Running a business is challenging, but with the rise of accounting tools handling your finances is much less of a headache. If you have a business, having an accounting system in place will give you confidence about the state of your finances. If you don’t have one yet, this is the perfect time to invest in one.
There are several options you can choose from, but what are the accounting tools best for your business? In this article, we’ll discuss important features business owners need to consider for their accounting software (aside from accounting). Don’t forget to take notes and make your investment worth it!
Other aspects of your business need attention outside of the accounting process, and there are software programs that will allow you to operate your business smoothly. Time tracking software is a reliable tool for effective time management.
Time is a vital resource, especially for small businesses. A time tracking software will help you understand how time is spent in your business and identify areas where you need to focus more of your time on. It can show you documentation of work performance on different tasks.
Selling is just one part of running a business. Project management helps small business owners organize and break down specific tasks to allow a comprehensive flow in running business operations. This software increases your efficiency and allows you to monitor if your resources are expended towards completing your business projects.
Establishing good relationships with your customers is beneficial for your business. Getting feedback and listening to their opinion can lead your business to success. Customer relationship management software can analyze how your customer base interacts with your business.
A CRM feature can give valuable insights into a business relationship, allowing you to retain and gather new customers. For example, a CRM tool can see how people interact with the elements of your business website. If you have more clicks and views on your video content, you can do projects on video content to post to satisfy your customers.
The insights from the CRM feature will help you put your resources in the appropriate area so you can guarantee that you spend them towards the growth of your business.
If you have employees, communication within the business is essential. A communication tool will allow administrators and employees to maximize business communication. Communication tools also act as an effective channel for project collaborations. Regardless of where your employees work, they can store files and communicate with their members to ensure workflow goes smoothly.
Furthermore, communication tools allow you to communicate with people outside your business. In some situations, customers reach out to businesses, and getting back to them is vital. Whether it is a concern, inquiry, or internal communication, communication features will help improve your business.
Payment automation and streamlining greatly benefit your workflow and billing process. If you have a service-based business, this feature is a must-have! Customer payments come weekly, monthly, or annually in a service-based business. Payment transaction features can automatically send invoices to your customers and notify them of their dues.
It can also collect payment from various channels and record proof of transaction on your system once it is complete. This feature will help you track unsettled payments so you can take proper action.
Accounting software is the key to a smoother and more efficient accounting process. So many accounting software options are available, and choosing the right one for your business is crucial. Because accounting tools can cater to various business needs, it is vital that you understand what you need to maximize the features of your chosen accounting software—that’s why we recommend accounting software that can integrate with the various features above. But why?
Here are some reasons why investing in an integrated accounting software is best for businesses.
Imagine opening and running multiple software every time you do accounting. If you’re not well-versed in accounting processes, it will only confuse you. An integrated accounting software allows you to link all your other systems together in software so you can access, see, and use them in one window.
This will lessen the time you need to shift and sign-in to different software. Furthermore, if you have a lot of data, it is easier to track them if you file them using one software. Integration saves time and improves accounting accuracy.
As businesses continue to rise, different providers develop new ways to make running a business more efficient. When you have an integrated system in place, you will always be updated with new features on your chosen accounting software.
If you have your own team for accounting, it is essential that they can access the data and information they need as quickly as possible. An integrated system allows you to store these data points in a centralized location which your team members can easily access.
Furthermore, when new data is entered, it automatically syncs with the entire system—when you need to see your financial data, you’ll always have the latest version. You don’t have to wait for updates from different individuals to get a quick overview of your finances.
Accounting tools make running a business easier. Still, many business owners are reluctant to invest in one for their business. To help you out, here are the advantages of using accounting tools.
Let's go back to the basics. Bookkeeping is the process of recording and organizing all your business transactions. Recording ten transactions daily is completely manageable. But as your business grows, the transactions do too, and it will be harder for you to keep up with them.
If you have 100 transactions each day, how long will it take you to record and categorize them? Software can shorten the process for you so you can focus on other aspects of your business.
The danger of doing things manually is it's prone to error. If you're still doing accounting on Excel sheets, your computation will likely go wrong as you enter more data. Not to mention how tedious it is to spot and fix your mistakes.
Accounting tools can guarantee that your financial data is accurate and automatically reflects on the system whenever you make changes. So, whenever you need to generate a report, all the information is correct and valid.
There are accounting tools that can run and automate many aspects of your business, so you don't have to subscribe to multiple software. Basic accounting processes—like inventory management, expense tracking, bookkeeping, and payroll services—can be accomplished in a single program.
This will make your business process easier, faster, and more accurate. You don't need to worry about mistakes that could be detrimental to your business.
If you are unsure how to use automation tools and advanced accounting options, you can try the services of a professional accountant. Unloop offers a competitive expert team to handle your accounting needs so you can focus on aspects of your growing business.
Our professional accounting services include:
We hope this article helps you choose your accounting tools wisely. If you need professional ecommerce services, book a call with Unloop today!
Running a business is challenging, but with the rise of accounting tools handling your finances is much less of a headache. If you have a business, having an accounting system in place will give you confidence about the state of your finances. If you don’t have one yet, this is the perfect time to invest in one.
There are several options you can choose from, but what are the accounting tools best for your business? In this article, we’ll discuss important features business owners need to consider for their accounting software (aside from accounting). Don’t forget to take notes and make your investment worth it!
Other aspects of your business need attention outside of the accounting process, and there are software programs that will allow you to operate your business smoothly. Time tracking software is a reliable tool for effective time management.
Time is a vital resource, especially for small businesses. A time tracking software will help you understand how time is spent in your business and identify areas where you need to focus more of your time on. It can show you documentation of work performance on different tasks.
Selling is just one part of running a business. Project management helps small business owners organize and break down specific tasks to allow a comprehensive flow in running business operations. This software increases your efficiency and allows you to monitor if your resources are expended towards completing your business projects.
Establishing good relationships with your customers is beneficial for your business. Getting feedback and listening to their opinion can lead your business to success. Customer relationship management software can analyze how your customer base interacts with your business.
A CRM feature can give valuable insights into a business relationship, allowing you to retain and gather new customers. For example, a CRM tool can see how people interact with the elements of your business website. If you have more clicks and views on your video content, you can do projects on video content to post to satisfy your customers.
The insights from the CRM feature will help you put your resources in the appropriate area so you can guarantee that you spend them towards the growth of your business.
If you have employees, communication within the business is essential. A communication tool will allow administrators and employees to maximize business communication. Communication tools also act as an effective channel for project collaborations. Regardless of where your employees work, they can store files and communicate with their members to ensure workflow goes smoothly.
Furthermore, communication tools allow you to communicate with people outside your business. In some situations, customers reach out to businesses, and getting back to them is vital. Whether it is a concern, inquiry, or internal communication, communication features will help improve your business.
Payment automation and streamlining greatly benefit your workflow and billing process. If you have a service-based business, this feature is a must-have! Customer payments come weekly, monthly, or annually in a service-based business. Payment transaction features can automatically send invoices to your customers and notify them of their dues.
It can also collect payment from various channels and record proof of transaction on your system once it is complete. This feature will help you track unsettled payments so you can take proper action.
Accounting software is the key to a smoother and more efficient accounting process. So many accounting software options are available, and choosing the right one for your business is crucial. Because accounting tools can cater to various business needs, it is vital that you understand what you need to maximize the features of your chosen accounting software—that’s why we recommend accounting software that can integrate with the various features above. But why?
Here are some reasons why investing in an integrated accounting software is best for businesses.
Imagine opening and running multiple software every time you do accounting. If you’re not well-versed in accounting processes, it will only confuse you. An integrated accounting software allows you to link all your other systems together in software so you can access, see, and use them in one window.
This will lessen the time you need to shift and sign-in to different software. Furthermore, if you have a lot of data, it is easier to track them if you file them using one software. Integration saves time and improves accounting accuracy.
As businesses continue to rise, different providers develop new ways to make running a business more efficient. When you have an integrated system in place, you will always be updated with new features on your chosen accounting software.
If you have your own team for accounting, it is essential that they can access the data and information they need as quickly as possible. An integrated system allows you to store these data points in a centralized location which your team members can easily access.
Furthermore, when new data is entered, it automatically syncs with the entire system—when you need to see your financial data, you’ll always have the latest version. You don’t have to wait for updates from different individuals to get a quick overview of your finances.
Accounting tools make running a business easier. Still, many business owners are reluctant to invest in one for their business. To help you out, here are the advantages of using accounting tools.
Let's go back to the basics. Bookkeeping is the process of recording and organizing all your business transactions. Recording ten transactions daily is completely manageable. But as your business grows, the transactions do too, and it will be harder for you to keep up with them.
If you have 100 transactions each day, how long will it take you to record and categorize them? Software can shorten the process for you so you can focus on other aspects of your business.
The danger of doing things manually is it's prone to error. If you're still doing accounting on Excel sheets, your computation will likely go wrong as you enter more data. Not to mention how tedious it is to spot and fix your mistakes.
Accounting tools can guarantee that your financial data is accurate and automatically reflects on the system whenever you make changes. So, whenever you need to generate a report, all the information is correct and valid.
There are accounting tools that can run and automate many aspects of your business, so you don't have to subscribe to multiple software. Basic accounting processes—like inventory management, expense tracking, bookkeeping, and payroll services—can be accomplished in a single program.
This will make your business process easier, faster, and more accurate. You don't need to worry about mistakes that could be detrimental to your business.
If you are unsure how to use automation tools and advanced accounting options, you can try the services of a professional accountant. Unloop offers a competitive expert team to handle your accounting needs so you can focus on aspects of your growing business.
Our professional accounting services include:
We hope this article helps you choose your accounting tools wisely. If you need professional ecommerce services, book a call with Unloop today!
To run a business properly, understanding your finances is a must. Although you have professionals that can seamlessly handle business finances, as business owners, it is crucial to oversee your business. Liability is one of the most important aspects of a business.
In this article, we'll further discuss liabilities in accounting so you can stay on top of your day-to-day business operations.
The money due by a company to a person or another entity is referred to in accounting as liabilities. In simpler terms, these are your company's debts regardless of when they are due. Moreover, liabilities may be things with a comparable worth.
Liabilities can help businesses manage their business operations and speed up value creation. But, when handled improperly, they can harm firms significantly and, occasionally, permanently.
Several items cover business liabilities. These can be wages you need to pay your employees, unpaid taxes, or due mortgage payables. In general, liabilities are divided into two broad categories: short-term and long-term.
We'll discuss each category and provide examples to help business owners understand them better.
Short-term liabilities are also called current liabilities. These are liabilities that your business needs to pay within a year, hence “short term”. These include taxes payables, vendor invoices, and wages payables.
Here are examples of current liabilities.
Long-term liabilities are also coined as non-current liabilities. From the name itself, these are business liabilities you are expected to pay in 12 months or more. Bonds payable or long-term debt is one example and are usually the largest of these liabilities.
Here are other examples of long-term liabilities.
An expense is a business's operational cost incurred to produce income. An expense is primarily distinguished from liabilities by how it relates to your company's revenue. Expenses and revenues are declared on income statements, while assets and liabilities appear on the balance sheet.
Furthermore, expenses can be paid quickly with cash, whereas delaying payment would make the expense a liability.
Expenses | Liability |
Operating cost to generate revenue | Debt and dues owed by a business |
Related to the company’s revenue | Amount a business owns currently or in the future |
Shown on incomes statements | Shown on balance sheets |
Examining how you pay for everything for your organization will help you comprehend business liabilities in a clear manner. You borrow money or use cash from a checking account to make purchases. Using a credit card is a form of borrowing, just like any other kind.
Your balance sheet depicts your company's financial health at the completion of each accounting period, listing all of your liabilities. Throughout time, liabilities may be fulfilled by the transfer of funds, products, or services.
You must list all your liabilities and add them up to get your total liabilities. A simple accounting method can be used to determine whether your books are balanced.
Liabilities + Equity = Assets
Your total liabilities and equity must match the total assets for your business to be considered balanced.
You can't talk about liabilities without knowing your business assets. Assets are items with value that a company owns. Here are some prime examples of business assets.
Managing a company's financial obligations can be confusing, especially for small businesses. Fortunately for beginners like you, Unloop can help you sort out your finances. Our bookkeeping services will keep your business in the loop for your finances. Our services include:
We also offer other accounting services such as forecasting, accounts payable, payroll, and taxes. Stop worrying about your finances and let the experts handle it. Book a call with us today!
To run a business properly, understanding your finances is a must. Although you have professionals that can seamlessly handle business finances, as business owners, it is crucial to oversee your business. Liability is one of the most important aspects of a business.
In this article, we'll further discuss liabilities in accounting so you can stay on top of your day-to-day business operations.
The money due by a company to a person or another entity is referred to in accounting as liabilities. In simpler terms, these are your company's debts regardless of when they are due. Moreover, liabilities may be things with a comparable worth.
Liabilities can help businesses manage their business operations and speed up value creation. But, when handled improperly, they can harm firms significantly and, occasionally, permanently.
Several items cover business liabilities. These can be wages you need to pay your employees, unpaid taxes, or due mortgage payables. In general, liabilities are divided into two broad categories: short-term and long-term.
We'll discuss each category and provide examples to help business owners understand them better.
Short-term liabilities are also called current liabilities. These are liabilities that your business needs to pay within a year, hence “short term”. These include taxes payables, vendor invoices, and wages payables.
Here are examples of current liabilities.
Long-term liabilities are also coined as non-current liabilities. From the name itself, these are business liabilities you are expected to pay in 12 months or more. Bonds payable or long-term debt is one example and are usually the largest of these liabilities.
