Sales Tax Calculator

Imagine manually calculating each transaction you incur in every state to determine the amount to charge sales tax on. That could take forever. On top of that, you also have to officially register for a sales tax permit in every state you have a link nexus on, which takes time and effort.

Amazon’s sales tax calculator uncomplicated this process. In fact, due to MPF laws, you don't have to calculate sales tax on every nexus state you're in; Amazon does it for you. 

However, you must note that Amazon does not collect sales tax in some states. In this case, Amazon can calculate the sales taxes, but you must remit them yourself.

amazon seller central sign in page on a mobile phone placed on top of a laptop  with a pen and leather purse on its side

Setting Up Tax Collection on Amazon

Setting up tax collection on Amazon involves registering for a sales tax permit and configuring tax settings in your Amazon seller account. This process ensures tax law compliance, allowing accurate collection and remittance of sales tax from Amazon customers. 

Acquiring a Sales Tax Permit

To get a sales tax permit, you should contact your state's revenue department and follow their guidelines. In most cases, you will need to provide your Employer Identification Number (EIN) and other business-related details during the registration process. After securing a sales tax permit, set up tax collection on Amazon.

Tax Collection Settings

To configure your tax collection settings on Amazon, follow these steps:

  1. Log in to your Amazon Seller Central account.
  2. Click Settings in the top right corner of the page.
  3. From the dropdown menu, select Tax Settings.
  4. Set up product tax codes and tax rates for each of your nexus states.

After configuring your tax settings, Amazon will use the provided information to calculate, collect, and remit sales taxes on your behalf for transactions within your nexus states. This allows you to focus on growing your business.

It is still your responsibility to file your sales tax returns with the respective state revenue departments. To monitor your sales, use Amazon Seller Central's Generate Date Range Report feature, which provides valuable information to help you stay compliant with your sales tax filing frequency schedules and due dates.

Calculating Sales Tax on Transactions

When dealing with Amazon transactions, calculating sales tax can be a bit complicated. However, understanding how it works is crucial for staying compliant and maintaining good standing with tax authorities.

In this section, we will cover two main types of sales transactions: Amazon Prime sales and eCommerce sales. In both cases, you will need to utilize the Amazon Tax Calculator to accurately calculate and collect sales tax.

Amazon Prime Sales

Amazon sellers like you can enroll in the Amazon Prime program. Amazon Prime utilizes FBA. In this case, Amazon helps you collect the appropriate sales tax on your transactions. However, it’s essential to understand your sales tax obligations and ensure that your sales tax nexus is correctly identified. Here are the steps:

  1. Determine your sales tax nexus.
  2. Register for a sales tax permit.
  3. Set up your tax collection settings: In your Amazon Seller Central account, configure the sales tax settings to automatically collect sales tax from buyers in states where you have a nexus.
  4. Stay up-to-date with filing requirements: Each state has its filing frequency schedule, which determines the due date and filing period for sales tax returns. It is your responsibility to ensure timely tax payments and stay compliant with the respective state tax laws.

Ecommerce Sales

Sellers operating an eCommerce store outside of Amazon still need to take care of sales tax calculations and filings. Here's a step-by-step to help you manage your sales tax obligations:

  1. Figure out your sales tax nexus.
  2. Get a sales tax permit.
  3. Calculate sales tax rates: Using an Amazon tax calculator, compute the accurate sales tax rates for transactions within your nexus states.
  4. Collect sales tax from customers: Implement sales tax collection in your eCommerce store's checkout process, ensuring that customers pay the correct tax amount based on their location.
  5. File and remit your sales tax: Adhere to the respective states' filing frequency schedules and make timely tax payments.

By staying informed and following these guidelines, you can efficiently manage your sales tax responsibilities and maintain good standing with tax authorities. Learn to keep up with changing regulations and consult with tax experts to avoid any potential issues or penalties.

Partner With Unloop!

The Amazon tax calculator is a valuable tool for sellers and buyers. It simplifies calculating sales tax on Amazon transactions based on specific locations, benefiting sellers by helping them understand and manage their tax obligations more efficiently.

Sales tax collection is complicated, especially for eCommerce sellers, but Amazon operates under the Marketplace Facilitator Law to collect and remit sales taxes on behalf of the sellers. The calculator eliminates the need for sellers to calculate sales tax in multiple states manually they have economic nexus in, thus saving time and effort.

If sales taxes are something you cannot handle on your own, note that you can always seek assistance from experts. Unloop can be your partner. We have solutions for Amazon sellers. Book a call with us today.

Uncomplicating Sales Taxes with an Amazon Tax Calculator 
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.

The Amazon tax calculator is a valuable tool for sellers and buyers on the popular online marketplace. Taxes are complicated—in fact, they’re the most dreaded task for many ecommerce sellers. However, only in understanding taxes can sellers fully comply with applicable policies and continue to run their businesses.

Whether you are a small business owner or an individual seller, the calculator simplifies computing sales tax on your Amazon transactions based on your specific location. It also enables buyers to estimate the total cost of their purchases, including sales tax, avoiding any surprises upon checkout.

The Amazon tax calculator is an essential resource for anyone buying or selling on this widely-used platform. So let's dive into sales taxes and how they are computed in this article.

Sales Tax and Nexus

Before we dive into the Amazon tax calculator itself, let’s first understand the basics of Amazon taxes—sales tax and nexus. You’ll often come across these two in your journey as an Amazon seller. Let us help you shed some light on these terms:

Sales Taxes

In general, sales tax is levied whenever an item is sold or a service is rendered. This tax is imposed on the final consumer during the point of sale. This means the merchant of the goods or services is responsible for collection and remittance.

This tax form makes up a significant amount of the government's revenue, levied in small amounts but compounding from every business exchange between a seller and a final consumer.

Sales Tax Nexus

An economic or sales tax nexus is the state where you do business, initially where your business is registered. However, due to recent changes in how people do business, important revisions have been made to determine an economic nexus, making the process all the more complex. 

For example, sellers in Amazon and other online marketplaces can now merit multiple economic nexuses when they reach a certain threshold in interstate sales.

gavel and a sound block on top of a map

Determining Your Sales Tax Nexus States

Economic nexus in today’s ecommerce markets largely depend on the business relationship between a seller and a state. Physical location takes a back seat as a determining factor. 

Instead, a financial threshold system is utilized, where the annual volume of business transactions becomes the state's benchmark for establishing jurisdiction.

For example, if you do business in Arkansas (AR) and reach more than $100,000 selling to consumers in that state, you'll have to account for sales tax deductions.

Revenue threshold and physical business location are not the only determining factor of economic nexus. The state tax laws vary depending on the state you do business with. If you're huge on Amazon and have a broad scope of operation, you could have multiple economic nexus.

A lot of factors come into play when you determine your nexus state. The primary one is whether the state you're doing business with levies sales tax on the transaction origin or the destination. But there are other factors, such as the following:

  • The specific region where your goods are stored for inventory
  • Whether you have business affiliates from other states
  • Whether you hire remote staff from other states
  • A click-through nexus

FBA and State Tax Nexus

When you use Fulfillment by Amazon (FBA), your inventory is stored in Amazon warehouses across various states. This situation counts as a sales tax nexus and requires you to pay sales taxes accordingly.

You need to get a sales tax permit in your nexus to comply with the laws. After registering, you will receive an Employer Identification Number (EIN) from the state's revenue department, which you will use to file your sales tax returns.

Amazon Marketplace Facilitator Laws

Many states have enacted Marketplace Facilitator laws, shifting the responsibility of collecting and remitting sales taxes from individual sellers to the marketplace—in this case, Amazon. These laws aim to simplify sales tax collection for small businesses, as Amazon automatically calculates, collects, and remits taxes on applicable sales.

But as an Amazon seller, you're still responsible for filing your state sales tax returns and ensuring you're properly registered in your nexus states. An Amazon tax calculator can help you estimate your sales tax liability and stay ahead of due dates.

To generate a date range report, go to your Seller Central account, select Reports, and choose the appropriate filing period. This report will provide you with valuable information on your sales volume and tax amounts, which will help you stay compliant with state tax regulations.

Familiarizing yourself with state tax regulations and monitoring policy changes can be time-consuming and complicated. But remember—it's your responsibility as an Amazon seller to adhere to state tax regulations and maintain accurate records. 

By staying informed and proactive in your tax compliance, you'll protect your business from unexpected tax liabilities and ensure a smooth selling experience.

Amazon Sales Tax Calculator

Imagine manually calculating each transaction you incur in every state to determine the amount to charge sales tax on. That could take forever. On top of that, you also have to officially register for a sales tax permit in every state you have a link nexus on, which takes time and effort.

Amazon’s sales tax calculator uncomplicated this process. In fact, due to MPF laws, you don't have to calculate sales tax on every nexus state you're in; Amazon does it for you. 

However, you must note that Amazon does not collect sales tax in some states. In this case, Amazon can calculate the sales taxes, but you must remit them yourself.

amazon seller central sign in page on a mobile phone placed on top of a laptop  with a pen and leather purse on its side

Setting Up Tax Collection on Amazon

Setting up tax collection on Amazon involves registering for a sales tax permit and configuring tax settings in your Amazon seller account. This process ensures tax law compliance, allowing accurate collection and remittance of sales tax from Amazon customers. 

Acquiring a Sales Tax Permit

To get a sales tax permit, you should contact your state's revenue department and follow their guidelines. In most cases, you will need to provide your Employer Identification Number (EIN) and other business-related details during the registration process. After securing a sales tax permit, set up tax collection on Amazon.

Tax Collection Settings

To configure your tax collection settings on Amazon, follow these steps:

  1. Log in to your Amazon Seller Central account.
  2. Click Settings in the top right corner of the page.
  3. From the dropdown menu, select Tax Settings.
  4. Set up product tax codes and tax rates for each of your nexus states.

After configuring your tax settings, Amazon will use the provided information to calculate, collect, and remit sales taxes on your behalf for transactions within your nexus states. This allows you to focus on growing your business.

It is still your responsibility to file your sales tax returns with the respective state revenue departments. To monitor your sales, use Amazon Seller Central's Generate Date Range Report feature, which provides valuable information to help you stay compliant with your sales tax filing frequency schedules and due dates.

Calculating Sales Tax on Transactions

When dealing with Amazon transactions, calculating sales tax can be a bit complicated. However, understanding how it works is crucial for staying compliant and maintaining good standing with tax authorities.

In this section, we will cover two main types of sales transactions: Amazon Prime sales and eCommerce sales. In both cases, you will need to utilize the Amazon Tax Calculator to accurately calculate and collect sales tax.

Amazon Prime Sales

Amazon sellers like you can enroll in the Amazon Prime program. Amazon Prime utilizes FBA. In this case, Amazon helps you collect the appropriate sales tax on your transactions. However, it’s essential to understand your sales tax obligations and ensure that your sales tax nexus is correctly identified. Here are the steps:

  1. Determine your sales tax nexus.
  2. Register for a sales tax permit.
  3. Set up your tax collection settings: In your Amazon Seller Central account, configure the sales tax settings to automatically collect sales tax from buyers in states where you have a nexus.
  4. Stay up-to-date with filing requirements: Each state has its filing frequency schedule, which determines the due date and filing period for sales tax returns. It is your responsibility to ensure timely tax payments and stay compliant with the respective state tax laws.

Ecommerce Sales

Sellers operating an eCommerce store outside of Amazon still need to take care of sales tax calculations and filings. Here's a step-by-step to help you manage your sales tax obligations:

  1. Figure out your sales tax nexus.
  2. Get a sales tax permit.
  3. Calculate sales tax rates: Using an Amazon tax calculator, compute the accurate sales tax rates for transactions within your nexus states.
  4. Collect sales tax from customers: Implement sales tax collection in your eCommerce store's checkout process, ensuring that customers pay the correct tax amount based on their location.
  5. File and remit your sales tax: Adhere to the respective states' filing frequency schedules and make timely tax payments.

By staying informed and following these guidelines, you can efficiently manage your sales tax responsibilities and maintain good standing with tax authorities. Learn to keep up with changing regulations and consult with tax experts to avoid any potential issues or penalties.

Partner With Unloop!

The Amazon tax calculator is a valuable tool for sellers and buyers. It simplifies calculating sales tax on Amazon transactions based on specific locations, benefiting sellers by helping them understand and manage their tax obligations more efficiently.

Sales tax collection is complicated, especially for eCommerce sellers, but Amazon operates under the Marketplace Facilitator Law to collect and remit sales taxes on behalf of the sellers. The calculator eliminates the need for sellers to calculate sales tax in multiple states manually they have economic nexus in, thus saving time and effort.

If sales taxes are something you cannot handle on your own, note that you can always seek assistance from experts. Unloop can be your partner. We have solutions for Amazon sellers. Book a call with us today.

Read more

If you have a small business, most of your accounting tasks will fall under bookkeeping. However, bookkeeping is more than just keeping organized records of your business expenses. Every record you store is essential in tracking and improving your business's overall financial health.

Fortunately, you don't have to be a bookkeeping expert to handle your business's bookkeeping needs. But still, many small business owners can't do their bookkeeping properly. So here are some fool-proof accounting tips for small businesses to handle your books properly.

Keep on Top of Your Accounts Receivables

Getting paid is the most exciting part of running a business. But managing your accounts receivables is not as fun as getting paid. It is important that you list as soon as your customer pays you so you can monitor if they still have any outstanding balances.

However, as your orders increase and you receive more payments, keeping up with your receivables will be more difficult to accomplish. So when it's time to balance your books, you'll often encounter a lot of discrepancies, especially if you forget to log those receivables.

Make it a weekly habit to record all your receivables. So by the end of each month, your transactions won't pile up and get lost.

Create a Bookkeeping Routine To Follow

Bookkeeping is manageable if you do it routinely and in parts. Even though it is tempting to cram everything right before tax season, you'll thank yourself for handling bookkeeping better and more promptly. In addition, spending more time on bookkeeping means your data is much more likely to be accurate.

For small business owners, here are basic bookkeeping tasks you should accomplish every week:

  • Check invoices and record payments
  • Review and pay business expenses
  • Balance business checking accounts
  • Record and store all receipts relating to the business
  • Compile and validate your financial statements

Understand Your Cash Flow

Even if you're no professional bookkeeper, it is still important that you put effort into understanding how accounting works. The more you understand what the numbers you see means, the easier it is for you to do several accounting and bookkeeping tasks.

After ticking your monthly bookkeeping checklist, you should consider making cash flow statements. This financial statement gives you a better understanding of your company's cash position. It lets you see the cycle of your income and expenses. With this, you can properly plan and allocate your business's finances.

Document All Business Transactions

It's a common mistake for business owners to forget to make copies of their business transactions, leading to several accounting issues. Being diligent with compiling receipts of your business transactions is important for accurate bookkeeping.

Additionally, several bookkeeping software will help you track and store your business receipts. They have features that let you take a snap of the receipts and instantly log any expenses or sales in the software so that you can record every last one of your transactions.

Aside from having more organized books, keeping track of your transactions can also save you money. One example is by logging business expenses which you can write off on your taxes.

If you're still confused about the expenses you can claim as business expenses, here are some examples in different categories.

  • Travel expenses: All travel expenses related to business fall under this category. For example, if you are meeting a client out of town, you can list the cost of gas or plane tickets under business expenses.
  • Home office expenses: Any money you spend on office supplies or equipment like computers, printers, paper, staples, pens, or any other office supplies falls under this category.
  • Entertainment: The money you use to entertain your clients is a business expense. For example, paying for a meal while you and your client discuss aspects of your business is a valid business expense.

The list of business expenses goes on and is not limited to these three categories. As long as they are not expenses for personal use and you have the receipts to prove it, you can log them as a company expense.

Automate Necessary Accounting Tasks

Bookkeeping software is there for a purpose, so maximize them. Accounting software can automate several tasks so you can focus on other parts of your business. Invest in software that can simplify tasks for you. Here are some accounting tasks you can consider for automation:

  • Recurring invoices
  • Payroll deposits
  • Generating business reports
  • Accounts payable notifications
  • Bank reconciliation

These are just some of the tasks that will benefit greatly from automation. Other advanced software can do more, so make sure to invest in a software your business needs and one that fits within your budget.

Learn Double-Entry Bookkeeping

Almost all businesses today use accounting software for their bookkeeping instead of recording in physical books. However, if your small business cannot afford software yet, understanding and knowing how to do double-entry bookkeeping is best for your accounting processes.

In simple terms, double-entry bookkeeping records the transaction's expense and gain. For example, you buy 2 kgs of lip gloss base for $30 for your cosmetic business. You will record -30 on your expenses but record +2 on your inventory gain.

This bookkeeping style will help you assess your business performance and make better financial decisions.

Put Extra Effort Into Tracking Cash Payments

Receiving cash payments for your business is exciting, but tracking them is not as fun as it sounds. In bookkeeping, keeping track of cash payments is tedious. 

Unlike other methods like online payments, bank transfers, debit, and credit cards, which leave a trail when the transaction is complete,cash payments don't leave proof unless you write them down. So when your business accepts cash, make it a habit to give receipts at the end of each transaction. In addition, you should have a receipt book so you can give your customers a copy of the receipt and have one for yourself.

Look Ahead of Your Finances

Preparing for your business's future is great for bookkeeping. There are two ways you can plan ahead for your business. First, have plans for major expenses. There's no telling when you need to stock your inventory big time or replace a piece of expensive equipment. In these cases, sudden expenses can disrupt your cash flow.

Next, use your financial statements to anticipate your business's financial position. Cash flow statements, expense records, income statements, and other reports help you project your budget for the next few months. If you are always on top of your financial management, you'll handle bookkeeping duties easier.

Don't Be Afraid To Use Technology

The best accounting tips for small business owners all boils down to choosing the best software. Unfortunately, most small business owners are still reluctant to invest in software, thinking it's too big of an expense.

