The era of automated accounting has finally come. Although Excel sheets are still available, business owners, bookkeepers, and accountants can now choose to go with automation. So, you might be wondering, does Shopify have accounting software?
We’ll answer that question here! We’ll also discuss why you should utilize accounting software and various apps and integrations for your Shopify store. To make your search easier, we’ll list the different accounting software, applications, and integrations you can use for your Shopify business. Knowing each tool and its features will help you decide which the best is for your business. Let’s begin!
Before going into the specifics, let’s ensure that you have the right mindset regarding accounting. As early as now, you should understand the importance of bookkeeping and accounting in the growth of your Shopify business and in scaling your business on other ecommerce platforms. Let’s answer why it is necessary to use accounting software, apps, and integrations.
When it comes to bookkeeping and accounting, accuracy is a top priority. Only when all the data in the books is correct can you get an objective view of your business finances. When you use bookkeeping and accounting software, apps, and integrations, you make everything automated and limit completely eliminate manual input—the root cause of mistakes.
Automation saves time and effort because there is no need for manual data input. You can view organized data from various payment gateways, the business’s bank account, inventory management tools, tax software, and more in a single place. All information from different apps and software goes straight to your primary accounting tool in just a few clicks.
Cash flow is better when you make and receive payments on time. Through the help of a software and apps invoicing feature, customers can receive payment notifications on time and on scheduled dates. Be a responsible seller and schedule payments to your suppliers, too, through the help of the tools you have.
As a Shopify seller, inventory management is a task that will occupy your time. You need visibility on how many items you still have, which items to replenish, and which ones have enough supply. You also need to see the shipping, storage, and fulfillment costs. These will help you determine which delivery method is best for your business.
Selling on Shopify requires you to charge sales taxes when applicable. The thing about sales taxes is that they are sensitive to change. When you have apps and software that keep these changes on track, you can charge the correct sales tax every time.
Accounting software allows you to efficiently compute your income and pay the correct dues during tax season.
Finally, having automated tools allow you to generate reports anytime and in just a few clicks. Because your books are automatically updated, the reports you’ll get are always the latest ones. Since the software is accessible on mobile devices, you can check the health of your Shopify business wherever you are.
Do you ask yourself what accounting software is compatible with Shopify? You are on the right track if you are looking into investing in accounting software. If you haven’t yet done so, waste no time and choose among these top accounting software for Shopify.
QuickBooks will always be the right choice for your Shopify accounting software. This software has all the features businesses need to manage their finances. It has a live bookkeeping feature that ensures your books are backtracked and are up-to-date.
It helps you manage your payroll with projects, time tracking, automated computation, and doling salaries. Making and getting payments will also be more accessible because of the software’s invoicing feature. Skip the hassle of worrying about your Shopify inventory, as QuickBooks has inventory management, too.
Not far behind in the list of the most reliable accounting software for Shopify is Xero. Xero also has invoicing features. Your clients and customers can automatically receive payment requests on time so that you can receive payments on time too. You can also receive payments from various channels because of the software’s payment integrations.
Xero offers bank connections, so the deposits and withdrawals in your bank accounts will all be accounted for. Do not worry about not paying people and projects correctly and on time, as Xero has time tracking, project tracking, payroll tools, and various integrations.
Business owners like you will love Xero Analytics, a feature for report generation and financial forecasting.
Sage50 cloud, previously known as Peachtree, is another reliable accounting tool, but this software industry-specific assistance is unlike Quickbooks and Xero. Sage50 cloud has accounting assistance focused on construction and real estate. But this does not mean it is not the perfect tool for your Shopify business.
Sage50 cloud is still an efficient ecommerce accounting tool because it tracks your income and expenses, does accounting, has time and project tracking features, and can generate unlimited invoices.
If you've grown your Shopify business and have built a larger team, you can manage them through Sage’s human resource management function.
You'll find FreshBooks appealing if you have just begun your business and are looking for a tool for basic accounting. The software has customizable invoice templates you can send to customers for payment reminders and requests. Receiving payment is easy because you can link credit cards and various payment gateways.
The tool also has an optical character recognition (OCR) technology that lets you take pictures to convert to data that will be categorized in the books. You can access these data and financial insights on a computer or mobile device. Time and project efficiency is also recorded with FreshBooks.
Can you now see the convenience and efficiency software brings? But that’s not all! Software can further help you when you link other applications and integrations with it. You can enjoy the convenience of having all your data in one place.
Be sure to reap these benefits by using the following tools compatible with Shopify.
Now that you know the reason behind the investment and have a list of specific tools you can use for your Shopify business, it’s time to choose which software to use.
And if you need assistance in managing these tools and your Shopify bookkeeping, we can help you! Unloop offers bookkeeping services using the latest bookkeeping and accounting software. Let us help you make the most of the technology available. Call us now!
The era of automated accounting has finally come. Although Excel sheets are still available, business owners, bookkeepers, and accountants can now choose to go with automation. So, you might be wondering, does Shopify have accounting software?
We’ll answer that question here! We’ll also discuss why you should utilize accounting software and various apps and integrations for your Shopify store. To make your search easier, we’ll list the different accounting software, applications, and integrations you can use for your Shopify business. Knowing each tool and its features will help you decide which the best is for your business. Let’s begin!
Before going into the specifics, let’s ensure that you have the right mindset regarding accounting. As early as now, you should understand the importance of bookkeeping and accounting in the growth of your Shopify business and in scaling your business on other ecommerce platforms. Let’s answer why it is necessary to use accounting software, apps, and integrations.
When it comes to bookkeeping and accounting, accuracy is a top priority. Only when all the data in the books is correct can you get an objective view of your business finances. When you use bookkeeping and accounting software, apps, and integrations, you make everything automated and limit completely eliminate manual input—the root cause of mistakes.
Automation saves time and effort because there is no need for manual data input. You can view organized data from various payment gateways, the business’s bank account, inventory management tools, tax software, and more in a single place. All information from different apps and software goes straight to your primary accounting tool in just a few clicks.
Cash flow is better when you make and receive payments on time. Through the help of a software and apps invoicing feature, customers can receive payment notifications on time and on scheduled dates. Be a responsible seller and schedule payments to your suppliers, too, through the help of the tools you have.
As a Shopify seller, inventory management is a task that will occupy your time. You need visibility on how many items you still have, which items to replenish, and which ones have enough supply. You also need to see the shipping, storage, and fulfillment costs. These will help you determine which delivery method is best for your business.
Selling on Shopify requires you to charge sales taxes when applicable. The thing about sales taxes is that they are sensitive to change. When you have apps and software that keep these changes on track, you can charge the correct sales tax every time.
Accounting software allows you to efficiently compute your income and pay the correct dues during tax season.
Finally, having automated tools allow you to generate reports anytime and in just a few clicks. Because your books are automatically updated, the reports you’ll get are always the latest ones. Since the software is accessible on mobile devices, you can check the health of your Shopify business wherever you are.
Do you ask yourself what accounting software is compatible with Shopify? You are on the right track if you are looking into investing in accounting software. If you haven’t yet done so, waste no time and choose among these top accounting software for Shopify.
QuickBooks will always be the right choice for your Shopify accounting software. This software has all the features businesses need to manage their finances. It has a live bookkeeping feature that ensures your books are backtracked and are up-to-date.
It helps you manage your payroll with projects, time tracking, automated computation, and doling salaries. Making and getting payments will also be more accessible because of the software’s invoicing feature. Skip the hassle of worrying about your Shopify inventory, as QuickBooks has inventory management, too.
Not far behind in the list of the most reliable accounting software for Shopify is Xero. Xero also has invoicing features. Your clients and customers can automatically receive payment requests on time so that you can receive payments on time too. You can also receive payments from various channels because of the software’s payment integrations.
Xero offers bank connections, so the deposits and withdrawals in your bank accounts will all be accounted for. Do not worry about not paying people and projects correctly and on time, as Xero has time tracking, project tracking, payroll tools, and various integrations.
Business owners like you will love Xero Analytics, a feature for report generation and financial forecasting.
Sage50 cloud, previously known as Peachtree, is another reliable accounting tool, but this software industry-specific assistance is unlike Quickbooks and Xero. Sage50 cloud has accounting assistance focused on construction and real estate. But this does not mean it is not the perfect tool for your Shopify business.
Sage50 cloud is still an efficient ecommerce accounting tool because it tracks your income and expenses, does accounting, has time and project tracking features, and can generate unlimited invoices.
If you've grown your Shopify business and have built a larger team, you can manage them through Sage’s human resource management function.
You'll find FreshBooks appealing if you have just begun your business and are looking for a tool for basic accounting. The software has customizable invoice templates you can send to customers for payment reminders and requests. Receiving payment is easy because you can link credit cards and various payment gateways.
The tool also has an optical character recognition (OCR) technology that lets you take pictures to convert to data that will be categorized in the books. You can access these data and financial insights on a computer or mobile device. Time and project efficiency is also recorded with FreshBooks.
Can you now see the convenience and efficiency software brings? But that’s not all! Software can further help you when you link other applications and integrations with it. You can enjoy the convenience of having all your data in one place.
Be sure to reap these benefits by using the following tools compatible with Shopify.
Now that you know the reason behind the investment and have a list of specific tools you can use for your Shopify business, it’s time to choose which software to use.
And if you need assistance in managing these tools and your Shopify bookkeeping, we can help you! Unloop offers bookkeeping services using the latest bookkeeping and accounting software. Let us help you make the most of the technology available. Call us now!
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.
Any big or small business owner must ensure their employees receive the hard-earned money they deserve. Nevertheless, mistakes during payroll processing are bound to happen. Thankfully, the emergence of an automated payroll system allows you to pay your employees seamlessly.
Let's delve into the depths of an automated payroll solution and how it can transform your business’s financial operations.
Before we get into the nitty-gritty of payroll automation, it's crucial to understand the processes behind it. As you might have already guessed, payroll involves giving your employees accurate salaries on time.
To do so, you have to calculate
Additionally, you have to consider several other factors, such as
To any business owner without an established finance team, these tasks may become too confusing and daunting to handle on their own. Learning to do these accounting tasks accurately also takes much time and effort.
Fortunately, you won't have to stress too much over perfecting these tiresome payroll processes. With an automated payroll, you have an organized tool for the job. A computerized payroll system will simplify and speed up how you calculate and distribute your employee's paychecks.
An automated system can do the following processes:
You might still be skeptical about streamlining your payroll tasks to organized software. To ease any of your worries, we've gathered a few reasons why you should automate payroll to improve your business.
Saves Time
Time is precious and should not be wasted. Even the tiniest moments count when you're operating and handling a business. Hence, it's only logical to spend every second wisely.
You would have to spend hours upon hours doing manual data entry for payroll when you should be working on important business matters. An automated payroll system allows you to allocate more time to those tasks.
Even the slightest mistake can cause grave consequences when calculating employee wages. The payroll team must ensure accurate and timely wage distribution.
However, with the dizzying amount of accounting and recordkeeping tasks involved in payroll, some people will inevitably make mistakes and unintentionally issue inaccurate employee payments. These errors can cause financial issues for both the employee and the employer and lead to severe legal penalties.
Precise and accurate payment calculations are guaranteed with a computerized payroll system. The software can correctly and swiftly compute and adjust an employee's pay while considering possible wage deductions, raises, bonuses, and more.
One of the most confusing and headache-inducing parts of payroll processing is filing and calculating tax withholdings. Getting this part right is crucial as it involves various laws and regulations. An error may likely result in legal trouble for your business.
With automated payroll systems, you don't have to calculate all of your employee's gross pay and take out tax deductions on your own. You can let the software accurately figure out and navigate the complicated world of tax filing.
Using automated payroll software can also foster employee trust. Most automated systems allow staff members to access their paychecks easily and view possible changes in their regular wages. These are possible with employee self-service portals and other employee-centric features.
They can also update and input payroll information easily using automated systems. Because of this feature, the system can smoothly adjust employee pay stubs according to real-time changes.
Paying employees with an automated system can indirectly improve your relationship with them. Receiving befitting compensation for their work is one of the primary ways to motivate employees. With computerized payroll systems, employees are guaranteed accurate and timely pay.
Moreover, with the transparency that automated systems provide, you can improve and develop trust and confidence in your employees. They will feel secure knowing that you pay them what they're due.
Manually handling your payroll may seem like a breeze at first. But as your business grows, it will become more complicated and time-consuming. The sooner you implement payroll automation, the more time and resources you'll save in the long run.
Hopefully, the benefits mentioned above are enough to convince you to start automating your payroll. Your next course of action is learning how to switch from manual to automated payroll. You can either use payroll automation software or hire a payroll service.
Take matters into your own hands by searching for payroll automation software that suits your business. Choosing payroll software will primarily depend on your company's size, business needs, and other related factors.