Here are other examples of long-term liabilities.
An expense is a business's operational cost incurred to produce income. An expense is primarily distinguished from liabilities by how it relates to your company's revenue. Expenses and revenues are declared on income statements, while assets and liabilities appear on the balance sheet.
Furthermore, expenses can be paid quickly with cash, whereas delaying payment would make the expense a liability.
Expenses | Liability |
Operating cost to generate revenue | Debt and dues owed by a business |
Related to the company’s revenue | Amount a business owns currently or in the future |
Shown on incomes statements | Shown on balance sheets |
Examining how you pay for everything for your organization will help you comprehend business liabilities in a clear manner. You borrow money or use cash from a checking account to make purchases. Using a credit card is a form of borrowing, just like any other kind.
Your balance sheet depicts your company's financial health at the completion of each accounting period, listing all of your liabilities. Throughout time, liabilities may be fulfilled by the transfer of funds, products, or services.
You must list all your liabilities and add them up to get your total liabilities. A simple accounting method can be used to determine whether your books are balanced.
Liabilities + Equity = Assets
Your total liabilities and equity must match the total assets for your business to be considered balanced.
You can't talk about liabilities without knowing your business assets. Assets are items with value that a company owns. Here are some prime examples of business assets.
Managing a company's financial obligations can be confusing, especially for small businesses. Fortunately for beginners like you, Unloop can help you sort out your finances. Our bookkeeping services will keep your business in the loop for your finances. Our services include:
We also offer other accounting services such as forecasting, accounts payable, payroll, and taxes. Stop worrying about your finances and let the experts handle it. Book a call with us today!
The payroll process is not as easy as releasing payments to your employees. You have to collect their time cards, note deductions and reimbursements, and handle their tax obligations. Fortunately for business owners, payroll systems exist to make the process simpler.
There are several payroll software options you can choose from, and each have different features that can help with the payroll process. But which ones are worth investing in? We'll list some of the best features of a payroll system businesses should utilize.
One of the essential features of payroll software is a time-tracking feature. Most businesses pay their employees based on the hours they work. So keeping accurate track of the time your people work will allow you to pay them properly.
Furthermore, automated time tracking eliminates the error from the manual process. It also gives the payroll team the confidence that the recorded time is valid since no one outside the administration can alter the time in the system.
Every minute spent running a business is precious, so don't waste it on a payroll system that's hard to set up and too technical to understand. Before investing in payroll software, always look for the setup options.
Here are some things you should check.
It would also help to see customer reviews to assess if the software suits your needs. Furthermore, take advantage of payroll systems with free trial features. This way, you can closely examine the software, from installation to its features.
One of the reasons why you should get payroll management software is to make the tax filing process more convenient. The HR and accounting departments know that handling taxes in payroll is one of the most tedious tasks, and this payroll feature will streamline your payroll processes further.
In general, you want a payroll system that can calculate, file, collect, and deposit payroll taxes on your business's behalf. Here are other payroll system features to look for regarding taxes.
If your business includes reimbursable employee expenses, then this payroll feature is a must-have. These payroll solutions can automate expense reports and payment processes. This will save business owners time and ensure that reimbursements are paid on a schedule.
The expense management feature also provides document management so you can store all receipts and proofs of reimbursement to ensure you release the correct payment to your employees. You can access them easily when you need to check them.
One of the most crucial features of payroll is direct deposit. Gone are the days when businesses paid through cash and cheques. Direct deposit is quicker and easier to process, which takes a load of work from the payroll team.
Here are some configurations your direct deposit feature should have.
Make sure also to check the additional fees that come with direct deposits. Fees may vary depending on the payroll provider. The lower the fees, the better it is for your business.
The reporting feature is a must-have payroll software feature for automated payroll software options. The last thing you want to do when you need information is to look through a mountain of paper and assemble them to create a report. It's time-consuming and impractical. Find a software that will help you generate different reports.
Here are some necessary reports your payroll software should provide.
You also can check for breakdowns. For example, can you make reports for individual employees? Can you make summary reports? The more reports the software can generate, the easier it will be for business owners like you.
Two benefits come with self-service functions. First, it allows your employees access to change necessary payroll data like bank account numbers and addresses. Second, it allows your employees to see their available leave credits and access reports such as W2 and pay slips.
Although this feature allows employees access, they cannot change anything, such as time and pay rate.
Payroll processing consists of several tasks. It would be helpful to integrate other software into your payroll system. Integration will streamline the whole payroll process and make it seamless and accurate.
Here are some integrations you should consider.
Make sure to explore different payroll providers. Others will ask for fees to integrate other software with theirs. Some software options can also do all the accounting tasks with a more expensive subscription plan, but they are worth considering.
Even with the surge of different business software, many business owners are still reluctant to get a subscription. It may look like an unnecessary expense for a small business, but investing in software greatly benefits your business operations.
What are the advantages of a payroll software?
If the payroll process is too much for you, let professionals handle it. Unloop offers ecommerce and small business payroll services for stress-free payroll processing. Here's what we can do for your business.
Managing payroll is part of running a business. As your business grows, the more employees you need, and the more you need to pay. At one point or another, getting software or a professional service is a viable choice. We hope these outstanding features help you choose a suitable payroll software for your business’s needs.
If you need professional help, Unloop offers other accounting services such as bookkeeping, accounts payable, forecasting, and taxes. Talk to our experts and book a discovery call with us today.
The payroll process is not as easy as releasing payments to your employees. You have to collect their time cards, note deductions and reimbursements, and handle their tax obligations. Fortunately for business owners, payroll systems exist to make the process simpler.
There are several payroll software options you can choose from, and each have different features that can help with the payroll process. But which ones are worth investing in? We'll list some of the best features of a payroll system businesses should utilize.
One of the essential features of payroll software is a time-tracking feature. Most businesses pay their employees based on the hours they work. So keeping accurate track of the time your people work will allow you to pay them properly.
Furthermore, automated time tracking eliminates the error from the manual process. It also gives the payroll team the confidence that the recorded time is valid since no one outside the administration can alter the time in the system.
Every minute spent running a business is precious, so don't waste it on a payroll system that's hard to set up and too technical to understand. Before investing in payroll software, always look for the setup options.
Here are some things you should check.
It would also help to see customer reviews to assess if the software suits your needs. Furthermore, take advantage of payroll systems with free trial features. This way, you can closely examine the software, from installation to its features.
One of the reasons why you should get payroll management software is to make the tax filing process more convenient. The HR and accounting departments know that handling taxes in payroll is one of the most tedious tasks, and this payroll feature will streamline your payroll processes further.
In general, you want a payroll system that can calculate, file, collect, and deposit payroll taxes on your business's behalf. Here are other payroll system features to look for regarding taxes.
If your business includes reimbursable employee expenses, then this payroll feature is a must-have. These payroll solutions can automate expense reports and payment processes. This will save business owners time and ensure that reimbursements are paid on a schedule.
The expense management feature also provides document management so you can store all receipts and proofs of reimbursement to ensure you release the correct payment to your employees. You can access them easily when you need to check them.
One of the most crucial features of payroll is direct deposit. Gone are the days when businesses paid through cash and cheques. Direct deposit is quicker and easier to process, which takes a load of work from the payroll team.
Here are some configurations your direct deposit feature should have.
Make sure also to check the additional fees that come with direct deposits. Fees may vary depending on the payroll provider. The lower the fees, the better it is for your business.
The reporting feature is a must-have payroll software feature for automated payroll software options. The last thing you want to do when you need information is to look through a mountain of paper and assemble them to create a report. It's time-consuming and impractical. Find a software that will help you generate different reports.
Here are some necessary reports your payroll software should provide.
You also can check for breakdowns. For example, can you make reports for individual employees? Can you make summary reports? The more reports the software can generate, the easier it will be for business owners like you.
Two benefits come with self-service functions. First, it allows your employees access to change necessary payroll data like bank account numbers and addresses. Second, it allows your employees to see their available leave credits and access reports such as W2 and pay slips.
Although this feature allows employees access, they cannot change anything, such as time and pay rate.
Payroll processing consists of several tasks. It would be helpful to integrate other software into your payroll system. Integration will streamline the whole payroll process and make it seamless and accurate.
Here are some integrations you should consider.
Make sure to explore different payroll providers. Others will ask for fees to integrate other software with theirs. Some software options can also do all the accounting tasks with a more expensive subscription plan, but they are worth considering.
Even with the surge of different business software, many business owners are still reluctant to get a subscription. It may look like an unnecessary expense for a small business, but investing in software greatly benefits your business operations.
What are the advantages of a payroll software?
If the payroll process is too much for you, let professionals handle it. Unloop offers ecommerce and small business payroll services for stress-free payroll processing. Here's what we can do for your business.
Managing payroll is part of running a business. As your business grows, the more employees you need, and the more you need to pay. At one point or another, getting software or a professional service is a viable choice. We hope these outstanding features help you choose a suitable payroll software for your business’s needs.
If you need professional help, Unloop offers other accounting services such as bookkeeping, accounts payable, forecasting, and taxes. Talk to our experts and book a discovery call with us today.
So you’ve started an online business. You are now among the millions who have braved the ecommerce world in Canada and the US! While beginning a business is indeed exciting, the responsibilities you’ll handle are undoubtedly daunting.
One task you need to accomplish even before you launch your business is to pick the best accounting and bookkeeping tool. Getting this ready before selling or launching all your marketing efforts will help you track the money coming in and out of your business. But with the many options out there, which one should you choose?
Here, we’ll discuss the best accounting software and why you should invest in one, so keep reading!
Being a startup, pick the small business accounting software that can satisfy your financial management needs at the present moment. But also choose the one that can scale to more advanced features as you grow your venture. Here are the most popular accounting software to choose from.
QuickBooks is one of the most popular small business accounting software. It has all the accounting features you need. When you sign up for a plan, it’ll backtrack all your financial transactions and do live bookkeeping moving forward. QuickBooks has payroll solutions, invoicing, various payment gateways, integrations, time tracking and project management, and inventory tracking features.
Xero is another accounting software that will surely ring a bell. It is as credible and helpful as QuickBooks because of these accounting features: accounts payable and receivable, different ways for online payments, recording of bank account transactions, projects and time tracking, integrations, invoicing, and inventory tracking. Like QuickBooks, it also operates on the cloud and can be accessed on mobile devices as long as there is an internet connection.
If you are growing your businesses, managing more people, and handling more clients, you can count on Peachtree, now known as Sage business cloud accounting/Sage50 cloud. It has HR and CRM features that will be very helpful in managing your growing workforce.
If your businesses are in corporate real estate and construction, Sage business cloud accounting is the best tool because it has unique features for these industries. Peachtree can also fulfill general tasks like keeping your books organized and helping you with your accounting needs.
Meanwhile, if you want something user-friendly and straightforward, check out FreshBooks. The software is excellent for beginners who want to independently handle their bookkeeping and accounting. The brand also highlights its tool’s usefulness for freelancers and self-employed professionals. Nevertheless, it is also a tool for businesses with contractors and regular employees.
FreshBooks has double-entry accounting, invoicing, inventory tracking, integrations with different payment gateways, and reporting. It is also accessible on mobile devices.
Another software that you’ll appreciate because of its straightforwardness and user-friendliness is Wave Accounting. Its tagline flaunts that the tool is not made for accountants but for business owners themselves. Hence, its features are perfect for individuals with little bookkeeping and accounting knowledge. If you don’t have much time to learn the ropes of financial management, Wave Accounting is an excellent start.
The software offers accounting and invoicing. You can utilize the tool’s optical character recognition technology to take images of receipts, store them in the system, and convert them into data that can be organized and categorized in books.
Your business’s invoicing needs are also covered by the tool. You can create invoices in any currency, accept payments automatically, and customize invoices to include your company brand and logo. All these transactions will be stored in the books.
Customer support from where you get your software is essential when you will manage your books and accounting independently. You won’t be disappointed with Zoho Books, as they have superb customer service that will help you establish and maintain your accounting and bookkeeping system.
You can enjoy all bookkeeping and accounting features like invoicing, estimates, income and expenses tracking, banking, project management, inventory, reporting, and various payment gateways depending on the plan you sign up for. The great news is Zoho Books’s plans are highly flexible.
Do the software sound promising? Sustain the excitement and ensure your business will thrive by establishing a bookkeeping and accounting system early on. Although accounting systems may sometimes be costly, they are worth the investment because of these benefits.
In the beginning, your income and expenses may still be manageable when tracked manually as sales are still slow. Financial management through a cash-based accounting system can still work.
However, income and expenses will grow as your business scales. Using accrual accounting is better through an accounting program. Through this feature, you can monitor your accounts payable and accounts receivable. Accounts payable are business expenses you must pay, like production costs and tax calculations. Accounts receivable is the money you’ll receive from sales and services.
When you keep track of these, you’ll quickly know the taxes you need to pay, your after-tax income, and your profit.
Invoicing may seem basic, but it is of immense help in ensuring your accounts receivable are managed and on track. Software can generate different types of invoices, which can help you get the correct customer payment at the right time. This ensures your cash flow goes uninterrupted.
Many software allow you to create invoices conveniently because of ready-made templates. You can also customize the templates if you want and need to. The invoices can also have a “Pay Now” button, making it convenient for clients and customers to pay. Once the transaction is complete, the details will be recorded and categorized in the books because of software automation.
When your income and expenses are tracked and organized in the books, one of the most significant benefits you’ll reap is being ready when tax season comes. A common mistake many business owners make is cramming the tracking of their business finances as the tax season approaches. But doing so makes financial reporting more error-prone and difficult because of the amount of data to backtrack.