But in reality, there are several free accounting software that can perform basic accounting tasks that small businesses may need. So before dismissing the thought of getting an accounting system, look for options that will fit your budget. You'll be surprised by the tons of options you can choose from.

Get Professional Help

One thing is sure, accounting is not for everybody. So if you think that bookkeeping tasks are too much for you and your time is better spent on other parts of your business, outsource it to a professional.

As your business grows, accounting tasks will be more demanding and time-consuming. However, with a professional bookkeeper, you're sure that your finances will be in order. Furthermore, you’re assured that everything they do is accurate and valid.

Final Thoughts

The foundation of good accounting is organized and proper bookkeeping, and as a business owner, it starts with you. We hope these accounting tips help you manage your bookkeeping tasks properly.
If you need professional help with your bookkeeping needs, Unloop offers professional accounting help for your ecommerce business. So check out our different services and book a call with us today!

10 Small Business Accounting Tips To Make Bookkeeping a Breeze
Watch Now

If you have a small business, most of your accounting tasks will fall under bookkeeping. However, bookkeeping is more than just keeping organized records of your business expenses. Every record you store is essential in tracking and improving your business's overall financial health.

Fortunately, you don't have to be a bookkeeping expert to handle your business's bookkeeping needs. But still, many small business owners can't do their bookkeeping properly. So here are some fool-proof accounting tips for small businesses to handle your books properly.

Keep on Top of Your Accounts Receivables

Getting paid is the most exciting part of running a business. But managing your accounts receivables is not as fun as getting paid. It is important that you list as soon as your customer pays you so you can monitor if they still have any outstanding balances.

However, as your orders increase and you receive more payments, keeping up with your receivables will be more difficult to accomplish. So when it's time to balance your books, you'll often encounter a lot of discrepancies, especially if you forget to log those receivables.

Make it a weekly habit to record all your receivables. So by the end of each month, your transactions won't pile up and get lost.

Create a Bookkeeping Routine To Follow

Bookkeeping is manageable if you do it routinely and in parts. Even though it is tempting to cram everything right before tax season, you'll thank yourself for handling bookkeeping better and more promptly. In addition, spending more time on bookkeeping means your data is much more likely to be accurate.

For small business owners, here are basic bookkeeping tasks you should accomplish every week:

  • Check invoices and record payments
  • Review and pay business expenses
  • Balance business checking accounts
  • Record and store all receipts relating to the business
  • Compile and validate your financial statements

Understand Your Cash Flow

Even if you're no professional bookkeeper, it is still important that you put effort into understanding how accounting works. The more you understand what the numbers you see means, the easier it is for you to do several accounting and bookkeeping tasks.

After ticking your monthly bookkeeping checklist, you should consider making cash flow statements. This financial statement gives you a better understanding of your company's cash position. It lets you see the cycle of your income and expenses. With this, you can properly plan and allocate your business's finances.

Document All Business Transactions

It's a common mistake for business owners to forget to make copies of their business transactions, leading to several accounting issues. Being diligent with compiling receipts of your business transactions is important for accurate bookkeeping.

Additionally, several bookkeeping software will help you track and store your business receipts. They have features that let you take a snap of the receipts and instantly log any expenses or sales in the software so that you can record every last one of your transactions.

Aside from having more organized books, keeping track of your transactions can also save you money. One example is by logging business expenses which you can write off on your taxes.

If you're still confused about the expenses you can claim as business expenses, here are some examples in different categories.

  • Travel expenses: All travel expenses related to business fall under this category. For example, if you are meeting a client out of town, you can list the cost of gas or plane tickets under business expenses.
  • Home office expenses: Any money you spend on office supplies or equipment like computers, printers, paper, staples, pens, or any other office supplies falls under this category.
  • Entertainment: The money you use to entertain your clients is a business expense. For example, paying for a meal while you and your client discuss aspects of your business is a valid business expense.

The list of business expenses goes on and is not limited to these three categories. As long as they are not expenses for personal use and you have the receipts to prove it, you can log them as a company expense.

Automate Necessary Accounting Tasks

Bookkeeping software is there for a purpose, so maximize them. Accounting software can automate several tasks so you can focus on other parts of your business. Invest in software that can simplify tasks for you. Here are some accounting tasks you can consider for automation:

  • Recurring invoices
  • Payroll deposits
  • Generating business reports
  • Accounts payable notifications
  • Bank reconciliation

These are just some of the tasks that will benefit greatly from automation. Other advanced software can do more, so make sure to invest in a software your business needs and one that fits within your budget.

Learn Double-Entry Bookkeeping

Almost all businesses today use accounting software for their bookkeeping instead of recording in physical books. However, if your small business cannot afford software yet, understanding and knowing how to do double-entry bookkeeping is best for your accounting processes.

In simple terms, double-entry bookkeeping records the transaction's expense and gain. For example, you buy 2 kgs of lip gloss base for $30 for your cosmetic business. You will record -30 on your expenses but record +2 on your inventory gain.

This bookkeeping style will help you assess your business performance and make better financial decisions.

Put Extra Effort Into Tracking Cash Payments

Receiving cash payments for your business is exciting, but tracking them is not as fun as it sounds. In bookkeeping, keeping track of cash payments is tedious. 

Unlike other methods like online payments, bank transfers, debit, and credit cards, which leave a trail when the transaction is complete,cash payments don't leave proof unless you write them down. So when your business accepts cash, make it a habit to give receipts at the end of each transaction. In addition, you should have a receipt book so you can give your customers a copy of the receipt and have one for yourself.

Look Ahead of Your Finances

Preparing for your business's future is great for bookkeeping. There are two ways you can plan ahead for your business. First, have plans for major expenses. There's no telling when you need to stock your inventory big time or replace a piece of expensive equipment. In these cases, sudden expenses can disrupt your cash flow.

Next, use your financial statements to anticipate your business's financial position. Cash flow statements, expense records, income statements, and other reports help you project your budget for the next few months. If you are always on top of your financial management, you'll handle bookkeeping duties easier.

Don't Be Afraid To Use Technology

The best accounting tips for small business owners all boils down to choosing the best software. Unfortunately, most small business owners are still reluctant to invest in software, thinking it's too big of an expense.

But in reality, there are several free accounting software that can perform basic accounting tasks that small businesses may need. So before dismissing the thought of getting an accounting system, look for options that will fit your budget. You'll be surprised by the tons of options you can choose from.

Get Professional Help

One thing is sure, accounting is not for everybody. So if you think that bookkeeping tasks are too much for you and your time is better spent on other parts of your business, outsource it to a professional.

As your business grows, accounting tasks will be more demanding and time-consuming. However, with a professional bookkeeper, you're sure that your finances will be in order. Furthermore, you’re assured that everything they do is accurate and valid.

Final Thoughts

The foundation of good accounting is organized and proper bookkeeping, and as a business owner, it starts with you. We hope these accounting tips help you manage your bookkeeping tasks properly.
If you need professional help with your bookkeeping needs, Unloop offers professional accounting help for your ecommerce business. So check out our different services and book a call with us today!

Read more

In the world of ecommerce, Shopify is one of the most famous platforms. Creating a website and selling products can be easy, but what about bookkeeping? That becomes another concern that needs your attention. Keeping track of finances and paperwork yourself isn't feasible, especially when you're an online store owner who does almost everything in the business.

This is where you'll realize the advantage of using accounting software. A dependable Shopify accounting tool and an organized accounting system together with the right practices can help you keep track of your sales, expenses, and bank balances so you can focus on running your business. In this article, we’ll be discussing everything about Shopify accounting and bookkeeping!

The Importance of Shopify Bookkeeping

The importance of good and accurate Shopify bookkeeping cannot be overemphasized. If you lack accurate bookkeeping, it can lead to lapses and discrepancies in the business, with tax fraud being the worst. In addition, having good bookkeeping can also help you monitor your finances more easily and ensure that your business is stable and on the right path.

One of the main benefits of using Shopify bookkeeping software is that it allows you to track all your expenses in one place. As a result, it gives an overview of how your business is performing and helps you create well-grounded decisions about allocating your resources efficiently. In addition, good Shopify bookkeeping can help you identify any potential issues with your business early on, allowing you to rectify them before they become major problems.

Qualities Of Good Shopify Accounting Software

Extensive Accounting Reports

Every accounting software offers basic reporting, which can cover the needs of your ecommerce business if you're still starting out. However, if your business continues to grow, you'll encounter more complex transactions; that's why you'll need more advanced and extensive reports.

Sales Tax System

Computing the sales tax of every transaction can be exhausting for ecommerce sellers and may appear impossible for those with no background in accounting. That is why finding software that manages sales tax effectively is a must.

Convenient Application Integrations

Spend less time integrating your accounting software with third-party applications and spend time instead on making sales. Make sure the application’s integration process is smooth to avoid lapses while running your business.

Efficient Customer Support

Last but definitely not the least, effective customer support is a must for every service you purchase. This can greatly affect the overall experience of using the application and your business itself.

Best Accounting Software For Shopify

Shopify on the laptop screen isolated

FreshBooks

First on the list of software that can help with the accounting needs of your Shopify store is FreshBooks. It is one of the major players in the market and has been utilized for online and offline workplaces. FreshBooks embraces the mentality of "less is more," which can be seen on their dashboard.

The project management feature of FreshBooks is recommended for ecommerce businesses with multiple employees. It allows you to allocate projects and track their progress in real-time, and you can also directly assign projects to your employees through this feature.

Monitoring your daily expenses is also easy with FreshBooks. It provides live bank feeds, and you can even import your bank statements.

With its Estimates feature, sending direct estimates to your clients can be done in a minute. As well as sending reports such as invoice details, sales tax summaries, expense reports, and loss statements, you can also access all necessary reports conveniently. 

Other notable advantages of using FreshBooks are its smooth onboarding process and excellent customer support.

QuickBooks

If you're not a newbie to the industry, there's a high chance that you've already encountered QuickBooks Online at least once during your day-to-day business. It has established its name in the market by providing one of the most advanced accounting solutions for ecommerce stores and even offline stores.

Some advantages that QuickBooks can offer is its user-friendly interface and controls that are easy to use and learn for newbies or those with no accounting background. It also added an in-depth framework to save and arrange customer details easily. 

Just like FreshBooks, it provides live bank feeds for higher accuracy of transactions, or you can also add your bank statements from your bank account. 

Their Invoicing feature lets you create a customized invoice that suits your every transaction. First, you choose one of the templates or upload a pre-designed one. After that, you can adjust the font size, style, headers, footers, and columns according to your preference.

In terms of providing financial reports, QuickBooks Online provides a well-established system to help monitor different figures about your business.

Overall, QuickBooks shines above the others because it's easy to find mistakes in the software, and it provides extensive accounting reports.

Sage

Like other software, Sage offers a variety of tools and features that solve most of your accounting needs. Everything's covered, from budgeting, auditing, and cash flow forecasting, up to job costing and automated workflows. Moreover, this accounting application provides custom reporting and analysis features that can assist you in evaluating your business's status.

Aside from this, it practices double-entry accounting—the industry's best method. This poses an advantage for online store owners with no accounting background.

It also offers strong inventory management to assist you in monitoring your assets closely. Setting automated alerts is also included in case you need to recharge your inventory levels.

Aside from these eye-catching features, Sage accounting software is also highly customizable. It offers its users in-depth financial reports (monthly, quarterly, and annual). Lastly, Sage can be integrated with third-party add-on applications to give you more accessibility. If you haven't tried Sage, you should start considering it now.

Wave

Wave Accounting software is one of the pioneers in the ecommerce industry in terms of providing accounting solutions for small business owners on Shopify and other ecommerce platforms. It also offers a wide range of features and functions that aid Shopify store owners in managing their business's finances. And what's more attractive is that some of its features are free to use.

The primary use of Wave is for tracking different accounts such as income, expenses, invoices, and receipts. Navigating its visual dashboard shouldn't be a problem—even for newbies—since the app is very friendly.

Looking for free accounting software? Wave's Receipts and Payment features are free; that's why Shopify store owners who only need these two can save money.

However, the Payment and Payroll features require subscriptions to access. It also provides automatic accounting reports that can be exported when you need to present them or use them for consultation. 

Overall, Wave is a great tool recommended for business owners trying to minimize their expenses on accounting tools and still receive great benefits.

Xero

Have you heard about Xero? No, not the number! Xero is also one of the major players in the industry at this moment. It offers many helpful features that might just be the answer to your accounting struggles.

Xero's features include the most basic accounting functions, such as paying bills, sending invoices, tracking expenses, and accepting payments from clients.

Moreover, what sets Xero’s quality apart is its advanced functions, such as the Bank Reconciliation feature that keeps your bank statements up to date, its Inventory Management that lets you keep track of your items, and automatic computation for the sales tax of each transaction. It also provides accounting reports you can use when consulting a financial advisor.

To summarize, Xero is accounting software that possesses almost every feature that your business might need. It has more advanced features compared to other accounting software, since its target market is expanding businesses.

Solve Your Problems in Accounting For Shopify with Unloop

These tools should help take your Shopify business to the next level. If you're still having trouble keeping track of your finances, give these a try and see how they can help streamline your bookkeeping process. Finally, don't hesitate to ask for assistance from Unloop! Our team is composed of knowledgeable professionals in the field who can help you with your accounting needs. So skip the hassle and book a call now!

Shopify Accounting Tips to Safekeep Your Finances
Watch Now

In the world of ecommerce, Shopify is one of the most famous platforms. Creating a website and selling products can be easy, but what about bookkeeping? That becomes another concern that needs your attention. Keeping track of finances and paperwork yourself isn't feasible, especially when you're an online store owner who does almost everything in the business.

This is where you'll realize the advantage of using accounting software. A dependable Shopify accounting tool and an organized accounting system together with the right practices can help you keep track of your sales, expenses, and bank balances so you can focus on running your business. In this article, we’ll be discussing everything about Shopify accounting and bookkeeping!

The Importance of Shopify Bookkeeping

The importance of good and accurate Shopify bookkeeping cannot be overemphasized. If you lack accurate bookkeeping, it can lead to lapses and discrepancies in the business, with tax fraud being the worst. In addition, having good bookkeeping can also help you monitor your finances more easily and ensure that your business is stable and on the right path.

One of the main benefits of using Shopify bookkeeping software is that it allows you to track all your expenses in one place. As a result, it gives an overview of how your business is performing and helps you create well-grounded decisions about allocating your resources efficiently. In addition, good Shopify bookkeeping can help you identify any potential issues with your business early on, allowing you to rectify them before they become major problems.

Qualities Of Good Shopify Accounting Software

Extensive Accounting Reports

Every accounting software offers basic reporting, which can cover the needs of your ecommerce business if you're still starting out. However, if your business continues to grow, you'll encounter more complex transactions; that's why you'll need more advanced and extensive reports.

Sales Tax System

Computing the sales tax of every transaction can be exhausting for ecommerce sellers and may appear impossible for those with no background in accounting. That is why finding software that manages sales tax effectively is a must.

Convenient Application Integrations

Spend less time integrating your accounting software with third-party applications and spend time instead on making sales. Make sure the application’s integration process is smooth to avoid lapses while running your business.

Efficient Customer Support

Last but definitely not the least, effective customer support is a must for every service you purchase. This can greatly affect the overall experience of using the application and your business itself.

Best Accounting Software For Shopify

Shopify on the laptop screen isolated

FreshBooks

First on the list of software that can help with the accounting needs of your Shopify store is FreshBooks. It is one of the major players in the market and has been utilized for online and offline workplaces. FreshBooks embraces the mentality of "less is more," which can be seen on their dashboard.

The project management feature of FreshBooks is recommended for ecommerce businesses with multiple employees. It allows you to allocate projects and track their progress in real-time, and you can also directly assign projects to your employees through this feature.

Monitoring your daily expenses is also easy with FreshBooks. It provides live bank feeds, and you can even import your bank statements.

With its Estimates feature, sending direct estimates to your clients can be done in a minute. As well as sending reports such as invoice details, sales tax summaries, expense reports, and loss statements, you can also access all necessary reports conveniently. 

Other notable advantages of using FreshBooks are its smooth onboarding process and excellent customer support.

QuickBooks

If you're not a newbie to the industry, there's a high chance that you've already encountered QuickBooks Online at least once during your day-to-day business. It has established its name in the market by providing one of the most advanced accounting solutions for ecommerce stores and even offline stores.

Some advantages that QuickBooks can offer is its user-friendly interface and controls that are easy to use and learn for newbies or those with no accounting background. It also added an in-depth framework to save and arrange customer details easily. 

Just like FreshBooks, it provides live bank feeds for higher accuracy of transactions, or you can also add your bank statements from your bank account. 

Their Invoicing feature lets you create a customized invoice that suits your every transaction. First, you choose one of the templates or upload a pre-designed one. After that, you can adjust the font size, style, headers, footers, and columns according to your preference.

In terms of providing financial reports, QuickBooks Online provides a well-established system to help monitor different figures about your business.

Overall, QuickBooks shines above the others because it's easy to find mistakes in the software, and it provides extensive accounting reports.

Sage

Like other software, Sage offers a variety of tools and features that solve most of your accounting needs. Everything's covered, from budgeting, auditing, and cash flow forecasting, up to job costing and automated workflows. Moreover, this accounting application provides custom reporting and analysis features that can assist you in evaluating your business's status.

Aside from this, it practices double-entry accounting—the industry's best method. This poses an advantage for online store owners with no accounting background.

It also offers strong inventory management to assist you in monitoring your assets closely. Setting automated alerts is also included in case you need to recharge your inventory levels.