Besides the payroll software cost, here are some features you must consider:
Besides calculating your employee's wages, automated software can also provide regular comprehensive payroll reports to help monitor your finances. Some even use combined HR and payroll software for more efficient employee and payroll management.
Once you've made your choice, all you have to do is input the necessary payroll data and documents, such as employee information and tax forms, into the software. Ensure that what you've placed in the system is accurate to avoid financial errors.
Another option is to hire management assistance from professional payroll services. They especially come in handy for owners of large corporations and businesses handling a significant number of employees.
All you have to do is track your employees' work hours and forward this data to the service provider. The service will calculate the payroll amount based on those hours and deduct taxes from their paychecks before rolling them out during payday. Naturally, they would typically use automated software.
Payroll is part and parcel of any business, no matter the industry. Plenty of accounting tasks necessitate payroll processing, from tracking your employees' work hours to delivering their wages on time. While these tasks can be done independently and manually, doing so will be time-consuming and may lead to unintentional errors.
So, switch to stress-free automated payroll management with Unloop's payroll services. Our team of professionals uses efficient, up-to-date tools like QuickBooks to ensure automated, organized, and efficient payroll processing for your company. Book a call with us today!
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.
Any big or small business owner must ensure their employees receive the hard-earned money they deserve. Nevertheless, mistakes during payroll processing are bound to happen. Thankfully, the emergence of an automated payroll system allows you to pay your employees seamlessly.
Let's delve into the depths of an automated payroll solution and how it can transform your business’s financial operations.
Before we get into the nitty-gritty of payroll automation, it's crucial to understand the processes behind it. As you might have already guessed, payroll involves giving your employees accurate salaries on time.
To do so, you have to calculate
Additionally, you have to consider several other factors, such as
To any business owner without an established finance team, these tasks may become too confusing and daunting to handle on their own. Learning to do these accounting tasks accurately also takes much time and effort.
Fortunately, you won't have to stress too much over perfecting these tiresome payroll processes. With an automated payroll, you have an organized tool for the job. A computerized payroll system will simplify and speed up how you calculate and distribute your employee's paychecks.
An automated system can do the following processes:
You might still be skeptical about streamlining your payroll tasks to organized software. To ease any of your worries, we've gathered a few reasons why you should automate payroll to improve your business.
Saves Time
Time is precious and should not be wasted. Even the tiniest moments count when you're operating and handling a business. Hence, it's only logical to spend every second wisely.
You would have to spend hours upon hours doing manual data entry for payroll when you should be working on important business matters. An automated payroll system allows you to allocate more time to those tasks.
Even the slightest mistake can cause grave consequences when calculating employee wages. The payroll team must ensure accurate and timely wage distribution.
However, with the dizzying amount of accounting and recordkeeping tasks involved in payroll, some people will inevitably make mistakes and unintentionally issue inaccurate employee payments. These errors can cause financial issues for both the employee and the employer and lead to severe legal penalties.
Precise and accurate payment calculations are guaranteed with a computerized payroll system. The software can correctly and swiftly compute and adjust an employee's pay while considering possible wage deductions, raises, bonuses, and more.
One of the most confusing and headache-inducing parts of payroll processing is filing and calculating tax withholdings. Getting this part right is crucial as it involves various laws and regulations. An error may likely result in legal trouble for your business.
With automated payroll systems, you don't have to calculate all of your employee's gross pay and take out tax deductions on your own. You can let the software accurately figure out and navigate the complicated world of tax filing.
Using automated payroll software can also foster employee trust. Most automated systems allow staff members to access their paychecks easily and view possible changes in their regular wages. These are possible with employee self-service portals and other employee-centric features.
They can also update and input payroll information easily using automated systems. Because of this feature, the system can smoothly adjust employee pay stubs according to real-time changes.
Paying employees with an automated system can indirectly improve your relationship with them. Receiving befitting compensation for their work is one of the primary ways to motivate employees. With computerized payroll systems, employees are guaranteed accurate and timely pay.
Moreover, with the transparency that automated systems provide, you can improve and develop trust and confidence in your employees. They will feel secure knowing that you pay them what they're due.
Manually handling your payroll may seem like a breeze at first. But as your business grows, it will become more complicated and time-consuming. The sooner you implement payroll automation, the more time and resources you'll save in the long run.
Hopefully, the benefits mentioned above are enough to convince you to start automating your payroll. Your next course of action is learning how to switch from manual to automated payroll. You can either use payroll automation software or hire a payroll service.
Take matters into your own hands by searching for payroll automation software that suits your business. Choosing payroll software will primarily depend on your company's size, business needs, and other related factors.
Besides the payroll software cost, here are some features you must consider:
Besides calculating your employee's wages, automated software can also provide regular comprehensive payroll reports to help monitor your finances. Some even use combined HR and payroll software for more efficient employee and payroll management.
Once you've made your choice, all you have to do is input the necessary payroll data and documents, such as employee information and tax forms, into the software. Ensure that what you've placed in the system is accurate to avoid financial errors.
Another option is to hire management assistance from professional payroll services. They especially come in handy for owners of large corporations and businesses handling a significant number of employees.
All you have to do is track your employees' work hours and forward this data to the service provider. The service will calculate the payroll amount based on those hours and deduct taxes from their paychecks before rolling them out during payday. Naturally, they would typically use automated software.
Payroll is part and parcel of any business, no matter the industry. Plenty of accounting tasks necessitate payroll processing, from tracking your employees' work hours to delivering their wages on time. While these tasks can be done independently and manually, doing so will be time-consuming and may lead to unintentional errors.
So, switch to stress-free automated payroll management with Unloop's payroll services. Our team of professionals uses efficient, up-to-date tools like QuickBooks to ensure automated, organized, and efficient payroll processing for your company. Book a call with us today!
Accounting helps you keep an eye on your finances and make sure that your decisions are based on the financial status of your company. Accounting is already challenging as it is, but no matter how complicated, you must try to learn it. You know that the task is essential for the success of your venture.
Part of learning accounting is also being aware of the challenges you may face. Knowing the roadblocks early will help you avoid them or be prepared in case you face them. We’ll also give you some software suggestions to help solve your problems.
Let's go straight to the most complicated part, even more complex than learning accounting itself—the problems you’ll face. Note that these problems are common, so your chances of experiencing them are high. Yet, knowing them will lessen the fear and let you prepare ahead of time.
Individuals who manually input details from physical receipts and documents may commit mistakes. Worse, because the documents are hard copies, they easily get lost or destroyed. The problem of errors in the book can be rooted in a manual accounting system through the use of Excel sheets.
Lack of automation also means several Excel sheets containing various financial information about your business are collated. To put all details in one sheet, a rigorous process of adding formulas and rules occurs where human error may happen. This file may also be corrupted and unrecoverable because it is saved on one single computer.
Shopify has a built-in inventory management system that you can utilize to ensure that your products are in stock, that you have visibility on storage costs, and that you can optimize your fulfillment.
Although Shopify provides this valuable information, you can only make the most of it if you integrate it into your main accounting system. The integration lets you see how your Shopify inventory affects your business operations.
You can extract the data and collate it with your books on an Excel sheet. But again, this process is more error-prone than integrating Shopify inventory data into the accounting software you invested in.
As an ecommerce seller, you need to study sales taxes. When applicable, you need to charge your customers with it as they check out. Shopify helps sellers like you by setting the sales tax and including it in the details customers see when they checkout. However, the platform does not collect nor remit these taxes. Those accounting tasks will be yours to handle.
It is a common mistake not to invest in accounting or tax software to help you with the computation, collection, and remittance. Doing it alone can increase the chances of wrong calculations and remitting the wrong tax amount.
Failure to get payment from customers on time or the inability to pay suppliers right away affects your cash flow. It is even more challenging when you are doing cash-based accounting, as you won’t get a complete view of your finances. You may spend more than you should, not knowing that there are pending costs you still need to pay. You may also become too thrifty, holding off on investing because some income is not recorded yet.
The root cause is not using accrual accounting. With manual accounting, you don’t get invoicing features that automate payment reminders for both your customers and your business, so you avoid losing out on income.
The advantage of knowing the challenges you’ll face when doing your Shopify accounting is that you’ll have the chance to do it right. Aside from keeping in mind the problems you might face above, here are more tips on ensuring your Shopify accounting is done correctly.
The first correct step you can do for your Shopify business is to invest in accounting software. The software will allow you to track income and expenses. You won’t worry about tax season when you have this data.
You can also integrate the data Shopify provides in this central accounting tool to have all your business’s financial data in one place. You’ll get many solutions from software, like accrual accounting, invoicing, bank reconciliation, different payment gateways, and more! All of which are meant to automate your processes and avoid human errors.
Shopify also provides inventory and sales tax data. Pick an accounting software compatible with Shopify to integrate the available information in the platform into your accounting tool. When integrated, the data from Shopify automatically goes into your accounting tool—categorized and organized. This process skips the hassle of using Excel sheets and zeroes out manual input. Hence, your data will always be updated and accurate.
Though you won’t have to rely on manual input, to ensure that your data is accurate, make it a habit to check your books regularly. Add this task to your daily routine, so the details you need to check are manageable. You can also address discrepancies and fraud right away when you diligently check.
Finally, make the most of your accounting software by generating the following reports:
Make sure you always look at the numbers before making any decision about your Shopify store. Whether it’s about your purchasing arrangements for your inventory, or if you’ll scale your business, the financial data from an accounting report should be your guide. It will help you plan how to spend your profit wisely.
You might have realized that many of the challenges mentioned above happen because of the need for more reliable software. Meanwhile, getting your Shopify accounting right means having an accounting tool to track and organize your business finances. You’re right on both counts! With that, here are some accounting software that integrates with Shopify to invest in.
Use QuickBooks so that you can handle your bookkeeping correctly. After signing up for a plan, QuickBooks will let you partner with a bookkeeper who will backtrack transactions if need be. From then on, your books will constantly be updated.
You can track your income and expenses, and these details get organized accordingly in the books. You won’t have any issues with manual data input as you can take pictures of physical receipts and documents to be included in your data pool.
The tool also handles bank connections, integrations to various payment gateways, invoicing, and payroll management.
Accrual accounting ensures you see income and expenses in a certain period instead of looking at your present-day finances. You’ll get this feature with Xero. You do not have to manually input financial data, as the software is an automation champion. You can send invoices with the “Pay Now” button to receive payments immediately. You can also make these invoices recurring for regular transactions.
Connect your bank accounts, credit card, and other payment gateways to the software, so all transactions in these channels are recorded. Have visibility of your Shopify inventory on Xero by integrating the data there. With complete financial data, tax season, and data reporting will be easier for you.
Sage50 cloud, previously known as Peachtree, is a reliable Shopify accounting tool for many reasons. To begin with, the tool handles your business accounting needs, from tracking your income and expenses and sending invoices, to monitoring time and projects.
This software is a step ahead by ensuring that even the human resource needs of a company are handled. If you grow your Shopify store with a bigger team, you can utilize this feature. Sage50 cloud also has construction and real estate-specific accounting features.
We hope that what you’ve read has prepared you to face any Shopify accounting challenges head-on. You can use the tips on getting accounting right to ensure you’ll overcome challenges when facing them. And, of course, you can keep problems at bay by investing in an accounting software as soon as you launch your Shopify store.
If you need assistance in bookkeeping and accounting, or in using the tool you choose to invest in, know that assistance from experts is always available. We at Unloop can be your partner. We use the latest and most credible accounting software to keep our clients' books organized. We’ll do the same for you.
Give us a call now and let’s discuss our offers.
Accounting helps you keep an eye on your finances and make sure that your decisions are based on the financial status of your company. Accounting is already challenging as it is, but no matter how complicated, you must try to learn it. You know that the task is essential for the success of your venture.
Part of learning accounting is also being aware of the challenges you may face. Knowing the roadblocks early will help you avoid them or be prepared in case you face them. We’ll also give you some software suggestions to help solve your problems.
Let's go straight to the most complicated part, even more complex than learning accounting itself—the problems you’ll face. Note that these problems are common, so your chances of experiencing them are high. Yet, knowing them will lessen the fear and let you prepare ahead of time.
Individuals who manually input details from physical receipts and documents may commit mistakes. Worse, because the documents are hard copies, they easily get lost or destroyed. The problem of errors in the book can be rooted in a manual accounting system through the use of Excel sheets.
Lack of automation also means several Excel sheets containing various financial information about your business are collated. To put all details in one sheet, a rigorous process of adding formulas and rules occurs where human error may happen. This file may also be corrupted and unrecoverable because it is saved on one single computer.
Shopify has a built-in inventory management system that you can utilize to ensure that your products are in stock, that you have visibility on storage costs, and that you can optimize your fulfillment.
Although Shopify provides this valuable information, you can only make the most of it if you integrate it into your main accounting system. The integration lets you see how your Shopify inventory affects your business operations.