Data can be updated automatically when you have software, especially when you utilize integrations. All you, your bookkeeper, and your accountant need to do is to check the accuracy of entries, send the report, check tax calculations, and pay the correct taxes before the deadline.
Tracking is made more accessible because the latest business tools have these automation and integration features:
The main goal of automation is to minimize or eliminate manual data entry, as this is the culprit in financial data inaccuracy.
With all these financial records that are essential and also confidential, data security and protection are indeed vital features you’ll look for in small business accounting programs. You’ll find just what you need when you pick a cloud-based accounting software.
Traditional accounting using Excel sheets stores books on computers, but cloud-based software have more advanced security features and can store information in the cloud. The cloud encrypts data, ensuring that hackers and unauthorized individuals cannot access your accounting data. Corruption of data is also less likely.
Most cloud-based software have multiple users and role-based access, meaning only individuals you authorize can access the books.
As a startup in the competitive landscape of North America, it is essential to manage your finances early, so start bookkeeping and accounting as soon as you open your store. You now have all the information you need. QuickBooks, Xero, Sage50 cloud, FreshBooks, and Zoho Books are the best bookkeeping software for small businesses in Canada and the US; check out which satisfies your business needs most to get the best. If you need help, our team is well-versed in the latest bookkeeping software (Canada and the US), and we can handle your bookkeeping. Call us now so we can discuss our offers with you!
So you’ve started an online business. You are now among the millions who have braved the ecommerce world in Canada and the US! While beginning a business is indeed exciting, the responsibilities you’ll handle are undoubtedly daunting.
One task you need to accomplish even before you launch your business is to pick the best accounting and bookkeeping tool. Getting this ready before selling or launching all your marketing efforts will help you track the money coming in and out of your business. But with the many options out there, which one should you choose?
Here, we’ll discuss the best accounting software and why you should invest in one, so keep reading!
Being a startup, pick the small business accounting software that can satisfy your financial management needs at the present moment. But also choose the one that can scale to more advanced features as you grow your venture. Here are the most popular accounting software to choose from.
QuickBooks is one of the most popular small business accounting software. It has all the accounting features you need. When you sign up for a plan, it’ll backtrack all your financial transactions and do live bookkeeping moving forward. QuickBooks has payroll solutions, invoicing, various payment gateways, integrations, time tracking and project management, and inventory tracking features.
Xero is another accounting software that will surely ring a bell. It is as credible and helpful as QuickBooks because of these accounting features: accounts payable and receivable, different ways for online payments, recording of bank account transactions, projects and time tracking, integrations, invoicing, and inventory tracking. Like QuickBooks, it also operates on the cloud and can be accessed on mobile devices as long as there is an internet connection.
If you are growing your businesses, managing more people, and handling more clients, you can count on Peachtree, now known as Sage business cloud accounting/Sage50 cloud. It has HR and CRM features that will be very helpful in managing your growing workforce.
If your businesses are in corporate real estate and construction, Sage business cloud accounting is the best tool because it has unique features for these industries. Peachtree can also fulfill general tasks like keeping your books organized and helping you with your accounting needs.
Meanwhile, if you want something user-friendly and straightforward, check out FreshBooks. The software is excellent for beginners who want to independently handle their bookkeeping and accounting. The brand also highlights its tool’s usefulness for freelancers and self-employed professionals. Nevertheless, it is also a tool for businesses with contractors and regular employees.
FreshBooks has double-entry accounting, invoicing, inventory tracking, integrations with different payment gateways, and reporting. It is also accessible on mobile devices.
Another software that you’ll appreciate because of its straightforwardness and user-friendliness is Wave Accounting. Its tagline flaunts that the tool is not made for accountants but for business owners themselves. Hence, its features are perfect for individuals with little bookkeeping and accounting knowledge. If you don’t have much time to learn the ropes of financial management, Wave Accounting is an excellent start.
The software offers accounting and invoicing. You can utilize the tool’s optical character recognition technology to take images of receipts, store them in the system, and convert them into data that can be organized and categorized in books.
Your business’s invoicing needs are also covered by the tool. You can create invoices in any currency, accept payments automatically, and customize invoices to include your company brand and logo. All these transactions will be stored in the books.
Customer support from where you get your software is essential when you will manage your books and accounting independently. You won’t be disappointed with Zoho Books, as they have superb customer service that will help you establish and maintain your accounting and bookkeeping system.
You can enjoy all bookkeeping and accounting features like invoicing, estimates, income and expenses tracking, banking, project management, inventory, reporting, and various payment gateways depending on the plan you sign up for. The great news is Zoho Books’s plans are highly flexible.
Do the software sound promising? Sustain the excitement and ensure your business will thrive by establishing a bookkeeping and accounting system early on. Although accounting systems may sometimes be costly, they are worth the investment because of these benefits.
In the beginning, your income and expenses may still be manageable when tracked manually as sales are still slow. Financial management through a cash-based accounting system can still work.
However, income and expenses will grow as your business scales. Using accrual accounting is better through an accounting program. Through this feature, you can monitor your accounts payable and accounts receivable. Accounts payable are business expenses you must pay, like production costs and tax calculations. Accounts receivable is the money you’ll receive from sales and services.
When you keep track of these, you’ll quickly know the taxes you need to pay, your after-tax income, and your profit.
Invoicing may seem basic, but it is of immense help in ensuring your accounts receivable are managed and on track. Software can generate different types of invoices, which can help you get the correct customer payment at the right time. This ensures your cash flow goes uninterrupted.
Many software allow you to create invoices conveniently because of ready-made templates. You can also customize the templates if you want and need to. The invoices can also have a “Pay Now” button, making it convenient for clients and customers to pay. Once the transaction is complete, the details will be recorded and categorized in the books because of software automation.
When your income and expenses are tracked and organized in the books, one of the most significant benefits you’ll reap is being ready when tax season comes. A common mistake many business owners make is cramming the tracking of their business finances as the tax season approaches. But doing so makes financial reporting more error-prone and difficult because of the amount of data to backtrack.
Data can be updated automatically when you have software, especially when you utilize integrations. All you, your bookkeeper, and your accountant need to do is to check the accuracy of entries, send the report, check tax calculations, and pay the correct taxes before the deadline.
Tracking is made more accessible because the latest business tools have these automation and integration features:
The main goal of automation is to minimize or eliminate manual data entry, as this is the culprit in financial data inaccuracy.
With all these financial records that are essential and also confidential, data security and protection are indeed vital features you’ll look for in small business accounting programs. You’ll find just what you need when you pick a cloud-based accounting software.
Traditional accounting using Excel sheets stores books on computers, but cloud-based software have more advanced security features and can store information in the cloud. The cloud encrypts data, ensuring that hackers and unauthorized individuals cannot access your accounting data. Corruption of data is also less likely.
Most cloud-based software have multiple users and role-based access, meaning only individuals you authorize can access the books.
As a startup in the competitive landscape of North America, it is essential to manage your finances early, so start bookkeeping and accounting as soon as you open your store. You now have all the information you need. QuickBooks, Xero, Sage50 cloud, FreshBooks, and Zoho Books are the best bookkeeping software for small businesses in Canada and the US; check out which satisfies your business needs most to get the best. If you need help, our team is well-versed in the latest bookkeeping software (Canada and the US), and we can handle your bookkeeping. Call us now so we can discuss our offers with you!
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.
So you’ve started a small online business. You are now among the millions who have braved the ecommerce world. Since ecommerce is so complex, and the sheer volume of transactions can be intimidating, your accounting may need help to keep up with your online store. This is where choosing the best accounting software can be worth it.
Accounting software programs can do more than track the inflow and outflow of cash. You’ll be amazed at how they can be a one-stop shop for many of your digital needs, making them worthy of every penny you invest.
So, what’s the best small business accounting software for you? Find out all the answers here in this guide. But first, let’s talk about everything you need to know about ecommerce accounting.
Ecommerce is a worldwide business. In fact, Statista already presented compelling data, showing its global reach and exponential growth. Just think of the transactions that make up this figure—massive.
Given the wide reach, ecommerce accounting differs because there is so much more to account for. Take a look at some of them.
An online business can sell anywhere in the world through an ecommerce platform and exemplary shipping service. But to be able to sell legally, there must always be a sales tax attached to each sale.
Ecommerce accounting requires sales tax calculation for different tax policies. For example:
Amazon can handle your taxes through Amazon Tax Exemption Program (ATEP) for sales in the US. But you'll still have to collect and remit your sales taxes in Canada. |
On top of that, the US and Canadian sales tax rates are completely different, with tax returns filed each year. Tax management is daunting, requiring careful attention and consideration.
Another thing that separates ecommerce from regular businesses is the vast inventory. Inventory tracking is no easy task for anybody, especially for small-scale startups. You need to have many products on-hand and ready to meet demand at a moment’s notice.
There will also be an inevitable addition to your accounting load, especially if you’re a business that ships to customers in different timezones. Add to that the sheer volume of items you’ll have to check on—where they are stored, how many are ready for shipping, how many are damaged or lost—and regularly reconcile in your records.
If you sell products or services worldwide, expect to see thousands of business transactions daily. That means various modes of payments, currencies, bank accounts, taxes, and so on.
Tracking each transaction will take copious amounts of time and energy. You might miss out on some financial data, which, for a global business, you cannot allow to happen.
While it's possible to do your accounting manually, tracing every ecommerce transaction can make even the best accountants dizzy. Giving your accounting specialist some much-needed assistance, like online accounting software, is recommended.
In addition to maximizing your time and resources, here are eight reasons accounting software is worth it for your small ecommerce business.
A bookkeeper can rely on accounting software to record transactions. Through it, they can take note of all business transactions involving money. They can ensure that income and expenses from different channels, like bank and credit cards or online payment gateways, are all accounted for.
Because of the high-tech tools available today, a bookkeeper’s task of typing data is slowly disappearing. Data from different sources can be connected to a central accounting system. There are also optical character recognition tools that minimize manual data entry.
Invoicing is an essential part of bookkeeping and accounts receivable management. Through software, you can conveniently send payment reminders to customers—all online. Simply schedule the sending date and time and let the software handle its transmission. If customers forget to pay, sending a nudge can also be done on the software.
Invoicing from an accounting tool also makes payment easier for customers as each invoice includes a “Pay Now” button. Customers can click on it for online payment. All money coming from this channel will automatically be recorded in the books.
The money you collect from customers and use to pay suppliers and expenses are all recorded in your business bank account. Through accounting software’s bank connection feature, you can have visibility on these transactions, and they will also be categorized into income and expenses in the books.
Bank reconciliation becomes a seamless process, as you can easily compare the details recorded in your books with the transactions listed in your bank statement. With this, you’ll be able to correct any mistakes and raise red flags on fraudulent deals.
Business planning and forecasting are vital as they allow you to see how your business will go in a projected period. It may not be 100% accurate, but you can still get the closest possible financial situation your business will see in the future.
Many accounting software has a feature that allows you to develop a business financial forecast in just a few clicks. Acquiring past and present numbers won’t be a problem as they are all recorded in the books.
Once you have the forecasted data, you can create plans based on numbers and even simulate results using the software. You can follow a strategy that gives you the best results from there.
The younger your business is, the more often you should generate financial reports. You must regularly check its financial health to adjust your strategies. Good financial reporting contains the following:
Financial Reports | |
Balance Sheet | Quickly check your assets, liabilities, and equity using this report. |
Income Statement | Also known as the Profit and Loss Statement or Statement of Revenue and Expenses. This report shows your business's profit and how income and expenses impact it. |
Cash Flow Statement | This report illustrates how money flows in and out of your business, showing your earnings and expenditures. |
Statement of Owner’s Equity | For sole proprietors, this report displays earnings or profit and retained earnings. For corporations, it is referred to as Shareholder’s Equity. |
When you know these reports, you and your accountant can run and analyze them.
As mentioned earlier, inventory is a part of your company assets. You don’t want your customers disappointed because products are out of stock. This is where accounting software comes into play.
Accounting software isn’t only for numbers; it’s for your items too. When you can monitor your inventory, you’ll know which items fly off the shelves and which don’t move. You can also use the information to create plans to duplicate your successes and sell slow products.
Taxes are inevitable, but you can make them manageable. On top of calculation and collection, the best accounting software can handle tax remittance. You can integrate the data from these tools into your accounting system for tracking purposes.
Calculating your tax base and rate becomes easier regarding income tax returns, given the recorded income and expenses in the books. With the most comprehensive accounting software, tax season will be a breeze.
Ecommerce functions online. Data security and protection are indeed vital features you’ll look for in small business accounting programs. Luckily, online financial accounts are protected with cloud-based features.
Traditional accounting using Excel sheets stores books on computers. Still, cloud-based software has more advanced security features and can store information in the cloud. The cloud encrypts data, ensuring hackers and unauthorized individuals cannot access your accounting data. Corruption of data is also less likely.
Most cloud-based software have multiple users and role-based access, meaning only individuals you authorize can access the books.
Besides bookkeeping, inventory, cloud, and tax management, consider examining these features when selecting the most suitable accounting software solution for your business.
Any small business owner should have an accounts receivable feature in their software, given that payments are often made remotely with various payment schemes.
An accounts receivable lets you know how much money to expect and how much you can use to repurchase stock. It also tells you how much your business is shelling out weekly or monthly.
For example: If you're in the retail business, you may have scheduled shipments to replenish your inventory. Accounts payable notes this in advance for you to continue or change, depending on your decision.