Aside from these eye-catching features, Sage accounting software is also highly customizable. It offers its users in-depth financial reports (monthly, quarterly, and annual). Lastly, Sage can be integrated with third-party add-on applications to give you more accessibility. If you haven't tried Sage, you should start considering it now.

Wave

Wave Accounting software is one of the pioneers in the ecommerce industry in terms of providing accounting solutions for small business owners on Shopify and other ecommerce platforms. It also offers a wide range of features and functions that aid Shopify store owners in managing their business's finances. And what's more attractive is that some of its features are free to use.

The primary use of Wave is for tracking different accounts such as income, expenses, invoices, and receipts. Navigating its visual dashboard shouldn't be a problem—even for newbies—since the app is very friendly.

Looking for free accounting software? Wave's Receipts and Payment features are free; that's why Shopify store owners who only need these two can save money.

However, the Payment and Payroll features require subscriptions to access. It also provides automatic accounting reports that can be exported when you need to present them or use them for consultation. 

Overall, Wave is a great tool recommended for business owners trying to minimize their expenses on accounting tools and still receive great benefits.

Xero

Have you heard about Xero? No, not the number! Xero is also one of the major players in the industry at this moment. It offers many helpful features that might just be the answer to your accounting struggles.

Xero's features include the most basic accounting functions, such as paying bills, sending invoices, tracking expenses, and accepting payments from clients.

Moreover, what sets Xero’s quality apart is its advanced functions, such as the Bank Reconciliation feature that keeps your bank statements up to date, its Inventory Management that lets you keep track of your items, and automatic computation for the sales tax of each transaction. It also provides accounting reports you can use when consulting a financial advisor.

To summarize, Xero is accounting software that possesses almost every feature that your business might need. It has more advanced features compared to other accounting software, since its target market is expanding businesses.

Solve Your Problems in Accounting For Shopify with Unloop

These tools should help take your Shopify business to the next level. If you're still having trouble keeping track of your finances, give these a try and see how they can help streamline your bookkeeping process. Finally, don't hesitate to ask for assistance from Unloop! Our team is composed of knowledgeable professionals in the field who can help you with your accounting needs. So skip the hassle and book a call now!

Read more

Running an ecommerce business is not easy. You may know how to make and sell your products, but it takes more than that to sustain the business and achieve business growth. More than a good product, you need to keep an eye on your business’s financial reports.

You can’t just eyeball your finances—your company's sustainability relies on your accounting records. Any business needs a bookkeeping system, and ecommerce businesses are not an exception to this.

In ecommerce bookkeeping, you have to pay attention to inventory tracking. With proper bookkeeping, you can track your inventory, manage the costs, and implement a more strategic business plan to improve your business's efficiency.

However, bookkeeping is not for everyone, and it is not a skill you can learn overnight, either. But thanks to innovation, ecommerce bookkeeping services are now accessible to bookkeeping novices. Help your business grow its profits with the bookkeeping software we’ve listed down for you.

Ecommerce Bookkeeping Services

Ecommerce bookkeeping is different from other industries but is similar to how bookkeeping is done for retail businesses. After all, ecommerce is just online retail. 

What makes it different from retail, however, is the platform used to sell the products, which impacts the bookkeeping process.

In a traditional commerce business, most of the transactional data is typically found in the business's bank account. In an ecommerce business, the accountant cannot rely on the transactional data from its bank account. The deposit received by the ecommerce business from the merchant (Amazon, Shopify, etc.) is the total amount of its sales for the given period. 

However, this will not provide your bookkeeper with accurate data from each transaction or sale you’ve made, including income and time. In addition, this will affect the business's inventory management, thus messing up your recorded profits and pricing. Simply put, a bookkeeper for an ecommerce business cannot rely on net deposits and has to record transactions based on the records from your sales channel.

Moreover, running an ecommerce business means dealing with different online sales tax laws and foreign transaction costs. This might be a hassle, so hiring an ecommerce bookkeeping expert or subscribing to an ecommerce bookkeeping service will save you time.

Best Bookkeeping Software for Ecommerce Businesses

There are multiple online bookkeeping software in the market. Still, we’ve narrowed it down to ecommerce-optimized software so you get more accurate, online retail-friendly features that fit your business needs.

Below are our top picks of the best bookkeeping software for ecommerce and their selling points.

ecommerce bookkeeping - Above top view close up young woman holding utility bills or receipt, managing monthly expenses with e-banking application on computer, professional accountant or bookkeeper doing paperwork indoors

1. Xero

Perfect for small start-up ecommerce businesses, Xero is an accessible bookkeeping solution. It is a web-based software, allowing you to access it across any device without system requirements or application downloads. 

Xero allows you to create invoices, make payments, organize payroll, manage inventory, and pay bills at the tip of your fingers. In addition, Xero allows small businesses to access their financial information with the aid of Xero’s trusted advisors—maximizing the growth of your business.

However, Xero can still be improved upon, especially with its collaboration features. In addition, Xero has to improve its customer service as well for more efficient customer support. For now, you can only contact them through email.

Overall, Xero is a beginner-friendly, accessible, and budget-friendly bookkeeping application you should consider if you’re planning to launch an ecommerce business.

2. QuickBooks

QuickBooks is suitable for beginners, small businesses, and bookkeepers alike.

Skilled bookkeepers and accountants can use QuickBooks Online for convenience and organization. 

However, if you are a business seeking online bookkeeping services, make sure to subscribe to QuickBooks Live Bookkeeping. This software offers a full-scale bookkeeping service by connecting you with QuickBooks-certified bookkeepers and having them guide you all throughout the process. In addition, their in-house bookkeepers will ensure that your books are clear of errors. 

If you are transitioning into using ecommerce bookkeeping software, QuickBooks is for you. Through QuickBooks’s cleanup service, you can reconcile and organize your previous accounts up to your last tax filing

To sum it up, QuickBooks is a comprehensive tool that allows you to sync and integrate your records across different platforms. This accounting software is recommended for small business owners with no background in accounting since it is very user-friendly—you’ll have an assigned bookkeeper to help you out.

3. Zoho Books

Another player to enter the list of the best ecommerce bookkeeping software is Zoho Books. It is one of the applications under the Zoho suite, and was specifically made to aid ecommerce business owners in the bookkeeping needs of their businesses.

It is generally used for creating invoices, simplifying taxes, and monitoring financial data. Zoho Books has an inventory management feature that helps create inventories, compute the cost of goods sold, and summarize the ending inventories.

So what makes Zoho Books better than other accounting software? Aside from Zoho Books, the Zoho suite also offers Zoho Inventory. Using Zoho Books and Zoho Inventory side by side can ease the burden of doing all inventory tracking by yourself. However, Zoho Inventory requires a separate subscription.

Another impressive fact about Zoho Books is the accessibility of their software. Users can access the application using a mobile phone by downloading the Zoho Books app. With just your mobile phone, you can send invoices, receive payments, and manage your expenses.

Moreover, Zoho's customer support is above par. There are several ways to contact them; that's why you shouldn't worry when encountering problems in integrating the applications under the Zoho suite!

4. A2X

Ever heard of A2X? A2X is an ecommerce accounting software used by accountants and bookkeepers but is also recommended for ecommerce sellers. 

It is a handy tool that automatically categorizes the payout data received from various ecommerce platforms such as Amazon, eBay, Shopify, and Etsy, and transforms them into organized financial reports that perfectly fit Sage, Xero, and other accounting software.

With A2X, bookkeeping is easy as it organizes your data automatically, so your books are up-to-date. No need for manual entries; A2X can help you save time while boosting the accuracy of your books. More than that, its customizable feature allows it to fit the needs of your business. 

A2X is great for businesses that serve customers from different countries and encounter different currencies. Its system is built to reconcile financial transactions across borders, taking into consideration tax jurisdictions. 

With its support representatives competent in bookkeeping and accounting, A2X boasts excellent customer support. They respond with accurate solutions within hours. 

If you are looking for a bookkeeping solution for your ecommerce business, you should definitely consider A2X. This software will make bookkeeping for your business easy, accurate, and up-to-date. 

5. Bench

If you want to keep your books simple and concise, Bench is a good fit for you. At an affordable price, Bench can reconcile your bank accounts, categorize your financial transactions, and generate financial statements.

Its features include ecommerce bookkeeping. If you realize that you need a bookkeeper late in the tax year, they can also help you catch up on your bookkeeping backlogs. However, this comes with an extra fee.

What’s amazing about this app is they cross-check your books every month to ensure data accuracy. Then, after your bookkeeper finishes your books, they will be reviewed by Bench’s in-house support team.

Their customer service is also excellent. Sure, you can send them an in-app message—like any other software out there. But with Bench, you can book a call with a partner bookkeeper and ensure that you are on the same page.

Bench’s user interface is also very simple and easy to navigate. You don’t have to be tech-savvy or an accounting expert to understand how this app works. Bookkeeping is definitely made easy with this app.

For now, Bench only serves small businesses within the United States. So if you're a US-based ecommerce business owner seeking bookkeeping services, consider Bench.

Can Bookkeeping Software Suffice?

Bookkeeping software are extremely helpful for keeping track of your finances, but they have limitations too. The problem is, bookkeeping software just track your financial data and nothing more.

You need an accountant to actually interpret the prepared data in your books into something that you, the business owner, can translate into a business strategy. Unfortunately, bookkeeping software cannot analyze your business performance the way an accountant can.

That doesn’t mean that you need to leave your bookkeeping needs hanging. Here at Unloop, we help you integrate your existing bookkeeping software with our services, so you don’t have to worry about anything at all.

Let Unloop take care of your finances from bookkeeping and preparation of financial statements (income statement, cash flow statement, and balance sheet), right up to tax filings. Pay attention to your business's financial health and earn more profit by booking a call with us today!

5 Ecommerce Bookkeeping Software Worth Checking Out
Watch Now

Running an ecommerce business is not easy. You may know how to make and sell your products, but it takes more than that to sustain the business and achieve business growth. More than a good product, you need to keep an eye on your business’s financial reports.

You can’t just eyeball your finances—your company's sustainability relies on your accounting records. Any business needs a bookkeeping system, and ecommerce businesses are not an exception to this.

In ecommerce bookkeeping, you have to pay attention to inventory tracking. With proper bookkeeping, you can track your inventory, manage the costs, and implement a more strategic business plan to improve your business's efficiency.

However, bookkeeping is not for everyone, and it is not a skill you can learn overnight, either. But thanks to innovation, ecommerce bookkeeping services are now accessible to bookkeeping novices. Help your business grow its profits with the bookkeeping software we’ve listed down for you.

Ecommerce Bookkeeping Services

Ecommerce bookkeeping is different from other industries but is similar to how bookkeeping is done for retail businesses. After all, ecommerce is just online retail. 

What makes it different from retail, however, is the platform used to sell the products, which impacts the bookkeeping process.

In a traditional commerce business, most of the transactional data is typically found in the business's bank account. In an ecommerce business, the accountant cannot rely on the transactional data from its bank account. The deposit received by the ecommerce business from the merchant (Amazon, Shopify, etc.) is the total amount of its sales for the given period. 

However, this will not provide your bookkeeper with accurate data from each transaction or sale you’ve made, including income and time. In addition, this will affect the business's inventory management, thus messing up your recorded profits and pricing. Simply put, a bookkeeper for an ecommerce business cannot rely on net deposits and has to record transactions based on the records from your sales channel.

Moreover, running an ecommerce business means dealing with different online sales tax laws and foreign transaction costs. This might be a hassle, so hiring an ecommerce bookkeeping expert or subscribing to an ecommerce bookkeeping service will save you time.

Best Bookkeeping Software for Ecommerce Businesses

There are multiple online bookkeeping software in the market. Still, we’ve narrowed it down to ecommerce-optimized software so you get more accurate, online retail-friendly features that fit your business needs.

Below are our top picks of the best bookkeeping software for ecommerce and their selling points.

ecommerce bookkeeping - Above top view close up young woman holding utility bills or receipt, managing monthly expenses with e-banking application on computer, professional accountant or bookkeeper doing paperwork indoors

1. Xero

Perfect for small start-up ecommerce businesses, Xero is an accessible bookkeeping solution. It is a web-based software, allowing you to access it across any device without system requirements or application downloads. 

Xero allows you to create invoices, make payments, organize payroll, manage inventory, and pay bills at the tip of your fingers. In addition, Xero allows small businesses to access their financial information with the aid of Xero’s trusted advisors—maximizing the growth of your business.

However, Xero can still be improved upon, especially with its collaboration features. In addition, Xero has to improve its customer service as well for more efficient customer support. For now, you can only contact them through email.

Overall, Xero is a beginner-friendly, accessible, and budget-friendly bookkeeping application you should consider if you’re planning to launch an ecommerce business.

2. QuickBooks

QuickBooks is suitable for beginners, small businesses, and bookkeepers alike.

Skilled bookkeepers and accountants can use QuickBooks Online for convenience and organization. 

However, if you are a business seeking online bookkeeping services, make sure to subscribe to QuickBooks Live Bookkeeping. This software offers a full-scale bookkeeping service by connecting you with QuickBooks-certified bookkeepers and having them guide you all throughout the process. In addition, their in-house bookkeepers will ensure that your books are clear of errors. 

If you are transitioning into using ecommerce bookkeeping software, QuickBooks is for you. Through QuickBooks’s cleanup service, you can reconcile and organize your previous accounts up to your last tax filing

To sum it up, QuickBooks is a comprehensive tool that allows you to sync and integrate your records across different platforms. This accounting software is recommended for small business owners with no background in accounting since it is very user-friendly—you’ll have an assigned bookkeeper to help you out.

3. Zoho Books

Another player to enter the list of the best ecommerce bookkeeping software is Zoho Books. It is one of the applications under the Zoho suite, and was specifically made to aid ecommerce business owners in the bookkeeping needs of their businesses.

It is generally used for creating invoices, simplifying taxes, and monitoring financial data. Zoho Books has an inventory management feature that helps create inventories, compute the cost of goods sold, and summarize the ending inventories.

So what makes Zoho Books better than other accounting software? Aside from Zoho Books, the Zoho suite also offers Zoho Inventory. Using Zoho Books and Zoho Inventory side by side can ease the burden of doing all inventory tracking by yourself. However, Zoho Inventory requires a separate subscription.

Another impressive fact about Zoho Books is the accessibility of their software. Users can access the application using a mobile phone by downloading the Zoho Books app. With just your mobile phone, you can send invoices, receive payments, and manage your expenses.

Moreover, Zoho's customer support is above par. There are several ways to contact them; that's why you shouldn't worry when encountering problems in integrating the applications under the Zoho suite!

4. A2X

Ever heard of A2X? A2X is an ecommerce accounting software used by accountants and bookkeepers but is also recommended for ecommerce sellers. 

It is a handy tool that automatically categorizes the payout data received from various ecommerce platforms such as Amazon, eBay, Shopify, and Etsy, and transforms them into organized financial reports that perfectly fit Sage, Xero, and other accounting software.

With A2X, bookkeeping is easy as it organizes your data automatically, so your books are up-to-date. No need for manual entries; A2X can help you save time while boosting the accuracy of your books. More than that, its customizable feature allows it to fit the needs of your business. 

A2X is great for businesses that serve customers from different countries and encounter different currencies. Its system is built to reconcile financial transactions across borders, taking into consideration tax jurisdictions. 

With its support representatives competent in bookkeeping and accounting, A2X boasts excellent customer support. They respond with accurate solutions within hours. 

If you are looking for a bookkeeping solution for your ecommerce business, you should definitely consider A2X. This software will make bookkeeping for your business easy, accurate, and up-to-date. 

5. Bench

If you want to keep your books simple and concise, Bench is a good fit for you. At an affordable price, Bench can reconcile your bank accounts, categorize your financial transactions, and generate financial statements.

Its features include ecommerce bookkeeping. If you realize that you need a bookkeeper late in the tax year, they can also help you catch up on your bookkeeping backlogs. However, this comes with an extra fee.

What’s amazing about this app is they cross-check your books every month to ensure data accuracy. Then, after your bookkeeper finishes your books, they will be reviewed by Bench’s in-house support team.

Their customer service is also excellent. Sure, you can send them an in-app message—like any other software out there. But with Bench, you can book a call with a partner bookkeeper and ensure that you are on the same page.

Bench’s user interface is also very simple and easy to navigate. You don’t have to be tech-savvy or an accounting expert to understand how this app works. Bookkeeping is definitely made easy with this app.

For now, Bench only serves small businesses within the United States. So if you're a US-based ecommerce business owner seeking bookkeeping services, consider Bench.

Can Bookkeeping Software Suffice?

Bookkeeping software are extremely helpful for keeping track of your finances, but they have limitations too. The problem is, bookkeeping software just track your financial data and nothing more.

You need an accountant to actually interpret the prepared data in your books into something that you, the business owner, can translate into a business strategy. Unfortunately, bookkeeping software cannot analyze your business performance the way an accountant can.

That doesn’t mean that you need to leave your bookkeeping needs hanging. Here at Unloop, we help you integrate your existing bookkeeping software with our services, so you don’t have to worry about anything at all.

Let Unloop take care of your finances from bookkeeping and preparation of financial statements (income statement, cash flow statement, and balance sheet), right up to tax filings. Pay attention to your business's financial health and earn more profit by booking a call with us today!

Read more

Ecommerce business owners have to be quick-witted to compete. So it's no surprise that you feel compelled to optimize your business operations. One area where you may achieve both of these goals is by automating your accounts payable process. This saves time and costs, while improving accuracy, increasing efficiency, and reducing fraud risk.

In this blog post, we'll discuss AP automation features and share the benefits for your ecommerce accounting systems. Are you ready to take your online business to the next level? Keep reading to find out!

#1. ERP Integration

  • Sage X3 ERP
  • Bright Pearl
  • DDI System
  • Magento
  • Oracle

Have you ever used at least one automation solution above? These are the popular enterprise resource planning (ERP) systems for managing finances and resources within ecommerce businesses.