You can extract the data and collate it with your books on an Excel sheet. But again, this process is more error-prone than integrating Shopify inventory data into the accounting software you invested in.
As an ecommerce seller, you need to study sales taxes. When applicable, you need to charge your customers with it as they check out. Shopify helps sellers like you by setting the sales tax and including it in the details customers see when they checkout. However, the platform does not collect nor remit these taxes. Those accounting tasks will be yours to handle.
It is a common mistake not to invest in accounting or tax software to help you with the computation, collection, and remittance. Doing it alone can increase the chances of wrong calculations and remitting the wrong tax amount.
Failure to get payment from customers on time or the inability to pay suppliers right away affects your cash flow. It is even more challenging when you are doing cash-based accounting, as you won’t get a complete view of your finances. You may spend more than you should, not knowing that there are pending costs you still need to pay. You may also become too thrifty, holding off on investing because some income is not recorded yet.
The root cause is not using accrual accounting. With manual accounting, you don’t get invoicing features that automate payment reminders for both your customers and your business, so you avoid losing out on income.
The advantage of knowing the challenges you’ll face when doing your Shopify accounting is that you’ll have the chance to do it right. Aside from keeping in mind the problems you might face above, here are more tips on ensuring your Shopify accounting is done correctly.
The first correct step you can do for your Shopify business is to invest in accounting software. The software will allow you to track income and expenses. You won’t worry about tax season when you have this data.
You can also integrate the data Shopify provides in this central accounting tool to have all your business’s financial data in one place. You’ll get many solutions from software, like accrual accounting, invoicing, bank reconciliation, different payment gateways, and more! All of which are meant to automate your processes and avoid human errors.
Shopify also provides inventory and sales tax data. Pick an accounting software compatible with Shopify to integrate the available information in the platform into your accounting tool. When integrated, the data from Shopify automatically goes into your accounting tool—categorized and organized. This process skips the hassle of using Excel sheets and zeroes out manual input. Hence, your data will always be updated and accurate.
Though you won’t have to rely on manual input, to ensure that your data is accurate, make it a habit to check your books regularly. Add this task to your daily routine, so the details you need to check are manageable. You can also address discrepancies and fraud right away when you diligently check.
Finally, make the most of your accounting software by generating the following reports:
Make sure you always look at the numbers before making any decision about your Shopify store. Whether it’s about your purchasing arrangements for your inventory, or if you’ll scale your business, the financial data from an accounting report should be your guide. It will help you plan how to spend your profit wisely.
You might have realized that many of the challenges mentioned above happen because of the need for more reliable software. Meanwhile, getting your Shopify accounting right means having an accounting tool to track and organize your business finances. You’re right on both counts! With that, here are some accounting software that integrates with Shopify to invest in.
Use QuickBooks so that you can handle your bookkeeping correctly. After signing up for a plan, QuickBooks will let you partner with a bookkeeper who will backtrack transactions if need be. From then on, your books will constantly be updated.
You can track your income and expenses, and these details get organized accordingly in the books. You won’t have any issues with manual data input as you can take pictures of physical receipts and documents to be included in your data pool.
The tool also handles bank connections, integrations to various payment gateways, invoicing, and payroll management.
Accrual accounting ensures you see income and expenses in a certain period instead of looking at your present-day finances. You’ll get this feature with Xero. You do not have to manually input financial data, as the software is an automation champion. You can send invoices with the “Pay Now” button to receive payments immediately. You can also make these invoices recurring for regular transactions.
Connect your bank accounts, credit card, and other payment gateways to the software, so all transactions in these channels are recorded. Have visibility of your Shopify inventory on Xero by integrating the data there. With complete financial data, tax season, and data reporting will be easier for you.
Sage50 cloud, previously known as Peachtree, is a reliable Shopify accounting tool for many reasons. To begin with, the tool handles your business accounting needs, from tracking your income and expenses and sending invoices, to monitoring time and projects.
This software is a step ahead by ensuring that even the human resource needs of a company are handled. If you grow your Shopify store with a bigger team, you can utilize this feature. Sage50 cloud also has construction and real estate-specific accounting features.
We hope that what you’ve read has prepared you to face any Shopify accounting challenges head-on. You can use the tips on getting accounting right to ensure you’ll overcome challenges when facing them. And, of course, you can keep problems at bay by investing in an accounting software as soon as you launch your Shopify store.
If you need assistance in bookkeeping and accounting, or in using the tool you choose to invest in, know that assistance from experts is always available. We at Unloop can be your partner. We use the latest and most credible accounting software to keep our clients' books organized. We’ll do the same for you.
Give us a call now and let’s discuss our offers.
Learning how to calculate accounts receivable is an important step towards better financial management, and the reason is obvious for anyone that owns a business; nobody wants to forget the money they're owed, especially when it's a huge amount.
In this blog, we'll discuss everything there is to know about accounts receivable, the formulas involved in calculating it, and why you need to keep tabs on this account that's on your company's balance sheet.
For starters, let's discuss what accounts receivable is. The short of it is that it's the money that customers owe a business on credit. But how does that happen exactly?
Accounts receivable are recorded on the business's books when a customer receives goods or services from the business but can't pay at the time of purchase.
For example, an Amazon seller may provide products to a client and invoice them for the products. If the client does not pay immediately, the amount owed by the client for the products is recorded as an accounts receivable.
Accounts receivable can also be accrued through installment payments or financing arrangements, such as when a customer purchases a product on credit and pays for it over time.
During the pandemic, many businesses learned that proper accounts receivable management can lead to sturdy financial positions. You see, accruing accounts receivable allows businesses to provide flexibility to their customers while still being able to track and manage the money owed to them.
Owing money can also work both ways. With accounts receivable, a business is owed by its customers for every product or service it sells on credit. Accounts payable is the opposite. It happens when the business owes its vendors or suppliers money for goods or services received but has yet to pay for them.
On the balance sheet, both accounts are recorded differently. Accounts receivable are recorded as assets, while accounts payable are considered liabilities.
A good balance between accounts receivable and accounts payable is critical for maintaining a healthy cash flow and financial stability.
Accounts receivable is only recognized as an asset when a business has a legal right to receive payment from a customer for goods or services that have been provided but not yet paid for.
Accounts receivable are classified as a current asset because it is expected to be collected relatively quickly, typically within 30 to 60 days. As such, accounts receivable represent an essential component of a business's overall financial health, as it reflects the amount of cash the business expects to receive soon.
Under the cash basis accounting method, accounts receivable are only recorded once payment is received. Any sales made on credit or outstanding invoices are recorded as revenue once the payment is received. Hence, the accounts receivable balance remains zero until the customer pays.
On the other hand, under the accrual accounting method, accounts receivable are recorded as soon as the sale is made or the service is provided, even if payment has yet to be received. This means that the revenue is recognized at the time of the sale or service, regardless of when payment is received. The accounts receivable balance reflects the total amount owed by customers as of the end of the reporting period.
So how do you calculate accounts receivable? Do you rely on accounting software to handle everything financial-related? Do you hire an accountant to deal with the math?
The truth is, it's best if new business owners like yourself understand how it's calculated to better maneuver net sales and other essential accounts in your day-to-day transactions.
Currently, there are two standard methods for accounts receivable calculation: the balance sheet method and the aging method.
The balance sheet method involves taking the total accounts receivable balance on the balance sheet and subtracting any allowances for doubtful accounts.
The allowance for doubtful accounts is an estimated amount of uncollectible debts based on experience or other factors. The result is the net accounts receivable balance, which represents the amount the business expects to collect from its customers.
Accounts Receivable (AR) - Allowance for Doubtful Accounts (ADA) = Net Accounts Receivable (NAR)
The aging method involves categorizing the accounts receivable by the age of the invoice or outstanding payment. Typically, businesses will group the accounts receivable in 30-day intervals, such as current, 1–30 days, 31–60 days, and so on.
For each age category, the business estimates the percentage of the outstanding balance likely to be collected. This percentage is based on historical data or industry averages. The sum of the estimated amounts for each age category is the total estimated accounts receivable balance.
(Amounts outstanding up to 30 days × Estimated percentage collectible) + (Amounts outstanding 31–60 days × Estimated percentage collectible) + (Amounts outstanding 61–90 days × Estimated percentage collectible) + (Amounts outstanding over 90 days × Estimated percentage collectible) = Total estimated accounts receivables
The balance sheet method is simple and quick but provides less detailed information on the accounts receivable than the aging method.
The aging method takes more time and effort to calculate, but it provides a more detailed breakdown of the accounts receivable by age, which can help determine which invoices are most overdue and require immediate attention.
Ultimately, businesses should choose the best method for their needs and resources.
Analyzing accounts receivable is vital for cash flow, financial planning, and risk management. It allows businesses to identify areas where they may be experiencing delays in payment or facing issues with collection, enabling them to take corrective action and improve their cash flow.
By understanding the trends and patterns in their accounts receivable, businesses can make more accurate financial projections and plan for future growth.
Now, there are several metrics that businesses can use to analyze accounts receivable. Here are some of the most commonly used ones.
This ratio measures how often a business collects its average accounts receivable balance during a given period. The accounts receivable turnover ratio formula is:
Accounts Receivable Turnover Ratio = Net Credit Sales / Average Accounts Receivable
A high ratio indicates that the business is collecting its receivables in a timely manner, while a low ratio indicates that the business is taking a long time to collect its receivables or needs a better collection process.
DSO measures the average number of days it takes for a business to collect payment on its sales. The formula for DSO is:
DSO = (Accounts Receivable / Net Credit Sales) x Number of Days in the Period
Unlike the accounts receivable turnover ratio, a lower DSO indicates that a business collects payment more quickly. In comparison, a higher DSO indicates that the business is taking longer to collect a payment, which can lead to cash flow problems and may require additional efforts to improve the accounts receivable collection process.
This ratio measures the percentage of accounts receivable the business writes off as bad debt. The formula is:
Bad Debt Ratio = (Total Bad Debts / Net Credit Sales) x 100
A lower lousy debt ratio indicates that the business effectively manages its accounts receivable and minimizes the risk of bad debts.
This metric measures the average number of days it takes for a business to collect payment on its accounts receivable. The formula is:
Average Collection Period = (Accounts Receivable / Net Credit Sales) x Number of Days in the Period
A lower average collection period indicates that the business is collecting payment more quickly, while a higher average collection period indicates the business is taking a long time to collect payment.
In the same way that we ought to calculate accounts receivable accurately, we want to be sure that we're managing collections responsibly. The goal is always to what your company collects so we can avoid future financial difficulties and maximize the company's ability to generate revenue.
To better manage your accounts receivables, here are a few tips that can help:
In conclusion, calculating and managing accounts receivable is critical to a business's financial health. It is important to regularly analyze accounts receivable, identify issues, and implement effective strategies to manage them.
At Unloop, we understand that and want to ensure you succeed.
By working with our accounting experts, you can focus on running your business while we handle your accounting needs, ensuring that your business stays on track and financially healthy—we’ve even got accounts payable services!
Contact us today to learn how we can help you manage your accounts receivable and achieve financial success.
Learning how to calculate accounts receivable is an important step towards better financial management, and the reason is obvious for anyone that owns a business; nobody wants to forget the money they're owed, especially when it's a huge amount.
In this blog, we'll discuss everything there is to know about accounts receivable, the formulas involved in calculating it, and why you need to keep tabs on this account that's on your company's balance sheet.
For starters, let's discuss what accounts receivable is. The short of it is that it's the money that customers owe a business on credit. But how does that happen exactly?
Accounts receivable are recorded on the business's books when a customer receives goods or services from the business but can't pay at the time of purchase.
For example, an Amazon seller may provide products to a client and invoice them for the products. If the client does not pay immediately, the amount owed by the client for the products is recorded as an accounts receivable.
Accounts receivable can also be accrued through installment payments or financing arrangements, such as when a customer purchases a product on credit and pays for it over time.
During the pandemic, many businesses learned that proper accounts receivable management can lead to sturdy financial positions. You see, accruing accounts receivable allows businesses to provide flexibility to their customers while still being able to track and manage the money owed to them.
Owing money can also work both ways. With accounts receivable, a business is owed by its customers for every product or service it sells on credit. Accounts payable is the opposite. It happens when the business owes its vendors or suppliers money for goods or services received but has yet to pay for them.
On the balance sheet, both accounts are recorded differently. Accounts receivable are recorded as assets, while accounts payable are considered liabilities.
A good balance between accounts receivable and accounts payable is critical for maintaining a healthy cash flow and financial stability.
Accounts receivable is only recognized as an asset when a business has a legal right to receive payment from a customer for goods or services that have been provided but not yet paid for.
Accounts receivable are classified as a current asset because it is expected to be collected relatively quickly, typically within 30 to 60 days. As such, accounts receivable represent an essential component of a business's overall financial health, as it reflects the amount of cash the business expects to receive soon.