Direct integration is also a crucial feature to look for in accounting software. It allows smooth alignment with the ecommerce platforms you've chosen for selling your products. The software can efficiently capture and organize all relevant accounting data by directly integrating with your online stores.
It also ensures that your accounting records are automatically updated in real time, reducing the risk of errors. With direct integration, you'll have an easier time keeping a thorough and accurate overview of your financial performance.
A mobile app functionality is a great feature to add to your accounting software. With everyone on the go nowadays, having a mobile app handy allows you and your staff to update your accounting whenever and wherever.
Being a startup, you can always pick the small business accounting software that can currently satisfy your financial management needs. But you must also choose the one that can scale to more advanced features as you grow your venture.
Here are popular accounting software ideal for ecommerce startups.
The most popular small business accounting software. It has all the features you need. When you sign up for a plan, it’ll backtrack all your financial transactions and do live bookkeeping moving forward.
QuickBooks has:
Xero is another accounting software that will surely ring a bell. Designed with businesses of all sizes in mind, Xero offers wide accounting features to streamline accounting processes and empower users with real-time financial insights.
Xero has:
Like QuickBooks, it also operates on the cloud. It can be accessed on mobile devices as long as there is an internet connection.
For every small business owner, the ultimate goal is growth. If you envision managing a larger workforce and handling a growing client base, you can count on Sage.This tool has HR and CRM features that will be very helpful in managing your growing workforce.
These functionalities can effectively centralize and manage customer data, which is a big help for ecommerce sellers. This way, you can nurture stronger client relationships, track interactions, and identify opportunities for growth and upselling.
Sage has:
Many accounting software for small businesses pride themselves on being simple and user-friendly, and FreshBooks is one of them. The platform has been designed with the non-accountant in mind, offering intuitive features and a clean interface. Managing financial tasks is easy, making it accessible for entrepreneurs and small business owners.
FreshBooks has:
Wave Accounting is another addition to the user-friendly list. Its tagline flaunts that the tool was not made for accountants but for business owners themselves. Hence, its features are perfect for individuals with little bookkeeping and accounting knowledge. If you don’t have much time to learn the ropes of financial management, Wave Accounting is an excellent start.
Wave Accounting has:
You won’t be disappointed with Zoho Books. This free accounting software has superb customer service to help you establish and maintain your accounting and bookkeeping system.
Zoho Books has:
Now that you have all the essential information about top-notch bookkeeping software, you can check out which satisfies your business needs most to get the best.
If managing your startup's books proves daunting, Unloop is here to alleviate your burden. As one of the premier financial teams in North America, Unloop offers ecommerce services to go along with precise and detailed accounting.
Regardless of your sales channel—Amazon, Shopify, DTC, multichannel, or wholesale—we tailor our accounting services to your unique requirements. We can help you with the following:
Let’s discuss our offers further. Book a call 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.
So you’ve started a small online business. You are now among the millions who have braved the ecommerce world. Since ecommerce is so complex, and the sheer volume of transactions can be intimidating, your accounting may need help to keep up with your online store. This is where choosing the best accounting software can be worth it.
Accounting software programs can do more than track the inflow and outflow of cash. You’ll be amazed at how they can be a one-stop shop for many of your digital needs, making them worthy of every penny you invest.
So, what’s the best small business accounting software for you? Find out all the answers here in this guide. But first, let’s talk about everything you need to know about ecommerce accounting.
Ecommerce is a worldwide business. In fact, Statista already presented compelling data, showing its global reach and exponential growth. Just think of the transactions that make up this figure—massive.
Given the wide reach, ecommerce accounting differs because there is so much more to account for. Take a look at some of them.
An online business can sell anywhere in the world through an ecommerce platform and exemplary shipping service. But to be able to sell legally, there must always be a sales tax attached to each sale.
Ecommerce accounting requires sales tax calculation for different tax policies. For example:
Amazon can handle your taxes through Amazon Tax Exemption Program (ATEP) for sales in the US. But you'll still have to collect and remit your sales taxes in Canada. |
On top of that, the US and Canadian sales tax rates are completely different, with tax returns filed each year. Tax management is daunting, requiring careful attention and consideration.
Another thing that separates ecommerce from regular businesses is the vast inventory. Inventory tracking is no easy task for anybody, especially for small-scale startups. You need to have many products on-hand and ready to meet demand at a moment’s notice.
There will also be an inevitable addition to your accounting load, especially if you’re a business that ships to customers in different timezones. Add to that the sheer volume of items you’ll have to check on—where they are stored, how many are ready for shipping, how many are damaged or lost—and regularly reconcile in your records.
If you sell products or services worldwide, expect to see thousands of business transactions daily. That means various modes of payments, currencies, bank accounts, taxes, and so on.
Tracking each transaction will take copious amounts of time and energy. You might miss out on some financial data, which, for a global business, you cannot allow to happen.
While it's possible to do your accounting manually, tracing every ecommerce transaction can make even the best accountants dizzy. Giving your accounting specialist some much-needed assistance, like online accounting software, is recommended.
In addition to maximizing your time and resources, here are eight reasons accounting software is worth it for your small ecommerce business.
A bookkeeper can rely on accounting software to record transactions. Through it, they can take note of all business transactions involving money. They can ensure that income and expenses from different channels, like bank and credit cards or online payment gateways, are all accounted for.
Because of the high-tech tools available today, a bookkeeper’s task of typing data is slowly disappearing. Data from different sources can be connected to a central accounting system. There are also optical character recognition tools that minimize manual data entry.
Invoicing is an essential part of bookkeeping and accounts receivable management. Through software, you can conveniently send payment reminders to customers—all online. Simply schedule the sending date and time and let the software handle its transmission. If customers forget to pay, sending a nudge can also be done on the software.
Invoicing from an accounting tool also makes payment easier for customers as each invoice includes a “Pay Now” button. Customers can click on it for online payment. All money coming from this channel will automatically be recorded in the books.
The money you collect from customers and use to pay suppliers and expenses are all recorded in your business bank account. Through accounting software’s bank connection feature, you can have visibility on these transactions, and they will also be categorized into income and expenses in the books.
Bank reconciliation becomes a seamless process, as you can easily compare the details recorded in your books with the transactions listed in your bank statement. With this, you’ll be able to correct any mistakes and raise red flags on fraudulent deals.
Business planning and forecasting are vital as they allow you to see how your business will go in a projected period. It may not be 100% accurate, but you can still get the closest possible financial situation your business will see in the future.
Many accounting software has a feature that allows you to develop a business financial forecast in just a few clicks. Acquiring past and present numbers won’t be a problem as they are all recorded in the books.
Once you have the forecasted data, you can create plans based on numbers and even simulate results using the software. You can follow a strategy that gives you the best results from there.
The younger your business is, the more often you should generate financial reports. You must regularly check its financial health to adjust your strategies. Good financial reporting contains the following:
Financial Reports | |
Balance Sheet | Quickly check your assets, liabilities, and equity using this report. |
Income Statement | Also known as the Profit and Loss Statement or Statement of Revenue and Expenses. This report shows your business's profit and how income and expenses impact it. |
Cash Flow Statement | This report illustrates how money flows in and out of your business, showing your earnings and expenditures. |
Statement of Owner’s Equity | For sole proprietors, this report displays earnings or profit and retained earnings. For corporations, it is referred to as Shareholder’s Equity. |
When you know these reports, you and your accountant can run and analyze them.
As mentioned earlier, inventory is a part of your company assets. You don’t want your customers disappointed because products are out of stock. This is where accounting software comes into play.
Accounting software isn’t only for numbers; it’s for your items too. When you can monitor your inventory, you’ll know which items fly off the shelves and which don’t move. You can also use the information to create plans to duplicate your successes and sell slow products.
Taxes are inevitable, but you can make them manageable. On top of calculation and collection, the best accounting software can handle tax remittance. You can integrate the data from these tools into your accounting system for tracking purposes.
Calculating your tax base and rate becomes easier regarding income tax returns, given the recorded income and expenses in the books. With the most comprehensive accounting software, tax season will be a breeze.
Ecommerce functions online. Data security and protection are indeed vital features you’ll look for in small business accounting programs. Luckily, online financial accounts are protected with cloud-based features.
Traditional accounting using Excel sheets stores books on computers. Still, cloud-based software has more advanced security features and can store information in the cloud. The cloud encrypts data, ensuring hackers and unauthorized individuals cannot access your accounting data. Corruption of data is also less likely.
Most cloud-based software have multiple users and role-based access, meaning only individuals you authorize can access the books.
Besides bookkeeping, inventory, cloud, and tax management, consider examining these features when selecting the most suitable accounting software solution for your business.
Any small business owner should have an accounts receivable feature in their software, given that payments are often made remotely with various payment schemes.
An accounts receivable lets you know how much money to expect and how much you can use to repurchase stock. It also tells you how much your business is shelling out weekly or monthly.
For example: If you're in the retail business, you may have scheduled shipments to replenish your inventory. Accounts payable notes this in advance for you to continue or change, depending on your decision.
Direct integration is also a crucial feature to look for in accounting software. It allows smooth alignment with the ecommerce platforms you've chosen for selling your products. The software can efficiently capture and organize all relevant accounting data by directly integrating with your online stores.
It also ensures that your accounting records are automatically updated in real time, reducing the risk of errors. With direct integration, you'll have an easier time keeping a thorough and accurate overview of your financial performance.
A mobile app functionality is a great feature to add to your accounting software. With everyone on the go nowadays, having a mobile app handy allows you and your staff to update your accounting whenever and wherever.
Being a startup, you can always pick the small business accounting software that can currently satisfy your financial management needs. But you must also choose the one that can scale to more advanced features as you grow your venture.
Here are popular accounting software ideal for ecommerce startups.
The most popular small business accounting software. It has all the features you need. When you sign up for a plan, it’ll backtrack all your financial transactions and do live bookkeeping moving forward.
QuickBooks has:
Xero is another accounting software that will surely ring a bell. Designed with businesses of all sizes in mind, Xero offers wide accounting features to streamline accounting processes and empower users with real-time financial insights.
Xero has:
Like QuickBooks, it also operates on the cloud. It can be accessed on mobile devices as long as there is an internet connection.
For every small business owner, the ultimate goal is growth. If you envision managing a larger workforce and handling a growing client base, you can count on Sage.This tool has HR and CRM features that will be very helpful in managing your growing workforce.
These functionalities can effectively centralize and manage customer data, which is a big help for ecommerce sellers. This way, you can nurture stronger client relationships, track interactions, and identify opportunities for growth and upselling.
Sage has:
Many accounting software for small businesses pride themselves on being simple and user-friendly, and FreshBooks is one of them. The platform has been designed with the non-accountant in mind, offering intuitive features and a clean interface. Managing financial tasks is easy, making it accessible for entrepreneurs and small business owners.
FreshBooks has:
Wave Accounting is another addition to the user-friendly list. Its tagline flaunts that the tool was not made for accountants but for business owners themselves. Hence, its features are perfect for individuals with little bookkeeping and accounting knowledge. If you don’t have much time to learn the ropes of financial management, Wave Accounting is an excellent start.
Wave Accounting has:
You won’t be disappointed with Zoho Books. This free accounting software has superb customer service to help you establish and maintain your accounting and bookkeeping system.
Zoho Books has:
Now that you have all the essential information about top-notch bookkeeping software, you can check out which satisfies your business needs most to get the best.
If managing your startup's books proves daunting, Unloop is here to alleviate your burden. As one of the premier financial teams in North America, Unloop offers ecommerce services to go along with precise and detailed accounting.
Regardless of your sales channel—Amazon, Shopify, DTC, multichannel, or wholesale—we tailor our accounting services to your unique requirements. We can help you with the following:
Let’s discuss our offers further. Book a call now!
Your financial statements are one way to know how well your business is doing. However, some things are just inevitable, such as errors. Whether you make financial statements manually or generate them through accounting software, there's always a window for mistakes. That's why preparing financial statements should be handled with extra care.
A small mistake in financial statements can have enormous consequences. However, understanding how things go wrong can help business owners fix and prevent these errors. Let's look into the common mistakes with business reports, so you know what to do when your numbers don't match.
Before we start discussing the pitfalls of financial statements, it is also crucial that you know when a problem occurs. Here are some questions you need to ask to help you determine inconsistencies and errors in your business statements.
If you answered no to one or more of these questions, there might be something wrong in the process or the reports themselves, and you should start addressing them.
Sometimes, no matter how carefully small business owners prepare their reports, mistakes still seep in. Here are mistakes you should look for in different financial statements.
Data entry is the most common and frequent error that could happen in financial statements. Among the most typical mistakes made when entering data are:
It's always best to have two copies of your important financial statements to compare them side by side. Furthermore, you can assign personnel to double-check the entries to guarantee that there are no inconsistencies.
Some businesses choose to produce single-columned reports, which are short in comparative data. Including the company's current assets and previous vital data points will give a better insight into the business's financial position.
Financial reports such as income statements and expense reports should contain comparative data. It will help you see if your business generated more sales than in other months so you can adjust your strategies. It goes the same for your expenses. It always helps to compare your current and previous expenses to see if you're going overboard to look for ways to save your resources.
An error of commission happens when you mishandle data and enter it in the wrong place. In this error, you still enter the correct amount. The inconsistency happens when you put it in the wrong category. For example, you make a sale of $100 from your products, and you accidentally put this in your expense column.
You will see a decrease in your inventory but not an increase in your sales which can confuse you when the report comes out. It will also make your expense report higher than usual. Small amounts may seem insignificant, but they may turn your finances into chaos when it's consistently happening.