There are many reasons to want your accounts payable automation software to build on your existing ERP systems. Perhaps the most obvious reason is that it reduces the amount of duplicate data entry required. When information is entered into both systems separately, it can create errors. 

However, suppose the AP automation software is integrated with the ERP system. In that case, the data will only need to be entered once. Additionally, this integration can help ensure that relevant information is always accessible.

For example, say a customer's account information is stored in the ERP system. In that case, the AP automation software can automatically populate invoices. This can save a significant amount of time and effort and help avoid potential mistakes. 

Ultimately, integration between AP automation software and ERP systems can provide many benefits and help to streamline operations.

#2. Purchase Order and Non-Purchase Order Matching

Your businesses use two main types of invoices daily—purchase order (PO) invoices and non-purchase order (NPO) invoices. Both types of invoices serve the same basic purpose - to request payment for goods or services that have been provided.

But PO invoices are typically used when goods have been purchased from your supplier and include information about the purchase order itself. NPO invoices, on the other hand, are essentially expense invoices in the form of contracted purchases. Thus, they don't have any invoices attached.

Whether it be PO or NPO invoice processing, the three transaction details should match the product description, quantity, price, and other relevant information of your invoice.

  • Purchase order/ Non-purchase order
  • Packing slip/receipt
  • PO invoice

Imagine manually entering every financial data of your invoice-related documents to match and verify every transaction for bookkeeping. You'll be stuck with long hours of menial tasks and be vulnerable to payment errors. But with an automated matching feature, it will eliminate manual tasks and remove missed or lost invoices since everything is electronically recorded.

#3. Automated AP Approval Workflows

How does the AP approval process work?

  1. The purchase order is made.
  2. Goods and invoices are received.
  3. Invoices are recorded in the accounting software.
  4. Three-way matching and verification of your PO, invoice, and receipt.
  5. Invoice issues (if any) are resolved.
  6. The invoice is ready for payment processing.
  7. Payment is made.
  8. The financial transaction is reviewed to be stored for audit trails.

The automated approval workflow feature makes the accounts payable process faster, reducing chaos and resolving workflow bottlenecks, especially when these invoices are handed out to the Accounts Payable department. As a result, pending payments will be approved quickly, and you might be eligible for early payment discounts.

#4. Optical Character Recognition

GL coding is an essential but often time-consuming process for businesses. You can identify each invoice detail, including but not limited to the purchase price, delivery charges, and taxes. While the process can be tedious, it is important to ensure that all invoices are accurately coded to avoid potential problems. 

But what if you can optimize this coding? Thus, optical character recognition, or OCR, is a valuable feature of AP automation.

How does AP OCR work in that it scans your paper invoices, translates every character printed, and uploads your invoices on your AP automation software? OCR can help you maintain a high level of organization by classifying the right GL coding to each necessary data point on your invoices. 

This way, your accounts payable processes can save you valuable time and energy for document management, invoice management, and audit trails, allowing you to focus on other aspects of your business.

Let Unloop Help You with Accounts Payable Invoice Automation

Despite having the best AP automation software, improving your ERP or accounting system is not enough. The secret to the successful integration of AP automation solutions is choosing the most trusted and experienced accountants in ecommerce business processes—Unloop.

Goodbye Invoice Data Entry

You are more prone to making erroneous payments when you manually input and process invoices. Unloop, together with the accounts payable software, will identify duplicate invoices and enhance your document management system.

Throw Away Paper Invoices

Are you still wading in a pile of paper receipts and contracts even though you're running an ecommerce business? Believe it or not, paper invoices still account for most business transactions. This causes online businesses to invest in offices to store their AP paperwork. 

But you can finally dispose of your paper transactions completely because Unloop can handle your paper and electronic invoicing from now on.

Real-Time Reporting

Thanks to Unloop's know-how in any cloud-based AP automation solution, you won’t have trouble checking your bills payment reconciliation, receipts, and vendor contracts. We'll even help you negotiate discounts with suppliers and automate payments, so you never have to worry about missing a due date again.

Fast Payment Process

ACH payments are still the norm for many businesses. However, this type of payment can take a few days to process. But many accounts payable automation solutions now offer virtual smart cards. Asides from faster payment processing, it also:

  • Reduces payment processing costs
  • Earns cash rebates
  • Improves security
  • Provides internal controls
  • Helps manage cash flow

If you are not familiar with this new process, Unloop can help you streamline your AP payments. We will ensure your payments are right on time.

No More Invoice Fraud

Many businesses suffer from this delinquent act in accounting, which occurs when a dishonest person manipulates an invoice to gain financial benefits. Unfortunately, this type of fraud can be difficult to detect, as it often involves small amounts of money slowly funneled out of your business over time.

But Unloop has a reliable invoice approval system that only permits you to approve payments for financial transactions. We don't handle your money. We only manage your AP workflow for you.

Final Thoughts

Automating your accounts payable process can improve your cash flow and AP management. And Unloop can unlock the true potential of your AP automation features, thus upgrading your ecommerce accounting system. If you're ready to take the next step in accounts payable automation, contact Unloop today for a free consultation.

Accounts Payable Automation Features for Your Accounting System
Watch Now

Ecommerce business owners have to be quick-witted to compete. So it's no surprise that you feel compelled to optimize your business operations. One area where you may achieve both of these goals is by automating your accounts payable process. This saves time and costs, while improving accuracy, increasing efficiency, and reducing fraud risk.

In this blog post, we'll discuss AP automation features and share the benefits for your ecommerce accounting systems. Are you ready to take your online business to the next level? Keep reading to find out!

#1. ERP Integration

  • Sage X3 ERP
  • Bright Pearl
  • DDI System
  • Magento
  • Oracle

Have you ever used at least one automation solution above? These are the popular enterprise resource planning (ERP) systems for managing finances and resources within ecommerce businesses.

There are many reasons to want your accounts payable automation software to build on your existing ERP systems. Perhaps the most obvious reason is that it reduces the amount of duplicate data entry required. When information is entered into both systems separately, it can create errors. 

However, suppose the AP automation software is integrated with the ERP system. In that case, the data will only need to be entered once. Additionally, this integration can help ensure that relevant information is always accessible.

For example, say a customer's account information is stored in the ERP system. In that case, the AP automation software can automatically populate invoices. This can save a significant amount of time and effort and help avoid potential mistakes. 

Ultimately, integration between AP automation software and ERP systems can provide many benefits and help to streamline operations.

#2. Purchase Order and Non-Purchase Order Matching

Your businesses use two main types of invoices daily—purchase order (PO) invoices and non-purchase order (NPO) invoices. Both types of invoices serve the same basic purpose - to request payment for goods or services that have been provided.

But PO invoices are typically used when goods have been purchased from your supplier and include information about the purchase order itself. NPO invoices, on the other hand, are essentially expense invoices in the form of contracted purchases. Thus, they don't have any invoices attached.

Whether it be PO or NPO invoice processing, the three transaction details should match the product description, quantity, price, and other relevant information of your invoice.

  • Purchase order/ Non-purchase order
  • Packing slip/receipt
  • PO invoice

Imagine manually entering every financial data of your invoice-related documents to match and verify every transaction for bookkeeping. You'll be stuck with long hours of menial tasks and be vulnerable to payment errors. But with an automated matching feature, it will eliminate manual tasks and remove missed or lost invoices since everything is electronically recorded.

#3. Automated AP Approval Workflows

How does the AP approval process work?

  1. The purchase order is made.
  2. Goods and invoices are received.
  3. Invoices are recorded in the accounting software.
  4. Three-way matching and verification of your PO, invoice, and receipt.
  5. Invoice issues (if any) are resolved.
  6. The invoice is ready for payment processing.
  7. Payment is made.
  8. The financial transaction is reviewed to be stored for audit trails.

The automated approval workflow feature makes the accounts payable process faster, reducing chaos and resolving workflow bottlenecks, especially when these invoices are handed out to the Accounts Payable department. As a result, pending payments will be approved quickly, and you might be eligible for early payment discounts.

#4. Optical Character Recognition

GL coding is an essential but often time-consuming process for businesses. You can identify each invoice detail, including but not limited to the purchase price, delivery charges, and taxes. While the process can be tedious, it is important to ensure that all invoices are accurately coded to avoid potential problems. 

But what if you can optimize this coding? Thus, optical character recognition, or OCR, is a valuable feature of AP automation.

How does AP OCR work in that it scans your paper invoices, translates every character printed, and uploads your invoices on your AP automation software? OCR can help you maintain a high level of organization by classifying the right GL coding to each necessary data point on your invoices. 

This way, your accounts payable processes can save you valuable time and energy for document management, invoice management, and audit trails, allowing you to focus on other aspects of your business.

Let Unloop Help You with Accounts Payable Invoice Automation

Despite having the best AP automation software, improving your ERP or accounting system is not enough. The secret to the successful integration of AP automation solutions is choosing the most trusted and experienced accountants in ecommerce business processes—Unloop.

Goodbye Invoice Data Entry

You are more prone to making erroneous payments when you manually input and process invoices. Unloop, together with the accounts payable software, will identify duplicate invoices and enhance your document management system.

Throw Away Paper Invoices

Are you still wading in a pile of paper receipts and contracts even though you're running an ecommerce business? Believe it or not, paper invoices still account for most business transactions. This causes online businesses to invest in offices to store their AP paperwork. 

But you can finally dispose of your paper transactions completely because Unloop can handle your paper and electronic invoicing from now on.

Real-Time Reporting

Thanks to Unloop's know-how in any cloud-based AP automation solution, you won’t have trouble checking your bills payment reconciliation, receipts, and vendor contracts. We'll even help you negotiate discounts with suppliers and automate payments, so you never have to worry about missing a due date again.

Fast Payment Process

ACH payments are still the norm for many businesses. However, this type of payment can take a few days to process. But many accounts payable automation solutions now offer virtual smart cards. Asides from faster payment processing, it also:

  • Reduces payment processing costs
  • Earns cash rebates
  • Improves security
  • Provides internal controls
  • Helps manage cash flow

If you are not familiar with this new process, Unloop can help you streamline your AP payments. We will ensure your payments are right on time.

No More Invoice Fraud

Many businesses suffer from this delinquent act in accounting, which occurs when a dishonest person manipulates an invoice to gain financial benefits. Unfortunately, this type of fraud can be difficult to detect, as it often involves small amounts of money slowly funneled out of your business over time.

But Unloop has a reliable invoice approval system that only permits you to approve payments for financial transactions. We don't handle your money. We only manage your AP workflow for you.

Final Thoughts

Automating your accounts payable process can improve your cash flow and AP management. And Unloop can unlock the true potential of your AP automation features, thus upgrading your ecommerce accounting system. If you're ready to take the next step in accounts payable automation, contact Unloop today for a free consultation.

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.

There are several accounting software options for every business size nowadays. Among the software solutions, three names always stand out—FreshBooks, Xero, and Sage Accounting. But which one should you invest in? Which comes out on top of the FreshBooks vs. Xero vs. Sage Accounting software battle? 

Let’s look at the different features of each accounting software program and find out which is the best small business accounting software. 

I. Features of FreshBooks Software 

FreshBooks accounting software was initially recommended for freelancers and independent contractors who wanted to track their incomes and expenses. Over time, the software has launched different versions with additional features that can cater to small businesses.

Below is a table outlining the accounting features of FreshBooks.

PlansPricingFeatures
Lite$17/month or $204 annually
  • Covers up to five clients
  • Unlimited and customized invoices
  • Tax reports and sales tax tracking
  • Mobile mileage tracking
  • Plus$30 per month or $360 annually
  • Covers 50 billable clients
  • Recurring billing
  • Bank reconciliation tools
  • Automatic receipt scanning on mobile app
  • Premium$55 per month or $660 annually
  • Covers unlimited billable clients
  • Track project profitability
  • Track accounts payable
  • Invoicing

    FreshBooks’ invoicing feature is one of its strongest suits. All of its plans offer unlimited invoices perfect for your bookkeeping needs. You can choose from customizable designs, set up recurring digital invoices, and receive real-time notifications when invoices are viewed or paid online. FreshBooks’ invoicing features are also accessible on its mobile app.

    Time Tracking 

    Every worker expects to get paid for the time they invest in their job. But how frequently do workers neglect to record their time in and time out? This is a common problem with manual recording. Fortunately, FreshBooks exists. The software has a time tracking feature that can help you log in and out easily and record time automatically. 

    FreshBooks offers unlimited time tracking even on its lowest-tiered plan. You can also categorize the time you spent on each project if you’re working on several projects for a client.

    Project Management

    Certain projects involve different people. FreshBooks accommodates this through multi-user access. This feature lets everyone involved share and access essential documents needed in the project, such as:

    • Deposits into your business’s bank accounts
    • Checks
    • Payments made

    With the project management feature, you can easily store and access all the files and documents in a single location. Freshbooks also helps businesses track and interpret a project’s profitability through the following:

  • Profitability Widget: A glimpse into the breakdown of costs, incomes, unbilled hours, and project profitability.


  • Profitability Summary: A quick rundown of overall profitability across clients and projects.


  • Project Profitability Details: A comprehensive report on each project’s profitability.
  • Accounting Reports

    One reason business owners get accounting software is expense management. Reports, however, are the most effective approach to seeing insights. FreshBooks can generate accounting reports from the transactions that happen in your business. 

    The accounting software can generate reports such as:

    • Expense Reports
    • Profit and Loss Reports
    • Sales Tax Summary Reports
    • General Ledger
    • Trial Balance
    • Chart of Accounts

    You can customize these reports by exporting them to an Excel sheet or download them as PDF files.

    II. Features of Xero Software 

    Xero is the ideal cloud-based accounting software for small and expanding businesses. Its features include managing invoices, inventory, bank reconciliation, and many more. 

    Xero has different plans for different needs. The most basic plan only costs $13 and is limited to 20 monthly invoices, perfect for micro businesses. Other plans will give unlimited use of advanced features, better for medium to large companies.

    Let’s delve into more of its top attributes.

    PlansPricingFeatures
    Early$13 per month
  • Send up to 20 invoices
  • Automated bill and receipt capture
  • Reconcile bank transactions
  • Basic inventory management
  • Growing$37 per monthAll features in the Early plan plus:
  • Unlimited invoices
  • Bulk reconcile transactions
  • Established$70 per monthAll features in the Growing plan plus:
  • Multiple currencies
  • Project tracking tools
  • Advanced analytic tools
  • Invoicing Features 

    The traditional invoices are created through Excel sheets and manual data input. This can be a hassle when you have many clients and little time to create invoices. For small business owners, Xero accounting makes invoicing simpler

  • FreshBooks and Xero are almost similar. You can set up recurring invoices, so you don’t have to create a new invoice each time you need one.

  • You can send bulk invoices simultaneously.

  • You can send invoices through the mobile app.

  • Xero allows third-party apps payment channel integrations and multi-currency invoices.
  • Billing Features 

    Businesses have dues to pay their suppliers, especially for shipping and inventory. Xero helps you stay on top of dues and manage them. 

    Here are other amazing features of Xero’s billing for business. 

  • Bills paid through Xero are automatically turned into paperless records, uploaded to the cloud, and sent to your email. 

  • You can monitor your bills and send alerts when a payment is due soon.
  •  
  • You can schedule simultaneous payments ahead, so you are never late with your obligations.
  •  

    Customizable Reports and Dashboards

    Xero transforms the financial data you enter into actionable information. The reports made from accounting data can be customized. You can adjust formatting and add your formulas and groupings.

    Unsatisfied with the appearance of your dashboard? With Xero, you can simply rearrange panels and hide irrelevant sections.

    III. Features of Sage Accounting Software 

    Sage 50 is the leading accounting tool for businesses, and it’s also most popular for professional accounts because it can handle accounting tasks for small to big businesses. 

    Aside from being one of the best cloud-based accounting software in the market, here are some of the impressive features of Sage 50.

    PlansPricingFeatures
    Sage Accounting Start$10 per month
  • Send and create invoices
  • Automatic bank reconciliation
  • Generate and export financial report
  • Free Sage mobile app40+ app integrations
  • Sage Accounting$25 per monthAll features of the Sage Accounting Start plan plus: 
  • Unlimited users
  • Inventory tracking and management
  • Cashflow forecast
  • Foreign currency invoicing
  • Cash Flow Management 

    Understanding how much money is coming into and going out of your company is critical. Tracking your sales and expenses will let you know if you are generating profits or losing money. 

    Sage 50 can instantly automate reports. You can sort them from monthly, quarterly, and yearly reports to assess your financial performance. The software also has solid reporting features like Xero. It even goes beyond the basic financial statements such as profit and loss statements, general ledger, and more.

    On a budget? Don’t worry! With its lowest-tiered plan, you can create a chart of accounts, sales tax reports, and accounts receivable aging reports.

    Payroll Features 

    Accounting software with a payroll service benefits businesses with a large workforce. However, preparing your employee’s payroll is time-consuming. Accounting mistakes can also be costly. 

    Not all accounting software has built-in payroll features. Or even if they have, it’s only possible through integrated applications, which typically require an additional subscription fee.

    Sage 50 stands out in this area. It can report taxes, create pay slips, and send payments through the application. All payroll details are also uploaded to the cloud, where you can store and access them anytime. 

    Inventory Tracking

    Inventory management is one way to track sales for businesses that sell products. Stock shortage may give your competitor an edge while overstocking may severely affect your budget.

    The inventory management feature of Sage 50 has real-time stock data, helping you identify underperforming products that may need to be discontinued and profitable items that should be restocked. You can use this information to guide your decisions regarding the products to invest in.