Under the cash basis accounting method, accounts receivable are only recorded once payment is received. Any sales made on credit or outstanding invoices are recorded as revenue once the payment is received. Hence, the accounts receivable balance remains zero until the customer pays.
On the other hand, under the accrual accounting method, accounts receivable are recorded as soon as the sale is made or the service is provided, even if payment has yet to be received. This means that the revenue is recognized at the time of the sale or service, regardless of when payment is received. The accounts receivable balance reflects the total amount owed by customers as of the end of the reporting period.
So how do you calculate accounts receivable? Do you rely on accounting software to handle everything financial-related? Do you hire an accountant to deal with the math?
The truth is, it's best if new business owners like yourself understand how it's calculated to better maneuver net sales and other essential accounts in your day-to-day transactions.
Currently, there are two standard methods for accounts receivable calculation: the balance sheet method and the aging method.
The balance sheet method involves taking the total accounts receivable balance on the balance sheet and subtracting any allowances for doubtful accounts.
The allowance for doubtful accounts is an estimated amount of uncollectible debts based on experience or other factors. The result is the net accounts receivable balance, which represents the amount the business expects to collect from its customers.
Accounts Receivable (AR) - Allowance for Doubtful Accounts (ADA) = Net Accounts Receivable (NAR)
The aging method involves categorizing the accounts receivable by the age of the invoice or outstanding payment. Typically, businesses will group the accounts receivable in 30-day intervals, such as current, 1–30 days, 31–60 days, and so on.
For each age category, the business estimates the percentage of the outstanding balance likely to be collected. This percentage is based on historical data or industry averages. The sum of the estimated amounts for each age category is the total estimated accounts receivable balance.
(Amounts outstanding up to 30 days × Estimated percentage collectible) + (Amounts outstanding 31–60 days × Estimated percentage collectible) + (Amounts outstanding 61–90 days × Estimated percentage collectible) + (Amounts outstanding over 90 days × Estimated percentage collectible) = Total estimated accounts receivables
The balance sheet method is simple and quick but provides less detailed information on the accounts receivable than the aging method.
The aging method takes more time and effort to calculate, but it provides a more detailed breakdown of the accounts receivable by age, which can help determine which invoices are most overdue and require immediate attention.
Ultimately, businesses should choose the best method for their needs and resources.
Analyzing accounts receivable is vital for cash flow, financial planning, and risk management. It allows businesses to identify areas where they may be experiencing delays in payment or facing issues with collection, enabling them to take corrective action and improve their cash flow.
By understanding the trends and patterns in their accounts receivable, businesses can make more accurate financial projections and plan for future growth.
Now, there are several metrics that businesses can use to analyze accounts receivable. Here are some of the most commonly used ones.
This ratio measures how often a business collects its average accounts receivable balance during a given period. The accounts receivable turnover ratio formula is:
Accounts Receivable Turnover Ratio = Net Credit Sales / Average Accounts Receivable
A high ratio indicates that the business is collecting its receivables in a timely manner, while a low ratio indicates that the business is taking a long time to collect its receivables or needs a better collection process.
DSO measures the average number of days it takes for a business to collect payment on its sales. The formula for DSO is:
DSO = (Accounts Receivable / Net Credit Sales) x Number of Days in the Period
Unlike the accounts receivable turnover ratio, a lower DSO indicates that a business collects payment more quickly. In comparison, a higher DSO indicates that the business is taking longer to collect a payment, which can lead to cash flow problems and may require additional efforts to improve the accounts receivable collection process.
This ratio measures the percentage of accounts receivable the business writes off as bad debt. The formula is:
Bad Debt Ratio = (Total Bad Debts / Net Credit Sales) x 100
A lower lousy debt ratio indicates that the business effectively manages its accounts receivable and minimizes the risk of bad debts.
This metric measures the average number of days it takes for a business to collect payment on its accounts receivable. The formula is:
Average Collection Period = (Accounts Receivable / Net Credit Sales) x Number of Days in the Period
A lower average collection period indicates that the business is collecting payment more quickly, while a higher average collection period indicates the business is taking a long time to collect payment.
In the same way that we ought to calculate accounts receivable accurately, we want to be sure that we're managing collections responsibly. The goal is always to what your company collects so we can avoid future financial difficulties and maximize the company's ability to generate revenue.
To better manage your accounts receivables, here are a few tips that can help:
In conclusion, calculating and managing accounts receivable is critical to a business's financial health. It is important to regularly analyze accounts receivable, identify issues, and implement effective strategies to manage them.
At Unloop, we understand that and want to ensure you succeed.
By working with our accounting experts, you can focus on running your business while we handle your accounting needs, ensuring that your business stays on track and financially healthy—we’ve even got accounts payable services!
Contact us today to learn how we can help you manage your accounts receivable and achieve financial success.
Understanding your business finances is the key to managing your business properly. Business cash flow dictates business operations. You should have sufficient balance to pay your obligations such as wages, taxes and suppliers, while ensuring that a good amount comes into your business for a positive income.
The amount of money coming in and out can make or break a business. In this article, we'll talk about the difference between cash inflow and outflow and tips to help manage them to maintain positive overall financial health.
The net amount of money entering and leaving your business is known as cash flow. It disregards the funds in your bank account and credit from suppliers. Cash flow also does not count the money that other businesses owe you. Cash flow is plainly the cash coming and leaving your business in a certain period: weekly, monthly, quarterly or annually.
Understanding business cash flow is crucial. It lets you see if you have enough resources to pay for your business operations—like rent, supplies, employee wages, and other operational costs. Business cash flow also helps your business grow. Investors and banks use cash flow statements to assess your overall financial health and see if you can be eligible for loans and investments.
There are three ways that money enters and leaves your company. To help you better comprehend each of them, let's look at each one in more detail.
Operating Activities
Operating cash flow is money that comes in and out of your business through basic business operations such as creating sales or providing services. Inflow from operating activities is the net income you make from selling your products or service, inventory and accounts receivable.
Cash outflow is related to operating activities where you spend resources on the cost of production, rent, marketing and advertising efforts, taxes, and employee salary.
Investing Activities
The money that passes throughout your business as a result of the company's investment is known as cash flow from investing activities. A company can have short-term or long-term investments. For example, getting government-issued bonds like bills and floating-rate notes are short-term investments.
Buying new equipment or purchasing a building to house your business is a long-term investment for businesses. The money you used to buy these investments is considered outflow. Cash outflow is more common in investing activities.
Financing Activities
Cash flow from financing activities include stock sales, loans, dividend payments, and long-term debt payments. Cash inflow in this category is the money you receive when you apply for loans and the ones you generate from selling stock and equity.
Cash outflow in financing activities is money you use to repay the principal amount of existing debts and dividend payments.
Cash inflow is the money coming into your business. Simply put, cash inflow is all the money that goes into your business, whether from investments or selling your products and services. When the cash inflow for your company exceeds the cash outflow, you have a positive cash flow.
A positive cash flow guarantees that business operations can run smoothly and without problems. It is a good indication that you have enough resources to keep your business operations running, and that you can allocate some of them toward business growth.
Cash outflow is the money moving out of your business. The money you use to pay for your business to continue operating is outflow. Rent, wages, operating costs, buying inventory, and interest payments for the loans you borrow are all outflows.
Startups and new businesses may experience more cash outflow in the beginning. Since all their resources are used to launch the business, more outflow is expected. However, once you start selling, you can break even and generate more cash inflow.
When you have been running your business for quite some time, and your cash outflow is still greater than the inflow, it is an indication of negative cash flow. This can be the start of the downfall of your business.
But it's not too late! We have some tips to help your business generate positive cash flow.
It's always good for a business to take on long-term projects with big payouts. But when a project is spread over a long period of time, the more difficult it is to pay bills to enable the project to continue.
Ask for a deposit and establish milestones to avoid burning out your resources. The initial deposits will help you buy the materials you need, and the milestones will allow your clients to see your progress and keep cash flow consistent.
One way to keep a positive cash flow is to increase your prices. If you're worried you'll lose clients with a price increase, you can experiment with it. For example, you can sell products for higher prices to new customers and retain the price for your returning and loyal customers.
You can also increase the price for some of your products and retain the original price for others so your customers won't be perplexed by the price changes while you keep a positive cash flow.
Sales and revenue are just one part of a business's cash flow. You can keep a positive cash flow by controlling your expenses. Negotiating with suppliers can be advantageous to business owners. For example, bulk ordering supplies can give you discounts.
You can enjoy free or discounted shipping rates if you order from suppliers in your locality. Negotiating with suppliers can lessen your expenses, equating to an improved and positive cash flow.
Many business owners think that investing in technology is an unnecessary expense. Technology is advancing rapidly, and some are designed to reduce production costs. There are pieces of machinery that can do what humans do. Technology can do tasks faster and more efficiently which means you can hire fewer people—saving your payment on wages and other expenses.
Look for technology that will make your production more efficient. However, always consider its price. If you're buying a piece of equipment, ensure you have enough resources to purchase it, and that it will not affect any of your business operations.
Now that you are aware of how vital business cash flow is, managing it properly should be on top of your list. If you're new to the business and are still confused about how cash flow works, Unloop is here to help you.
Unloop offers professional ecommerce accounting services, and organized bookkeeping is the key to getting an overview of your business cash flow status. Our bookkeeping services include:
Cash flow is just one part of running a business, and we hope this blog post gives you a better understanding of your finances. For more professional accounting help, book a call and work with Unloop today!
Understanding your business finances is the key to managing your business properly. Business cash flow dictates business operations. You should have sufficient balance to pay your obligations such as wages, taxes and suppliers, while ensuring that a good amount comes into your business for a positive income.
The amount of money coming in and out can make or break a business. In this article, we'll talk about the difference between cash inflow and outflow and tips to help manage them to maintain positive overall financial health.
The net amount of money entering and leaving your business is known as cash flow. It disregards the funds in your bank account and credit from suppliers. Cash flow also does not count the money that other businesses owe you. Cash flow is plainly the cash coming and leaving your business in a certain period: weekly, monthly, quarterly or annually.
Understanding business cash flow is crucial. It lets you see if you have enough resources to pay for your business operations—like rent, supplies, employee wages, and other operational costs. Business cash flow also helps your business grow. Investors and banks use cash flow statements to assess your overall financial health and see if you can be eligible for loans and investments.
There are three ways that money enters and leaves your company. To help you better comprehend each of them, let's look at each one in more detail.
Operating Activities
Operating cash flow is money that comes in and out of your business through basic business operations such as creating sales or providing services. Inflow from operating activities is the net income you make from selling your products or service, inventory and accounts receivable.
Cash outflow is related to operating activities where you spend resources on the cost of production, rent, marketing and advertising efforts, taxes, and employee salary.
Investing Activities
The money that passes throughout your business as a result of the company's investment is known as cash flow from investing activities. A company can have short-term or long-term investments. For example, getting government-issued bonds like bills and floating-rate notes are short-term investments.
Buying new equipment or purchasing a building to house your business is a long-term investment for businesses. The money you used to buy these investments is considered outflow. Cash outflow is more common in investing activities.
Financing Activities
Cash flow from financing activities include stock sales, loans, dividend payments, and long-term debt payments. Cash inflow in this category is the money you receive when you apply for loans and the ones you generate from selling stock and equity.
Cash outflow in financing activities is money you use to repay the principal amount of existing debts and dividend payments.
Cash inflow is the money coming into your business. Simply put, cash inflow is all the money that goes into your business, whether from investments or selling your products and services. When the cash inflow for your company exceeds the cash outflow, you have a positive cash flow.
A positive cash flow guarantees that business operations can run smoothly and without problems. It is a good indication that you have enough resources to keep your business operations running, and that you can allocate some of them toward business growth.
Cash outflow is the money moving out of your business. The money you use to pay for your business to continue operating is outflow. Rent, wages, operating costs, buying inventory, and interest payments for the loans you borrow are all outflows.
Startups and new businesses may experience more cash outflow in the beginning. Since all their resources are used to launch the business, more outflow is expected. However, once you start selling, you can break even and generate more cash inflow.
When you have been running your business for quite some time, and your cash outflow is still greater than the inflow, it is an indication of negative cash flow. This can be the start of the downfall of your business.
But it's not too late! We have some tips to help your business generate positive cash flow.
It's always good for a business to take on long-term projects with big payouts. But when a project is spread over a long period of time, the more difficult it is to pay bills to enable the project to continue.
Ask for a deposit and establish milestones to avoid burning out your resources. The initial deposits will help you buy the materials you need, and the milestones will allow your clients to see your progress and keep cash flow consistent.
One way to keep a positive cash flow is to increase your prices. If you're worried you'll lose clients with a price increase, you can experiment with it. For example, you can sell products for higher prices to new customers and retain the price for your returning and loyal customers.
You can also increase the price for some of your products and retain the original price for others so your customers won't be perplexed by the price changes while you keep a positive cash flow.
