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Michael Pignatelli, CPA
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As a small business owner, you can inevitably be overwhelmed by the financial challenges of running your business. You've got a lot on your plate. There's a feeling of uncertainty and pressure, from juggling marketing and sales to product development and customer service. On the worst days, you don’t know how to proceed.

It's not your fault if you're juggling a million things. But if you don't get your finances in order, you could be in for a world of hurt down the road. Luckily, many bookkeeping agencies help you with your accounting and finances. They also enable you to take some pressure off of yourself as a business owner. In this blog post, we’ll learn more about online bookkeeping services and how they can help you with your financial business challenges.

The Problem: Handling Financial Business Challenges

Business challenges may be due to several factors. The first is external influences, such as market circumstances or interest rate swings, trends, technology shifts, and more. Other small business challenges may be related to internal issues, such as a lack of skilled employees, inefficient processes, management issues, and poor investment opportunities.

Regardless of the source of the difficulty, business leaders need to understand and address these issues head-on to keep their businesses running smoothly and successfully. One effective approach for addressing business challenges is utilizing modern technology tools such as budgeting and accounting software that can help to streamline business operations and minimize risk factors within the business environment. 

But if it's out of your expertise, seeking professional advice from experts in the field is the best thing you can do. By consulting with financial firms that offer accounting and bookkeeping, business owners can get valuable insights into current trends and best practices to help them navigate any challenges. 

The Equation: Searching for The Right Bookkeeping Firm 

There's no one-size-fits-all answer when it comes to finding the right bookkeeping firm. The equation will be different for every business, based on your standards in an agency. For example, maybe you need a full-service firm that can handle everything from payroll to tax preparation. Or maybe you're just looking for someone to reconcile your accounts and prepare your financial statements. 

It's essential to choose a firm that can meet your specific requirements. Here are a few things to consider as you search for the right bookkeeping firm:

  • First and foremost, what services do you require? Are you looking for someone to do your basic bookkeeping or give tax and payroll services? Ensure that the firm you choose provides the services you require.
  • What about the finances? Because the cost of bookkeeping services varies greatly, it's critical to pick one that matches your budget. Don't be afraid to compare services for the best deal.
  • Spend some time exploring your options. Examine reviews, visit several firms' websites, and speak with other business owners who have used their bookkeeping services. If you do your research, you'll be more likely to select the best firm for your needs.
  • What is the firm's track record? Make sure you're working with a respectable bookkeeping firm with a proven track record. 
  • What is your preferred communication style? Do you want someone who will come into your office once a week or someone who you can reach by email or phone? Make sure the agency you choose offers the communication style that works best for you.
  • Remember to inquire about pricing. You don't want to be caught off guard by unexpected charges later on. Make sure you understand everything in their pricing quote so there are no unpleasant surprises later.
  • What are your main concerns? Are you looking for a firm that is close to your house or offers flexible hours? Do you want a group of specialists or one-on-one attention? If that’s it, then you can easily find your dream team.

You'll be well on your way to hiring the proper bookkeeping service if you keep these items in mind.

The Answer: That’s Where Unloop Comes In

useful benefit of Pilot Bookkeeping

Start-up businesses are looking for more affordable alternatives, considering the rising costs of bookkeeping services. For example, a bookkeeping agency like Pilot bookkeeping automates many accounting processes, saves time, and eliminates errors that can compromise the accuracy of business reports. 

However, one small drawback is that it can be costly for small businesses on a tight budget. Pilot bookkeeping calculates your average monthly costs depending on your monthly spending. Therefore, as your company grows, the bookkeeping charge rises in lockstep with the growth in expenses.

Another Pilot bookkeeping review states that it is only compatible with a limited number of accounting software programs. So if you're not using one of the supported programs like Quickbooks, you're out of luck.

Luckily, Unloop has the accounting demands that every small business is looking for. Similar to Pilot, Unloop provides small businesses with access to skilled accountants who can help them navigate the ins and outs of financial management without investing hours of their time or limiting their flexibility. 

Furthermore, this alternative to Pilot bookkeeping offers competitive rates and round-the-clock support, making it a convenient and cost-effective solution for small business owners seeking financial insight into their companies.

Here's why it's worth checking out:

  • The financial statements such as income, balance, and cash flow are updated monthly
  • Accounting records are prepared using the accrual accounting system
  • DEXT or Hubdoc subscription
  • Quickbooks Online or Xero subscription
  • Monthly financial account reconciliations for an unlimited number of accounts (checking, savings, credit cards, etc.)
  • Expert consultation and analysis
  • Slack support is unlimited
  • Three customized KPIs (Amazon, Shopify, other)

So if you're looking for a comprehensive bookkeeping solution with lots of extra features, give Unloop a try. 

Final Thoughts

So, if you're feeling overwhelmed by your business finances, don't worry, you're not alone. But fortunately, there are solutions out there. We believe that Unloop is one of the best. We offer comprehensive bookkeeping and consulting services to businesses of all sizes and industries to help you get your finances in order.

We hope this article has provided you with enough information to make an informed conclusion about your bookkeeping needs. Book a call today!

The Best Alternative to Pilot’s Bookkeeping Services: Unloop for Your Small Business
Watch Now

As a small business owner, you can inevitably be overwhelmed by the financial challenges of running your business. You've got a lot on your plate. There's a feeling of uncertainty and pressure, from juggling marketing and sales to product development and customer service. On the worst days, you don’t know how to proceed.

It's not your fault if you're juggling a million things. But if you don't get your finances in order, you could be in for a world of hurt down the road. Luckily, many bookkeeping agencies help you with your accounting and finances. They also enable you to take some pressure off of yourself as a business owner. In this blog post, we’ll learn more about online bookkeeping services and how they can help you with your financial business challenges.

The Problem: Handling Financial Business Challenges

Business challenges may be due to several factors. The first is external influences, such as market circumstances or interest rate swings, trends, technology shifts, and more. Other small business challenges may be related to internal issues, such as a lack of skilled employees, inefficient processes, management issues, and poor investment opportunities.

Regardless of the source of the difficulty, business leaders need to understand and address these issues head-on to keep their businesses running smoothly and successfully. One effective approach for addressing business challenges is utilizing modern technology tools such as budgeting and accounting software that can help to streamline business operations and minimize risk factors within the business environment. 

But if it's out of your expertise, seeking professional advice from experts in the field is the best thing you can do. By consulting with financial firms that offer accounting and bookkeeping, business owners can get valuable insights into current trends and best practices to help them navigate any challenges. 

The Equation: Searching for The Right Bookkeeping Firm 

There's no one-size-fits-all answer when it comes to finding the right bookkeeping firm. The equation will be different for every business, based on your standards in an agency. For example, maybe you need a full-service firm that can handle everything from payroll to tax preparation. Or maybe you're just looking for someone to reconcile your accounts and prepare your financial statements. 