    The Verdict on FreshBooks vs. Xero vs. Sage Accounting

    Now that we’ve seen the best features of each accounting software, which of these applications is best suited for your business? Here’s what we think:

    Accounting SoftwareSuitable For
    FreshBooksSmall businesses
    XeroFreelancers and independent contractors
    Sage 50Medium to large businesses

    Xero is the best choice for small businesses that are first-timers to accounting software. Among the three cloud based accounting solutions, it is the most budget-friendly. It has an intuitive user interface, so even beginners won’t struggle with navigation. You can upgrade your subscription when your company expands and requires more sophisticated accounting tools.

    FreshBooks is best for self-employed individuals that cater to multiple clients. Time tracking is its greatest feature, and it is especially useful when you need to be paid by the hour. It also helps you organize your projects because you can create different profiles for the projects you are working on. 

    Lastly, we recommend Sage 50 for medium to large businesses. This accounting software has more advanced features like inventory management and foreign currency invoicing. However, it can be overwhelming, so using it with the help of a qualified accountant is preferable. It also offers payroll services, so it’s perfect for businesses with many employees.

    Get Expert Help in Using Xero at Unloop!

    Accounting software solutions certainly take off the tedious workload of managing your finances. You won’t be bogged down with manual calculations, data entry, and bookkeeping anymore. 

    If you want this long-lasting impact on your business operations, choosing the right accounting tool is crucial. Lucky for you, many platforms now offer free trials. You can test each of them to determine what works best for you.

    But as we mentioned above, Xero is the best choice if you’re a small business with no experience in accounting software. By choosing Xero, you’re opting for a cloud-based accounting solution that can ease your financial processes.

    If you need help setting up or navigating this accounting software, Unloop can help you. We are adept at using Xero and can help small business owners like you.
    Book a call to learn more about what we can do for your business!

    Battle of the Best: FreshBooks vs. Xero vs. Sage Accounting Software
    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.

    There are several accounting software options for every business size nowadays. Among the software solutions, three names always stand out—FreshBooks, Xero, and Sage Accounting. But which one should you invest in? Which comes out on top of the FreshBooks vs. Xero vs. Sage Accounting software battle? 

    Let’s look at the different features of each accounting software program and find out which is the best small business accounting software. 

    I. Features of FreshBooks Software 

    FreshBooks accounting software was initially recommended for freelancers and independent contractors who wanted to track their incomes and expenses. Over time, the software has launched different versions with additional features that can cater to small businesses.

    Below is a table outlining the accounting features of FreshBooks.

    PlansPricingFeatures
    Lite$17/month or $204 annually
  • Covers up to five clients
  • Unlimited and customized invoices
  • Tax reports and sales tax tracking
  • Mobile mileage tracking
  • Plus$30 per month or $360 annually
  • Covers 50 billable clients
  • Recurring billing
  • Bank reconciliation tools
  • Automatic receipt scanning on mobile app
  • Premium$55 per month or $660 annually
  • Covers unlimited billable clients
  • Track project profitability
  • Track accounts payable
  • Invoicing

    FreshBooks’ invoicing feature is one of its strongest suits. All of its plans offer unlimited invoices perfect for your bookkeeping needs. You can choose from customizable designs, set up recurring digital invoices, and receive real-time notifications when invoices are viewed or paid online. FreshBooks’ invoicing features are also accessible on its mobile app.

    Time Tracking 

    Every worker expects to get paid for the time they invest in their job. But how frequently do workers neglect to record their time in and time out? This is a common problem with manual recording. Fortunately, FreshBooks exists. The software has a time tracking feature that can help you log in and out easily and record time automatically. 

    FreshBooks offers unlimited time tracking even on its lowest-tiered plan. You can also categorize the time you spent on each project if you’re working on several projects for a client.

    Project Management

    Certain projects involve different people. FreshBooks accommodates this through multi-user access. This feature lets everyone involved share and access essential documents needed in the project, such as:

    • Deposits into your business’s bank accounts
    • Checks
    • Payments made

    With the project management feature, you can easily store and access all the files and documents in a single location. Freshbooks also helps businesses track and interpret a project’s profitability through the following:

  • Profitability Widget: A glimpse into the breakdown of costs, incomes, unbilled hours, and project profitability.


  • Profitability Summary: A quick rundown of overall profitability across clients and projects.


  • Project Profitability Details: A comprehensive report on each project’s profitability.
  • Accounting Reports

    One reason business owners get accounting software is expense management. Reports, however, are the most effective approach to seeing insights. FreshBooks can generate accounting reports from the transactions that happen in your business. 

    The accounting software can generate reports such as:

    • Expense Reports
    • Profit and Loss Reports
    • Sales Tax Summary Reports
    • General Ledger
    • Trial Balance
    • Chart of Accounts

    You can customize these reports by exporting them to an Excel sheet or download them as PDF files.

    II. Features of Xero Software 

    Xero is the ideal cloud-based accounting software for small and expanding businesses. Its features include managing invoices, inventory, bank reconciliation, and many more. 

    Xero has different plans for different needs. The most basic plan only costs $13 and is limited to 20 monthly invoices, perfect for micro businesses. Other plans will give unlimited use of advanced features, better for medium to large companies.

    Let’s delve into more of its top attributes.

    PlansPricingFeatures
    Early$13 per month
  • Send up to 20 invoices
  • Automated bill and receipt capture
  • Reconcile bank transactions
  • Basic inventory management
  • Growing$37 per monthAll features in the Early plan plus:
  • Unlimited invoices
  • Bulk reconcile transactions
  • Established$70 per monthAll features in the Growing plan plus:
  • Multiple currencies
  • Project tracking tools
  • Advanced analytic tools
  • Invoicing Features 

    The traditional invoices are created through Excel sheets and manual data input. This can be a hassle when you have many clients and little time to create invoices. For small business owners, Xero accounting makes invoicing simpler

  • FreshBooks and Xero are almost similar. You can set up recurring invoices, so you don’t have to create a new invoice each time you need one.

  • You can send bulk invoices simultaneously.

  • You can send invoices through the mobile app.

  • Xero allows third-party apps payment channel integrations and multi-currency invoices.
  • Billing Features 

    Businesses have dues to pay their suppliers, especially for shipping and inventory. Xero helps you stay on top of dues and manage them. 

    Here are other amazing features of Xero’s billing for business. 

  • Bills paid through Xero are automatically turned into paperless records, uploaded to the cloud, and sent to your email. 

  • You can monitor your bills and send alerts when a payment is due soon.
  •  
  • You can schedule simultaneous payments ahead, so you are never late with your obligations.
  •  

    Customizable Reports and Dashboards

    Xero transforms the financial data you enter into actionable information. The reports made from accounting data can be customized. You can adjust formatting and add your formulas and groupings.

    Unsatisfied with the appearance of your dashboard? With Xero, you can simply rearrange panels and hide irrelevant sections.

    III. Features of Sage Accounting Software 

    Sage 50 is the leading accounting tool for businesses, and it’s also most popular for professional accounts because it can handle accounting tasks for small to big businesses. 

    Aside from being one of the best cloud-based accounting software in the market, here are some of the impressive features of Sage 50.

    PlansPricingFeatures
    Sage Accounting Start$10 per month
  • Send and create invoices
  • Automatic bank reconciliation
  • Generate and export financial report
  • Free Sage mobile app40+ app integrations
  • Sage Accounting$25 per monthAll features of the Sage Accounting Start plan plus: 
  • Unlimited users
  • Inventory tracking and management
  • Cashflow forecast
  • Foreign currency invoicing
  • Cash Flow Management 

    Understanding how much money is coming into and going out of your company is critical. Tracking your sales and expenses will let you know if you are generating profits or losing money. 

    Sage 50 can instantly automate reports. You can sort them from monthly, quarterly, and yearly reports to assess your financial performance. The software also has solid reporting features like Xero. It even goes beyond the basic financial statements such as profit and loss statements, general ledger, and more.

    On a budget? Don’t worry! With its lowest-tiered plan, you can create a chart of accounts, sales tax reports, and accounts receivable aging reports.

    Payroll Features 

    Accounting software with a payroll service benefits businesses with a large workforce. However, preparing your employee’s payroll is time-consuming. Accounting mistakes can also be costly. 

    Not all accounting software has built-in payroll features. Or even if they have, it’s only possible through integrated applications, which typically require an additional subscription fee.

    Sage 50 stands out in this area. It can report taxes, create pay slips, and send payments through the application. All payroll details are also uploaded to the cloud, where you can store and access them anytime. 

    Inventory Tracking

    Inventory management is one way to track sales for businesses that sell products. Stock shortage may give your competitor an edge while overstocking may severely affect your budget.

    The inventory management feature of Sage 50 has real-time stock data, helping you identify underperforming products that may need to be discontinued and profitable items that should be restocked. You can use this information to guide your decisions regarding the products to invest in.

    The Verdict on FreshBooks vs. Xero vs. Sage Accounting

    Now that we’ve seen the best features of each accounting software, which of these applications is best suited for your business? Here’s what we think:

    Accounting SoftwareSuitable For
    FreshBooksSmall businesses
    XeroFreelancers and independent contractors
    Sage 50Medium to large businesses

    Xero is the best choice for small businesses that are first-timers to accounting software. Among the three cloud based accounting solutions, it is the most budget-friendly. It has an intuitive user interface, so even beginners won’t struggle with navigation. You can upgrade your subscription when your company expands and requires more sophisticated accounting tools.

    FreshBooks is best for self-employed individuals that cater to multiple clients. Time tracking is its greatest feature, and it is especially useful when you need to be paid by the hour. It also helps you organize your projects because you can create different profiles for the projects you are working on. 

    Lastly, we recommend Sage 50 for medium to large businesses. This accounting software has more advanced features like inventory management and foreign currency invoicing. However, it can be overwhelming, so using it with the help of a qualified accountant is preferable. It also offers payroll services, so it’s perfect for businesses with many employees.

    Get Expert Help in Using Xero at Unloop!

    Accounting software solutions certainly take off the tedious workload of managing your finances. You won’t be bogged down with manual calculations, data entry, and bookkeeping anymore. 

    If you want this long-lasting impact on your business operations, choosing the right accounting tool is crucial. Lucky for you, many platforms now offer free trials. You can test each of them to determine what works best for you.

    But as we mentioned above, Xero is the best choice if you’re a small business with no experience in accounting software. By choosing Xero, you’re opting for a cloud-based accounting solution that can ease your financial processes.

    If you need help setting up or navigating this accounting software, Unloop can help you. We are adept at using Xero and can help small business owners like you.
    Book a call to learn more about what we can do for your business!

    Read more

    No one can say they enjoy doing their taxes. It is messy and complicated, with unending forms and too many numbers. It also entails spending a lot of time getting it right, which may affect other aspects of your business. That's why owners need to be efficient when handling their taxes, so no part of their business is left behind. 

    Tax preparation is tedious, but you can't escape it. At some point, you need to perform your tax obligations to keep your business running smoothly. To help you out, we have a checklist of the things you need to prepare and some helpful tips for tax preparation. 

    The Complete Tax Preparation Checklist 

    Keep your business running smoothly and maintain your good record with your local tax collection agency. Here are some things you should do in order to get the best business tax management possible. 

    1. Always be mindful of tax filing dates and other tax-related duties.

    For individual taxpayers, the deadline for filing tax returns is April 15. In most common scenarios, this also applies to small business owners. However, depending on the type of business you choose to establish, timelines may change. 

    For instance, if your small business is organized as an S corporation, the tax filing deadline is on March 15 at the conclusion of each fiscal year. In addition, several tax-related tasks have different deadlines. Make it a habit to consult your local tax calendar, so you never miss them. 

    Missing the deadline may incur unnecessary penalties, and that money can be allocated to aspects of your business that need improvement instead. 

    1. Prepare all the tax forms you need 

    One of the most time-consuming parts of tax preparation is gathering all the documents you need for filing and validation. In addition, each type of business may require different tax forms. If you don't know which to get, these forms are available for download on tax collection agency websites. 

    Generally, forms include a complete picture of your finances and tax obligations. Sometimes, tax collection agencies may require supporting documents that go with the form, so have copies of your documents. 

    Here are some of the most common tax forms you will encounter. 

    • Form 1120 is used by C companies.
    • S corporations use the IRS's own 1120-S.
    • Businesses with partnerships should fill out form 1065 and a separate form for partnership details.
    • Sole proprietorship uses form 1040 to declare business income and expenses. 
    1. Collect all records that show your business income

    The taxes you are due to pay depends on the income you declare on the forms you file. The records are one way for tax agencies to verify if the numbers you report are true. When the IRS visits your company to conduct an audit, these records will also be useful. Of course, a number of financial records go through the business. So if you don't know what you need for your taxes, here are some important income records you should have ready. 

    • Gross receipts of all sales coming from goods sold and services. 
    • Records of the costs incurred for returns and refunds. Your declaration must not include money you send back to customers. 
    • Financial records from investments that you have under your business name. 
    1. Have documentation of all your business expenses

    You can decrease the tax amount due by qualifying for exemptions in several ways. But the process is long and requires several documents for verification. The documentation of your business expenses is evidence you can submit for tax breaks. 

    Correct and more detailed information will help get your deductions approved easily. Here are some business documents you should prepare when applying for deductions and exemptions. 

    • Important business expenses such as insurance, cost of supplies, utilities, and other professional fees. 
    • Other detailed expenses like transportation, meals, home office deductions, and entertainment expenses may also be allowed. 

    Since exemptions may not be so clear cut, a tax expert's advice is usually recommended if you want to get the most from your allowable deductions. 

    1. Ensure you send all needed tax information and receive the ones you need 

    Tax preparation goes both ways. Just as you report income to your local tax collection agency, they also need to return information to your business. So ensure you receive the information you need to ensure your tax preparation is on track. 

    For example, if your business has employees, you should have W-2 forms that tell your workers the total income and allowable deductions. In addition, these forms will tell you if the amount you paid is taxable. Some taxation laws don't collect taxes unless you reach a certain amount. 

    1. Ask for a deadline extension if necessary 

    It’s not a mistake to ask for an extension if you need the extra time to complete your tax returns. Remember, you also have to file a request if you need more time to complete your declarations. However, extensions are only applicable for filing. This means you still have to pay your taxes on time. 

    First extensions are typically simple to obtain; after that, asking for another extension will be a more challenging process. Finances are messy, and if you're a business owner who wants to get everything done ahead of time, you may want to find tax preparation services for small businesses to help you.

    1. Make changes in your preparation for the next taxation year 

    If this year was challenging for you, make appropriate adjustments to make tax preparation a breeze. Eliminating problems requires knowledge of what to do and what not to do. Moreover, it helps you avoid penalties due to late filing. 

    Take note of the things that you could've done differently and implement them in the next taxation year. It takes years for business owners to learn how to manage their taxes smoothly, but you can speed it up through consultations with tax experts. 

    1. Utilize tax preparation software for small businesses 

    Tax software is the best way to make preparations convenient and accurate. In addition, tax software can help with planning. All you need to do is input your data. It also gives you a projected cost of the tax you owe and ways on how you can save. 

    Moreover, successful tax planning lies in organized bookkeeping. Some of the available software comes with automated bookkeeping, so your financial records will always be in line and ready for tax season. This way, preparations are faster and less prone to errors. 

    Tax Preparation for Business at Unloop 

    The best way to get taxes off your hands is to get a professional to handle them. If outsourcing is one of the most complicated parts of your business, get an expert to do it. Unloop offers tax management for ecommerce and small businesses. This way, you’ll never have tax complications again. 

    Our tax services include the following: 

    • Determining which tax nexus your business belongs to. 
    • Registering your business for certain tax permits. 
    • For ecommerce, we set up your shopping carts so you can automatically charge the correct sales tax amount. 
    • Managing your tax filings to ensure you comply with tax laws and possible changes. 
    • Comes with subscriptions for tax preparation software for business and unlimited support with experts through Slack. 

    We also ensure the services are accessible to everybody. We have three different price points, so you don't blow your entire budget all at once. You can talk to our experts to see which one fits your business needs best. 

    Final Thoughts 

    As a new business owner, learning how to manage your taxes will take time. Tax preparation is a complex process, and it can be time-consuming when you have no idea about the things you need to do. This checklist we created for you will help simplify the process. If you want to focus on other parts of your business, outsourcing tax preparations to experts is a wise decision. Aside from tax management, we also have other services your business may benefit from. Take a look at our payroll management, forecasting, and bookkeeping services, and don't forget to book a call with our experts to get started.

    Tax Time: A Tax Preparation for Business Checklist
    Watch Now

    No one can say they enjoy doing their taxes. It is messy and complicated, with unending forms and too many numbers. It also entails spending a lot of time getting it right, which may affect other aspects of your business. That's why owners need to be efficient when handling their taxes, so no part of their business is left behind. 

    Tax preparation is tedious, but you can't escape it. At some point, you need to perform your tax obligations to keep your business running smoothly. To help you out, we have a checklist of the things you need to prepare and some helpful tips for tax preparation. 

    The Complete Tax Preparation Checklist 

    Keep your business running smoothly and maintain your good record with your local tax collection agency. Here are some things you should do in order to get the best business tax management possible. 

    1. Always be mindful of tax filing dates and other tax-related duties.

    For individual taxpayers, the deadline for filing tax returns is April 15. In most common scenarios, this also applies to small business owners. However, depending on the type of business you choose to establish, timelines may change. 

    For instance, if your small business is organized as an S corporation, the tax filing deadline is on March 15 at the conclusion of each fiscal year. In addition, several tax-related tasks have different deadlines. Make it a habit to consult your local tax calendar, so you never miss them. 

    Missing the deadline may incur unnecessary penalties, and that money can be allocated to aspects of your business that need improvement instead. 