Sales and revenue are just one part of a business's cash flow. You can keep a positive cash flow by controlling your expenses. Negotiating with suppliers can be advantageous to business owners. For example, bulk ordering supplies can give you discounts.
You can enjoy free or discounted shipping rates if you order from suppliers in your locality. Negotiating with suppliers can lessen your expenses, equating to an improved and positive cash flow.
Many business owners think that investing in technology is an unnecessary expense. Technology is advancing rapidly, and some are designed to reduce production costs. There are pieces of machinery that can do what humans do. Technology can do tasks faster and more efficiently which means you can hire fewer people—saving your payment on wages and other expenses.
Look for technology that will make your production more efficient. However, always consider its price. If you're buying a piece of equipment, ensure you have enough resources to purchase it, and that it will not affect any of your business operations.
Now that you are aware of how vital business cash flow is, managing it properly should be on top of your list. If you're new to the business and are still confused about how cash flow works, Unloop is here to help you.
Unloop offers professional ecommerce accounting services, and organized bookkeeping is the key to getting an overview of your business cash flow status. Our bookkeeping services include:
Cash flow is just one part of running a business, and we hope this blog post gives you a better understanding of your finances. For more professional accounting help, book a call and work with Unloop today!
Supervising finances and keeping track of daily payments for business operations is challenging. There are obligations to your suppliers and business operations, such as rent, electricity bills, and employee payroll. As their business gets busier and bigger, owners tend to forget their payables, and if they don’t, manually tracking them makes them prone to errors.
Luckily for business owners, accounts payable software exists. AP automation software solution helps businesses manage their payable processes conveniently.
If you're considering investing in an AP automation solution, we have some of the top features you should look for that will benefit your business.
Invoicing should be the top feature you look for in AP software. The system can tell you how much you need to pay, notify you of your deadlines, and tell which people or businesses you owe money to. There are accounts payable solutions that can handle invoicing efficiently.
Accounts payable software can also store and collect basic details such as addresses, names, account numbers, and terms and conditions for each individual or organization you owe payments to. A software can receive thousands of invoice data and record them from the moment your business receives them and is done with the payment.
Delayed payments are often caused by human error. According to research, almost 47% of business owners find the payment process tedious and lengthy. Business owners don't need to worry about forgetting their dues because AP solutions automate payment processes.
Accounts payable software will help business owners skip the lengthy process. All they need to do is input the specifics like name, amount, and date of payment, and the software will do the rest.
It is not enough that you pay your dues. It is also crucial to keep track of the payments to ensure that you pay the correct amount and not over or under. Many accounts payable systems can generate expense reports for your business.
You can access the data in real-time and use them to analyze your business spending patterns to strategize on areas where you can reduce your expenses and improve savings.
There are instances where businesses get their products from international suppliers. VAT and GST global compliance regulations change from time to time. According to studies, almost 70% of VAT documents from manual processes contain errors. Implementing accounts payable software for your business reduces the risk of errors and makes international invoicing workflow faster.
If your business's accounts payable department does things manually, there is a high chance that you experienced discontinued and confusing workflow. Your workflow probably goes like this: signing in to different tools, looking up in your list of supplier invoices which ones are dues, calculating the amount, manually creating an invoice, and finally sending them.
We won't be surprised after all the things you have to go through, you forget to send the payment. One of the benefits of AP automation solutions is you can do all accounts payable processes in one software—from sending payments and updating the payment status, to recording them.
Receipts are essential business documents, but paper invoices are easy to lose and hard to organize. Accounts payable solutions make the shift to paperless transactions, so all your expense receipts are stored on the cloud, and you access them anytime and anywhere.
Moreover, AP software allows touchless invoice processing, allowing accounts payable managers and teams to manage all your invoices correctly and on time and take advantage of early payment discounts.
This feature may not be for everybody, but it certainly makes the software more flexible. Whether you're at home, in the office, or anywhere, wouldn't it be easier to see information on your payables whenever you need it, or when you need to generate a quick report or instantly pay a supplier? Cloud-based software options are generally suitable for businesses that involve remote work.
Some businesses still prefer to do things the old-fashioned way. Who can blame them? Although it is time-consuming, traditional methods are practically free. But before you decide to go old school, here are some downsides to it.
Human errors are one of the crucial dangers of manually doing accounts payables. From simple arithmetic mistakes to more complex errors and miscommunication on transactions, there are a number of things that can go wrong in doing things manually. Even a tiny mistake can cause enormous consequences, especially for small businesses.
Reports are essential to assess the status of your business. When you rely on manual reports, you are limited to generating reports in a short time frame. If you want an annual expense report, you'll have to review tons of records and put them together. You'll spend more than a week just doing that.
It will be harder for your business to spot patterns and identify pain points because you can't see the bigger picture. If problems need addressing, you won't be able to spot them before they become significant.
When your business grows, the more data you need to track and record. When you expand your business, you'll probably do business with more vendors, and committing due dates to memory is impossible. Your transactions will increase, and keeping up with them will be more challenging.
The bottom line, a manual accounts payable system is not scalable. In the long run, it will only cause your business more complications.
There are hundreds of accounts payable software you can use for your business. Before you make an investment, ensure that the software solution you purchase can meet your business's account payable needs. Here are some of the best AP automation solutions for small businesses.
QuickBooks Online is an all-in-one accounting system. It can do all your essential accounting tasks, including accounts payables. QuickBooks Online has both web-based and mobile versions, and you can use it as a cloud-based or a desktop program.
Here are some of its key features:
NetSuite is a cloud accounting solution that automates business payment processes such as processing supplier invoices, transaction matching, journal entries, and reconciliations. NetSuite automates the majority of accounting processes, so it eliminates manual tasks and significantly reduces human error.
Here are the top features of NetSuite:
TeamPay is an automated invoice processing software that handles routing for approval and payments, provides complete visibility into POs, and creates and pays bills via virtual cards, checks, wire, or ACH.
Here are some of the highlights of TeamPay:
Airbase is an all-in-one spend management platform that gives businesses control over every dollar they spend. In one automated platform, you can create bills and invoices, schedule and send payments, and sync with your accounting system.
Here are more of its outstanding features:
If accounts payable procedures are slowing you down, maybe it's time to get a professional to handle it. Luckily, Unloop provides accounts payable services to help small business owners. Here is an overview of our accounts payable service:
Handling accounts payable properly is vital for a business. If you can't fund your business expenses or pay suppliers, you won't be able to run it smoothly. We hope this article encourages you to invest in accounts payable software.
For more professional accounting services, check out Unloop and book a free call with us today!
Supervising finances and keeping track of daily payments for business operations is challenging. There are obligations to your suppliers and business operations, such as rent, electricity bills, and employee payroll. As their business gets busier and bigger, owners tend to forget their payables, and if they don’t, manually tracking them makes them prone to errors.
Luckily for business owners, accounts payable software exists. AP automation software solution helps businesses manage their payable processes conveniently.
If you're considering investing in an AP automation solution, we have some of the top features you should look for that will benefit your business.
Invoicing should be the top feature you look for in AP software. The system can tell you how much you need to pay, notify you of your deadlines, and tell which people or businesses you owe money to. There are accounts payable solutions that can handle invoicing efficiently.
Accounts payable software can also store and collect basic details such as addresses, names, account numbers, and terms and conditions for each individual or organization you owe payments to. A software can receive thousands of invoice data and record them from the moment your business receives them and is done with the payment.
Delayed payments are often caused by human error. According to research, almost 47% of business owners find the payment process tedious and lengthy. Business owners don't need to worry about forgetting their dues because AP solutions automate payment processes.
Accounts payable software will help business owners skip the lengthy process. All they need to do is input the specifics like name, amount, and date of payment, and the software will do the rest.
It is not enough that you pay your dues. It is also crucial to keep track of the payments to ensure that you pay the correct amount and not over or under. Many accounts payable systems can generate expense reports for your business.
You can access the data in real-time and use them to analyze your business spending patterns to strategize on areas where you can reduce your expenses and improve savings.
There are instances where businesses get their products from international suppliers. VAT and GST global compliance regulations change from time to time. According to studies, almost 70% of VAT documents from manual processes contain errors. Implementing accounts payable software for your business reduces the risk of errors and makes international invoicing workflow faster.
If your business's accounts payable department does things manually, there is a high chance that you experienced discontinued and confusing workflow. Your workflow probably goes like this: signing in to different tools, looking up in your list of supplier invoices which ones are dues, calculating the amount, manually creating an invoice, and finally sending them.
We won't be surprised after all the things you have to go through, you forget to send the payment. One of the benefits of AP automation solutions is you can do all accounts payable processes in one software—from sending payments and updating the payment status, to recording them.
Receipts are essential business documents, but paper invoices are easy to lose and hard to organize. Accounts payable solutions make the shift to paperless transactions, so all your expense receipts are stored on the cloud, and you access them anytime and anywhere.
Moreover, AP software allows touchless invoice processing, allowing accounts payable managers and teams to manage all your invoices correctly and on time and take advantage of early payment discounts.
This feature may not be for everybody, but it certainly makes the software more flexible. Whether you're at home, in the office, or anywhere, wouldn't it be easier to see information on your payables whenever you need it, or when you need to generate a quick report or instantly pay a supplier? Cloud-based software options are generally suitable for businesses that involve remote work.
Some businesses still prefer to do things the old-fashioned way. Who can blame them? Although it is time-consuming, traditional methods are practically free. But before you decide to go old school, here are some downsides to it.
Human errors are one of the crucial dangers of manually doing accounts payables. From simple arithmetic mistakes to more complex errors and miscommunication on transactions, there are a number of things that can go wrong in doing things manually. Even a tiny mistake can cause enormous consequences, especially for small businesses.
Reports are essential to assess the status of your business. When you rely on manual reports, you are limited to generating reports in a short time frame. If you want an annual expense report, you'll have to review tons of records and put them together. You'll spend more than a week just doing that.
It will be harder for your business to spot patterns and identify pain points because you can't see the bigger picture. If problems need addressing, you won't be able to spot them before they become significant.
When your business grows, the more data you need to track and record. When you expand your business, you'll probably do business with more vendors, and committing due dates to memory is impossible. Your transactions will increase, and keeping up with them will be more challenging.
The bottom line, a manual accounts payable system is not scalable. In the long run, it will only cause your business more complications.
There are hundreds of accounts payable software you can use for your business. Before you make an investment, ensure that the software solution you purchase can meet your business's account payable needs. Here are some of the best AP automation solutions for small businesses.
QuickBooks Online is an all-in-one accounting system. It can do all your essential accounting tasks, including accounts payables. QuickBooks Online has both web-based and mobile versions, and you can use it as a cloud-based or a desktop program.
Here are some of its key features:
NetSuite is a cloud accounting solution that automates business payment processes such as processing supplier invoices, transaction matching, journal entries, and reconciliations. NetSuite automates the majority of accounting processes, so it eliminates manual tasks and significantly reduces human error.
Here are the top features of NetSuite:
TeamPay is an automated invoice processing software that handles routing for approval and payments, provides complete visibility into POs, and creates and pays bills via virtual cards, checks, wire, or ACH.
Here are some of the highlights of TeamPay:
Airbase is an all-in-one spend management platform that gives businesses control over every dollar they spend. In one automated platform, you can create bills and invoices, schedule and send payments, and sync with your accounting system.
Here are more of its outstanding features:
If accounts payable procedures are slowing you down, maybe it's time to get a professional to handle it. Luckily, Unloop provides accounts payable services to help small business owners. Here is an overview of our accounts payable service:
Handling accounts payable properly is vital for a business. If you can't fund your business expenses or pay suppliers, you won't be able to run it smoothly. We hope this article encourages you to invest in accounts payable software.
For more professional accounting services, check out Unloop and book a free call with us today!
Behind every successful ecommerce business is an understanding of how ecommerce accounting works. When running an online business, accounting has a vital role to play in ensuring your business is on the right track for positive growth.
As a business owner, you can do your own accounting or partner with a professional to help with your business finances. In this blog post, we'll talk about the fundamental roles of a Shopify accountant to see if you can handle your finances yourself.
It is vital for every business to keep track of its cash flow to have complete transparency of how much money you have in your business accounts. If your personal and business bank accounts are merged, you basically have twice the amount of work to do.
The money going in and out of your business is an excellent way to tell if your business is doing good. If your business is getting more than you expect, it's a good indication that your sales are booming. Always have a separate business bank account to track your cash flow conveniently.
Furthermore, having a separate bank account means that you can have a clear picture of your business expenses. You can guarantee that you can pay your obligations on time, or strategize if you are spending too much.
If you are an online seller, you have an inventory of the items you sell. Keeping track of your goods will help you decide which goods to stock up on or slow down on. Inventory management is also the responsibility of an accountant.