It's essential to choose a firm that can meet your specific requirements. Here are a few things to consider as you search for the right bookkeeping firm:

  • First and foremost, what services do you require? Are you looking for someone to do your basic bookkeeping or give tax and payroll services? Ensure that the firm you choose provides the services you require.
  • What about the finances? Because the cost of bookkeeping services varies greatly, it's critical to pick one that matches your budget. Don't be afraid to compare services for the best deal.
  • Spend some time exploring your options. Examine reviews, visit several firms' websites, and speak with other business owners who have used their bookkeeping services. If you do your research, you'll be more likely to select the best firm for your needs.
  • What is the firm's track record? Make sure you're working with a respectable bookkeeping firm with a proven track record. 
  • What is your preferred communication style? Do you want someone who will come into your office once a week or someone who you can reach by email or phone? Make sure the agency you choose offers the communication style that works best for you.
  • Remember to inquire about pricing. You don't want to be caught off guard by unexpected charges later on. Make sure you understand everything in their pricing quote so there are no unpleasant surprises later.
  • What are your main concerns? Are you looking for a firm that is close to your house or offers flexible hours? Do you want a group of specialists or one-on-one attention? If that’s it, then you can easily find your dream team.

You'll be well on your way to hiring the proper bookkeeping service if you keep these items in mind.

The Answer: That’s Where Unloop Comes In

useful benefit of Pilot Bookkeeping

Start-up businesses are looking for more affordable alternatives, considering the rising costs of bookkeeping services. For example, a bookkeeping agency like Pilot bookkeeping automates many accounting processes, saves time, and eliminates errors that can compromise the accuracy of business reports. 

However, one small drawback is that it can be costly for small businesses on a tight budget. Pilot bookkeeping calculates your average monthly costs depending on your monthly spending. Therefore, as your company grows, the bookkeeping charge rises in lockstep with the growth in expenses.

Another Pilot bookkeeping review states that it is only compatible with a limited number of accounting software programs. So if you're not using one of the supported programs like Quickbooks, you're out of luck.

Luckily, Unloop has the accounting demands that every small business is looking for. Similar to Pilot, Unloop provides small businesses with access to skilled accountants who can help them navigate the ins and outs of financial management without investing hours of their time or limiting their flexibility. 

Furthermore, this alternative to Pilot bookkeeping offers competitive rates and round-the-clock support, making it a convenient and cost-effective solution for small business owners seeking financial insight into their companies.

Here's why it's worth checking out:

  • The financial statements such as income, balance, and cash flow are updated monthly
  • Accounting records are prepared using the accrual accounting system
  • DEXT or Hubdoc subscription
  • Quickbooks Online or Xero subscription
  • Monthly financial account reconciliations for an unlimited number of accounts (checking, savings, credit cards, etc.)
  • Expert consultation and analysis
  • Slack support is unlimited
  • Three customized KPIs (Amazon, Shopify, other)

So if you're looking for a comprehensive bookkeeping solution with lots of extra features, give Unloop a try. 

Final Thoughts

So, if you're feeling overwhelmed by your business finances, don't worry, you're not alone. But fortunately, there are solutions out there. We believe that Unloop is one of the best. We offer comprehensive bookkeeping and consulting services to businesses of all sizes and industries to help you get your finances in order.

We hope this article has provided you with enough information to make an informed conclusion about your bookkeeping needs. Book a call today!

Read more

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

When running an ecommerce business, it's crucial to know how to reconcile Shopify in QuickBooks to manage it effectively. It means making sure your books are in order. But reconciliation has its own set of challenges that comes with bookkeeping mistakes. For a business owner, it's important to identify and fix them to ensure every puzzle piece fits.

If you have a Shopify store and use QuickBooks Online (QBO) to do your accounting, this article is for you. Let Unloop show you the seven of the biggest Shopify bookkeeping mistakes sellers make when reconciling Shopify transactions to their QuickBooks Online.

An infographic containing a summary of the 7 bookkeeping mistakes

Not Recording Net Sales into QuickBooks

Not collecting Shopify net sales that account for deductions, taxes, or other details that provide data about your transactions may result in inaccurate financial records and incomplete insights to analyze. 

A Shopify account isn't simply about sales; it should include gross sales before deducting returns, refunds, sales taxes, and deductions. These figures must be analyzed to see what is happening with your online store.

Returns and refunds eat your profits; they can even put you in the red if you're not careful. The same goes for sales tax. 

You could overpay or underpay sales tax if you aren't paying attention, and neither is good for your bottom line. Deductions are more complex, but they're any expenses that can be directly attributed to generating revenue.

All these must be in your financial report to get accurate profitability insight. Otherwise, you might think you're doing better than you are or worse, and no one wants that.

Assuming Everything is Automated

You may think that if you connect the Shopify app with your QuickBooks Online, everything will be automatic, and you can set aside accounting tasks altogether. That's far from reality. Among many things, you must reconcile Shopify payments with expenses incurred in the online store and outside of it. It's how you get to the true bottom-line profit.

Always remember that when you integrate Shopify with cloud accounting software, you’re not letting technology do every task. There is a manual reconciliation process involved. The purpose is to make your life easier, so you can spend more time on other important aspects of your online business.

Using the Wrong Integration App

Several apps can migrate a lot of data from Shopify to QuickBooks. Selecting one of these third-party applications allows you to sync over every transaction, sometimes even the unnecessary ones.

New Shopify businesses can adapt to this feature well. Low expenses and sales transactions make it easy to sort through what to keep and discard. But a high-volume Shopify seller should be more diligent with selecting integration apps for efficient accounting and financial reporting.

Alternatively, they can hand over their accounting processes to experts. A team of accounting and bookkeeping professionals has mastered how to manage accounting for Shopify. They know which apps to integrate and can manage volumes of transactions efficiently. It's an excellent resource saver.

Inaccurate Account and Transaction Mapping

Some integrated applications connect Shopify and QuickBooks and automatically reconcile transactions to accounts—these are QuickBooks labels where amounts are recorded for future financial reporting and analysis.

Certain integrations only sync Shopify transactions into a few accounts. This means some of the incoming transactions need to be mapped manually. Shopify merchants must pick this up and map the account and transaction themselves. Incorrectly doing so will affect reporting, bank account reconciliation, and business management.

Using The Wrong Inventory Management Software

Most accounting software has inventory-related features. As for most sellers, QuickBooks is their go-to because it’s a superior software for managing accounting processes and seamless inventory management. But depending on your specific needs, this may or may not be the ideal tool for your business. 

If you're deep into using QuickBooks as an accounting software, gaps can be bridged by using applications, versions, or add-ons that boost its inventory management capabilities. Accounting experts would know how to make it work for your business.

💡 For inventory syncing, the ideal approach is to use cloud inventory software such as Xero or Vend with a multi-channel inventory feature. These software are ideal for a growing business. Otherwise, QuickBooks can work if you're prepared to be more hands-on with your inventory.

Forgetting to Reconcile Accounts

The next blunder is not reconciling transactions in the bank with Shopify data. You may have a Shopify-QuickBooks Online integration, which can accurately record Shopify sales and expenses. But are those net figures identical to your bank account statements? Most likely, they aren’t.