Making financial statements will be pointless if no one takes the time to read and study them. Aside from understanding what the numbers mean for your financial performance, inspecting them to look for suspected errors is also crucial.
To help spot errors in profit and loss statements, balance sheets, and other important business reports, every person that receives the reports should:
If the administration can’t find solutions to the errors in the report, it's best to hire someone who can help you sort out and correct the errors in your financial statements.
Errors in your financial statements will be ever-present if you don't look for the root cause of the errors. Revising some of your accounting procedures can help decrease and eliminate these errors.
For example, most data entry errors, such as omission or mishandling, stems from doing them manually. If you have a small business, manually recording income and expenses or making cash flow statements are a piece of cake. But regular and accurate recording will prove much more challenging as your business grows.
In its place, you can invest in accounting software to eliminate errors in your data entry. Revisit all your accounting procedures and make adjustments to ensure recurring errors in your reports can be eliminated.
Financial ratios are essential to assess your business activity. It will help you pinpoint potential problems before it does considerable damage to your business. For example, suppose your account receivables grow from 25 days to 30 and 35 days over a specific period. In that case, it can signify that some of your customers still have pending cash payments or you must catch up on collection responsibilities.
Calculating financial ratios should be done with the three main financial statements— income statements, balance sheets, and cash flow statements. By doing this, you can spot discrepancies and address potential problems.
Some mistakes are small and easy to remedy, but some are harder to spot and significantly damage businesses. Here are some consequences that come with erroneous reporting.
Proper bookkeeping is critical to creating accurate financial statements. Fortunately, there is an expert ecommerce accounting service that can help small businesses like yours. Unloop offers all-around accounting services for ecommerce businesses.
For your financial statement needs, Unloop's bookkeeping services have got you covered. Our bookkeeping services include the following:
Financial statements say a lot about the overall financial health of your business. Ensuring they are accurate and complete with all essential data points is a top priority. We hope this list of common mistakes helps you be more careful of your errors.
In addition, if you need professional accounting help, Unloop offers other services such as accounts payables, forecasting, payroll, and taxation. Book a call with us today!
Your financial statements are one way to know how well your business is doing. However, some things are just inevitable, such as errors. Whether you make financial statements manually or generate them through accounting software, there's always a window for mistakes. That's why preparing financial statements should be handled with extra care.
A small mistake in financial statements can have enormous consequences. However, understanding how things go wrong can help business owners fix and prevent these errors. Let's look into the common mistakes with business reports, so you know what to do when your numbers don't match.
Before we start discussing the pitfalls of financial statements, it is also crucial that you know when a problem occurs. Here are some questions you need to ask to help you determine inconsistencies and errors in your business statements.
If you answered no to one or more of these questions, there might be something wrong in the process or the reports themselves, and you should start addressing them.
Sometimes, no matter how carefully small business owners prepare their reports, mistakes still seep in. Here are mistakes you should look for in different financial statements.
Data entry is the most common and frequent error that could happen in financial statements. Among the most typical mistakes made when entering data are:
It's always best to have two copies of your important financial statements to compare them side by side. Furthermore, you can assign personnel to double-check the entries to guarantee that there are no inconsistencies.
Some businesses choose to produce single-columned reports, which are short in comparative data. Including the company's current assets and previous vital data points will give a better insight into the business's financial position.
Financial reports such as income statements and expense reports should contain comparative data. It will help you see if your business generated more sales than in other months so you can adjust your strategies. It goes the same for your expenses. It always helps to compare your current and previous expenses to see if you're going overboard to look for ways to save your resources.
An error of commission happens when you mishandle data and enter it in the wrong place. In this error, you still enter the correct amount. The inconsistency happens when you put it in the wrong category. For example, you make a sale of $100 from your products, and you accidentally put this in your expense column.
You will see a decrease in your inventory but not an increase in your sales which can confuse you when the report comes out. It will also make your expense report higher than usual. Small amounts may seem insignificant, but they may turn your finances into chaos when it's consistently happening.
Making financial statements will be pointless if no one takes the time to read and study them. Aside from understanding what the numbers mean for your financial performance, inspecting them to look for suspected errors is also crucial.
To help spot errors in profit and loss statements, balance sheets, and other important business reports, every person that receives the reports should:
If the administration can’t find solutions to the errors in the report, it's best to hire someone who can help you sort out and correct the errors in your financial statements.
Errors in your financial statements will be ever-present if you don't look for the root cause of the errors. Revising some of your accounting procedures can help decrease and eliminate these errors.
For example, most data entry errors, such as omission or mishandling, stems from doing them manually. If you have a small business, manually recording income and expenses or making cash flow statements are a piece of cake. But regular and accurate recording will prove much more challenging as your business grows.
In its place, you can invest in accounting software to eliminate errors in your data entry. Revisit all your accounting procedures and make adjustments to ensure recurring errors in your reports can be eliminated.
Financial ratios are essential to assess your business activity. It will help you pinpoint potential problems before it does considerable damage to your business. For example, suppose your account receivables grow from 25 days to 30 and 35 days over a specific period. In that case, it can signify that some of your customers still have pending cash payments or you must catch up on collection responsibilities.
Calculating financial ratios should be done with the three main financial statements— income statements, balance sheets, and cash flow statements. By doing this, you can spot discrepancies and address potential problems.
Some mistakes are small and easy to remedy, but some are harder to spot and significantly damage businesses. Here are some consequences that come with erroneous reporting.
Proper bookkeeping is critical to creating accurate financial statements. Fortunately, there is an expert ecommerce accounting service that can help small businesses like yours. Unloop offers all-around accounting services for ecommerce businesses.
For your financial statement needs, Unloop's bookkeeping services have got you covered. Our bookkeeping services include the following:
Financial statements say a lot about the overall financial health of your business. Ensuring they are accurate and complete with all essential data points is a top priority. We hope this list of common mistakes helps you be more careful of your errors.
In addition, if you need professional accounting help, Unloop offers other services such as accounts payables, forecasting, payroll, and taxation. Book a call with us today!
Treat making tough decisions as the norm once you begin your business. Sometimes, you’ll be stuck in a dilemma and have to make difficult choices. But at the end of the day, your goals will guide you to the right choice. And you know what can help you along the way? Your business’s financial data.
In this article, we’ll help you answer the questions lingering in your mind about whether you should hire an accountant for a small business and everything in between. Determining the answer isn’t easy, so check out these questions and the answers to help you.
Let’s begin this list of FAQs by knowing why small businesses like yours should hire a business accountant. We’ve listed a couple of reasons!
An accountant’s primary responsibility is to help you make sense of the numbers a bookkeeper collates and organizes in the books. When you hire an accountant, they can create easy-to-understand financial reports and present them regularly.
Taxes are one of the challenging tasks you need to do. As a rookie in the business, you may not understand the ins and outs of taxes, and getting it wrong can mean consequences from the tax bureau. Skip this hassle when you have an accountant. They are well-versed in taxation laws and will ensure they do it right for your business.
Forecasting is creating goals and making plans for your business finances for a certain period. To achieve a credible forecast, historical data should be sufficient and accurate. Having an accountant frees you of this task and assures you that the forecast you get is as accurate as possible.
The benefits of hiring an accountant for a small business go beyond your company. An excellent accountant reflects how reliable your organization is. Accountants can also represent you in an audit, during investor presentations, and in loan and grants meetings.
Lastly, when you have an accountant, you can focus on other essential tasks needed to run your business. Your accountant will handle your finances in your stead.
When you launch your business, ideally, you should already have an accountant on your team. Doing so can save you from untracked and disorganized financial data. Even if you have a bookkeeper that organizes your books, you still need an accountant to create reports from the data.
Aside from covering this essential financial management step, an accountant is beneficial when you find it challenging to scale your business. Accountants can give helpful insights into the root cause of the slow growth and the various ways you can speed up business expansion. They are skilled in giving financial advice based on data too.
You’ll also find an accountant most helpful when business planning as they can help you with forecasting.
Are you convinced you should hire an accountant, or have you been planning to do so all along? Then, the qualities you should strive for to get the best accountant must be a question you ask.
Look for these qualities to hire the best accountant:
It would be best to look for hard and soft skills—an accountant who is eagle-eyed with numbers but knows how to work with people.
There are three basic ways to hire an accountant: in-house, freelance, and one from a financial services company. Each has its benefits and drawbacks.
You can hire an in-house accountant the traditional way. Post a job opening including the qualifications and responsibilities you expect applicants to have, interview them, and conduct tests if need be.
The advantage of having an in-house accountant is they’ll be familiarized with your business operations and know your company personally. As a result, their financial analysis will be more personal and tailor-fit.
However, you will be responsible for their monthly salary, benefits, and training and development because they are formally a company member.
You can also choose to go with a freelance accountant. You can find them on freelancing websites posting their experiences, qualifications, and contact information. Most freelancing websites show feedback from previous clients, so you can also check for social proof of the accountant’s performance.
You do not need to require a freelancer to work a regular 8-hour shift. You can give them tasks; you only need to pay them for their rendered hours when they are done. Because they work with many companies, freelancers have diverse experiences and can provide insights based on those.
The only drawback is you need to invest time briefing your accountant about your company and operations, so their analysis and advice will be relevant.
Your third choice in hiring an accountant is by partnering with a financial management company. These organizations usually have established websites where you can contact them. As part of your research, you can browse their site for their offers and the companies they’ve worked with.
Financial management companies do not offer only accounting services, but also other services you might need for your company finances. These offers come in various plans. You need to choose which plan has the help you need and sign up for it. You can stop the service anytime or after a contract expires. You may also extend it as needed.
Working with agencies has the same disadvantage as working with freelancers. You need to explain your business and operations to them so they can handle your account effectively.
The answer depends on the type of accounting service you want and your location. In the US, different states pay accountants different monthly salaries, and the best-paying states offer salaries ranging from $95,000 to $110,000.
Meanwhile, a freelancers’ average hourly rate is $37 for 2023. And if you wish to partner with agencies, the costs vary too, depending on whether you’ll sign up for a monthly, quarterly, or annual plan and the variety of the included services.
The qualifications and experiences of the accountants also affect their hourly rates and salaries as well as the services they’ll provide you.
Whether you need an accountant or not goes hand in hand with which accounting software you decide to invest in. To make your accountant’s work more efficient, you must pick software they can use. Here are two of the best ones out there.
QuickBooks is a reliable accounting tool because its features make an accountant’s life easier. QuickBooks has a live bookkeeping function that ensures your books are complete with data from the beginning of the year to the present. As a result, accountants can run complete reports and give insights using updated data.
An accountant can remind customers and receive payment from online gateways through invoicing. Bank transactions automatically go into the accounting system too.
And if you have projects and employees to manage, the software's time and project tracking feature will make your accountant’s payroll duties more efficient.
Xero is another software that’ll make your company’s accounting more efficient. Your company bookkeeper and accountant can use the tool to track income and expenses, send invoices to receive payments on time, and track bank transactions through bank reconciliation.
It also has a time and project tracking feature, making sure that hours rendered by your employees are recorded in the books. With readily available data, your accountant can prepare the payroll faster.
Xero is also integration-friendly, so data from other business tools you have can all be collated in a single accounting software. When analysis and reporting days come, your accountant can run reports that show all areas of your business.
A qualified accountant will help you make sound business decisions based on their knowledge, experiences, and collected financial data. So, hiring an accountant is a significant business decision. We hope that these answers can help you hire the best candidate.
And if partnering with an agency of finance experts is the right choice for your business, we at Unloop can help you. Our services revolve around bookkeeping, forecasting, handling taxes, accounts payable, and payroll solutions. Contact us now. We’ll be glad to discuss the details of our services with you.
Treat making tough decisions as the norm once you begin your business. Sometimes, you’ll be stuck in a dilemma and have to make difficult choices. But at the end of the day, your goals will guide you to the right choice. And you know what can help you along the way? Your business’s financial data.
In this article, we’ll help you answer the questions lingering in your mind about whether you should hire an accountant for a small business and everything in between. Determining the answer isn’t easy, so check out these questions and the answers to help you.
Let’s begin this list of FAQs by knowing why small businesses like yours should hire a business accountant. We’ve listed a couple of reasons!
An accountant’s primary responsibility is to help you make sense of the numbers a bookkeeper collates and organizes in the books. When you hire an accountant, they can create easy-to-understand financial reports and present them regularly.
Taxes are one of the challenging tasks you need to do. As a rookie in the business, you may not understand the ins and outs of taxes, and getting it wrong can mean consequences from the tax bureau. Skip this hassle when you have an accountant. They are well-versed in taxation laws and will ensure they do it right for your business.
Forecasting is creating goals and making plans for your business finances for a certain period. To achieve a credible forecast, historical data should be sufficient and accurate. Having an accountant frees you of this task and assures you that the forecast you get is as accurate as possible.
The benefits of hiring an accountant for a small business go beyond your company. An excellent accountant reflects how reliable your organization is. Accountants can also represent you in an audit, during investor presentations, and in loan and grants meetings.
Lastly, when you have an accountant, you can focus on other essential tasks needed to run your business. Your accountant will handle your finances in your stead.
When you launch your business, ideally, you should already have an accountant on your team. Doing so can save you from untracked and disorganized financial data. Even if you have a bookkeeper that organizes your books, you still need an accountant to create reports from the data.
Aside from covering this essential financial management step, an accountant is beneficial when you find it challenging to scale your business. Accountants can give helpful insights into the root cause of the slow growth and the various ways you can speed up business expansion. They are skilled in giving financial advice based on data too.
You’ll also find an accountant most helpful when business planning as they can help you with forecasting.