    1. Prepare all the tax forms you need 

    One of the most time-consuming parts of tax preparation is gathering all the documents you need for filing and validation. In addition, each type of business may require different tax forms. If you don't know which to get, these forms are available for download on tax collection agency websites. 

    Generally, forms include a complete picture of your finances and tax obligations. Sometimes, tax collection agencies may require supporting documents that go with the form, so have copies of your documents. 

    Here are some of the most common tax forms you will encounter. 

    • Form 1120 is used by C companies.
    • S corporations use the IRS's own 1120-S.
    • Businesses with partnerships should fill out form 1065 and a separate form for partnership details.
    • Sole proprietorship uses form 1040 to declare business income and expenses. 
    1. Collect all records that show your business income

    The taxes you are due to pay depends on the income you declare on the forms you file. The records are one way for tax agencies to verify if the numbers you report are true. When the IRS visits your company to conduct an audit, these records will also be useful. Of course, a number of financial records go through the business. So if you don't know what you need for your taxes, here are some important income records you should have ready. 

    • Gross receipts of all sales coming from goods sold and services. 
    • Records of the costs incurred for returns and refunds. Your declaration must not include money you send back to customers. 
    • Financial records from investments that you have under your business name. 
    1. Have documentation of all your business expenses

    You can decrease the tax amount due by qualifying for exemptions in several ways. But the process is long and requires several documents for verification. The documentation of your business expenses is evidence you can submit for tax breaks. 

    Correct and more detailed information will help get your deductions approved easily. Here are some business documents you should prepare when applying for deductions and exemptions. 

    • Important business expenses such as insurance, cost of supplies, utilities, and other professional fees. 
    • Other detailed expenses like transportation, meals, home office deductions, and entertainment expenses may also be allowed. 

    Since exemptions may not be so clear cut, a tax expert's advice is usually recommended if you want to get the most from your allowable deductions. 

    1. Ensure you send all needed tax information and receive the ones you need 

    Tax preparation goes both ways. Just as you report income to your local tax collection agency, they also need to return information to your business. So ensure you receive the information you need to ensure your tax preparation is on track. 

    For example, if your business has employees, you should have W-2 forms that tell your workers the total income and allowable deductions. In addition, these forms will tell you if the amount you paid is taxable. Some taxation laws don't collect taxes unless you reach a certain amount. 

    1. Ask for a deadline extension if necessary 

    It’s not a mistake to ask for an extension if you need the extra time to complete your tax returns. Remember, you also have to file a request if you need more time to complete your declarations. However, extensions are only applicable for filing. This means you still have to pay your taxes on time. 

    First extensions are typically simple to obtain; after that, asking for another extension will be a more challenging process. Finances are messy, and if you're a business owner who wants to get everything done ahead of time, you may want to find tax preparation services for small businesses to help you.

    1. Make changes in your preparation for the next taxation year 

    If this year was challenging for you, make appropriate adjustments to make tax preparation a breeze. Eliminating problems requires knowledge of what to do and what not to do. Moreover, it helps you avoid penalties due to late filing. 

    Take note of the things that you could've done differently and implement them in the next taxation year. It takes years for business owners to learn how to manage their taxes smoothly, but you can speed it up through consultations with tax experts. 

    1. Utilize tax preparation software for small businesses 

    Tax software is the best way to make preparations convenient and accurate. In addition, tax software can help with planning. All you need to do is input your data. It also gives you a projected cost of the tax you owe and ways on how you can save. 

    Moreover, successful tax planning lies in organized bookkeeping. Some of the available software comes with automated bookkeeping, so your financial records will always be in line and ready for tax season. This way, preparations are faster and less prone to errors. 

    Tax Preparation for Business at Unloop 

    The best way to get taxes off your hands is to get a professional to handle them. If outsourcing is one of the most complicated parts of your business, get an expert to do it. Unloop offers tax management for ecommerce and small businesses. This way, you’ll never have tax complications again. 

    Our tax services include the following: 

    • Determining which tax nexus your business belongs to. 
    • Registering your business for certain tax permits. 
    • For ecommerce, we set up your shopping carts so you can automatically charge the correct sales tax amount. 
    • Managing your tax filings to ensure you comply with tax laws and possible changes. 
    • Comes with subscriptions for tax preparation software for business and unlimited support with experts through Slack. 

    We also ensure the services are accessible to everybody. We have three different price points, so you don't blow your entire budget all at once. You can talk to our experts to see which one fits your business needs best. 

    Final Thoughts 

    As a new business owner, learning how to manage your taxes will take time. Tax preparation is a complex process, and it can be time-consuming when you have no idea about the things you need to do. This checklist we created for you will help simplify the process. If you want to focus on other parts of your business, outsourcing tax preparations to experts is a wise decision. Aside from tax management, we also have other services your business may benefit from. Take a look at our payroll management, forecasting, and bookkeeping services, and don't forget to book a call with our experts to get started.

    Read more

    Every ecommerce seller experiencing business growth goes through an employee dilemma. Among other things to worry about, hiring help and paying them is one of the most impacting decisions a business owner makes. So how can the business balance its profits and salary expenses?

    More specifically, the dilemma weighs heavily on the payroll. How can employees get paid the right amount at the right time without the company incurring heavy costs? Unfortunately, the options available can limit a business owner's answer.

    Let Unloop shed light on the common options available for every growing small business. This article will discuss the available payroll service options and propose a better solution if the ones available don't fit your needs.

    Full-Service Payroll or Basic Payroll Service?

    In searching for a payroll service or solution, two types of services will come up: full service and basic. Choosing between the two can be difficult because they vary significantly in the extent of their offer. So here's a glimpse of what you can expect for each.

    Full-Service Payroll: For Large Ecommerce Businesses

    Comprehensive Payroll Solution

    A full-service payroll takes the process of a human resources department. They run payroll, calculate employee benefits, and take care of tax filing and periodical salary reports.

    Payroll Consulting

    If you need a dedicated specialist, a full-service payroll company will have a professional ready at your beck and call. You can consult them for any payroll issues and complications your business encounters. These specialists have industry experience and can easily get acquainted with the ropes of your ecommerce business such as Amazon or Shopify.

    Payroll Data Submission Ease

    An ecommerce business owner has more ease of submission. For example, with online payroll software, the owner or his staff can upload employee payroll data online, and the payroll service provider can get it instantly.

    Complete Payroll Tax Filing Service

    Your payroll service provider will file the tax on the federal, state, and local levels. However, the managing payroll company will process it on behalf of the business, so employees won't have to file it on their end. As a result, you'll pay employees what they're supposed to get, net of tax.

    Value-Added Payroll Services

    Your payroll provider will not only complete payroll service, but they can also give advice and insight when it comes to other payroll-related concerns, such as benefits administration or human resources. Following their advice, your business's payroll process will be more streamlined.

    Basic Payroll Service: For Small Businesses

    Also called self-service payroll. Employees and managers use employee payroll and benefits administration software and empower employees to do their part.

    A small business's in-house human resources can oversee and use this software for payroll processing.

    Basic payroll services that use self-service software have more functions, including managerial and other human resource functions. But we're only going to lay down what's relevant and concentrate on what it can do for your employees.

    Update Personal Information

    Your employees can update the following information on their end:

    • Full name
    • Status
    • Home and mailing address
    • Contact information
    • Email address
    • Emergency Contact

    Payroll Function

    Anyone who earns a wage or salary in your small business is given the power to do the following payroll-related activity.

    • Add, or delete a direct deposit account
    • Review and print pay stub details
    • Update and print tax forms
    • Change any deductions voluntarily enrolled

    Benefits Management

    A basic payroll service using online payroll software will have a benefits management option. If you have any mandatory or planned benefits as part of the compensation package, employees can enroll and manage it themselves.

    A Practical Way of Managing Small Business Payroll

    Full-service payroll management is awesome, even if you're a small business. But this level of managing and running payroll is costly. If you're an ecommerce small business owner just starting out, the cost of this payroll service will eat up your profits.

    Alternatively, if your small business has a relatively large number of employees, a basic payroll service and a small staff of human resources may not be enough. Adding more payroll staff to oversee your system will add significantly to your business expenses.

    Whether in a growing ecommerce small business or a startup, choosing between full-service payroll and basic payroll can be a dilemma. But there's a better way of managing payroll: a combination of both.

    Outsourced Online Payroll Services

    Outsourcing payroll service is a practical choice for growing small businesses. Here's how it works: you can retain your current self-service payroll software and hire an accounting and bookkeeping team that offers online payroll service. 

    Here's what you'll get when you implement this payroll processing strategy.

    Cloud-Based Payroll Software Takeover

    Your small business's payroll and benefits software will be linked to the outsourced team's system. From there, bookkeepers and accounting experts will work to ensure accurate salaries are recorded and disbursed. At the same time, your team and your employees manage their information in your system.

    Tax Filing Assistance for Your Business and Employees

    Employees will have a ready form they can use to file their annual tax returns. Similarly, your business will have its corresponding forms and financial reports ready for filing.

    This will cut the work for both you and your employees. Your human resources staff can focus on employee wellbeing and other functions, while your employees won't have to worry about filing their taxes incorrectly. The same goes for your business.

    Customer Service

    A team of experts will give customer support for you and your admin staff in matters concerning numbers and the payroll process. You can contact them via messaging platform anytime to discuss such matters. It is similar to having consulting features without paying a huge fee.

    Benefits of a Managed Online Payroll Service

    Outsourcing your online payroll services to a team of experts will yield more benefits to you and your business without spending too much. By pairing up your self-service payroll system with payroll outsource services, you'll upgrade your salary accounting system and have these benefits.

    Makes It Faster

    Having your staff run payroll manually for your employees can take hours. In addition, this has to be done monthly, bi-monthly, or even weekly! Delivering a consistently accurate payroll takes time, attention, and effort.

    With an online payroll service, it will only take minutes. A dedicated team performs the task in the background and hands it to you or someone in charge for approval. It's faster because they work with a schedule to ensure you get the payroll report on time. It will be like having automated payroll services working for your business.

    Saves Money

    When a chunk of your resources dedicated to payroll processing is freed up, you can now allocate it to other business activities. You'll also stop incurring additional expenses to help you work on your payroll system. There's no need for it if there's a team working in the background for you. This also saves you money. 

    Reduces Errors

    Calculations are automated. if the data submitted on the employee time sheets and rates are accurate, the resulting salary amount will be the same.

    When bookkeepers and accounting experts handle your self-service software, they'll also spot other errors that are otherwise hard to see, and they will tell you what you need to provide to correct them.

    Timely and Accessible Data

    Most payroll providers give employees access to their employee payroll information. On both your business and the outsourced team, the transfer of information will be a breeze because all payroll processing is conducted online and stored in the cloud.

    Employee self-service for checking payroll data will be more optimized. As a result, their pay stubs will arrive on time, ready to be accessed, and with accurate salary and wage amounts.

    Accurate Payroll Tax Filing and Compliance

    With outsourced payroll service, bookkeepers and accounting specialists handle your employee's pay. These people are trained and skilled to account for taxes. In addition, they know what to do for you and your employee to remain tax compliant. This will bring everyone peace of mind.

    Decreased Liability

    When it comes to calculating payroll, details are critical. Having it done by professional bookkeepers and specialists will greatly decrease your payroll liabilities. As a result, employee morale will stay the same if not improved, and your business will be clear from internal revenue auditors and labor institutions.

    Scalability-Ready

    While your self-service payroll software can handle the volume, your staff cannot. Hiring the service of an outsourced payroll team changes that. In addition, as the number of your employees increases and your business grows, the outsourced team will adjust to your business's needs and make sure your payroll will function consistently as you scale.

    An Ideal Payroll System for the Growing Small Business

    A growing ecommerce small business can be tough for any entrepreneur. This is when you start to hire more people and are always in a dilemma when making practical decisions. Unfortunately, decisions regarding payroll are mostly impractical, such as in the case of full-service and self-service payroll management.

    Fortunately, it's possible to strike a middle ground with bookkeeping and payroll service firms such as Unloop. You can have self-service payroll software managed by a team of experienced bookkeeping and accounting professionals. All at a price that's fair to your growing business.Let's discuss how we can weave the ideal payroll system that fits your ecommerce business. Dial 877-421-7270 for a quick call, or check out our ecommerce payroll services now.

    Online Payroll Service: A Dilemma for Growing Small Businesses
    Watch Now

    Every ecommerce seller experiencing business growth goes through an employee dilemma. Among other things to worry about, hiring help and paying them is one of the most impacting decisions a business owner makes. So how can the business balance its profits and salary expenses?

    More specifically, the dilemma weighs heavily on the payroll. How can employees get paid the right amount at the right time without the company incurring heavy costs? Unfortunately, the options available can limit a business owner's answer.

    Let Unloop shed light on the common options available for every growing small business. This article will discuss the available payroll service options and propose a better solution if the ones available don't fit your needs.

    Full-Service Payroll or Basic Payroll Service?

    In searching for a payroll service or solution, two types of services will come up: full service and basic. Choosing between the two can be difficult because they vary significantly in the extent of their offer. So here's a glimpse of what you can expect for each.

    Full-Service Payroll: For Large Ecommerce Businesses

    Comprehensive Payroll Solution

    A full-service payroll takes the process of a human resources department. They run payroll, calculate employee benefits, and take care of tax filing and periodical salary reports.

    Payroll Consulting

    If you need a dedicated specialist, a full-service payroll company will have a professional ready at your beck and call. You can consult them for any payroll issues and complications your business encounters. These specialists have industry experience and can easily get acquainted with the ropes of your ecommerce business such as Amazon or Shopify.

    Payroll Data Submission Ease

    An ecommerce business owner has more ease of submission. For example, with online payroll software, the owner or his staff can upload employee payroll data online, and the payroll service provider can get it instantly.

    Complete Payroll Tax Filing Service

    Your payroll service provider will file the tax on the federal, state, and local levels. However, the managing payroll company will process it on behalf of the business, so employees won't have to file it on their end. As a result, you'll pay employees what they're supposed to get, net of tax.

    Value-Added Payroll Services

    Your payroll provider will not only complete payroll service, but they can also give advice and insight when it comes to other payroll-related concerns, such as benefits administration or human resources. Following their advice, your business's payroll process will be more streamlined.

    Basic Payroll Service: For Small Businesses

    Also called self-service payroll. Employees and managers use employee payroll and benefits administration software and empower employees to do their part.

    A small business's in-house human resources can oversee and use this software for payroll processing.

    Basic payroll services that use self-service software have more functions, including managerial and other human resource functions. But we're only going to lay down what's relevant and concentrate on what it can do for your employees.

    Update Personal Information

    Your employees can update the following information on their end:

    • Full name
    • Status
    • Home and mailing address
    • Contact information
    • Email address
    • Emergency Contact

    Payroll Function

    Anyone who earns a wage or salary in your small business is given the power to do the following payroll-related activity.

    • Add, or delete a direct deposit account
    • Review and print pay stub details
    • Update and print tax forms
    • Change any deductions voluntarily enrolled

    Benefits Management

    A basic payroll service using online payroll software will have a benefits management option. If you have any mandatory or planned benefits as part of the compensation package, employees can enroll and manage it themselves.

    A Practical Way of Managing Small Business Payroll

    Full-service payroll management is awesome, even if you're a small business. But this level of managing and running payroll is costly. If you're an ecommerce small business owner just starting out, the cost of this payroll service will eat up your profits.

    Alternatively, if your small business has a relatively large number of employees, a basic payroll service and a small staff of human resources may not be enough. Adding more payroll staff to oversee your system will add significantly to your business expenses.

    Whether in a growing ecommerce small business or a startup, choosing between full-service payroll and basic payroll can be a dilemma. But there's a better way of managing payroll: a combination of both.

    Outsourced Online Payroll Services

    Outsourcing payroll service is a practical choice for growing small businesses. Here's how it works: you can retain your current self-service payroll software and hire an accounting and bookkeeping team that offers online payroll service. 

    Here's what you'll get when you implement this payroll processing strategy.

    Cloud-Based Payroll Software Takeover

    Your small business's payroll and benefits software will be linked to the outsourced team's system. From there, bookkeepers and accounting experts will work to ensure accurate salaries are recorded and disbursed. At the same time, your team and your employees manage their information in your system.

    Tax Filing Assistance for Your Business and Employees

    Employees will have a ready form they can use to file their annual tax returns. Similarly, your business will have its corresponding forms and financial reports ready for filing.

    This will cut the work for both you and your employees. Your human resources staff can focus on employee wellbeing and other functions, while your employees won't have to worry about filing their taxes incorrectly. The same goes for your business.

    Customer Service

    A team of experts will give customer support for you and your admin staff in matters concerning numbers and the payroll process. You can contact them via messaging platform anytime to discuss such matters. It is similar to having consulting features without paying a huge fee.

    Benefits of a Managed Online Payroll Service

    Outsourcing your online payroll services to a team of experts will yield more benefits to you and your business without spending too much. By pairing up your self-service payroll system with payroll outsource services, you'll upgrade your salary accounting system and have these benefits.

    Makes It Faster

    Having your staff run payroll manually for your employees can take hours. In addition, this has to be done monthly, bi-monthly, or even weekly! Delivering a consistently accurate payroll takes time, attention, and effort.

    With an online payroll service, it will only take minutes. A dedicated team performs the task in the background and hands it to you or someone in charge for approval. It's faster because they work with a schedule to ensure you get the payroll report on time. It will be like having automated payroll services working for your business.

    Saves Money

    When a chunk of your resources dedicated to payroll processing is freed up, you can now allocate it to other business activities. You'll also stop incurring additional expenses to help you work on your payroll system. There's no need for it if there's a team working in the background for you. This also saves you money. 

    Reduces Errors

    Calculations are automated. if the data submitted on the employee time sheets and rates are accurate, the resulting salary amount will be the same.