It is frustrating when the accounting numbers don't match the expected business bank account balance. It may be because there's a failure to reconcile bank accounts regularly. While you can connect your bank account to your QBO and sync your Shopify store transactions, some things still need review (e.g., portioning off sales tax from gross income).

Doing the Accounting on Your Own

Finally, a grave mistake is assuming you can set up and maintain your accounting without the assistance of a qualified ecommerce accountant. Even if you are using excellent cloud accounting software, it won’t yield good results without the hands of an expert.

If you're not well-versed in bookkeeping and accounting, it's better to have an expert by your side to help manage the various Shopify account transactions. Otherwise, you will still be susceptible to issues such as failing tax compliance and messy financial liabilities.

Two business people sitting opposite each other does high five in front of a laptop on a wooden table cluttered with documents.

How to Reconcile Shopify in QuickBooks Seamlessly

Once you've identified one or several of the mistakes mentioned above, you'll have to fix them as soon as possible to prevent them from creating bigger problems moving forward. Note the following solutions indicated in the table below.

Double-Check Your Financial RecordsEnsure accurate financial records and comprehensive insights by recording Shopify net sales, gross sales, deductions, taxes, and other transaction details.
Verify Shopify and Quickbooks SyncTo reduce errors, always review your Quickbooks sync settings to identify which accounting software features operate with or without automation.
Examine Integration Apps Before Using ThemLook at the features of the 3rd party app you’ll use for Shopify-Quickbooks integration. This will help you get an idea of what data it can bring over to your books.
Learn Bookkeeping BasicsGrasp basic bookkeeping and accounting principles to align synced Shopify transactions with accurate accounts.
Choose a Specialized Inventory SoftwareImprove stock management using specialized inventory software like Fishbowl (if you’re a QuickBooks or Xero user.)
Review Business Bank Account StatementsEstablish a reconciling routine by setting a time period, such as a month or a week, to examine line items on your bank statement. Determine how they arrived at the current balance.

The Ultimate Solution: Hire a Bookkeeper or Accountant

Bookkeeping for Shopify sellers is daunting. You must keep track of all your income and expenses and comply with all the relevant tax laws. You also have to deal with managing inventory, fulfilling shipping orders, and the crucial process of reconciling Shopify with QuickBooks. Altogether, these challenges pose overwhelming responsibilities for Shopify sellers.

Even if you have the table of solutions above, doing all of them on your own is no easy feat. Fortunately, there is a solution to this problem: you can hire a bookkeeper or an accounting firm to handle or help you with most of the work. It will free up your time to focus on scaling your online business and rest easy knowing that your finances are in capable hands.

Looking for Experts on How to Reconcile Shopify in QuickBooks? Let Unloop Help You!

If you're making or wanting to avoid any of these mistakes, don't worry—you're not alone. We always see this with our clients using QuickBooks Online for their Shopify accounting. So we put together this list to help you identify where you might be going wrong and how to get back on track.

If you think identifying these mistakes and troubleshooting them keeps you away from growing your business, let our team help. Our seasoned ecommerce accountants can assist you in getting your books in order and ensure that your Shopify online store runs as smoothly as possible. Give us a call at 877-421-7270 today.

How to Reconcile Shopify in QuickBooks: 7 Biggest Bookkeeping Mistakes to Avoid
Watch Now

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

When running an ecommerce business, it's crucial to know how to reconcile Shopify in QuickBooks to manage it effectively. It means making sure your books are in order. But reconciliation has its own set of challenges that comes with bookkeeping mistakes. For a business owner, it's important to identify and fix them to ensure every puzzle piece fits.

If you have a Shopify store and use QuickBooks Online (QBO) to do your accounting, this article is for you. Let Unloop show you the seven of the biggest Shopify bookkeeping mistakes sellers make when reconciling Shopify transactions to their QuickBooks Online.

An infographic containing a summary of the 7 bookkeeping mistakes

Not Recording Net Sales into QuickBooks

Not collecting Shopify net sales that account for deductions, taxes, or other details that provide data about your transactions may result in inaccurate financial records and incomplete insights to analyze. 

A Shopify account isn't simply about sales; it should include gross sales before deducting returns, refunds, sales taxes, and deductions. These figures must be analyzed to see what is happening with your online store.

Returns and refunds eat your profits; they can even put you in the red if you're not careful. The same goes for sales tax. 

You could overpay or underpay sales tax if you aren't paying attention, and neither is good for your bottom line. Deductions are more complex, but they're any expenses that can be directly attributed to generating revenue.

All these must be in your financial report to get accurate profitability insight. Otherwise, you might think you're doing better than you are or worse, and no one wants that.

Assuming Everything is Automated

You may think that if you connect the Shopify app with your QuickBooks Online, everything will be automatic, and you can set aside accounting tasks altogether. That's far from reality. Among many things, you must reconcile Shopify payments with expenses incurred in the online store and outside of it. It's how you get to the true bottom-line profit.

Always remember that when you integrate Shopify with cloud accounting software, you’re not letting technology do every task. There is a manual reconciliation process involved. The purpose is to make your life easier, so you can spend more time on other important aspects of your online business.

Using the Wrong Integration App

Several apps can migrate a lot of data from Shopify to QuickBooks. Selecting one of these third-party applications allows you to sync over every transaction, sometimes even the unnecessary ones.

New Shopify businesses can adapt to this feature well. Low expenses and sales transactions make it easy to sort through what to keep and discard. But a high-volume Shopify seller should be more diligent with selecting integration apps for efficient accounting and financial reporting.

Alternatively, they can hand over their accounting processes to experts. A team of accounting and bookkeeping professionals has mastered how to manage accounting for Shopify. They know which apps to integrate and can manage volumes of transactions efficiently. It's an excellent resource saver.

Inaccurate Account and Transaction Mapping

Some integrated applications connect Shopify and QuickBooks and automatically reconcile transactions to accounts—these are QuickBooks labels where amounts are recorded for future financial reporting and analysis.

Certain integrations only sync Shopify transactions into a few accounts. This means some of the incoming transactions need to be mapped manually. Shopify merchants must pick this up and map the account and transaction themselves. Incorrectly doing so will affect reporting, bank account reconciliation, and business management.

Using The Wrong Inventory Management Software

Most accounting software has inventory-related features. As for most sellers, QuickBooks is their go-to because it’s a superior software for managing accounting processes and seamless inventory management. But depending on your specific needs, this may or may not be the ideal tool for your business. 

If you're deep into using QuickBooks as an accounting software, gaps can be bridged by using applications, versions, or add-ons that boost its inventory management capabilities. Accounting experts would know how to make it work for your business.

💡 For inventory syncing, the ideal approach is to use cloud inventory software such as Xero or Vend with a multi-channel inventory feature. These software are ideal for a growing business. Otherwise, QuickBooks can work if you're prepared to be more hands-on with your inventory.