Are you convinced you should hire an accountant, or have you been planning to do so all along? Then, the qualities you should strive for to get the best accountant must be a question you ask.
Look for these qualities to hire the best accountant:
It would be best to look for hard and soft skills—an accountant who is eagle-eyed with numbers but knows how to work with people.
There are three basic ways to hire an accountant: in-house, freelance, and one from a financial services company. Each has its benefits and drawbacks.
You can hire an in-house accountant the traditional way. Post a job opening including the qualifications and responsibilities you expect applicants to have, interview them, and conduct tests if need be.
The advantage of having an in-house accountant is they’ll be familiarized with your business operations and know your company personally. As a result, their financial analysis will be more personal and tailor-fit.
However, you will be responsible for their monthly salary, benefits, and training and development because they are formally a company member.
You can also choose to go with a freelance accountant. You can find them on freelancing websites posting their experiences, qualifications, and contact information. Most freelancing websites show feedback from previous clients, so you can also check for social proof of the accountant’s performance.
You do not need to require a freelancer to work a regular 8-hour shift. You can give them tasks; you only need to pay them for their rendered hours when they are done. Because they work with many companies, freelancers have diverse experiences and can provide insights based on those.
The only drawback is you need to invest time briefing your accountant about your company and operations, so their analysis and advice will be relevant.
Your third choice in hiring an accountant is by partnering with a financial management company. These organizations usually have established websites where you can contact them. As part of your research, you can browse their site for their offers and the companies they’ve worked with.
Financial management companies do not offer only accounting services, but also other services you might need for your company finances. These offers come in various plans. You need to choose which plan has the help you need and sign up for it. You can stop the service anytime or after a contract expires. You may also extend it as needed.
Working with agencies has the same disadvantage as working with freelancers. You need to explain your business and operations to them so they can handle your account effectively.
The answer depends on the type of accounting service you want and your location. In the US, different states pay accountants different monthly salaries, and the best-paying states offer salaries ranging from $95,000 to $110,000.
Meanwhile, a freelancers’ average hourly rate is $37 for 2023. And if you wish to partner with agencies, the costs vary too, depending on whether you’ll sign up for a monthly, quarterly, or annual plan and the variety of the included services.
The qualifications and experiences of the accountants also affect their hourly rates and salaries as well as the services they’ll provide you.
Whether you need an accountant or not goes hand in hand with which accounting software you decide to invest in. To make your accountant’s work more efficient, you must pick software they can use. Here are two of the best ones out there.
QuickBooks is a reliable accounting tool because its features make an accountant’s life easier. QuickBooks has a live bookkeeping function that ensures your books are complete with data from the beginning of the year to the present. As a result, accountants can run complete reports and give insights using updated data.
An accountant can remind customers and receive payment from online gateways through invoicing. Bank transactions automatically go into the accounting system too.
And if you have projects and employees to manage, the software's time and project tracking feature will make your accountant’s payroll duties more efficient.
Xero is another software that’ll make your company’s accounting more efficient. Your company bookkeeper and accountant can use the tool to track income and expenses, send invoices to receive payments on time, and track bank transactions through bank reconciliation.
It also has a time and project tracking feature, making sure that hours rendered by your employees are recorded in the books. With readily available data, your accountant can prepare the payroll faster.
Xero is also integration-friendly, so data from other business tools you have can all be collated in a single accounting software. When analysis and reporting days come, your accountant can run reports that show all areas of your business.
A qualified accountant will help you make sound business decisions based on their knowledge, experiences, and collected financial data. So, hiring an accountant is a significant business decision. We hope that these answers can help you hire the best candidate.
And if partnering with an agency of finance experts is the right choice for your business, we at Unloop can help you. Our services revolve around bookkeeping, forecasting, handling taxes, accounts payable, and payroll solutions. Contact us now. We’ll be glad to discuss the details of our services with you.
It is impossible to determine your business's annual revenue to the exact dollar. However, high-quality revenue forecasting is necessary for every business. Forecasting allows your business to respond to challenges and prevent significant losses from happening.
Revenue forecasting is a difficult task, and if you are not well-versed in how to forecast revenue, many challenges will hinder you from creating an accurate revenue forecast for your business. Understanding where things could go wrong will help you improve your forecasting results and overcome potential difficulties.
A clear picture of the average revenue helps businesses make strategies to cater towards their growth. However, many factors affect the success of the forecasting process. Here are the biggest challenges in revenue forecasting and how to solve them.
The foundation of revenue forecasts is data points. Inadequate or worse, incorrect data basically makes your revenue projections useless. If something is inconsistent about your forecasted revenue, it's always best to go back to the data you gathered.
Obviously, improving your data gathering is the solution to this challenge. But how do you do it? Investing in forecasting software is the best way to eliminate the dangers of human error when gathering data for forecasts. If possible, you can assign a dedicated team to make sure all the data you have are valid.
You can project how much revenue you will have based on a specific period. For some businesses, annual forecasting is the most common way to see future revenue. However, you can make revenue predictions for five or even ten years.
The challenge starts with forecasting range. The shorter the time period, the more accurate the forecast you can get. Longer ones are more challenging since several unforeseen factors can affect your business revenue.
It's up to the business owner to decide the time period. But to avoid inaccurate forecasting, we recommend sticking to annual forecasts so that predictions reflect expectations and realities.
Historical data is vital to create a revenue forecast. For example, your business has grown consistently at 10% in the last five years. You can predict that your business will still grow at 10% in the following years.
However, if your past performance varies, using historical data is useless, and you may want to try other revenue forecasting methods. Furthermore, using past data is not available for start-ups. In some situations, past data won't affect forecast revenues because of several external factors. Always take note of considerations when using historical data.
In plain view, wrong computations are easy to fix and prevent. You'll be surprised how many revenue forecasts go wrong because of simple arithmetic mistakes. Wrong computation stems from the lack of attention to detail. If you're using software or Excel sheets, double-check all data entries and formulas to guarantee accurate results.
A business can use several forecasting methods to determine their company's revenue. Choosing a financial modeling method is vital for an accurate prediction, and most business owners fail to consider the data they have at hand before going through the forecasting process.
There are four primary forecasting methods:
Choosing the correct method starts with studying underlying patterns in your earnings. Don't be tempted to go the easy and short way if you want an accurate forecast.
Not all businesses invest in forecasting, but a growing business should take advantage of forecasting to continue growing and make informed decisions for the improvement of the company.
Here are some benefits of proper forecasting for your business.
In business, there's always room for improvement. When you do forecasting, you can see which area to improve to propel your business to success. Furthermore, forecasting can identify problems early before they can cause irreversible damage to businesses.
According to research, businesses that do regular and correct forecasting are 10% more likely to grow and outcompete their direct rivals.
It's one thing to say that your business is doing great but seeing the number gives you a clearer picture of how well you are doing. For example, your business has had a stable income of $300,000 annually in the past years. Your current revenue forecast shows that by the end of the year, your sales forecast will go up to $500,000.
The numbers show how many resources you can use for other business operations. Likewise, if your sales forecast drops, you can see precisely the deficit, and you can strategize how to bring your numbers back up.
It's not enough to know that you want high sales, you have to identify the actual sales you want to achieve, and forecasting can provide you with the exact figures you want to reach. According to forecasting science, 97% of businesses who do forecasting reach their sales quota.
In contrast, for businesses that rely only on strategies and not maximizing forecasting, only 55% of them reach their sales goal by the end of the year.
Revenue forecasting helps businesses attain sales efficiency by giving an insight into your customer's behaviour. By predicting your future sales, you can adjust your prices accordingly, roll out your advertising, and make time for product development.
Forecasting can show the period when your sales will spike. You can maximize the information to increase your inventory and generate more sales for your business.
One of the reasons you should do forecasting is to help you manage your cash flow efficiently. The forecast can help you plan your payments and avoid delays and penalties. It also lets you see when customers' payments are coming into your business, so you strategically allocate your business resources.
Efficient cash flow management builds trust between your employee and suppliers. It can also help you negotiate properly when you need credit for paying your personnel or new business ventures.
If you don't have experience with forecasting, you'll find it complicated to forecast revenue. Fortunately, Unloop offers forecasting services for small businesses looking to scale and assess their financial health.
Our forecasting services include:
Forecasting revenue is essential if you want to continue scaling your business. However, forecasting is on the complicated side of accounting. We hope this blog post helps you plan better for forecasting.
If you need more accounting services, Unloop offers bookkeeping, accounts payable, and payroll. Book a call with us and talk to an expert for free!
It is impossible to determine your business's annual revenue to the exact dollar. However, high-quality revenue forecasting is necessary for every business. Forecasting allows your business to respond to challenges and prevent significant losses from happening.
Revenue forecasting is a difficult task, and if you are not well-versed in how to forecast revenue, many challenges will hinder you from creating an accurate revenue forecast for your business. Understanding where things could go wrong will help you improve your forecasting results and overcome potential difficulties.
A clear picture of the average revenue helps businesses make strategies to cater towards their growth. However, many factors affect the success of the forecasting process. Here are the biggest challenges in revenue forecasting and how to solve them.
The foundation of revenue forecasts is data points. Inadequate or worse, incorrect data basically makes your revenue projections useless. If something is inconsistent about your forecasted revenue, it's always best to go back to the data you gathered.
Obviously, improving your data gathering is the solution to this challenge. But how do you do it? Investing in forecasting software is the best way to eliminate the dangers of human error when gathering data for forecasts. If possible, you can assign a dedicated team to make sure all the data you have are valid.
You can project how much revenue you will have based on a specific period. For some businesses, annual forecasting is the most common way to see future revenue. However, you can make revenue predictions for five or even ten years.
The challenge starts with forecasting range. The shorter the time period, the more accurate the forecast you can get. Longer ones are more challenging since several unforeseen factors can affect your business revenue.
It's up to the business owner to decide the time period. But to avoid inaccurate forecasting, we recommend sticking to annual forecasts so that predictions reflect expectations and realities.
Historical data is vital to create a revenue forecast. For example, your business has grown consistently at 10% in the last five years. You can predict that your business will still grow at 10% in the following years.
However, if your past performance varies, using historical data is useless, and you may want to try other revenue forecasting methods. Furthermore, using past data is not available for start-ups. In some situations, past data won't affect forecast revenues because of several external factors. Always take note of considerations when using historical data.
In plain view, wrong computations are easy to fix and prevent. You'll be surprised how many revenue forecasts go wrong because of simple arithmetic mistakes. Wrong computation stems from the lack of attention to detail. If you're using software or Excel sheets, double-check all data entries and formulas to guarantee accurate results.
A business can use several forecasting methods to determine their company's revenue. Choosing a financial modeling method is vital for an accurate prediction, and most business owners fail to consider the data they have at hand before going through the forecasting process.
There are four primary forecasting methods:
Choosing the correct method starts with studying underlying patterns in your earnings. Don't be tempted to go the easy and short way if you want an accurate forecast.
Not all businesses invest in forecasting, but a growing business should take advantage of forecasting to continue growing and make informed decisions for the improvement of the company.
Here are some benefits of proper forecasting for your business.
In business, there's always room for improvement. When you do forecasting, you can see which area to improve to propel your business to success. Furthermore, forecasting can identify problems early before they can cause irreversible damage to businesses.
According to research, businesses that do regular and correct forecasting are 10% more likely to grow and outcompete their direct rivals.
It's one thing to say that your business is doing great but seeing the number gives you a clearer picture of how well you are doing. For example, your business has had a stable income of $300,000 annually in the past years. Your current revenue forecast shows that by the end of the year, your sales forecast will go up to $500,000.
The numbers show how many resources you can use for other business operations. Likewise, if your sales forecast drops, you can see precisely the deficit, and you can strategize how to bring your numbers back up.
It's not enough to know that you want high sales, you have to identify the actual sales you want to achieve, and forecasting can provide you with the exact figures you want to reach. According to forecasting science, 97% of businesses who do forecasting reach their sales quota.
In contrast, for businesses that rely only on strategies and not maximizing forecasting, only 55% of them reach their sales goal by the end of the year.
Revenue forecasting helps businesses attain sales efficiency by giving an insight into your customer's behaviour. By predicting your future sales, you can adjust your prices accordingly, roll out your advertising, and make time for product development.
Forecasting can show the period when your sales will spike. You can maximize the information to increase your inventory and generate more sales for your business.
One of the reasons you should do forecasting is to help you manage your cash flow efficiently. The forecast can help you plan your payments and avoid delays and penalties. It also lets you see when customers' payments are coming into your business, so you strategically allocate your business resources.
Efficient cash flow management builds trust between your employee and suppliers. It can also help you negotiate properly when you need credit for paying your personnel or new business ventures.
If you don't have experience with forecasting, you'll find it complicated to forecast revenue. Fortunately, Unloop offers forecasting services for small businesses looking to scale and assess their financial health.
Our forecasting services include:
Forecasting revenue is essential if you want to continue scaling your business. However, forecasting is on the complicated side of accounting. We hope this blog post helps you plan better for forecasting.
If you need more accounting services, Unloop offers bookkeeping, accounts payable, and payroll. Book a call with us and talk to an expert for free!
In this ever-changing landscape of ecommerce and technology, it can feel overwhelming for any Shopify business owner to stay ahead of the game without reliable help. Take it from us. You'll need the best accounting software for Shopify to thrive and expand like a real corporate empire!
In this blog, we will teach you the latest news and updates in the Shopify market and how to optimize your business finances with high-grade accounting software that experts thoroughly recommend.
So what're you waiting for? Let's start by learning about what's happening to Shopify in this new ecommerce age!