    When bookkeepers and accounting experts handle your self-service software, they'll also spot other errors that are otherwise hard to see, and they will tell you what you need to provide to correct them.

    Timely and Accessible Data

    Most payroll providers give employees access to their employee payroll information. On both your business and the outsourced team, the transfer of information will be a breeze because all payroll processing is conducted online and stored in the cloud.

    Employee self-service for checking payroll data will be more optimized. As a result, their pay stubs will arrive on time, ready to be accessed, and with accurate salary and wage amounts.

    Accurate Payroll Tax Filing and Compliance

    With outsourced payroll service, bookkeepers and accounting specialists handle your employee's pay. These people are trained and skilled to account for taxes. In addition, they know what to do for you and your employee to remain tax compliant. This will bring everyone peace of mind.

    Decreased Liability

    When it comes to calculating payroll, details are critical. Having it done by professional bookkeepers and specialists will greatly decrease your payroll liabilities. As a result, employee morale will stay the same if not improved, and your business will be clear from internal revenue auditors and labor institutions.

    Scalability-Ready

    While your self-service payroll software can handle the volume, your staff cannot. Hiring the service of an outsourced payroll team changes that. In addition, as the number of your employees increases and your business grows, the outsourced team will adjust to your business's needs and make sure your payroll will function consistently as you scale.

    An Ideal Payroll System for the Growing Small Business

    A growing ecommerce small business can be tough for any entrepreneur. This is when you start to hire more people and are always in a dilemma when making practical decisions. Unfortunately, decisions regarding payroll are mostly impractical, such as in the case of full-service and self-service payroll management.

    Fortunately, it's possible to strike a middle ground with bookkeeping and payroll service firms such as Unloop. You can have self-service payroll software managed by a team of experienced bookkeeping and accounting professionals. All at a price that's fair to your growing business.Let's discuss how we can weave the ideal payroll system that fits your ecommerce business. Dial 877-421-7270 for a quick call, or check out our ecommerce payroll services now.

    Read more

    Owners of small businesses online must know that proper cash flow management and tracking are essential to business growth and success. And if you're using Peachtree accounting software, now known as Sage 50, you know it can help keep your books in order. But the Peachtree accounting software has been around for some time. Some accountants swear by it, while others have grown tired of its many limitations.

    So the question is, is this the premium accounting software you've been looking for? What are the features of the tool that makes it the best choice for you in the sea of accounting software? And if you think Peachtree isn't fit for your needs, what are good alternatives to this program? Keep reading to find out!

    A Brief on Peachtree Complete Accounting Software

    Sage Software originally developed Peachtree accounting software, now called Sage 50. While the name has changed, Sage 50 still offers the same robust functionality that many users loved about Peachtree.

    Peachtree Accounting is just one option, but it is popular thanks to its robust functionality and scalability. Small businesses, big corporations, or even freelancers will surely find the tool useful in streamlining their accounting processes.

    Peachtree Accounting Benefits

    Peachtree Accounting offers numerous benefits for businesses. The software includes all the basic accounting tools, like creating invoices, tracking payments, and automating financial reports. It also goes a step further with solutions for inventory management and time tracking.

    Peachtree has all functionality you need to set up an accrual accounting system, such as accounts payable and accounts receivable. And because of its cloud-connected features, you can be sure that your accounting data will always be up-to-date. Let's dive into the tool's best features

    Bank Reconciliation

    Every Peachtree software plan has a bank reconciliation feature. The software can link to your bank account and sync all your transactions at a click of a button. It then projects the synced transaction on the screen. What's great about this feature is that it flags missing transactions. The software marks an amount with a red flag icon whenever it doesn't match.

    Invoicing and Payment Capabilities

    Users of the Peachtree software can issue invoices easily. They can manually generate the invoice and fill in the amount they need. Afterwards, they can send it via email to the client. The client will receive the email, including the invoice details and a convenient "Pay Now" button that helps clients make payments.

    Cash Flow Forecasts and Management

    Peachtree can also help you forecast your business's financial health. It uses all the data recorded on the software and generates your potential numbers in a given period. As a result, you'll be better at decision-making and cash flow management. For example, if you're planning to acquire a tangible asset, you can input how much it will cost, and the system will give you a projection of how the asset's cost will affect future cash flow and profits for your business.

    Inventory Management

    Inventory management is one of the most useful Peachtree features. One example is when you enter item data, and it automatically populates a General Ledger account. Peachtree also creates automatic purchase orders; when your inventory reaches a certain level, you can opt to have the software order from your suppliers automatically.

    Cloud Backup

    Peachtree’s software is cloud-based. That means your data is always backed up in the cloud, and you don't have to worry about data losses. Another good thing about this feature is that your data is synced to whichever device you use.

    Sage 50 Drawbacks

    Sage 50 undeniably offers the core functionalities of accounting software. However, there are several reasons why you might not want to use this financial tool for your business. Let's discuss the considerations, so you can make a sound decision. And, if you pick Sage 50 as your accounting tool, you can be prepared for some of the drawbacks and make the most of the software.

    Oversaturated Interface

    Sage 50 may have advanced budgeting and an eloquent system for vendor management and handling inventory, but it is not user-friendly.

    With too many tabs, small fonts, colors, and buttons, Sage 50 creates an oversaturated interface that is too busy. This can make it daunting for users to input transactions on their journal entries and general ledgers.

    Experienced users can customize this software to make it less imposing. However, if you've just recently acquired Peachtree or don't know how to use accounting software at all, you'll have a hard time navigating through its interface, let alone setting it up for your online business.

    Over-Complicated Features

    Many users find its basic features overly complex. One of the most common complaints is that the software is designed for accountants, not small business owners. As a result, many small business owners spend more time figuring out how to use the software than using it.

    Cash flow, progress billing, and invoicing are all core functionality business owners find useful. But when they attempt to utilize these solutions, they discover they're unnecessarily broad. 

    Moreover, Sage 50's more advanced accounting features, such as job costing and advanced inventory management, are designed for larger businesses. As a result, small business owners with only a few employees on their payroll may find they are paying for features they will never use.

    Poor Customer Support

    We've covered how users may have to spend a lot of time troubleshooting errors. Unfortunately, getting assistance from Peachtree's tech support when needed is quite draining. The wait times can be long, and you may not always get the most helpful advice from the advisors. You'll be pouring hours and hours trying to get the support you need, but there will be many times when you can't.

    Costs More Than You Think

    You can try Sage 50 out for free for one month. But after that, you'll be charged for your chosen subscription plan. The cost of each plan will depend on the number of people who'll use this software and the features you are after.

    If you choose its starter plan, Pro Accounting, you can expect to pay more than $35 monthly. For plans with more advanced features like audit trails, serialized inventory tracking, or workflow management, you can expect up to $100 per month.

    For online small businesses fairly new to the industry, that's a lot of money to cash out. The tool's plans are not cost-effective for small business owners.

    Our Verdict on Peachtree Software

    Despite its drawbacks, Sage 50 Accounting is still great software; its long-standing existence has proven that. But Sage isn't for new business owners. Instead, we recommend this program for the following:

    • Companies that are equipped with accountants familiar with the software.
    • Businesses that are used to having accounting programs on their desktops.
    • Users who need consolidated reports and statements.

    If you think Sage 50 isn't for you, don’t worry. Sage is not the only option out there for online businesses. Many other software providers may be a better fit for your small business just like QuickBooks and Xero.

    The Most User-Friendly Program: QuickBooks Online

    With its clean interface and intuitive design, QuickBooks Online is stress-free, even for new users. And, if you need help, there are online tutorials and live chat support to find the answers you need. QuickBooks Online is also extremely versatile: able to meet the needs of both small businesses and larger companies.

    Sage has industry-specific functionality, but so does QuickBooks. In recent years, QuickBooks Online has added new features to appeal to the needs of specific sectors, including:

    • Mileage tracking for businesses that rely on vehicles.
    • Batched transactions for companies with high sales volumes.
    • AI-powered automation for businesses that need help with complex accounting tasks.

    QuickBooks is the number one accounting tool in the tech industry and for good reason. It only requires minimal effort to use and provides a variety of features that you can customize for your small business. Plus, you can manage your business through a mobile app, offering more convenience to many users.

    Best of all, QuickBooks connects to hundreds of third-party applications, consolidating your business's accounting needs into one centralized system. With its wide adoption and app integration, millions of businesses use this easy program.

    The Most Cost-Effective Tool: Xero

    How many users can Xero accounting software accommodate? Unlimited. One notable feature is the ability to add countless users to your account for every subscription level. This is particularly helpful for businesses that need multiple people accessing one account, such as a team of bookkeepers and accountants. Meanwhile, Sage only allows up to 40 users for its most advanced plan.

    Many accounting software, such as Sage, often limits the number of users that can be added to a plan (with fewer users for cheaper subscriptions), which can be frustrating. With Xero, you can be confident that you can add as many users as you need, regardless of which subscription plan you choose.

    Set Up Your Books With Unloop

    Peachtree accounting software, now Sage 50, is a great option for large businesses with a team of experienced accountants. However, many new business owners might be daunted by this overly sophisticated software and it may not be the best option for a small online business. In this case, you can look at the two best Peachtree alternatives we mentioned above: QuickBooks and Xero.

    If you're pushing through with Sage or need help with your small business accounting, Unloop offers cloud-based bookkeeping and accounting solutions for small businesses. With our expertise with accounting tools like QuickBooks and Xero and years of experience in the ecommerce business, you can manage your business hands-free.

    So if you want a change from Sage or need help in using it, we'll happily organize your business's finances. Book a call today to learn more about our services and how we can help your business grow.

    The Benefits and Drawbacks of Peachtree Accounting Software
    Watch Now

    Owners of small businesses online must know that proper cash flow management and tracking are essential to business growth and success. And if you're using Peachtree accounting software, now known as Sage 50, you know it can help keep your books in order. But the Peachtree accounting software has been around for some time. Some accountants swear by it, while others have grown tired of its many limitations.

    So the question is, is this the premium accounting software you've been looking for? What are the features of the tool that makes it the best choice for you in the sea of accounting software? And if you think Peachtree isn't fit for your needs, what are good alternatives to this program? Keep reading to find out!

    A Brief on Peachtree Complete Accounting Software

    Sage Software originally developed Peachtree accounting software, now called Sage 50. While the name has changed, Sage 50 still offers the same robust functionality that many users loved about Peachtree.

    Peachtree Accounting is just one option, but it is popular thanks to its robust functionality and scalability. Small businesses, big corporations, or even freelancers will surely find the tool useful in streamlining their accounting processes.

    Peachtree Accounting Benefits

    Peachtree Accounting offers numerous benefits for businesses. The software includes all the basic accounting tools, like creating invoices, tracking payments, and automating financial reports. It also goes a step further with solutions for inventory management and time tracking.

    Peachtree has all functionality you need to set up an accrual accounting system, such as accounts payable and accounts receivable. And because of its cloud-connected features, you can be sure that your accounting data will always be up-to-date. Let's dive into the tool's best features

    Bank Reconciliation

    Every Peachtree software plan has a bank reconciliation feature. The software can link to your bank account and sync all your transactions at a click of a button. It then projects the synced transaction on the screen. What's great about this feature is that it flags missing transactions. The software marks an amount with a red flag icon whenever it doesn't match.

    Invoicing and Payment Capabilities

    Users of the Peachtree software can issue invoices easily. They can manually generate the invoice and fill in the amount they need. Afterwards, they can send it via email to the client. The client will receive the email, including the invoice details and a convenient "Pay Now" button that helps clients make payments.

    Cash Flow Forecasts and Management

    Peachtree can also help you forecast your business's financial health. It uses all the data recorded on the software and generates your potential numbers in a given period. As a result, you'll be better at decision-making and cash flow management. For example, if you're planning to acquire a tangible asset, you can input how much it will cost, and the system will give you a projection of how the asset's cost will affect future cash flow and profits for your business.

    Inventory Management

    Inventory management is one of the most useful Peachtree features. One example is when you enter item data, and it automatically populates a General Ledger account. Peachtree also creates automatic purchase orders; when your inventory reaches a certain level, you can opt to have the software order from your suppliers automatically.

    Cloud Backup

    Peachtree’s software is cloud-based. That means your data is always backed up in the cloud, and you don't have to worry about data losses. Another good thing about this feature is that your data is synced to whichever device you use.

    Sage 50 Drawbacks

    Sage 50 undeniably offers the core functionalities of accounting software. However, there are several reasons why you might not want to use this financial tool for your business. Let's discuss the considerations, so you can make a sound decision. And, if you pick Sage 50 as your accounting tool, you can be prepared for some of the drawbacks and make the most of the software.

    Oversaturated Interface

    Sage 50 may have advanced budgeting and an eloquent system for vendor management and handling inventory, but it is not user-friendly.

    With too many tabs, small fonts, colors, and buttons, Sage 50 creates an oversaturated interface that is too busy. This can make it daunting for users to input transactions on their journal entries and general ledgers.

    Experienced users can customize this software to make it less imposing. However, if you've just recently acquired Peachtree or don't know how to use accounting software at all, you'll have a hard time navigating through its interface, let alone setting it up for your online business.

    Over-Complicated Features

    Many users find its basic features overly complex. One of the most common complaints is that the software is designed for accountants, not small business owners. As a result, many small business owners spend more time figuring out how to use the software than using it.

    Cash flow, progress billing, and invoicing are all core functionality business owners find useful. But when they attempt to utilize these solutions, they discover they're unnecessarily broad. 

    Moreover, Sage 50's more advanced accounting features, such as job costing and advanced inventory management, are designed for larger businesses. As a result, small business owners with only a few employees on their payroll may find they are paying for features they will never use.

    Poor Customer Support

    We've covered how users may have to spend a lot of time troubleshooting errors. Unfortunately, getting assistance from Peachtree's tech support when needed is quite draining. The wait times can be long, and you may not always get the most helpful advice from the advisors. You'll be pouring hours and hours trying to get the support you need, but there will be many times when you can't.

    Costs More Than You Think

    You can try Sage 50 out for free for one month. But after that, you'll be charged for your chosen subscription plan. The cost of each plan will depend on the number of people who'll use this software and the features you are after.

    If you choose its starter plan, Pro Accounting, you can expect to pay more than $35 monthly. For plans with more advanced features like audit trails, serialized inventory tracking, or workflow management, you can expect up to $100 per month.

    For online small businesses fairly new to the industry, that's a lot of money to cash out. The tool's plans are not cost-effective for small business owners.

    Our Verdict on Peachtree Software

    Despite its drawbacks, Sage 50 Accounting is still great software; its long-standing existence has proven that. But Sage isn't for new business owners. Instead, we recommend this program for the following:

    • Companies that are equipped with accountants familiar with the software.
    • Businesses that are used to having accounting programs on their desktops.
    • Users who need consolidated reports and statements.

    If you think Sage 50 isn't for you, don’t worry. Sage is not the only option out there for online businesses. Many other software providers may be a better fit for your small business just like QuickBooks and Xero.

    The Most User-Friendly Program: QuickBooks Online

    With its clean interface and intuitive design, QuickBooks Online is stress-free, even for new users. And, if you need help, there are online tutorials and live chat support to find the answers you need. QuickBooks Online is also extremely versatile: able to meet the needs of both small businesses and larger companies.

    Sage has industry-specific functionality, but so does QuickBooks. In recent years, QuickBooks Online has added new features to appeal to the needs of specific sectors, including:

    • Mileage tracking for businesses that rely on vehicles.
    • Batched transactions for companies with high sales volumes.
    • AI-powered automation for businesses that need help with complex accounting tasks.

    QuickBooks is the number one accounting tool in the tech industry and for good reason. It only requires minimal effort to use and provides a variety of features that you can customize for your small business. Plus, you can manage your business through a mobile app, offering more convenience to many users.

    Best of all, QuickBooks connects to hundreds of third-party applications, consolidating your business's accounting needs into one centralized system. With its wide adoption and app integration, millions of businesses use this easy program.

    The Most Cost-Effective Tool: Xero

    How many users can Xero accounting software accommodate? Unlimited. One notable feature is the ability to add countless users to your account for every subscription level. This is particularly helpful for businesses that need multiple people accessing one account, such as a team of bookkeepers and accountants. Meanwhile, Sage only allows up to 40 users for its most advanced plan.

    Many accounting software, such as Sage, often limits the number of users that can be added to a plan (with fewer users for cheaper subscriptions), which can be frustrating. With Xero, you can be confident that you can add as many users as you need, regardless of which subscription plan you choose.

    Set Up Your Books With Unloop

    Peachtree accounting software, now Sage 50, is a great option for large businesses with a team of experienced accountants. However, many new business owners might be daunted by this overly sophisticated software and it may not be the best option for a small online business. In this case, you can look at the two best Peachtree alternatives we mentioned above: QuickBooks and Xero.

    If you're pushing through with Sage or need help with your small business accounting, Unloop offers cloud-based bookkeeping and accounting solutions for small businesses. With our expertise with accounting tools like QuickBooks and Xero and years of experience in the ecommerce business, you can manage your business hands-free.

    So if you want a change from Sage or need help in using it, we'll happily organize your business's finances. Book a call today to learn more about our services and how we can help your business grow.

    Read more

    Navigating the financial landscape of a small business can be challenging, especially when it comes to managing accounts payable. In Canada, small businesses must efficiently manage payables to maintain healthy cash flow, build strong supplier relationships, and meet compliance requirements. 

    Accounts payable automation is an innovative solution streamlining the entire process, saving you time and reducing the risk of errors. Using accounts payable automation software offers numerous benefits, such as quicker invoice processing, decreased manual data entry, and reduced payment errors, so take advantage of these automation tools.

    This article will guide you through the accounts payable automation process and help you select the most suitable tools for your Canadian small business. So, keep reading!