Forgetting to Reconcile Accounts

The next blunder is not reconciling transactions in the bank with Shopify data. You may have a Shopify-QuickBooks Online integration, which can accurately record Shopify sales and expenses. But are those net figures identical to your bank account statements? Most likely, they aren’t.

It is frustrating when the accounting numbers don't match the expected business bank account balance. It may be because there's a failure to reconcile bank accounts regularly. While you can connect your bank account to your QBO and sync your Shopify store transactions, some things still need review (e.g., portioning off sales tax from gross income).

Doing the Accounting on Your Own

Finally, a grave mistake is assuming you can set up and maintain your accounting without the assistance of a qualified ecommerce accountant. Even if you are using excellent cloud accounting software, it won’t yield good results without the hands of an expert.

If you're not well-versed in bookkeeping and accounting, it's better to have an expert by your side to help manage the various Shopify account transactions. Otherwise, you will still be susceptible to issues such as failing tax compliance and messy financial liabilities.

Two business people sitting opposite each other does high five in front of a laptop on a wooden table cluttered with documents.

How to Reconcile Shopify in QuickBooks Seamlessly

Once you've identified one or several of the mistakes mentioned above, you'll have to fix them as soon as possible to prevent them from creating bigger problems moving forward. Note the following solutions indicated in the table below.

Double-Check Your Financial RecordsEnsure accurate financial records and comprehensive insights by recording Shopify net sales, gross sales, deductions, taxes, and other transaction details.
Verify Shopify and Quickbooks SyncTo reduce errors, always review your Quickbooks sync settings to identify which accounting software features operate with or without automation.
Examine Integration Apps Before Using ThemLook at the features of the 3rd party app you’ll use for Shopify-Quickbooks integration. This will help you get an idea of what data it can bring over to your books.
Learn Bookkeeping BasicsGrasp basic bookkeeping and accounting principles to align synced Shopify transactions with accurate accounts.
Choose a Specialized Inventory SoftwareImprove stock management using specialized inventory software like Fishbowl (if you’re a QuickBooks or Xero user.)
Review Business Bank Account StatementsEstablish a reconciling routine by setting a time period, such as a month or a week, to examine line items on your bank statement. Determine how they arrived at the current balance.

The Ultimate Solution: Hire a Bookkeeper or Accountant

Bookkeeping for Shopify sellers is daunting. You must keep track of all your income and expenses and comply with all the relevant tax laws. You also have to deal with managing inventory, fulfilling shipping orders, and the crucial process of reconciling Shopify with QuickBooks. Altogether, these challenges pose overwhelming responsibilities for Shopify sellers.

Even if you have the table of solutions above, doing all of them on your own is no easy feat. Fortunately, there is a solution to this problem: you can hire a bookkeeper or an accounting firm to handle or help you with most of the work. It will free up your time to focus on scaling your online business and rest easy knowing that your finances are in capable hands.

Looking for Experts on How to Reconcile Shopify in QuickBooks? Let Unloop Help You!

If you're making or wanting to avoid any of these mistakes, don't worry—you're not alone. We always see this with our clients using QuickBooks Online for their Shopify accounting. So we put together this list to help you identify where you might be going wrong and how to get back on track.

If you think identifying these mistakes and troubleshooting them keeps you away from growing your business, let our team help. Our seasoned ecommerce accountants can assist you in getting your books in order and ensure that your Shopify online store runs as smoothly as possible. Give us a call at 877-421-7270 today.

Read more

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

Understanding sales tax is essential for any business owner and Amazon seller. After all, you are responsible for collecting sales tax if you're a third-party merchant. Unfamiliar Amazon merchants may ask questions like “How many states does Amazon charge sales tax,” and “What type of sales tax do they collect?”

To quell some of your first-time seller worries, let’s run through these questions and take some time to learn about Amazon sales tax. It could save your business from unexpected fees or penalties down the road!

Common Amazon Sales Tax Concerns

Sales tax compliance is the root of many concerns for online sellers, particularly on Amazon. While it may not be the most exciting topic, addressing these concerns is essential for any e-commerce business. 

In this section, we'll break down some of the most common Amazon sales tax concerns in a straightforward, no-nonsense manner.

Does Amazon Charge Sales Tax?

Amazon collects sales taxes on "Fulfilled by Amazon" products sold to customers in states that have adopted Marketplace Facilitator, Marketplace Fairness, or similar laws and where the seller has a nexus (presence or location, such as a warehouse).

📝Note that Amazon only takes into account where the inventory is currently located.

As a result of these restrictions, the marketplace on which the merchant relies to make a sale takes on the role of a collector.

However, a third-party Amazon seller must still set up their own tax accounting system to keep up with the regulations and filing dates. In short, if Amazon fulfills your products, you don't need to worry about sales taxes, but that comes with its cons, such as increased returns due to Amazon's return policy.

Why Is Amazon Collecting Sales Taxes In The First Place?

For years, consumers have enjoyed shopping online without paying sales taxes on their purchases. It seems like an unfair advantage: laws have long required brick-and-mortar stores to collect sales taxes in every state where customers shop in person.

However, they didn't pay sales taxes because no physical presence was required for ecommerce merchants or marketplace sellers, like Amazon FBA sellers who shipped through third parties.

This setup has evolved due to the implementation of "Amazon Laws" by various states. These laws mandate that online retailers located outside their borders, even those who sell indirectly, must now collect online sales taxes from customers residing within those jurisdictions.

How Many States Does Amazon Charge Sales Tax?

Amazon collects and processes state sales tax from 46 American states and areas, including D.C., which contrasts with a sales tax nexus. Below is a list of states where customers must pay sales tax on their Amazon online purchases.

a graphic answering the question "how many states does amazon charge sales tax?" and listing down 46 states and territories

What is a Sales Tax Nexus?

The sales tax nexus is where a business operates, not the location of the buyer or where the product is going. For example, if a seller maintains physical locations in several states, such as offices or in-store retail shops, the seller must know each state's tax regulations.

Amazon also offers its own Sales Tax Calculator to help sellers determine the appropriate sales tax rate to charge their customers. 

How Does Amazon Do Their Sales Tax Collection?

If you're wondering, "How much sales tax does Amazon charge?", the total tax for your purchase will be based on several variables, including but not limited to the following:

  • Knowledge of the vendor's identity;
  • The specifics of the service or item being purchased;
  • When and where it will be accomplished;
  • Specifically, the location where your package will be delivered.

The total state and local tax rate in effect at the location of delivery or fulfillment will be the rate charged to your order. For example, if your product is being transported to a state with a sales tax, you may still be charged sales tax even if you are in a tax-free zone.

If you're an FBA vendor, the procedure is still taxing, but Amazon can help you do the job efficiently.

Amazon customers are required by law to pay state sales tax in jurisdictions where Amazon operates retail warehouses, including any warehouses, offices, or other facilities in a state owned or leased by the ecommerce giant or its affiliates.

In addition, Amazon is required to collect tax if they charge shipping and handling (S&H) and other fulfillment-related services performed at their fulfillment centers.