When an item is not popular, it gets stuck in your inventory and is considered a capital lockup. You can release these goods through various means (e.g., promos, sales, and bundles), but it's always risky since you can end up earning less than what you paid for when you ordered those products.
Inventory shrinkage is something else to watch out for as an accountant. It is common in small businesses where employees can easily steal from the inventory, or where vendor fraud and damaged goods are common. This shrinkage can negatively affect an ecommerce business.
Creating detailed financial reports is crucial for every business. These statements contain financial data and key metrics that reflect the status of your Shopify business. Here are some of the financial reports important for ecommerce businesses.
There are even more financial reports that accountants can whip up for your business. They should be able to produce them for your business when you need them for documentation, business planning, and other management tasks.
Accounting for Shopify means tax obligations. The central role of accountants for small businesses is to ensure they pay their taxes on time and correctly. Accountants handle tax planning by filling out income tax returns and preparing necessary financial reports for the accounting period.
Part of the accounting process is providing strategies regarding taxes. Accountants can give small business owners tips on reducing their overall tax obligations. They also ensure your business follows global sales tax compliance and doesn't pay more taxes than what is necessary.
Ecommerce accounting entails various accounting tasks. Accounting is not just about taxes. There's financial management, creating reports, inventory, and many more tasks. Accountants should utilize a proper accounting software to do repetitive tasks such as sending and creative invoices or automatically recording transactions.
There are free accounting software options that accountants can use to cover the basic accounting tasks of Shopify businesses. But if you have the budget for it, you can invest in more advanced accounting software options for a smoother and more convenient accounting process.
Organized bookkeeping is the backbone of a successful accounting process. Bookkeeping involves recording and organizing all business transactions. You can hire a bookkeeper, but a professional accountant can also handle bookkeeping for your Shopify business.
Bookkeeping is usually divided into two different categories: account receivables and account payables. Account receivables are sales made or money you receive when a customer buys from your business. Account payables are your obligations and business expenses.
The million dollar question is, is it worth hiring an accountant? The answer is a definite yes! For small Shopify sellers, an accountant may sound like an unnecessary expense, but here are some reasons why hiring an accountant is a good idea.
Whether you need bookkeeping for Shopify or an accountant to help with the finances of your Shopify store, Unloop is the expert ecommerce accounting solution for you. We have a reliable finance team who are all experts in ecommerce.
Our services include:
Doing business accounting on your own can be overwhelming. Take advantage of professional services for ecommerce accounting. Unloop can get everything done for you. so you can spend time marketing and growing your business while we handle your finances.
If you are looking for a Shopify accountant, book a call with us today!
Behind every successful ecommerce business is an understanding of how ecommerce accounting works. When running an online business, accounting has a vital role to play in ensuring your business is on the right track for positive growth.
As a business owner, you can do your own accounting or partner with a professional to help with your business finances. In this blog post, we'll talk about the fundamental roles of a Shopify accountant to see if you can handle your finances yourself.
It is vital for every business to keep track of its cash flow to have complete transparency of how much money you have in your business accounts. If your personal and business bank accounts are merged, you basically have twice the amount of work to do.
The money going in and out of your business is an excellent way to tell if your business is doing good. If your business is getting more than you expect, it's a good indication that your sales are booming. Always have a separate business bank account to track your cash flow conveniently.
Furthermore, having a separate bank account means that you can have a clear picture of your business expenses. You can guarantee that you can pay your obligations on time, or strategize if you are spending too much.
If you are an online seller, you have an inventory of the items you sell. Keeping track of your goods will help you decide which goods to stock up on or slow down on. Inventory management is also the responsibility of an accountant.
When an item is not popular, it gets stuck in your inventory and is considered a capital lockup. You can release these goods through various means (e.g., promos, sales, and bundles), but it's always risky since you can end up earning less than what you paid for when you ordered those products.
Inventory shrinkage is something else to watch out for as an accountant. It is common in small businesses where employees can easily steal from the inventory, or where vendor fraud and damaged goods are common. This shrinkage can negatively affect an ecommerce business.
Creating detailed financial reports is crucial for every business. These statements contain financial data and key metrics that reflect the status of your Shopify business. Here are some of the financial reports important for ecommerce businesses.
There are even more financial reports that accountants can whip up for your business. They should be able to produce them for your business when you need them for documentation, business planning, and other management tasks.
Accounting for Shopify means tax obligations. The central role of accountants for small businesses is to ensure they pay their taxes on time and correctly. Accountants handle tax planning by filling out income tax returns and preparing necessary financial reports for the accounting period.
Part of the accounting process is providing strategies regarding taxes. Accountants can give small business owners tips on reducing their overall tax obligations. They also ensure your business follows global sales tax compliance and doesn't pay more taxes than what is necessary.
Ecommerce accounting entails various accounting tasks. Accounting is not just about taxes. There's financial management, creating reports, inventory, and many more tasks. Accountants should utilize a proper accounting software to do repetitive tasks such as sending and creative invoices or automatically recording transactions.
There are free accounting software options that accountants can use to cover the basic accounting tasks of Shopify businesses. But if you have the budget for it, you can invest in more advanced accounting software options for a smoother and more convenient accounting process.
Organized bookkeeping is the backbone of a successful accounting process. Bookkeeping involves recording and organizing all business transactions. You can hire a bookkeeper, but a professional accountant can also handle bookkeeping for your Shopify business.
Bookkeeping is usually divided into two different categories: account receivables and account payables. Account receivables are sales made or money you receive when a customer buys from your business. Account payables are your obligations and business expenses.
The million dollar question is, is it worth hiring an accountant? The answer is a definite yes! For small Shopify sellers, an accountant may sound like an unnecessary expense, but here are some reasons why hiring an accountant is a good idea.
Whether you need bookkeeping for Shopify or an accountant to help with the finances of your Shopify store, Unloop is the expert ecommerce accounting solution for you. We have a reliable finance team who are all experts in ecommerce.
Our services include:
Doing business accounting on your own can be overwhelming. Take advantage of professional services for ecommerce accounting. Unloop can get everything done for you. so you can spend time marketing and growing your business while we handle your finances.
If you are looking for a Shopify accountant, book a call with us today!
Every business owner knows accounting is central to a business, especially in ecommerce. If you're a seller on Amazon, lacking proper accounting can ruin your business. But accounting isn’t easy—there’s so much you need to keep track of. Here’s a rundown of what you need to focus on in Amazon seller accounting to get your finances in order.
Finances are the lifeblood of any business, and if you want to run your business effectively, you'll have to back it up with some good accounting.
Accounting keeps your finances in check by documenting all transactions and making forecasts from them for future use. A proper accounting system is also crucial for tracking sales tax and other essential tax obligations so your business thrives uninterrupted by legal liability.
In the Amazon marketplace, a good accounting system is the key to success. It tracks your business's revenue and checks how many orders you send out, and if you've lost any goods in Amazon FBA, saving you money when it comes time to refund your losses.
Ecommerce accounting is more complicated than you think. If you run an Amazon business, your accounting needs to be tip-top. In addition to various advertising strategies, you also have to deal with taxes and operating expenses—surely, you'll need some help from experts.
Tracking your assets is vital to your ecommerce business’s survival. If your business uses Amazon FBA, you’ll need an accounting system that keeps track of your company’s assets and the products shipped to customers, and that’s no easy task. Here are some areas your accounting needs to focus on to keep your Amazon FBA business in good shape.
Amazon FBA takes the responsibility of storing inventory and shipping independently from sellers who take part in the program. To keep up with the massive demand, Amazon uses fulfillment centers to store goods and later ship them to customers.
However, fulfillment centers don’t serve sellers. So as an ecommerce business owner, you’ll have to keep track of inventory on your own.
Make sure your accounting system has inventory management as a feature. So in case you lose a unit or two in the warehouse, you’ll know where to find them. More importantly, you’ll have proof that your losses are Amazon’s fault and not yours (which we’ll get to more later).
Even though Amazon provides warehouses for sellers to store their FBA goods in, shipping them to fulfillment centers is entirely the responsibility of the seller. That’s why, in addition to inventory management, you’ll also need to track inbound shipping—what goes to fulfillment centers and what arrives there, as well as if the inbound shipper damages any of your goods—so you can save money on returns by charging your inbound shipper the cost of what you lost.
It’s very common to lose items in Amazon warehouses. Or worse, get items damaged beyond your supervision. During situations like this, Amazon sellers ask for refunds to compensate them for their losses. However, Amazon doesn’t often budge.
If you want to build a strong case for reimbursement on lost or damaged items, you’ll need the accounting to back it up. A concise accounting of your products in an Amazon warehouse is great evidence that your company is not at fault for mishandling any products and could later get you refunds on the items you lost.
Ecommerce accounting can be a daunting task; with operations worldwide, ecommerce businesses have a lot on their plate with regard to accounting, like transactions in different countries, different taxes, and thousands of miles between every payment. If you want an easier time dealing with accounting, here’s a breakdown of certain tasks that are essential to ecommerce accounting.
If you run an ecommerce business, replenishing your stock should be one of your top priorities. That’s why purchasing inventory is an essential accounting task for ecommerce businesses. You can’t just buy inventory, you’ll have to make sure everything is accounted for.
Purchasing inventory properly means buying stock in accordance with your company’s financial goals and ensuring you don’t overspend or buy too much stock, since you’ll have to sell everything to get back its value.
Once you’ve gotten your hands on an inventory ready to sell, it’s time to manage it well enough so that every item in your inventory gets shipped out. Mismanaging your inventory could lead to lost, damaged, or, in some cases, stolen items, which is why you need to reconcile your inventory regularly.
Regular inventory reconciliation will give you an updated view of your stocks and immediately notify you when any of your inventory is missing. Adding this information into your accounting software or system provides your company with more context going forward, since you’ll know how much stock you have ready to sell.
Reconciling your accounts—both accounts payable and receivable—are vital to the integrity of your ecommerce business’s accounting. Reconciling accounts gives you an idea of how much you owe and how much you can expect, which you can use as valuable input into making financial forecasts.
Reconciling accounts also helps you manage your cash flow, since you’ll be including “earned” income and “owed” expenses, whether paid or not, in your balance sheet.
Since ecommerce businesses usually sell internationally, expect to run your sales taxes through more than a single tax policy. Sales tax rates are different in every country, so each sale across the border must be accounted for separately in tax returns.
You’ll also have to check with the country you have sold products in regarding your company’s tax obligations regarding the sale. This is different from regular businesses, where their accounting departments are different per country.
Financial forecasting is a company’s foresight into their financial future. To get an accurate forecast, you need accurate accounting. Once all the data to make a forecast has been gathered and analyzed, you can use the forecast to make decisions for your company to help it grow.
A great example is using a forecast to deal with product seasonality. If your product’s peak season is coming up, you’ll have to refer to the forecast to check whether you can double-up on purchasing inventory ahead of the season, and whether or not your business can afford to buy it.
Every business needs a way of recording transactions for the company. And while it's possible to do your own bookkeeping and accounting, growing your business is easier with professionals handling your finances.
You'll have to hire an accountant if you want to ensure your company's finances remain in good health. Accountants are experts in finance and tax obligations. Hiring an accountant will expand your company's financial freedom and keep track of assets or liabilities that you might miss out on.
Getting the help of an accountant is also ideal for ecommerce businesses since online transactions can get complicated, in addition to managing inventory and shipping costs.
If you have an Amazon Seller Central account, then you're probably aware of Amazon's default reports, which you know aren't enough for a full view of your company's finances. So instead of doing your own bookkeeping, save yourself the trouble and let Unloop handle your Amazon accounting.
Our team of accountants are experts in accounting for ecommerce businesses, so book a call with us and see how we can help you!
Every business owner knows accounting is central to a business, especially in ecommerce. If you're a seller on Amazon, lacking proper accounting can ruin your business. But accounting isn’t easy—there’s so much you need to keep track of. Here’s a rundown of what you need to focus on in Amazon seller accounting to get your finances in order.
Finances are the lifeblood of any business, and if you want to run your business effectively, you'll have to back it up with some good accounting.
Accounting keeps your finances in check by documenting all transactions and making forecasts from them for future use. A proper accounting system is also crucial for tracking sales tax and other essential tax obligations so your business thrives uninterrupted by legal liability.
In the Amazon marketplace, a good accounting system is the key to success. It tracks your business's revenue and checks how many orders you send out, and if you've lost any goods in Amazon FBA, saving you money when it comes time to refund your losses.
Ecommerce accounting is more complicated than you think. If you run an Amazon business, your accounting needs to be tip-top. In addition to various advertising strategies, you also have to deal with taxes and operating expenses—surely, you'll need some help from experts.
Tracking your assets is vital to your ecommerce business’s survival. If your business uses Amazon FBA, you’ll need an accounting system that keeps track of your company’s assets and the products shipped to customers, and that’s no easy task. Here are some areas your accounting needs to focus on to keep your Amazon FBA business in good shape.