    Understanding Accounts Payable Automation (Canada)

    Understanding accounts payable automation in Canada is crucial for businesses looking to streamline their payment processes. With automated invoice processing, processing of payments, and vendor management, companies can enhance efficiency, reduce manual errors, and have better control over their financial operations. 

    Here are the key aspects of accounts payable automation in Canada.

    Purpose of Accounts Payable Automation

    Accounts payable automation is designed to help small businesses streamline their accounts payable processes through technology and tools. By implementing accounts payable software and automating essential tasks, such as invoice processing and authorization, you can significantly improve the efficiency and accuracy of your accounts payable operations.

    Benefits for Small Businesses

    Accounts payable automation saves time and resources by reducing manual and redundant tasks and minimizing errors. Financial automation software allows you to offer early payment discounts on supplier invoices when available, which can lead to cost savings on your company's purchases.

    Additionally, a well-implemented accounts payable automation solution integrates seamlessly with your existing accounting systems, improving financial reporting and payment reconciliation.

    Improving Efficiency and Productivity

    Small businesses looking to grow should be efficient and productive everyday. By automating your accounts payable process, you can achieve the following:

    • Streamline vendor management and automated procurement cycle by eliminating manual data entry and consolidating all supplier invoices into one searchable database.
    • Automate invoice approval workflows, ensuring timely and accurate authorization before issuing payments.
    • Optimize spend management processes, giving your finance team greater insight into company expenditures.
    • Improve cash flow management by reducing late payment fees and capitalizing on early payment discounts.
    • Simplify tax filing preparation through automated tax form capture and accurate tax calculation.

    Leveraging an accounts payable automation solution enables your business to improve productivity and maximize operational efficiency. By choosing a reliable and easy-to-use platform that integrates with your existing accounting software, you can successfully automate most of your accounts payable tasks and focus on growing your business.

    a man on on the background clicking on automation graphics on the foreground

    The Process of Accounts Payable Automation

    The accounts payable automation process involved the goal to minimize or zero out manual input of data. This is made possible with the reliance on accounts payable software. When you integrate into your accounting system tools for automated accounts payable processing, invoices, bank transactions, approval workflow, and vendor payments will be easier. Here's how.

    Automating Invoice Processing

    In accounts payable automation, the first step is to automate invoice processing. With the help of accounts payable software, you can streamline the data entry process. Automatic data capture of all source documents is faster and less error-prone than manual data entry. 

    This is particularly beneficial for small businesses, as it helps improve efficiency in managing the payable process and allows you to focus more on growing your business.

    Automatic Bank Feed Import and Three-Way Match

    The bank reconciliation and three-way match process are a significant part of accounts payable automation. Financial automation software allows invoices to be automatically matched to supporting documents, such as purchase orders and receiving documents, ensuring accuracy and minimizing discrepancies. 

    This automated process helps prevent mistakes, reduces manual intervention, and simplifies the accounts payable process for your small business.

    Approval Workflows

    Integrating approval workflows into your accounts payable automation process can make it more efficient and secure. With automation solutions, you can create pre-defined workflows for invoice approval, ensuring proper authorization before payments are made. 

    This streamlines the invoice approval process and provides a transparent and auditable trail for audit and finance purposes.

    Managing Vendor Payments

    Implementing vendor payment management into your accounts payable automation software can help optimize your financial operations. You can automate vendor payments with the proper tools, ensuring timely transactions and reducing late payment fees. Additionally, automated payment reconciliation enables you to track payments accurately and manage your cash flow more effectively.

    a man clicking on a graphics showing the optimization process texts and logos

    Optimizing the Accounts Payable Process

    Optimizing the accounts payable process involves streamlining and automating the payment procedures, reducing errors, maximizing efficiency, and enhancing cash flow management

    By implementing digital solutions, such as cloud-based software and electronic invoicing, businesses can minimize manual tasks and paperwork, improve vendor relationships, and gain better control over their financial operations. 

    This optimization ultimately leads to cost savings, faster payment processing, and increased productivity.

    Managing Expenses and Cash Flow

    Managing expenses and cash flow is essential for success as a small business owner. By implementing accounts payable automation in Canada, you can streamline your payable process and enhance your financial operations.

    Accounts payable software can help you automate vendor payments, approval workflows, and expense tracking, allowing for improved cash flow and income management. Integrating your accounts payable platform with leading accounting software can maximize operational efficiency.

    One of the primary advantages of using an accounts payable automation solution is the ability to negotiate early payment discounts with suppliers. By paying supplier invoices promptly, you reduce late payment fees and may be eligible for discounts offered by suppliers.

    Reducing Errors and Manual Tasks

    Errors and manual tasks can be detrimental to your small business, as they may lead to inaccuracies in financial reporting and increased vulnerability to fraud. Adopting an automated accounts payable process can significantly reduce the risk of errors and manual tasks in your finance operations.

    Invoice processing through automated accounts payable solutions simplifies management of supplier invoices and ensures accurate tax calculation, payment reconciliation, and multi-currency management.

    Your finance team can benefit from integrating accounts payable automation with existing accounting systems and enterprise resource planning software. This consolidated approach can offer increased visibility into your company's financials, allowing your finance team to verify expenses, manage spend, and optimize approval workflows more effectively.

    An easy-to-use platform can streamline your expense management process by enabling you to create requests for companyu purchases, pay invoices, and track expenses. This automation solution will help your finance teams work more efficiently and make remote work more feasible.

    5 Accounts Payable Software for Large Businesses and Small Ones

    In this part, we will talk about five different accounts payable software for large businesses and small ones. With assistance from accounts payable specialists, these software solutions offer functionality to streamline the payment process, manage invoices, track expenses, and improve overall financial management. 

    With various options available, businesses of all sizes can find a suitable software solution to improve their accounts payable operations.

    Best Accounts Payable Automation Software Table

    Best for Low-Cost Accounts Payable Software: Bill.com

    Bill.com offers an affordable accounts payable automation solution for small businesses in Canada, helping you streamline your payable processes and improve cash flow. This software integrates with leading accounting software like QuickBooks Online and NetSuite's Cloud Accounting Software, allowing seamless data exchange with your existing accounting system.

    With features like automated invoice processing, recurring billing management, and early payment discounts, Bill.com enables your accounts payable department to optimize your payable operations, reduce late payment fees, and maximize operational efficiency.

    Best for Multi-Currencies: Tipalti

    As a small business operating in Canada, dealing with multiple currencies might be part of your daily accounts payable operations. Tipalti offers powerful accounts payable software for global supplier payments, tax filing preparation, and multi-currency management.

    Its automated financial workflow, approval management, and tax form capture features help your accounts payable department to verify supplier invoices efficiently while reducing errors in payment processing. The platform also provides insights and reporting to help manage spend, making it an excellent option for businesses needing multi-currency support.

    Best AI Accounts Payable Software: Stampli

    Leveraging artificial intelligence, Stampli simplifies your accounts payable process by automating invoice approvals, expense management, and payable operations. Its AI-driven technology ensures accurate invoice data capture and offers query management features to streamline communications between your finance teams and suppliers. 

    Stampli works well with various accounting systems like Quickbooks and NetSuite, offering easy integration and making remote work feasible for your accounts payable department.

    Best for App Integration Accounts Payable Software: Avidxchange

    Integrating your existing accounting tool like Quickbooks Online and other necessary apps is crucial for efficient accounts payable software. Avidxchange offers a smooth and seamless app integration, connecting your financial workflows with tools like Microsoft Dynamics and MRI Software.

    With features like automated procurement cycles, invoice management, and payment reconciliation, Avidxchange helps your finance team optimize your payable process, spend management process, improve income management and overall business finances.

    Best Free and Simple Accounts Payable Software: Airbase

    For businesses in Canada looking for a cost-effective accounts payable solution, Airbase offers a free platform that automates your payable processes without compromising on functionality.

    The software allows you to create purchase requests, manage expense tracking, and pay invoices across various vendor management channels, providing an easy-to-use platform for invoice approval and cash basis methods management. 

    Airbase also offers financial reporting features and additional affordable zero-risk subscriptions for extended functionality and improved cash flow.

    Invoice Management and More With Unloop

    As a small business owner in Canada, taking advantage of these tools can save time, money, and effort, allowing you to focus on growing your company and staying competitive in the market.

    If you need assistance for your accounts payable, automated invoices, your business finance, or you need to optimize approval workflow, we, here at Unloop can help you! 

    We use the most reliable small business accounting software for bookkeeping and accounting. We'll stay on top of your accounts payable and accounts receivable too for a seamless audit and finance procedure. Book a call with us now, so we can discuss our offers with you.

    Accounts Payable Automation in Canada: A Guide to Streamlined Processes and Tools
    Watch Now

    Navigating the financial landscape of a small business can be challenging, especially when it comes to managing accounts payable. In Canada, small businesses must efficiently manage payables to maintain healthy cash flow, build strong supplier relationships, and meet compliance requirements. 

    Accounts payable automation is an innovative solution streamlining the entire process, saving you time and reducing the risk of errors. Using accounts payable automation software offers numerous benefits, such as quicker invoice processing, decreased manual data entry, and reduced payment errors, so take advantage of these automation tools.

    This article will guide you through the accounts payable automation process and help you select the most suitable tools for your Canadian small business. So, keep reading!

    Understanding Accounts Payable Automation (Canada)

    Understanding accounts payable automation in Canada is crucial for businesses looking to streamline their payment processes. With automated invoice processing, processing of payments, and vendor management, companies can enhance efficiency, reduce manual errors, and have better control over their financial operations. 

    Here are the key aspects of accounts payable automation in Canada.

    Purpose of Accounts Payable Automation

    Accounts payable automation is designed to help small businesses streamline their accounts payable processes through technology and tools. By implementing accounts payable software and automating essential tasks, such as invoice processing and authorization, you can significantly improve the efficiency and accuracy of your accounts payable operations.

    Benefits for Small Businesses

    Accounts payable automation saves time and resources by reducing manual and redundant tasks and minimizing errors. Financial automation software allows you to offer early payment discounts on supplier invoices when available, which can lead to cost savings on your company's purchases.

    Additionally, a well-implemented accounts payable automation solution integrates seamlessly with your existing accounting systems, improving financial reporting and payment reconciliation.

    Improving Efficiency and Productivity

    Small businesses looking to grow should be efficient and productive everyday. By automating your accounts payable process, you can achieve the following:

    • Streamline vendor management and automated procurement cycle by eliminating manual data entry and consolidating all supplier invoices into one searchable database.
    • Automate invoice approval workflows, ensuring timely and accurate authorization before issuing payments.
    • Optimize spend management processes, giving your finance team greater insight into company expenditures.
    • Improve cash flow management by reducing late payment fees and capitalizing on early payment discounts.
    • Simplify tax filing preparation through automated tax form capture and accurate tax calculation.

    Leveraging an accounts payable automation solution enables your business to improve productivity and maximize operational efficiency. By choosing a reliable and easy-to-use platform that integrates with your existing accounting software, you can successfully automate most of your accounts payable tasks and focus on growing your business.

    a man on on the background clicking on automation graphics on the foreground

    The Process of Accounts Payable Automation

    The accounts payable automation process involved the goal to minimize or zero out manual input of data. This is made possible with the reliance on accounts payable software. When you integrate into your accounting system tools for automated accounts payable processing, invoices, bank transactions, approval workflow, and vendor payments will be easier. Here's how.

    Automating Invoice Processing

    In accounts payable automation, the first step is to automate invoice processing. With the help of accounts payable software, you can streamline the data entry process. Automatic data capture of all source documents is faster and less error-prone than manual data entry. 

    This is particularly beneficial for small businesses, as it helps improve efficiency in managing the payable process and allows you to focus more on growing your business.

    Automatic Bank Feed Import and Three-Way Match

    The bank reconciliation and three-way match process are a significant part of accounts payable automation. Financial automation software allows invoices to be automatically matched to supporting documents, such as purchase orders and receiving documents, ensuring accuracy and minimizing discrepancies. 

    This automated process helps prevent mistakes, reduces manual intervention, and simplifies the accounts payable process for your small business.

    Approval Workflows

    Integrating approval workflows into your accounts payable automation process can make it more efficient and secure. With automation solutions, you can create pre-defined workflows for invoice approval, ensuring proper authorization before payments are made. 

    This streamlines the invoice approval process and provides a transparent and auditable trail for audit and finance purposes.

    Managing Vendor Payments

    Implementing vendor payment management into your accounts payable automation software can help optimize your financial operations. You can automate vendor payments with the proper tools, ensuring timely transactions and reducing late payment fees. Additionally, automated payment reconciliation enables you to track payments accurately and manage your cash flow more effectively.

    a man clicking on a graphics showing the optimization process texts and logos

    Optimizing the Accounts Payable Process

    Optimizing the accounts payable process involves streamlining and automating the payment procedures, reducing errors, maximizing efficiency, and enhancing cash flow management

    By implementing digital solutions, such as cloud-based software and electronic invoicing, businesses can minimize manual tasks and paperwork, improve vendor relationships, and gain better control over their financial operations. 

    This optimization ultimately leads to cost savings, faster payment processing, and increased productivity.

    Managing Expenses and Cash Flow

    Managing expenses and cash flow is essential for success as a small business owner. By implementing accounts payable automation in Canada, you can streamline your payable process and enhance your financial operations.

    Accounts payable software can help you automate vendor payments, approval workflows, and expense tracking, allowing for improved cash flow and income management. Integrating your accounts payable platform with leading accounting software can maximize operational efficiency.

    One of the primary advantages of using an accounts payable automation solution is the ability to negotiate early payment discounts with suppliers. By paying supplier invoices promptly, you reduce late payment fees and may be eligible for discounts offered by suppliers.

    Reducing Errors and Manual Tasks

    Errors and manual tasks can be detrimental to your small business, as they may lead to inaccuracies in financial reporting and increased vulnerability to fraud. Adopting an automated accounts payable process can significantly reduce the risk of errors and manual tasks in your finance operations.

    Invoice processing through automated accounts payable solutions simplifies management of supplier invoices and ensures accurate tax calculation, payment reconciliation, and multi-currency management.

    Your finance team can benefit from integrating accounts payable automation with existing accounting systems and enterprise resource planning software. This consolidated approach can offer increased visibility into your company's financials, allowing your finance team to verify expenses, manage spend, and optimize approval workflows more effectively.

    An easy-to-use platform can streamline your expense management process by enabling you to create requests for companyu purchases, pay invoices, and track expenses. This automation solution will help your finance teams work more efficiently and make remote work more feasible.

    5 Accounts Payable Software for Large Businesses and Small Ones

    In this part, we will talk about five different accounts payable software for large businesses and small ones. With assistance from accounts payable specialists, these software solutions offer functionality to streamline the payment process, manage invoices, track expenses, and improve overall financial management. 

    With various options available, businesses of all sizes can find a suitable software solution to improve their accounts payable operations.

    Best Accounts Payable Automation Software Table

    Best for Low-Cost Accounts Payable Software: Bill.com

    Bill.com offers an affordable accounts payable automation solution for small businesses in Canada, helping you streamline your payable processes and improve cash flow. This software integrates with leading accounting software like QuickBooks Online and NetSuite's Cloud Accounting Software, allowing seamless data exchange with your existing accounting system.

    With features like automated invoice processing, recurring billing management, and early payment discounts, Bill.com enables your accounts payable department to optimize your payable operations, reduce late payment fees, and maximize operational efficiency.

    Best for Multi-Currencies: Tipalti

    As a small business operating in Canada, dealing with multiple currencies might be part of your daily accounts payable operations. Tipalti offers powerful accounts payable software for global supplier payments, tax filing preparation, and multi-currency management.

    Its automated financial workflow, approval management, and tax form capture features help your accounts payable department to verify supplier invoices efficiently while reducing errors in payment processing. The platform also provides insights and reporting to help manage spend, making it an excellent option for businesses needing multi-currency support.

    Best AI Accounts Payable Software: Stampli

    Leveraging artificial intelligence, Stampli simplifies your accounts payable process by automating invoice approvals, expense management, and payable operations. Its AI-driven technology ensures accurate invoice data capture and offers query management features to streamline communications between your finance teams and suppliers. 

    Stampli works well with various accounting systems like Quickbooks and NetSuite, offering easy integration and making remote work feasible for your accounts payable department.

    Best for App Integration Accounts Payable Software: Avidxchange

    Integrating your existing accounting tool like Quickbooks Online and other necessary apps is crucial for efficient accounts payable software. Avidxchange offers a smooth and seamless app integration, connecting your financial workflows with tools like Microsoft Dynamics and MRI Software.

    With features like automated procurement cycles, invoice management, and payment reconciliation, Avidxchange helps your finance team optimize your payable process, spend management process, improve income management and overall business finances.

    Best Free and Simple Accounts Payable Software: Airbase

    For businesses in Canada looking for a cost-effective accounts payable solution, Airbase offers a free platform that automates your payable processes without compromising on functionality.

    The software allows you to create purchase requests, manage expense tracking, and pay invoices across various vendor management channels, providing an easy-to-use platform for invoice approval and cash basis methods management. 

    Airbase also offers financial reporting features and additional affordable zero-risk subscriptions for extended functionality and improved cash flow.

    Invoice Management and More With Unloop

    As a small business owner in Canada, taking advantage of these tools can save time, money, and effort, allowing you to focus on growing your company and staying competitive in the market.

    If you need assistance for your accounts payable, automated invoices, your business finance, or you need to optimize approval workflow, we, here at Unloop can help you! 

    We use the most reliable small business accounting software for bookkeeping and accounting. We'll stay on top of your accounts payable and accounts receivable too for a seamless audit and finance procedure. Book a call with us now, so we can discuss our offers with you.

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    +1 877 421 7270
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    Markham, ON L3R 2N2
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    About unloop

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

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