The laws vary from state to state but generally require you to collect sales tax if you're doing business there and make charges for S&H or fulfillment services.

What Types of Sales Taxes Can Apply to Your Amazon Business?

When dealing with Amazon sales tax, you must be aware of the different sales tax types that may apply to your business, such as state and local taxes or county taxes. You must also understand how each product code is taxed in these places.

State and Local Taxes

Each jurisdiction has its own sales tax laws. Therefore, you must research the specific sales tax laws for the state or states you are doing business in. 

Also, some localities within a state may have their own sales tax laws. For instance, Seattle has a local sales tax of 3.75% combined with Washington's state sales tax of 6.50% for a total of 10.25%.

County Taxes

Some jurisdictions also charge their taxes in addition to state and local taxes. These fees, ranging from 0.5% to 2%, are generally added on top of state and local sales taxes. Furthermore, certain counties may have different rules regarding sales tax collection.

Another factor to consider is how different products are taxed. For example, you may sell goods, digital content, or services, such as streaming movies or consulting services, which can all be charged differently.

Sales Tax on Goods

For sales tax on goods sold on Amazon, you must know the rates that apply to different products in your state or locality.

In addition, some items may be exempt from sales tax collection altogether. These include food and certain types of clothing. However, these exemptions may vary. 

Do your research to ensure that you correctly charge sales tax on all of your products with the right product tax code. You can find this information on Seller Central.

How Does This Sales Tax Collection Work For Fulfillment By Merchant (FBM) Sellers?

As mentioned, Amazon FBA sellers don’t have to do much regarding sales tax collection from customers in states with Marketplace Facilitator laws. Amazon handles all the sales tax calculations and remittances for them.

However, with Amazon FBM, it'll be entirely up to the seller to ensure that the proper amount of sales tax is collected from buyers.

How Can You Maximize Profits and Minimize Issues With Tax Authorities?

One of your main goals should be to maximize your profits while minimizing potential issues with the tax collection authorities. 

Several key steps can help you achieve these goals, such as carefully reviewing the tax laws for your state or locality and familiarizing yourself with the different types of taxes that may apply to your products or services. 

Additionally, keeping accurate records of your sales and purchases is important to ensure that you are correctly calculating and remitting any taxes that may be due.

Unloop Your Worries!

There are plenty of pros to understanding sales tax. For one, you can avoid penalties and interest charges if you mistakenly fail to remit or collect sales tax. Additionally, you can accurately calculate your taxes owed, which will help you stay organized and efficient come tax time.

As you can see, there are varieties of Amazon sales tax that may apply to your business. You need to know how these taxes impact your bottom line to stay tax compliant and avoid hefty charges. 

If you need help sorting through this complex information or want advice on managing your sales tax obligations, Unloop is here for you. We offer excellent bookkeeping services for small businesses. 

So unloop, take a breather, and give us a call at 877-421-7270 if you want to learn how to grow your business with comprehensive accounting.

How Many States Does Amazon Charge Sales Tax In & Other Amazon Sales Tax FAQs Answered
Watch Now

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

Understanding sales tax is essential for any business owner and Amazon seller. After all, you are responsible for collecting sales tax if you're a third-party merchant. Unfamiliar Amazon merchants may ask questions like “How many states does Amazon charge sales tax,” and “What type of sales tax do they collect?”

To quell some of your first-time seller worries, let’s run through these questions and take some time to learn about Amazon sales tax. It could save your business from unexpected fees or penalties down the road!

Common Amazon Sales Tax Concerns

Sales tax compliance is the root of many concerns for online sellers, particularly on Amazon. While it may not be the most exciting topic, addressing these concerns is essential for any e-commerce business. 

In this section, we'll break down some of the most common Amazon sales tax concerns in a straightforward, no-nonsense manner.

Does Amazon Charge Sales Tax?

Amazon collects sales taxes on "Fulfilled by Amazon" products sold to customers in states that have adopted Marketplace Facilitator, Marketplace Fairness, or similar laws and where the seller has a nexus (presence or location, such as a warehouse).

📝Note that Amazon only takes into account where the inventory is currently located.

As a result of these restrictions, the marketplace on which the merchant relies to make a sale takes on the role of a collector.

However, a third-party Amazon seller must still set up their own tax accounting system to keep up with the regulations and filing dates. In short, if Amazon fulfills your products, you don't need to worry about sales taxes, but that comes with its cons, such as increased returns due to Amazon's return policy.

Why Is Amazon Collecting Sales Taxes In The First Place?

For years, consumers have enjoyed shopping online without paying sales taxes on their purchases. It seems like an unfair advantage: laws have long required brick-and-mortar stores to collect sales taxes in every state where customers shop in person.

However, they didn't pay sales taxes because no physical presence was required for ecommerce merchants or marketplace sellers, like Amazon FBA sellers who shipped through third parties.

This setup has evolved due to the implementation of "Amazon Laws" by various states. These laws mandate that online retailers located outside their borders, even those who sell indirectly, must now collect online sales taxes from customers residing within those jurisdictions.

How Many States Does Amazon Charge Sales Tax?

Amazon collects and processes state sales tax from 46 American states and areas, including D.C., which contrasts with a sales tax nexus. Below is a list of states where customers must pay sales tax on their Amazon online purchases.

a graphic answering the question "how many states does amazon charge sales tax?" and listing down 46 states and territories

What is a Sales Tax Nexus?

The sales tax nexus is where a business operates, not the location of the buyer or where the product is going. For example, if a seller maintains physical locations in several states, such as offices or in-store retail shops, the seller must know each state's tax regulations.

Amazon also offers its own Sales Tax Calculator to help sellers determine the appropriate sales tax rate to charge their customers. 

How Does Amazon Do Their Sales Tax Collection?

If you're wondering, "How much sales tax does Amazon charge?", the total tax for your purchase will be based on several variables, including but not limited to the following:

  • Knowledge of the vendor's identity;
  • The specifics of the service or item being purchased;
  • When and where it will be accomplished;
  • Specifically, the location where your package will be delivered.

The total state and local tax rate in effect at the location of delivery or fulfillment will be the rate charged to your order. For example, if your product is being transported to a state with a sales tax, you may still be charged sales tax even if you are in a tax-free zone.

If you're an FBA vendor, the procedure is still taxing, but Amazon can help you do the job efficiently.

Amazon customers are required by law to pay state sales tax in jurisdictions where Amazon operates retail warehouses, including any warehouses, offices, or other facilities in a state owned or leased by the ecommerce giant or its affiliates.

In addition, Amazon is required to collect tax if they charge shipping and handling (S&H) and other fulfillment-related services performed at their fulfillment centers.

The laws vary from state to state but generally require you to collect sales tax if you're doing business there and make charges for S&H or fulfillment services.

What Types of Sales Taxes Can Apply to Your Amazon Business?

When dealing with Amazon sales tax, you must be aware of the different sales tax types that may apply to your business, such as state and local taxes or county taxes. You must also understand how each product code is taxed in these places.