Running a Shopify business in 2023 can be an exciting and challenging experience. With the ecommerce industry snowballing post-pandemic, Shopify has become an even more popular platform for entrepreneurs looking to start and grow their online businesses.
In January, the ecommerce platform announced the launch of Commerce Components, which enables retailers to create customized and branded online stores while taking advantage of the scale, reliability, and performance of Shopify Plus.
In addition, Shopify also announced a range of other updates and new features designed to help merchants grow their businesses, including but not limited to: a new subscription platform, Shop Pay Installments, and updates to its fulfillment network.
Overall, we're looking at an expanded commercial platform that's looking to carry multiple businesses from the start-up phase to the enterprise level.
If you're still new to the ecommerce business or just unfamiliar with what accounting software does, let's first try walking you through what a Shopify store owner regularly comes across in their day-to-day operations.
As a Shopify business owner, your day-to-day operations can vary depending on the size and nature of your business. However, some everyday tasks and challenges you may encounter include project tracking, inventory management, checking sales tax, and recording financial data.
Without a good background in accounting solutions, it can be pretty tricky to crunch numbers or analyze things like accounts payable or accounts receivable that would affect the business's liquidity and cash flow.
What accounting software does for online store owners is that it helps keep track of your sales, expenses, and profits, manage your inventory, and prepare your tax returns more efficiently and accurately. It can save you time and money by automating routine tasks, minimizing errors, and giving you insights into your financial health.
From fixed asset management to sales tax tracking, the best accounting software will provide an accounting solution for every problem or concern your business might face. But that's not all!
Here are some of the qualities of accounting software that you will want to consider before investing in one.
When accounting software integrates seamlessly with Shopify, it's always a good sign.
Shopify store owners can automatically import their sales, expenses, taxes, and other financial data to the platform with minimum stress. Seamless integration also reduces the risk of errors and ensures that your financial records are accurate and up-to-date.
Project management also becomes less complicated because now, you've got real-time insights into your financial health, which means you can make better business decisions and compete better with other Shopify store owners.
In today's age, convenience and accessibility are essential, and not just for customers! Accounting tools have to be easy to use. Otherwise, small business owners won't benefit from them at all.
If accounting software is easy to use, it becomes accessible to everyone in your organization, regardless of their level of accounting knowledge. It saves so much time on training, learning, and troubleshooting.
This means that you and your team can spend more time on core business tasks, such as generating revenue and serving customers, instead of accounting tasks like bank reconciliation or sales tax configuration that already sound very confusing for non-accountants.
Every small business wants the best free accounting software. But you know what they say: nothing comes for free!
Nevertheless, if you're worried about breaking your bank account, don't be. While cost is an essential factor, it's also important to consider the value you'll get from your investment. Most accounting software offer relatively affordable prices.
More expensive accounting software may provide additional features or better support to help you save time and improve your operations, ultimately resulting in a higher return on investment.
As your business grows, your demands for an accounting system may change. Choosing cost-effective accounting software that can meet your business's demands can help you avoid the costs of switching to new software in the future.
Every business has unique accounting needs, and choosing accounting software that offers features that align with your specific requirements is essential. By choosing software with customizable features, you can tailor the software to fit your business’s needs and make the most out of its capabilities.
Cloud-based accounting software typically has built-in security features, such as encryption, firewalls, and multi-factor authentication, which can help protect your financial data from unauthorized access.
Other accounting apps provide unlimited users with project management tools and inventory management features. What matters is that you choose an accounting software that best suits your Shopify store.
Now that you know the qualities of the best Shopify accounting software, it's time to keep you up to speed with the kinds of options on the market that you can get immediately.
Here is our list of the top 5 best Shopify accounting software in 2023.
QuickBooks Online is a cloud-based accounting software widely used by small and medium-sized businesses. It's considered a comprehensive accounting software that has a track record for helping businesses materialize growth and sustain financial health.
Features and Benefits: QuickBooks Online offers a range of features and benefits that can help Shopify businesses streamline their accounting processes. Some of the key features include customizable invoices and estimates, expense tracking, bank reconciliation, and financial reporting. QuickBooks Online also offers automated features for invoices and payments.
Integration With Shopify: QuickBooks Online integrates seamlessly with Shopify with the help of a third-party app. With the integration, businesses can automatically sync their sales data, customer information, and products from Shopify to QuickBooks Online. QuickBooks Online also integrates with other Shopify apps, such as TaxJar and ShipStation, which can further streamline accounting processes.
Cost: QuickBooks Online offers a range of pricing plans to fit different business needs and budgets. The plans start at $15 monthly and go up to $100 for the highest-tier plan.
Xero is another popular cloud-based accounting software suitable for Shopify businesses looking to marry marketing and finances through its innovative contact management feature.
Features and Benefits: Xero's contact management system allows businesses to store and organize contact information for customers, suppliers, and employees. The system is designed to be user-friendly, with the ability to easily add, edit, and search for contacts. It's also capable of automatic transaction matching, which helps alert business owners whenever a transaction enters the bank account.
Integration With Shopify: Integration is easy for Xero through third-party apps like A2X and Parex Technologies.
Cost: Xero may be a more cost-effective option for businesses than QuickBooks Online, as the plans start around $9.25. Additional features, such as payroll processing and multi-currency support, are available for an additional cost.
FreshBooks is designed for small businesses, freelancers, and entrepreneurs. Most accounting app users prefer to use FreshBooks for its accessibility and automation features.
Features and Benefits: FreshBooks offers invoicing, time tracking, expense tracking, mobile access, and real-time reporting—allowing business owners to stay on top of their finances from anywhere. Double-entry accounting was recently added to the software, and with the most basic plan, you create customizable invoice templates.
Integration With Shopify: FreshBooks already has built-in Shopify accounting integration to ensure any online business can utilize needed accounting tools.
Cost: This accounting software for Shopify has three main plans, which are Lite, Plus, and Premium. Its price starts at $17, but you can also purchase their customized option that lets you choose which accounting features you want to be included or excluded in your plan.
Wave might be the best accounting software for Shopify if we're talking about costs because this accounting software is free to download. Yup, you read that right!
Features and Benefits: There are many benefits that small businesses can access when using Wave, like multi-currency support. Wave supports transactions in multiple currencies and can automatically convert them to your home currency. Wave can also connect to your bank and credit card accounts and import transactions automatically.
Integration With Shopify: Like most Shopify accounting apps, the Wave accounting software uses a third-party app to integrate with Shopify. You can get the Sync to Wave app, which helps small businesses receive Shopify orders in their Wave Accounting.
Cost: While free, you might have to pay a monthly fee of $9.95 for integration.
If your business primarily uses the Apple ecosystem, you will want to get Zoho Books.
Features and Benefits: Zoho Books has an intuitive and easy-to-use interface that makes it simple for businesses to manage their finances, even if they don't have prior accounting knowledge. Zoho Books also uses bank-level security to keep all financial information safe and secure. The software offers regular backups to prevent data loss.
Integration With Shopify: Zoho Books integrates with various third-party apps, including payment gateways, payroll software, and CRM software. The Shopify app store carries all your third-party apps for smooth integration.
Cost: The good thing about Zoho Books is that you've got six options to choose from. The first option is free and provides a client portal, expenses & mileage tracking, and even multi-lingual invoicing. The Standard option, which starts at $10 per month, increases the number of users and adds voice-chat support, among other things.
Whether it's time tracking or dealing with balance sheets, good accounting software will help your business get far and give you some accounting knowledge that'll be handy in the future.
However, you wouldn't want to stop there now, would you? You can upgrade your Shopify hustle to even more extraordinary lengths by working with a reliable accounting firm that always puts your best interests first.
At Unloop, we want to see you succeed, so we provide accounting solutions for Shopify store owners much like yourself.
Book a call with us today to see how we can help you reach your goals and maximize your returns with the best accounting advice available in the industry.
In this ever-changing landscape of ecommerce and technology, it can feel overwhelming for any Shopify business owner to stay ahead of the game without reliable help. Take it from us. You'll need the best accounting software for Shopify to thrive and expand like a real corporate empire!
In this blog, we will teach you the latest news and updates in the Shopify market and how to optimize your business finances with high-grade accounting software that experts thoroughly recommend.
So what're you waiting for? Let's start by learning about what's happening to Shopify in this new ecommerce age!
Running a Shopify business in 2023 can be an exciting and challenging experience. With the ecommerce industry snowballing post-pandemic, Shopify has become an even more popular platform for entrepreneurs looking to start and grow their online businesses.
In January, the ecommerce platform announced the launch of Commerce Components, which enables retailers to create customized and branded online stores while taking advantage of the scale, reliability, and performance of Shopify Plus.
In addition, Shopify also announced a range of other updates and new features designed to help merchants grow their businesses, including but not limited to: a new subscription platform, Shop Pay Installments, and updates to its fulfillment network.
Overall, we're looking at an expanded commercial platform that's looking to carry multiple businesses from the start-up phase to the enterprise level.
If you're still new to the ecommerce business or just unfamiliar with what accounting software does, let's first try walking you through what a Shopify store owner regularly comes across in their day-to-day operations.
As a Shopify business owner, your day-to-day operations can vary depending on the size and nature of your business. However, some everyday tasks and challenges you may encounter include project tracking, inventory management, checking sales tax, and recording financial data.
Without a good background in accounting solutions, it can be pretty tricky to crunch numbers or analyze things like accounts payable or accounts receivable that would affect the business's liquidity and cash flow.
What accounting software does for online store owners is that it helps keep track of your sales, expenses, and profits, manage your inventory, and prepare your tax returns more efficiently and accurately. It can save you time and money by automating routine tasks, minimizing errors, and giving you insights into your financial health.
From fixed asset management to sales tax tracking, the best accounting software will provide an accounting solution for every problem or concern your business might face. But that's not all!
Here are some of the qualities of accounting software that you will want to consider before investing in one.
When accounting software integrates seamlessly with Shopify, it's always a good sign.
Shopify store owners can automatically import their sales, expenses, taxes, and other financial data to the platform with minimum stress. Seamless integration also reduces the risk of errors and ensures that your financial records are accurate and up-to-date.
Project management also becomes less complicated because now, you've got real-time insights into your financial health, which means you can make better business decisions and compete better with other Shopify store owners.
In today's age, convenience and accessibility are essential, and not just for customers! Accounting tools have to be easy to use. Otherwise, small business owners won't benefit from them at all.
If accounting software is easy to use, it becomes accessible to everyone in your organization, regardless of their level of accounting knowledge. It saves so much time on training, learning, and troubleshooting.
This means that you and your team can spend more time on core business tasks, such as generating revenue and serving customers, instead of accounting tasks like bank reconciliation or sales tax configuration that already sound very confusing for non-accountants.
Every small business wants the best free accounting software. But you know what they say: nothing comes for free!
Nevertheless, if you're worried about breaking your bank account, don't be. While cost is an essential factor, it's also important to consider the value you'll get from your investment. Most accounting software offer relatively affordable prices.
More expensive accounting software may provide additional features or better support to help you save time and improve your operations, ultimately resulting in a higher return on investment.
As your business grows, your demands for an accounting system may change. Choosing cost-effective accounting software that can meet your business's demands can help you avoid the costs of switching to new software in the future.
Every business has unique accounting needs, and choosing accounting software that offers features that align with your specific requirements is essential. By choosing software with customizable features, you can tailor the software to fit your business’s needs and make the most out of its capabilities.
Cloud-based accounting software typically has built-in security features, such as encryption, firewalls, and multi-factor authentication, which can help protect your financial data from unauthorized access.
Other accounting apps provide unlimited users with project management tools and inventory management features. What matters is that you choose an accounting software that best suits your Shopify store.
Now that you know the qualities of the best Shopify accounting software, it's time to keep you up to speed with the kinds of options on the market that you can get immediately.
Here is our list of the top 5 best Shopify accounting software in 2023.
QuickBooks Online is a cloud-based accounting software widely used by small and medium-sized businesses. It's considered a comprehensive accounting software that has a track record for helping businesses materialize growth and sustain financial health.
Features and Benefits: QuickBooks Online offers a range of features and benefits that can help Shopify businesses streamline their accounting processes. Some of the key features include customizable invoices and estimates, expense tracking, bank reconciliation, and financial reporting. QuickBooks Online also offers automated features for invoices and payments.
Integration With Shopify: QuickBooks Online integrates seamlessly with Shopify with the help of a third-party app. With the integration, businesses can automatically sync their sales data, customer information, and products from Shopify to QuickBooks Online. QuickBooks Online also integrates with other Shopify apps, such as TaxJar and ShipStation, which can further streamline accounting processes.
Cost: QuickBooks Online offers a range of pricing plans to fit different business needs and budgets. The plans start at $15 monthly and go up to $100 for the highest-tier plan.
Xero is another popular cloud-based accounting software suitable for Shopify businesses looking to marry marketing and finances through its innovative contact management feature.
Features and Benefits: Xero's contact management system allows businesses to store and organize contact information for customers, suppliers, and employees. The system is designed to be user-friendly, with the ability to easily add, edit, and search for contacts. It's also capable of automatic transaction matching, which helps alert business owners whenever a transaction enters the bank account.
Integration With Shopify: Integration is easy for Xero through third-party apps like A2X and Parex Technologies.
Cost: Xero may be a more cost-effective option for businesses than QuickBooks Online, as the plans start around $9.25. Additional features, such as payroll processing and multi-currency support, are available for an additional cost.
FreshBooks is designed for small businesses, freelancers, and entrepreneurs. Most accounting app users prefer to use FreshBooks for its accessibility and automation features.