Amazon FBA takes the responsibility of storing inventory and shipping independently from sellers who take part in the program. To keep up with the massive demand, Amazon uses fulfillment centers to store goods and later ship them to customers.
However, fulfillment centers don’t serve sellers. So as an ecommerce business owner, you’ll have to keep track of inventory on your own.
Make sure your accounting system has inventory management as a feature. So in case you lose a unit or two in the warehouse, you’ll know where to find them. More importantly, you’ll have proof that your losses are Amazon’s fault and not yours (which we’ll get to more later).
Even though Amazon provides warehouses for sellers to store their FBA goods in, shipping them to fulfillment centers is entirely the responsibility of the seller. That’s why, in addition to inventory management, you’ll also need to track inbound shipping—what goes to fulfillment centers and what arrives there, as well as if the inbound shipper damages any of your goods—so you can save money on returns by charging your inbound shipper the cost of what you lost.
It’s very common to lose items in Amazon warehouses. Or worse, get items damaged beyond your supervision. During situations like this, Amazon sellers ask for refunds to compensate them for their losses. However, Amazon doesn’t often budge.
If you want to build a strong case for reimbursement on lost or damaged items, you’ll need the accounting to back it up. A concise accounting of your products in an Amazon warehouse is great evidence that your company is not at fault for mishandling any products and could later get you refunds on the items you lost.
Ecommerce accounting can be a daunting task; with operations worldwide, ecommerce businesses have a lot on their plate with regard to accounting, like transactions in different countries, different taxes, and thousands of miles between every payment. If you want an easier time dealing with accounting, here’s a breakdown of certain tasks that are essential to ecommerce accounting.
If you run an ecommerce business, replenishing your stock should be one of your top priorities. That’s why purchasing inventory is an essential accounting task for ecommerce businesses. You can’t just buy inventory, you’ll have to make sure everything is accounted for.
Purchasing inventory properly means buying stock in accordance with your company’s financial goals and ensuring you don’t overspend or buy too much stock, since you’ll have to sell everything to get back its value.
Once you’ve gotten your hands on an inventory ready to sell, it’s time to manage it well enough so that every item in your inventory gets shipped out. Mismanaging your inventory could lead to lost, damaged, or, in some cases, stolen items, which is why you need to reconcile your inventory regularly.
Regular inventory reconciliation will give you an updated view of your stocks and immediately notify you when any of your inventory is missing. Adding this information into your accounting software or system provides your company with more context going forward, since you’ll know how much stock you have ready to sell.
Reconciling your accounts—both accounts payable and receivable—are vital to the integrity of your ecommerce business’s accounting. Reconciling accounts gives you an idea of how much you owe and how much you can expect, which you can use as valuable input into making financial forecasts.
Reconciling accounts also helps you manage your cash flow, since you’ll be including “earned” income and “owed” expenses, whether paid or not, in your balance sheet.
Since ecommerce businesses usually sell internationally, expect to run your sales taxes through more than a single tax policy. Sales tax rates are different in every country, so each sale across the border must be accounted for separately in tax returns.
You’ll also have to check with the country you have sold products in regarding your company’s tax obligations regarding the sale. This is different from regular businesses, where their accounting departments are different per country.
Financial forecasting is a company’s foresight into their financial future. To get an accurate forecast, you need accurate accounting. Once all the data to make a forecast has been gathered and analyzed, you can use the forecast to make decisions for your company to help it grow.
A great example is using a forecast to deal with product seasonality. If your product’s peak season is coming up, you’ll have to refer to the forecast to check whether you can double-up on purchasing inventory ahead of the season, and whether or not your business can afford to buy it.
Every business needs a way of recording transactions for the company. And while it's possible to do your own bookkeeping and accounting, growing your business is easier with professionals handling your finances.
You'll have to hire an accountant if you want to ensure your company's finances remain in good health. Accountants are experts in finance and tax obligations. Hiring an accountant will expand your company's financial freedom and keep track of assets or liabilities that you might miss out on.
Getting the help of an accountant is also ideal for ecommerce businesses since online transactions can get complicated, in addition to managing inventory and shipping costs.
If you have an Amazon Seller Central account, then you're probably aware of Amazon's default reports, which you know aren't enough for a full view of your company's finances. So instead of doing your own bookkeeping, save yourself the trouble and let Unloop handle your Amazon accounting.
Our team of accountants are experts in accounting for ecommerce businesses, so book a call with us and see how we can help you!
Are you an Amazon seller trying to make sense of the plethora of accounting software options? Or are you a budding entrepreneur looking for bookkeeping and financial management advice? It doesn’t matter which stage you are in your business, finding the right accounting solution for your Amazon business can take time and effort.
Whether you're just getting started or are already an expert, this post will guide you through everything you need to know about selecting and using the right accounting software as an Amazon seller. From understanding the features offered by different products to knowing the features of the best tools, we'll cover all aspects so that you can make informed decisions in managing your finances. Let’s begin!
Your journey to managing your business finances begins with bookkeeping. Although many software have ready-made templates of the different data to track, you can still customize the details according to your Amazon business’s needs.
The good news is Amazon provides much of the information you’ll need on Seller Central. Here are some variables and details you’ll want to see in your books and financial reports. You can combine these with the details available in your chosen accounting tool.
Amazon tracks your sales, and when integrated into your accounting software, you can see this critical data in your accounting tool. Your Amazon sales results from search engine optimization (SEO), pay-per-click (PPC) campaign, A+ Content strategies, and the other strategies you launched for your store.
Production costs are any materials or labour expenses you have to pay to manufacture your product. The cost of production may be higher when you make or build your product as an Amazon brand owner compared to being a reseller and acquiring ready-made items from already established stores.
Sales taxes are one of the most challenging details to track as a business owner because they are sensitive to change. Good thing Amazon already has a system that keeps sales tax rates updated. You can integrate this data into your accounting system for sales tax summaries, reporting, and tax payment purposes.
A technique many brand new Amazon sellers utilize for PPC campaigns is to go all out to know which keywords their listing will rank for. Amazon tracks PPC data for you, and you can integrate this into your accounting software for further analysis and calculated decision-making for your campaigns. As data piles up, sellers can slowly optimize bids and lower PPC costs.
You can always customize formulas on your accounting tool to get the ACoS, but you can also use features provided by Amazon. Amazon tracks the ACoS with the same goal as you—to know if the PPC campaign is efficient. To calculate the ACoS, use this formula: (ad spend/ad revenue) x 100.
Along with the ACoS, Amazon also tracks oOAS, which can give sellers an idea of how much income they’ll get from a campaign. You can use this insight best in business planning and forecasting. RoAS is calculated using this formula: ad revenue/ad spend.
Along with the monetary value data from Amazon Seller Central, they also provide details like total page views and sessions for ads and listings. You can integrate this information into your central accounting tool and put it against other variables to see how effective your campaigns are and their impact on your finances.
You can stay on top of your orders and always keep high-demand products in stock because Amazon has your back with shipping and inventory management. Integrate this data into your accounting software to see inventory costs and include the report in other business areas to see the totality of your finances.
Are your ads and strategies effective? Check your conversion rate. The conversion rate reflects the percentage of visitors who have bought products from you. When you monitor this detail, you can create strategies to improve it immediately when you see that it’s low.
The data above can all be in your accounting tool by integrating the information from Amazon Seller Central and other financial data tracking tools you have. But for an accounting tool to be good, it shouldn’t just track your numbers. Check if an accounting tool has these features to get the best Amazon accounting software for your business.
The advantage of tracking account receivables and payables is getting a better view of your finances for a long period of time. This contrasts with seeing only the money you receive and give out daily.
With all the essential and confidential financial information in your software, it is only right to invest in cloud-based accounting software. This technology ensures cybersecurity, warding off hackers and protecting data from corruption.
It is highly convenient to use only a single software to see all the relevant data. The best accounting software will allow you to integrate a multitude of applications, like HR tools and tax software, so you can see the data from these sources in one place.
You’ll cater to different customers that use various payment methods. It's best to have an accounting tool ready with various payment gateways. And by integrating your bank, you can monitor the money being deposited and withdrawn in your bank account in real-time.
Because all your business transactions will be in one place, computing the income tax return you need to pay annually will be easier, as well as any sales taxes you have to remit to the government. In case of any audits, you’ll also have the receipts and documents you need on hand
Are you planning to scale your business and sell in an international market? There are accounting tools equipped with multiple currencies you can use. Skip the hassle of shifting to another accounting tool or finding an integration for different currencies when you use these features.
When looking for accounting software for Amazon FBA sellers, find one that already offers inventory tracking and management. You can combine this with the data Amazon already has to ensure that you are on top of your business demands and supplies, and you can track where your products are.
The best Amazon accounting software offers both mobile and computer access. If updates need to be made, you can use your phone. Basically anywhere there is the internet, you can check your business's financial health, even on the go.
For additional security, look for software that has role-based access. With role-based access only authorized users in your company can edit the data in your books. Since the tool operates on the cloud, updates are automated and happen in real time—allowing for better collaboration.
Excellent accounting software should have plans that fit every type of business. If you are signing up for a beginner plan, you must have the choice to add more accounting features to the software as you grow your venture.
So, in the sea of ecommerce bookkeeping and accounting tools out there, which \ is the best for Amazon sellers? We have three great accounting tools in mind. Here's what to expect from them.
QuickBooks is a one-stop-shop online accounting solution. The software has all these features:
QuickBooks has plans for various business sizes you can choose and grow with.
Another reliable accounting tool online sellers can use is Xero. With Xero, your bookkeeping and accounting tasks will be automated, and you can enjoy these functions:
Xero also operates on the cloud, so financial data will be secured, accessible to authorized individuals only, and can be accessed on the phone.
Meanwhile, if you are looking for software you can use for your Amazon business and more, you can check Peachtree or Sage50 cloud. Here are some of its features:
Sage50 cloud is one of the few software with specialized setups for specific industries.
Now that you know the importance of accounting for your Amazon business and what features to look for in accounting software, it's time to decide which software is right for you. Whichever software you choose, ensure it meets all of the criteria we discussed so that you can properly track your data and grow your business.
Even if you already have the best bookkeeping software for Amazon sellers, know that you can still get help. Unloop can handle your Amazon accounting, get your numbers right, and utilize the most reliable bookkeeping and Amazon accounting software. Give us a call to know about our offers.
Are you an Amazon seller trying to make sense of the plethora of accounting software options? Or are you a budding entrepreneur looking for bookkeeping and financial management advice? It doesn’t matter which stage you are in your business, finding the right accounting solution for your Amazon business can take time and effort.
Whether you're just getting started or are already an expert, this post will guide you through everything you need to know about selecting and using the right accounting software as an Amazon seller. From understanding the features offered by different products to knowing the features of the best tools, we'll cover all aspects so that you can make informed decisions in managing your finances. Let’s begin!
Your journey to managing your business finances begins with bookkeeping. Although many software have ready-made templates of the different data to track, you can still customize the details according to your Amazon business’s needs.
The good news is Amazon provides much of the information you’ll need on Seller Central. Here are some variables and details you’ll want to see in your books and financial reports. You can combine these with the details available in your chosen accounting tool.
Amazon tracks your sales, and when integrated into your accounting software, you can see this critical data in your accounting tool. Your Amazon sales results from search engine optimization (SEO), pay-per-click (PPC) campaign, A+ Content strategies, and the other strategies you launched for your store.
Production costs are any materials or labour expenses you have to pay to manufacture your product. The cost of production may be higher when you make or build your product as an Amazon brand owner compared to being a reseller and acquiring ready-made items from already established stores.
Sales taxes are one of the most challenging details to track as a business owner because they are sensitive to change. Good thing Amazon already has a system that keeps sales tax rates updated. You can integrate this data into your accounting system for sales tax summaries, reporting, and tax payment purposes.
A technique many brand new Amazon sellers utilize for PPC campaigns is to go all out to know which keywords their listing will rank for. Amazon tracks PPC data for you, and you can integrate this into your accounting software for further analysis and calculated decision-making for your campaigns. As data piles up, sellers can slowly optimize bids and lower PPC costs.
You can always customize formulas on your accounting tool to get the ACoS, but you can also use features provided by Amazon. Amazon tracks the ACoS with the same goal as you—to know if the PPC campaign is efficient. To calculate the ACoS, use this formula: (ad spend/ad revenue) x 100.
Along with the ACoS, Amazon also tracks oOAS, which can give sellers an idea of how much income they’ll get from a campaign. You can use this insight best in business planning and forecasting. RoAS is calculated using this formula: ad revenue/ad spend.
Along with the monetary value data from Amazon Seller Central, they also provide details like total page views and sessions for ads and listings. You can integrate this information into your central accounting tool and put it against other variables to see how effective your campaigns are and their impact on your finances.