State and Local Taxes

Each jurisdiction has its own sales tax laws. Therefore, you must research the specific sales tax laws for the state or states you are doing business in. 

Also, some localities within a state may have their own sales tax laws. For instance, Seattle has a local sales tax of 3.75% combined with Washington's state sales tax of 6.50% for a total of 10.25%.

County Taxes

Some jurisdictions also charge their taxes in addition to state and local taxes. These fees, ranging from 0.5% to 2%, are generally added on top of state and local sales taxes. Furthermore, certain counties may have different rules regarding sales tax collection.

Another factor to consider is how different products are taxed. For example, you may sell goods, digital content, or services, such as streaming movies or consulting services, which can all be charged differently.

Sales Tax on Goods

For sales tax on goods sold on Amazon, you must know the rates that apply to different products in your state or locality.

In addition, some items may be exempt from sales tax collection altogether. These include food and certain types of clothing. However, these exemptions may vary. 

Do your research to ensure that you correctly charge sales tax on all of your products with the right product tax code. You can find this information on Seller Central.

How Does This Sales Tax Collection Work For Fulfillment By Merchant (FBM) Sellers?

As mentioned, Amazon FBA sellers don’t have to do much regarding sales tax collection from customers in states with Marketplace Facilitator laws. Amazon handles all the sales tax calculations and remittances for them.

However, with Amazon FBM, it'll be entirely up to the seller to ensure that the proper amount of sales tax is collected from buyers.

How Can You Maximize Profits and Minimize Issues With Tax Authorities?

One of your main goals should be to maximize your profits while minimizing potential issues with the tax collection authorities. 

Several key steps can help you achieve these goals, such as carefully reviewing the tax laws for your state or locality and familiarizing yourself with the different types of taxes that may apply to your products or services. 

Additionally, keeping accurate records of your sales and purchases is important to ensure that you are correctly calculating and remitting any taxes that may be due.

Unloop Your Worries!

There are plenty of pros to understanding sales tax. For one, you can avoid penalties and interest charges if you mistakenly fail to remit or collect sales tax. Additionally, you can accurately calculate your taxes owed, which will help you stay organized and efficient come tax time.

As you can see, there are varieties of Amazon sales tax that may apply to your business. You need to know how these taxes impact your bottom line to stay tax compliant and avoid hefty charges. 

If you need help sorting through this complex information or want advice on managing your sales tax obligations, Unloop is here for you. We offer excellent bookkeeping services for small businesses. 

So unloop, take a breather, and give us a call at 877-421-7270 if you want to learn how to grow your business with comprehensive accounting.

Read more

It's no secret that Amazon is the biggest online shopping platform in the world for sellers and buyers alike. Each year, there's an increase in users on Amazon. So if you have a business and want to extend your store into the online world, Amazon is the best way to do so. It allows small business owners to reach more people and increase their revenue.

Amazon also has an FBA program that helps merchants sell their products more easily. If you plan to start a business on Amazon, here's everything you need to know about the Amazon FBA program.

What is Amazon FBA?

If you have a product-based business, you need a warehouse to store your products and a reliable company to ship your goods. Amazon addresses those worries, and its program offers to take responsibility for storing your goods, packing them, and shipping them to your customers.

When you use their program, your items will be eligible for Amazon prime shipping. Furthermore, Amazon also covers damages and will give you a full refund when they happen. The Amazon FBA makes online selling more convenient and economical for merchants.

How to Join the Amazon FBA Program?

If you want to become an FBA seller, you can start applying to the program by checking it out in your Amazon Seller Central account. Amazon will ask you to specify what items you will be selling to help identify which warehouse to send your products to. Then, once your products are in the warehouse, every time a customer orders from you, Amazon will do the rest.

Additionally, every time an order is complete, Amazon notifies you about the status of your products in storage. Since Amazon is doing the bulk of the work for you, there are FBA fees you need to fulfill to keep the program running. Here are some of them.

FBA fees

FBA fees are the ones you pay Amazon for doing the work for you. The cost of FBA fees may vary depending on how big or small your item is. The price may also differ depending on your product category. One important reminder is that the FBA fee is levied per unit.

Sales charges

Amazon charges a merchant a fee every time you sell a product using Amazon. There are two payment options for this charge. The basic plan is to pay Amazon $0.99 for every unit you sell. The professional plan charges you $39.99 per month regardless of how many items you sell in that period.

You should have your approximate Amazon monthly sales to help you determine which plan to use. For example, if you sell hundreds of items monthly, the professional plan will save you from excess sales charges.

amazon fba taxes - amazon seller account 

A Walkthrough on Amazon FBA Taxes

Whether you have a physical store or are an Amazon seller, one thing is for sure—you need to collect sales tax. Amazon collects sales tax for their sellers, but it's your responsibility to fill up important details for proper sales tax compliance. Furthermore, there are other taxes involved when you have an Amazon business.

Here is an easy guide for online sellers to help you navigate the confusing part of tax filing.

Form 1099-K

The most important form to accomplish when dealing with Amazon FBA taxes is form 1099-K. This form contains all the business income you must file and declare to your government. The information you should include in this form are:

  • Annual gross income
  • Monthly gross income
  • Sales tax
  • Shipping fees

Additionally, to make it easier for you to track your tax obligations, Amazon generates the form for you. Although, as an Amazon seller, it's your responsibility to check if there are any discrepancies in the tax data before you file it to your tax collection agency.

Understanding the Amazon Sales Tax Report

Sales tax is a consumption tax levied by the government on the sales of goods and services. If you are a product-based business, most of your goods will be imposed with sales tax, and you have to collect them as a seller. However, sales tax rates may vary depending on where the sales originates.

You can collect the correct sales tax rate by identifying your business's sales tax nexus. In most cases, the nexus you belong to is the state where your base of operations is. But other business functions can also dictate what sales nexus you belong in.

  • Personnel working for your business in different states
  • Business affiliates
  • Selling products during events in different states
  • Economic nexus
  • Inventory storage

As a general rule, your tax nexus should be your home state, but for Amazon FBA sellers taxes, it's not always the case. Since your products are sent to an Amazon warehouse, there are situations in which your items are in another state. In this case, your sales tax nexus will follow where your inventory storage is.

How Does Amazon Collect FBA Sales Tax?

If you're worried that you must manually collect sales tax every time someone purchases from your business, you can relax. Amazon handles the sales tax collection. Once a customer checks out an item, Amazon automatically adds the proper sales tax to the final cost. You see reports of your sales tax collections on your Amazon seller central account.

However, before Amazon can start collecting sales tax, you must first apply for a permit to collect them. After which, you have to set up the collection rate in your Amazon account. If you have products that are eligible for exemptions, you have to put it in your tax settings so the platform can collect sales tax properly.

Filing Sales Tax Returns of Amazon FBA sellers

Since Amazon generates almost all the forms and reports you need for your sales tax, all you have to do is to file them. You have time to prepare for filing your taxes and ensure that all data is valid and complies with the taxation laws. Here are several ways to file your taxes.