Features and Benefits: FreshBooks offers invoicing, time tracking, expense tracking, mobile access, and real-time reporting—allowing business owners to stay on top of their finances from anywhere. Double-entry accounting was recently added to the software, and with the most basic plan, you create customizable invoice templates.
Integration With Shopify: FreshBooks already has built-in Shopify accounting integration to ensure any online business can utilize needed accounting tools.
Cost: This accounting software for Shopify has three main plans, which are Lite, Plus, and Premium. Its price starts at $17, but you can also purchase their customized option that lets you choose which accounting features you want to be included or excluded in your plan.
Wave might be the best accounting software for Shopify if we're talking about costs because this accounting software is free to download. Yup, you read that right!
Features and Benefits: There are many benefits that small businesses can access when using Wave, like multi-currency support. Wave supports transactions in multiple currencies and can automatically convert them to your home currency. Wave can also connect to your bank and credit card accounts and import transactions automatically.
Integration With Shopify: Like most Shopify accounting apps, the Wave accounting software uses a third-party app to integrate with Shopify. You can get the Sync to Wave app, which helps small businesses receive Shopify orders in their Wave Accounting.
Cost: While free, you might have to pay a monthly fee of $9.95 for integration.
If your business primarily uses the Apple ecosystem, you will want to get Zoho Books.
Features and Benefits: Zoho Books has an intuitive and easy-to-use interface that makes it simple for businesses to manage their finances, even if they don't have prior accounting knowledge. Zoho Books also uses bank-level security to keep all financial information safe and secure. The software offers regular backups to prevent data loss.
Integration With Shopify: Zoho Books integrates with various third-party apps, including payment gateways, payroll software, and CRM software. The Shopify app store carries all your third-party apps for smooth integration.
Cost: The good thing about Zoho Books is that you've got six options to choose from. The first option is free and provides a client portal, expenses & mileage tracking, and even multi-lingual invoicing. The Standard option, which starts at $10 per month, increases the number of users and adds voice-chat support, among other things.
Whether it's time tracking or dealing with balance sheets, good accounting software will help your business get far and give you some accounting knowledge that'll be handy in the future.
However, you wouldn't want to stop there now, would you? You can upgrade your Shopify hustle to even more extraordinary lengths by working with a reliable accounting firm that always puts your best interests first.
At Unloop, we want to see you succeed, so we provide accounting solutions for Shopify store owners much like yourself.
Book a call with us today to see how we can help you reach your goals and maximize your returns with the best accounting advice available in the industry.
Once you become an ecommerce business owner, expect days to be longer, and responsibilities to be greater. You’ll welcome the hustle as you know it is part of the job, and it is required to make your business succeed. Yet, despite the passion and energy to take on any challenge that comes your way, know that the key to success is by optimizing your business operations early.
This article will help you optimize your online business financial management through proper bookkeeping. Check out these nine small business bookkeeping tips to ensure you do your bookkeeping correctly and efficiently.
Before optimizing your bookkeeping processes, arm yourself with basic bookkeeping knowledge first. Begin by knowing that bookkeeping and accounting are separate tasks. Bookkeeping is all about tracking data and organizing it in a business’s books. Accounting, on the other hand, is the task of making sense of numbers through reports. Despite the two being different, they always go together.
For starters, you’ll have to choose between these two recording methods: cash-based and accrual accounting. The first tracks money as it comes in and out of your business, while the latter tracks income and expenses over a certain period.
It is also essential to familiarize yourself with bookkeeping and accounting jargon like assets, liabilities, equity, revenue, expenses, costs, and profits. Awareness of these terms will make it quicker and more efficient for you to check your books and understand reports.
Now you know what bookkeeping is about, it is time to start tracking. To do it right, don’t go at it alone. Hold different team members accountable for keeping their income and expenses tracked and organized, and reported regularly. Doing so will save time, effort, and resources.
Investing in good bookkeeping and accounting software can help you streamline and automate your processes. You can integrate the data you have in the ecommerce platform you are selling on with the software. Then, your data can be categorized and organized automatically.
You can combine this data with other key performance indicators you are tracking that aren’t provided by the ecommerce site. You can also use the software’s report generation capabilities to make sense of all your data.
When there are changes and updates in the books from different departments of the company, they get recorded automatically. Everybody can view the most updated data immediately.
Other benefits you will enjoy from having bookkeeping and accounting software are the following:
Do not hesitate to invest in these tools, nor think that an Excel sheet is cheaper and better. With all the benefits of the latest bookkeeping and accounting software, your investment will be worth it.
Your business should have its own bank account before you launch your ecommerce store. The business transactions in your bank should go straight to your books to be categorized accordingly. Doing so removes the additional step of separating your personal funds and personal liabilities from business income and expenses.
It also keeps you from overspending or being too thrifty because you can see your profits clearly. When tax season comes, the computation of the income and the taxes you must pay will be easier. You can also see the sales taxes you collect and need to remit.
Finally, having a separate bank account makes it easy to get a loan as you can quickly generate cash flow and profit and loss statements.
Run financial reports regularly to utilize the data recorded in the bookkeeping process. Bookkeeping and accounting tools allow you to generate reports in just a few clicks because they have templates. You can quickly check the following financial statements:
You can customize reports too.
As a startup ecommerce business, running reports as often as possible is best. Doing so allows you to see your business’s successes and duplicate the best practices that led to those wins. On the other hand, if there are alarming numbers reflected in the report, you can create mitigation plans quickly and improve your financial performance.
Another area of your ecommerce business you need to be on top of is inventory management. Customers get turned off by stores with products they want but can’t buy because of a lack of supply. When your inventory isn’t organized, you miss out on plenty of sales opportunities.
The good news is that most ecommerce sites have an inventory management feature, so you only need to integrate the data into your primary accounting system. You can add the numbers to other data stored in the tool to determine the cost of goods sold and delivery or fulfillment costs.
The collated data and reports will guide you in deciding whether your fulfillment methods are efficient. You can also use your findings to know what kind of promotions to launch and which products to focus on to boost or maintain their sales.
You surely envision your venture growing in the months and years to come. As your business grows, so will your team.
If you sell on ecommerce platforms as a manufacturer, you’ll have workers or partners making, checking, packing, and transporting your products. Even when you register as a reseller, you must pay for services transporting ready-made items through fulfillment centers.
Depending on the size of your company, you’ll grow into several departments. You’ll have finance and accounting, marketing, sales, human resource, customer service, and research and development teams to manage and give salaries to.
Having a bookkeeping software that has a human resource feature allows you to:
These HR details have monetary value and impact, so they should also be tracked and included in the books.
One of the most underrated accounting and bookkeeping tips is investing in a tool with a customer relationship management (CRM) feature. This practice will make your business operations even smoother.
The data you’ll get from a CRM tool might not be in monetary values, but you can get just that by combining them with other data stored in your accounting and bookkeeping software. Because customers are your business's lifeblood, you must include these details in your bookkeeping.
Give yourself and your bookkeeper the convenience of having customer insights within your main accounting tool. A CRM tool saves contacts of leads and customers that can help you conveniently send invoices and do marketing. It stores information like the sales journey of a potential customer and the issues they experience in the sales process.
We’ve already discussed the basics of bookkeeping and knowing how bookkeeping tools and their features help you optimize your ecommerce business operations. Now, we’ll answer a lingering question many business owners like you have: should you hire a bookkeeper? Our answer is yes!
Here are the benefits small business owners reap in partnering with bookkeeping professionals:
It’s tempting to do bookkeeping yourself, but with plenty of tasks on your plate, the best move is to delegate it to experts.
By now, you must have realized that optimizing your bookkeeping can also make your business operations run smoothly. These nine tips may be a lot for some, but implementing them in your business will be worth it.
If you need more bookkeeping tips and tricks, assistance using bookkeeping and accounting software, or if you want to delegate bookkeeping tasks to experts, Unloop is here. We have a team of bookkeepers who are well-versed in the ecommerce industry, so your books will always be in good hands. We also specialize in accounts payable services, forecasting, payroll, and taxes.
Contact us now so that we can discuss our offers further.
Once you become an ecommerce business owner, expect days to be longer, and responsibilities to be greater. You’ll welcome the hustle as you know it is part of the job, and it is required to make your business succeed. Yet, despite the passion and energy to take on any challenge that comes your way, know that the key to success is by optimizing your business operations early.
This article will help you optimize your online business financial management through proper bookkeeping. Check out these nine small business bookkeeping tips to ensure you do your bookkeeping correctly and efficiently.
Before optimizing your bookkeeping processes, arm yourself with basic bookkeeping knowledge first. Begin by knowing that bookkeeping and accounting are separate tasks. Bookkeeping is all about tracking data and organizing it in a business’s books. Accounting, on the other hand, is the task of making sense of numbers through reports. Despite the two being different, they always go together.
For starters, you’ll have to choose between these two recording methods: cash-based and accrual accounting. The first tracks money as it comes in and out of your business, while the latter tracks income and expenses over a certain period.
It is also essential to familiarize yourself with bookkeeping and accounting jargon like assets, liabilities, equity, revenue, expenses, costs, and profits. Awareness of these terms will make it quicker and more efficient for you to check your books and understand reports.
Now you know what bookkeeping is about, it is time to start tracking. To do it right, don’t go at it alone. Hold different team members accountable for keeping their income and expenses tracked and organized, and reported regularly. Doing so will save time, effort, and resources.
Investing in good bookkeeping and accounting software can help you streamline and automate your processes. You can integrate the data you have in the ecommerce platform you are selling on with the software. Then, your data can be categorized and organized automatically.
You can combine this data with other key performance indicators you are tracking that aren’t provided by the ecommerce site. You can also use the software’s report generation capabilities to make sense of all your data.
When there are changes and updates in the books from different departments of the company, they get recorded automatically. Everybody can view the most updated data immediately.
Other benefits you will enjoy from having bookkeeping and accounting software are the following:
Do not hesitate to invest in these tools, nor think that an Excel sheet is cheaper and better. With all the benefits of the latest bookkeeping and accounting software, your investment will be worth it.
Your business should have its own bank account before you launch your ecommerce store. The business transactions in your bank should go straight to your books to be categorized accordingly. Doing so removes the additional step of separating your personal funds and personal liabilities from business income and expenses.
It also keeps you from overspending or being too thrifty because you can see your profits clearly. When tax season comes, the computation of the income and the taxes you must pay will be easier. You can also see the sales taxes you collect and need to remit.
Finally, having a separate bank account makes it easy to get a loan as you can quickly generate cash flow and profit and loss statements.
Run financial reports regularly to utilize the data recorded in the bookkeeping process. Bookkeeping and accounting tools allow you to generate reports in just a few clicks because they have templates. You can quickly check the following financial statements:
You can customize reports too.
As a startup ecommerce business, running reports as often as possible is best. Doing so allows you to see your business’s successes and duplicate the best practices that led to those wins. On the other hand, if there are alarming numbers reflected in the report, you can create mitigation plans quickly and improve your financial performance.
Another area of your ecommerce business you need to be on top of is inventory management. Customers get turned off by stores with products they want but can’t buy because of a lack of supply. When your inventory isn’t organized, you miss out on plenty of sales opportunities.
The good news is that most ecommerce sites have an inventory management feature, so you only need to integrate the data into your primary accounting system. You can add the numbers to other data stored in the tool to determine the cost of goods sold and delivery or fulfillment costs.
The collated data and reports will guide you in deciding whether your fulfillment methods are efficient. You can also use your findings to know what kind of promotions to launch and which products to focus on to boost or maintain their sales.
You surely envision your venture growing in the months and years to come. As your business grows, so will your team.
If you sell on ecommerce platforms as a manufacturer, you’ll have workers or partners making, checking, packing, and transporting your products. Even when you register as a reseller, you must pay for services transporting ready-made items through fulfillment centers.
Depending on the size of your company, you’ll grow into several departments. You’ll have finance and accounting, marketing, sales, human resource, customer service, and research and development teams to manage and give salaries to.
Having a bookkeeping software that has a human resource feature allows you to:
These HR details have monetary value and impact, so they should also be tracked and included in the books.
One of the most underrated accounting and bookkeeping tips is investing in a tool with a customer relationship management (CRM) feature. This practice will make your business operations even smoother.
The data you’ll get from a CRM tool might not be in monetary values, but you can get just that by combining them with other data stored in your accounting and bookkeeping software. Because customers are your business's lifeblood, you must include these details in your bookkeeping.
Give yourself and your bookkeeper the convenience of having customer insights within your main accounting tool. A CRM tool saves contacts of leads and customers that can help you conveniently send invoices and do marketing. It stores information like the sales journey of a potential customer and the issues they experience in the sales process.
We’ve already discussed the basics of bookkeeping and knowing how bookkeeping tools and their features help you optimize your ecommerce business operations. Now, we’ll answer a lingering question many business owners like you have: should you hire a bookkeeper? Our answer is yes!
Here are the benefits small business owners reap in partnering with bookkeeping professionals:
It’s tempting to do bookkeeping yourself, but with plenty of tasks on your plate, the best move is to delegate it to experts.
By now, you must have realized that optimizing your bookkeeping can also make your business operations run smoothly. These nine tips may be a lot for some, but implementing them in your business will be worth it.
If you need more bookkeeping tips and tricks, assistance using bookkeeping and accounting software, or if you want to delegate bookkeeping tasks to experts, Unloop is here. We have a team of bookkeepers who are well-versed in the ecommerce industry, so your books will always be in good hands. We also specialize in accounts payable services, forecasting, payroll, and taxes.
Contact us now so that we can discuss our offers further.
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.