You can stay on top of your orders and always keep high-demand products in stock because Amazon has your back with shipping and inventory management. Integrate this data into your accounting software to see inventory costs and include the report in other business areas to see the totality of your finances.
Are your ads and strategies effective? Check your conversion rate. The conversion rate reflects the percentage of visitors who have bought products from you. When you monitor this detail, you can create strategies to improve it immediately when you see that it’s low.
The data above can all be in your accounting tool by integrating the information from Amazon Seller Central and other financial data tracking tools you have. But for an accounting tool to be good, it shouldn’t just track your numbers. Check if an accounting tool has these features to get the best Amazon accounting software for your business.
The advantage of tracking account receivables and payables is getting a better view of your finances for a long period of time. This contrasts with seeing only the money you receive and give out daily.
With all the essential and confidential financial information in your software, it is only right to invest in cloud-based accounting software. This technology ensures cybersecurity, warding off hackers and protecting data from corruption.
It is highly convenient to use only a single software to see all the relevant data. The best accounting software will allow you to integrate a multitude of applications, like HR tools and tax software, so you can see the data from these sources in one place.
You’ll cater to different customers that use various payment methods. It's best to have an accounting tool ready with various payment gateways. And by integrating your bank, you can monitor the money being deposited and withdrawn in your bank account in real-time.
Because all your business transactions will be in one place, computing the income tax return you need to pay annually will be easier, as well as any sales taxes you have to remit to the government. In case of any audits, you’ll also have the receipts and documents you need on hand
Are you planning to scale your business and sell in an international market? There are accounting tools equipped with multiple currencies you can use. Skip the hassle of shifting to another accounting tool or finding an integration for different currencies when you use these features.
When looking for accounting software for Amazon FBA sellers, find one that already offers inventory tracking and management. You can combine this with the data Amazon already has to ensure that you are on top of your business demands and supplies, and you can track where your products are.
The best Amazon accounting software offers both mobile and computer access. If updates need to be made, you can use your phone. Basically anywhere there is the internet, you can check your business's financial health, even on the go.
For additional security, look for software that has role-based access. With role-based access only authorized users in your company can edit the data in your books. Since the tool operates on the cloud, updates are automated and happen in real time—allowing for better collaboration.
Excellent accounting software should have plans that fit every type of business. If you are signing up for a beginner plan, you must have the choice to add more accounting features to the software as you grow your venture.
So, in the sea of ecommerce bookkeeping and accounting tools out there, which \ is the best for Amazon sellers? We have three great accounting tools in mind. Here's what to expect from them.
QuickBooks is a one-stop-shop online accounting solution. The software has all these features:
QuickBooks has plans for various business sizes you can choose and grow with.
Another reliable accounting tool online sellers can use is Xero. With Xero, your bookkeeping and accounting tasks will be automated, and you can enjoy these functions:
Xero also operates on the cloud, so financial data will be secured, accessible to authorized individuals only, and can be accessed on the phone.
Meanwhile, if you are looking for software you can use for your Amazon business and more, you can check Peachtree or Sage50 cloud. Here are some of its features:
Sage50 cloud is one of the few software with specialized setups for specific industries.
Now that you know the importance of accounting for your Amazon business and what features to look for in accounting software, it's time to decide which software is right for you. Whichever software you choose, ensure it meets all of the criteria we discussed so that you can properly track your data and grow your business.
Even if you already have the best bookkeeping software for Amazon sellers, know that you can still get help. Unloop can handle your Amazon accounting, get your numbers right, and utilize the most reliable bookkeeping and Amazon accounting software. Give us a call to know about our offers.
Amazon has revolutionized the shopping process for both large and small businesses. Selling your products online allows your business to expose your products to millions of customers. However, since online selling is continuing to be popular with entrepreneurs, you also have millions of competitors out there.
If you are determined to put your business online, Amazon is the best for you. Setting up an Amazon Business account helps companies get ahead by giving Amazon-exclusive discounts on pricing, plus it offers features to aid in your business operations.
Amazon Business is a business-focused account that caters to all businesses, from small and medium to large enterprises. The main purpose of a business account is for businesses to have an approval process so they can keep their spending in check.
Business accounts allow an entity to create multiple users to make purchases for the company. Your business also enjoys the benefits of efficient and swift deliveries. But, it doesn’t stop there! Once you have a business account, you can upgrade to a Prime account which opens your business to more exclusive benefits.
But unlike business accounts (which are free), Prime members need to pay a membership fee to enjoy its features.
Amazon Prime membership fees may vary depending on the number of users that use the account. Here is a breakdown of their annual prices.
| Number of Users | 1 user | 3 users | 10 users | 100 users | Unlimited Users |
| Price | $69 | $179 | $499 | $1,299 | $10,099 |
You may be thinking that you already have a personal account, So why do you still need to get a Business account? Amazon offers many features and services exclusive to business account holders. For example, having these accounts opens you to business-only selections, bulk discounts, and a wide variety of product lines.
Once your Amazon Business account is set up, you can add multiple sellers in one central account, which anyone in your business can use. The benefits of an Amazon business account is for both the seller and buyer, and here's what you can do with it.
Amazon helps with the selling process when you set up a business account, and it's free. Whether you're a small-scale one-person business or a larger enterprise, it doesn't matter. Any company can open a business account.
To set up your account:
There are over 5 million products currently available across business accounts on Amazon. Aside from access to an unlimited number of items, you also enjoy exclusive prices for business account holders. Whether you do B2B transactions or use your business account as a buyer, you'll enjoy discounts that are not available on personal accounts.
Amazon offers lower prices for bulk purchases. Furthermore, you can ask sellers for discounts.
In 2022, there were currently 200 million active users on Amazon. This number grows each year. When you enroll in Amazon Business, your products will be listed in the vast Amazon catalog, which is accessible to millions of established customers.
Whether you sell from the US or are an international seller, you will be eligible for the FBA program. Amazon is available in numerous countries worldwide, and is continually expanding. Amazon has warehouses in different locations even outside of the US, so international sellers can enjoy the FBA program too.
Furthermore, since the primary feature of FBA is storing your products and shipping, you can save money from renting warehouse space and hiring extra workers for the shipping and packing process. You can also guarantee that the FBA program will handle your products correctly to satisfy your customers.
You can choose to upgrade to a Business Prime account if you already have a Business account. The Prime account is a membership offered by Amazon for businesses and companies. Using a Business Prime account comes with more benefits compared to a standard business account. However, Amazon charges businesses when they upgrade to Prime depending on the number of users in your account.
So is it worth upgrading to a Business Prime account? Here are a few benefits of Amazon Business Prime memberships.
With a Prime account, you can send orders to your customers faster. Customers who shop from your business can enjoy discounted shipping rates, and even free one- or two-day shipping on eligible items. Free shipping will entice shoppers to buy from your business primarily because of the savings they can get.
Free Survey and Analytics Tool
It's vital for businesses to know the feedback of their customers regarding their products and services. Amazon helps companies gather their customer's reviews by using a third-party application. The free tool Amazon provides sends surveys to your customers via SMS, emails, POS kiosks, and other integrated services.
The free analytics tool is beneficial for businesses to track their growth, and with Amazon Prime, you get to enjoy these tools for free.
You will receive an Amazon Business American Express card upon membership with Amazon Prime. This card is exclusive to Prime holders and has no annual fees. With the card, you can enjoy 5% cashback or 90 days to pay with no interest for your purchases.
Amazon Workdocs allows you to store your essential business files in one location. You can quickly locate invoices, receipts, and other documents, allowing for collaborations.
The guided buying allows you to create buying policies for your Business Prime account.
If you have staff, you might give them the responsibility of making purchases from other companies. You can control the items they buy through the guided buying feature. You can list approved items they can purchase and put up restricted categories.
If there's a way to make selling on Amazon better and more convenient, grab it. Utilize the advantages of having an Amazon Business account. If you have the budget for a Business Prime membership, you're in for more benefits and tons of savings for your business. So don't forget to sign your business up today.
Running a small ecommerce firm may also be time-consuming and labour-intensive. While you handle selling your products and launching advertisements, Unloop can help with the accounting side of things. Unloop can help your business stay on top of taxes, expenses, payroll, and several other accounting tasks.
Book a call with us and learn more about how to get started.
Amazon has revolutionized the shopping process for both large and small businesses. Selling your products online allows your business to expose your products to millions of customers. However, since online selling is continuing to be popular with entrepreneurs, you also have millions of competitors out there.
If you are determined to put your business online, Amazon is the best for you. Setting up an Amazon Business account helps companies get ahead by giving Amazon-exclusive discounts on pricing, plus it offers features to aid in your business operations.
Amazon Business is a business-focused account that caters to all businesses, from small and medium to large enterprises. The main purpose of a business account is for businesses to have an approval process so they can keep their spending in check.
Business accounts allow an entity to create multiple users to make purchases for the company. Your business also enjoys the benefits of efficient and swift deliveries. But, it doesn’t stop there! Once you have a business account, you can upgrade to a Prime account which opens your business to more exclusive benefits.
But unlike business accounts (which are free), Prime members need to pay a membership fee to enjoy its features.
Amazon Prime membership fees may vary depending on the number of users that use the account. Here is a breakdown of their annual prices.
| Number of Users | 1 user | 3 users | 10 users | 100 users | Unlimited Users |
| Price | $69 | $179 | $499 | $1,299 | $10,099 |
You may be thinking that you already have a personal account, So why do you still need to get a Business account? Amazon offers many features and services exclusive to business account holders. For example, having these accounts opens you to business-only selections, bulk discounts, and a wide variety of product lines.
Once your Amazon Business account is set up, you can add multiple sellers in one central account, which anyone in your business can use. The benefits of an Amazon business account is for both the seller and buyer, and here's what you can do with it.
Amazon helps with the selling process when you set up a business account, and it's free. Whether you're a small-scale one-person business or a larger enterprise, it doesn't matter. Any company can open a business account.
To set up your account:
There are over 5 million products currently available across business accounts on Amazon. Aside from access to an unlimited number of items, you also enjoy exclusive prices for business account holders. Whether you do B2B transactions or use your business account as a buyer, you'll enjoy discounts that are not available on personal accounts.
Amazon offers lower prices for bulk purchases. Furthermore, you can ask sellers for discounts.
In 2022, there were currently 200 million active users on Amazon. This number grows each year. When you enroll in Amazon Business, your products will be listed in the vast Amazon catalog, which is accessible to millions of established customers.
Whether you sell from the US or are an international seller, you will be eligible for the FBA program. Amazon is available in numerous countries worldwide, and is continually expanding. Amazon has warehouses in different locations even outside of the US, so international sellers can enjoy the FBA program too.
Furthermore, since the primary feature of FBA is storing your products and shipping, you can save money from renting warehouse space and hiring extra workers for the shipping and packing process. You can also guarantee that the FBA program will handle your products correctly to satisfy your customers.
You can choose to upgrade to a Business Prime account if you already have a Business account. The Prime account is a membership offered by Amazon for businesses and companies. Using a Business Prime account comes with more benefits compared to a standard business account. However, Amazon charges businesses when they upgrade to Prime depending on the number of users in your account.
So is it worth upgrading to a Business Prime account? Here are a few benefits of Amazon Business Prime memberships.
With a Prime account, you can send orders to your customers faster. Customers who shop from your business can enjoy discounted shipping rates, and even free one- or two-day shipping on eligible items. Free shipping will entice shoppers to buy from your business primarily because of the savings they can get.
Free Survey and Analytics Tool
It's vital for businesses to know the feedback of their customers regarding their products and services. Amazon helps companies gather their customer's reviews by using a third-party application. The free tool Amazon provides sends surveys to your customers via SMS, emails, POS kiosks, and other integrated services.
The free analytics tool is beneficial for businesses to track their growth, and with Amazon Prime, you get to enjoy these tools for free.
You will receive an Amazon Business American Express card upon membership with Amazon Prime. This card is exclusive to Prime holders and has no annual fees. With the card, you can enjoy 5% cashback or 90 days to pay with no interest for your purchases.
Amazon Workdocs allows you to store your essential business files in one location. You can quickly locate invoices, receipts, and other documents, allowing for collaborations.
The guided buying allows you to create buying policies for your Business Prime account.
If you have staff, you might give them the responsibility of making purchases from other companies. You can control the items they buy through the guided buying feature. You can list approved items they can purchase and put up restricted categories.
If there's a way to make selling on Amazon better and more convenient, grab it. Utilize the advantages of having an Amazon Business account. If you have the budget for a Business Prime membership, you're in for more benefits and tons of savings for your business. So don't forget to sign your business up today.
Running a small ecommerce firm may also be time-consuming and labour-intensive. While you handle selling your products and launching advertisements, Unloop can help with the accounting side of things. Unloop can help your business stay on top of taxes, expenses, payroll, and several other accounting tasks.
Book a call with us and learn more about how to get started.
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.