  1. Hire a professional. If you have the extra budget to hire a tax professional, then this is the best option you can go for. You can let the professional handle the filing process and can even do the checking for you. If you have little knowledge about taxes, a professional will ensure that all data on your forms and reports are valid to avoid delays and fines.
  1. Accounting software. There are accounting software options that can help you file your taxes. These filing programs will guide you through the process and upload all your needed forms. However, you still have to ensure that all information on your documents are valid before uploading them to the software.
  1. Filing online. The IRS and other tax collection agencies allow you to file online to avoid long lines. You can file independently if you are confident about your understanding of taxes. This way, you won't need to pay a professional or software for tax filing processes. Just remember to review your documents several times to ensure they are error-free.
    tax filing online

    Unloop: Accounting for Amazon Sellers

    Whether you have a physical store or you own an online store, accounting is part of running a business. Unfortunately, accounting is also one of the messiest, most time-consuming, and most confusing tasks to handle. As a business owner, you need to oversee many aspects of your business, and you can't spend all your time on accounting.

    Unloop offers accounting services for Amazon sellers so business owners can focus on other parts of their business. Our services include:

    • Figuring out your business numbers from COGS—inventory to sales
    • Using accrual accounting to make financial reports for your business
    • Automating your business by connecting it to accounting software
    • Connecting you to CPAs to help you with tax filing at the end of tax season

    Final Thoughts

    The Amazon FBA program is a big help for sellers to run their businesses conveniently. From storing and packing to shipping your goods, Amazon handles it all for you. But, of course, even as you enjoy their services, it is your responsibility to comply with tax laws. 

    We hope this short guide on handling your Amazon FBA sales taxes helps you understand and prepare your tax for the incoming tax season. If you need professional help, Unloop has a team of ecommerce experts to help you with your business accounting. Book a call with us today!

    Amazon FBA Taxes and Everything About the Amazon FBA Program
    Watch Now

    It's no secret that Amazon is the biggest online shopping platform in the world for sellers and buyers alike. Each year, there's an increase in users on Amazon. So if you have a business and want to extend your store into the online world, Amazon is the best way to do so. It allows small business owners to reach more people and increase their revenue.

    Amazon also has an FBA program that helps merchants sell their products more easily. If you plan to start a business on Amazon, here's everything you need to know about the Amazon FBA program.

    What is Amazon FBA?

    If you have a product-based business, you need a warehouse to store your products and a reliable company to ship your goods. Amazon addresses those worries, and its program offers to take responsibility for storing your goods, packing them, and shipping them to your customers.

    When you use their program, your items will be eligible for Amazon prime shipping. Furthermore, Amazon also covers damages and will give you a full refund when they happen. The Amazon FBA makes online selling more convenient and economical for merchants.

    How to Join the Amazon FBA Program?

    If you want to become an FBA seller, you can start applying to the program by checking it out in your Amazon Seller Central account. Amazon will ask you to specify what items you will be selling to help identify which warehouse to send your products to. Then, once your products are in the warehouse, every time a customer orders from you, Amazon will do the rest.

    Additionally, every time an order is complete, Amazon notifies you about the status of your products in storage. Since Amazon is doing the bulk of the work for you, there are FBA fees you need to fulfill to keep the program running. Here are some of them.

    FBA fees

    FBA fees are the ones you pay Amazon for doing the work for you. The cost of FBA fees may vary depending on how big or small your item is. The price may also differ depending on your product category. One important reminder is that the FBA fee is levied per unit.

    Sales charges

    Amazon charges a merchant a fee every time you sell a product using Amazon. There are two payment options for this charge. The basic plan is to pay Amazon $0.99 for every unit you sell. The professional plan charges you $39.99 per month regardless of how many items you sell in that period.

    You should have your approximate Amazon monthly sales to help you determine which plan to use. For example, if you sell hundreds of items monthly, the professional plan will save you from excess sales charges.

    amazon fba taxes - amazon seller account 

    A Walkthrough on Amazon FBA Taxes

    Whether you have a physical store or are an Amazon seller, one thing is for sure—you need to collect sales tax. Amazon collects sales tax for their sellers, but it's your responsibility to fill up important details for proper sales tax compliance. Furthermore, there are other taxes involved when you have an Amazon business.

    Here is an easy guide for online sellers to help you navigate the confusing part of tax filing.

    Form 1099-K

    The most important form to accomplish when dealing with Amazon FBA taxes is form 1099-K. This form contains all the business income you must file and declare to your government. The information you should include in this form are:

    • Annual gross income
    • Monthly gross income
    • Sales tax
    • Shipping fees

    Additionally, to make it easier for you to track your tax obligations, Amazon generates the form for you. Although, as an Amazon seller, it's your responsibility to check if there are any discrepancies in the tax data before you file it to your tax collection agency.

    Understanding the Amazon Sales Tax Report

    Sales tax is a consumption tax levied by the government on the sales of goods and services. If you are a product-based business, most of your goods will be imposed with sales tax, and you have to collect them as a seller. However, sales tax rates may vary depending on where the sales originates.

    You can collect the correct sales tax rate by identifying your business's sales tax nexus. In most cases, the nexus you belong to is the state where your base of operations is. But other business functions can also dictate what sales nexus you belong in.

    • Personnel working for your business in different states
    • Business affiliates
    • Selling products during events in different states
    • Economic nexus
    • Inventory storage

    As a general rule, your tax nexus should be your home state, but for Amazon FBA sellers taxes, it's not always the case. Since your products are sent to an Amazon warehouse, there are situations in which your items are in another state. In this case, your sales tax nexus will follow where your inventory storage is.

    How Does Amazon Collect FBA Sales Tax?

    If you're worried that you must manually collect sales tax every time someone purchases from your business, you can relax. Amazon handles the sales tax collection. Once a customer checks out an item, Amazon automatically adds the proper sales tax to the final cost. You see reports of your sales tax collections on your Amazon seller central account.

    However, before Amazon can start collecting sales tax, you must first apply for a permit to collect them. After which, you have to set up the collection rate in your Amazon account. If you have products that are eligible for exemptions, you have to put it in your tax settings so the platform can collect sales tax properly.

    Filing Sales Tax Returns of Amazon FBA sellers

    Since Amazon generates almost all the forms and reports you need for your sales tax, all you have to do is to file them. You have time to prepare for filing your taxes and ensure that all data is valid and complies with the taxation laws. Here are several ways to file your taxes.

    1. Hire a professional. If you have the extra budget to hire a tax professional, then this is the best option you can go for. You can let the professional handle the filing process and can even do the checking for you. If you have little knowledge about taxes, a professional will ensure that all data on your forms and reports are valid to avoid delays and fines.
    1. Accounting software. There are accounting software options that can help you file your taxes. These filing programs will guide you through the process and upload all your needed forms. However, you still have to ensure that all information on your documents are valid before uploading them to the software.
    1. Filing online. The IRS and other tax collection agencies allow you to file online to avoid long lines. You can file independently if you are confident about your understanding of taxes. This way, you won't need to pay a professional or software for tax filing processes. Just remember to review your documents several times to ensure they are error-free.
      tax filing online

      Unloop: Accounting for Amazon Sellers

      Whether you have a physical store or you own an online store, accounting is part of running a business. Unfortunately, accounting is also one of the messiest, most time-consuming, and most confusing tasks to handle. As a business owner, you need to oversee many aspects of your business, and you can't spend all your time on accounting.

      Unloop offers accounting services for Amazon sellers so business owners can focus on other parts of their business. Our services include:

      • Figuring out your business numbers from COGS—inventory to sales
      • Using accrual accounting to make financial reports for your business
      • Automating your business by connecting it to accounting software
      • Connecting you to CPAs to help you with tax filing at the end of tax season

      Final Thoughts

      The Amazon FBA program is a big help for sellers to run their businesses conveniently. From storing and packing to shipping your goods, Amazon handles it all for you. But, of course, even as you enjoy their services, it is your responsibility to comply with tax laws. 

      We hope this short guide on handling your Amazon FBA sales taxes helps you understand and prepare your tax for the incoming tax season. If you need professional help, Unloop has a team of ecommerce experts to help you with your business accounting. Book a call with us today!

      Read more

      Starting a business comes with many headaches, and most have nothing to do with selling products and services. A huge responsibility of a business owner is managing a business's situation—building a culture, training employees, and, most of all, keeping the company's financial situation in good standing. 

      Since startup companies have little to no assets, they tend to go the simpler route with their financial records. Many startup owners prefer dealing with cash-basis accounting, better known as single-entry bookkeeping (which we'll discuss more later).

      While this is a good way to manage accounting for your startup, you can't depend on it forever. 

      If your business grows, you might have to expand your accounting to cover the new areas of your financial business structure, like assets, liabilities, and equity. The IRS even mandates that companies with annual gross sales of over $5 million cannot use single-entry accounting.

      Eventually (with enough hard work and luck), your business will grow, and along with it must grow your financial statements, financial transactions, and financial records—basically your whole accounting system. You'll need to make a choice: go big or go home.

      What Is Bookkeeping?

      In general terms, bookkeeping is the process of accounting for a company's business transactions. Bookkeeping organizes business transactions and turns them into records that reflect the company's financial situation, which completes the accounting process.

      Financial records are vital in keeping businesses afloat. Without bookkeeping, businesses would be in financial darkness. With no written or recorded financial information, any financial decision or transaction would have to be closer to a guess than a concrete decision. Simply put, a business without proper bookkeeping in place will not thrive, let alone survive.

      That said, not all forms of financial management are made equal. For example, startup accounting and bookkeeping differ from that of large businesses—it all falls on what is necessary and what your business prohibits you from excluding in a financial statement.

      Two Types of Bookkeeping

      Essentially, there are two types of bookkeeping, both with their own advantages and disadvantages.

      Single-Entry Bookkeeping

      Single-entry bookkeeping is the simplest form of accounting and bookkeeping. With single-entry bookkeeping, you simply state income and business expenses—usually accompanied by a brief description of the financial transaction and its date—against each other on a table and calculate the difference as your business's cash balance. This is also called cash accounting.

      Accounting for startups and small businesses usually starts with single-entry bookkeeping for several reasons. One is because single-entry bookkeeping is much cheaper. You can do it on cheap accounting software or, if you're frugal, you can even do it on a piece of paper with a pen or a pencil.

      While single-entry bookkeeping falls under generally accepted accounting principles, it isn't ideal, especially for growing businesses. This is due to single-entry bookkeeping having entries lacking detail. In addition, since single-entry bookkeeping does not specify the nature of income and business expenses, it cannot produce a balance sheet—an essential part of your company's financial health. It is also more prone to error and is unacceptable for taxes.

      If you're counting on your business growing, you will have to consider double-entry bookkeeping for your company's financial data.

      Double-Entry Bookkeeping

      Single-entry to double-entry bookkeeping is like Little League to the NBL. While single entry bookkeeping can get you an idea of your company's financial data, double-entry bookkeeping gives you the whole picture.

      With double-entry bookkeeping, you include debit and credit or the increase and decrease of accounts in different situations. For example, debit can increase assets and decrease liabilities, while credit can increase liabilities and then decrease assets.

      Single-entry bookkeeping does not have debit and credit and thus cannot specify the nature of accounts. A classic example of this is loans. In single-entry bookkeeping, the money produced from loans is inserted directly into income; in double-entry bookkeeping, the loan is tagged as a liability—a debit—adding context to your financial report and leaving you with much more accurate accounting.

      Double-entry bookkeeping takes notes of assets, liabilities, and equities, in addition to everything a single-entry system records. This can be used to produce a balance sheet. Large businesses prefer double-entry bookkeeping because it is more contextual, and it becomes easier to account for vast assets and put them into financial records.

      Eventually, large businesses will move to accrual accounting, something double-entry bookkeeping makes easier. By then, their finances will operate more on a schedule instead of relying solely on the income entering the company.

      Basic Bookkeeping Tasks

      Now that you know the two types, it's time we dive into the tasks which make up bookkeeping, some of which you might probably be doing already. Here are some bookkeeping tasks to do on a weekly and monthly basis.

      Weekly Bookkeeping Tasks

      Weekly bookkeeping tasks are mostly about records. Every week, you must input the week's transactions and prepare them for evaluation at the end of the month. Here are some of them.

      Record Transactions in a Journal, Bookkeeping Software, or Spreadsheet

      One of the first bookkeeping tasks you must do weekly is to record any type of financial transaction made in the company's name: mainly income and expenses.

      Most startup businesses do this in a journal, but it's ideal to do it on a spreadsheet or bookkeeping software since it's safer to store it digitally than have it out in the open.

      Label Financial Transactions

      Of course, it's not enough that you'll simply jot how much money is going in and out; you'll also have to mark transactions differently to ensure an accurate accounting of your finances.

      For example, while sales and loans both bring in money for the company, only sales can be labeled as assets in double-entry bookkeeping because loans have to be paid back in the future and are thus liabilities.

      File and Digitize Your Receipts

      After jotting your transactions in a journal or typing them into bookkeeping software, you'll want to file them for later reference. Physical copies of receipts should be shelved and digitized to avoid losing them.

      Digitization is important, especially in today's ecommerce world, where most transactions are done electronically.

      Monthly Bookkeeping Tasks

      Monthly bookkeeping tasks are important for your company's financial health and stability. The tasks you'll have to be doing on a monthly basis are about maintaining your company's financial standing and, more importantly, looking into its future.

      Reconcile Accounts

      Reconciling your accounts is, basically, double-checking. This helps maintain the integrity of your records and spot any inconsistencies that could be signs of fraud or theft within a company.

      Ready Your Invoices 

      Accounting is not only recording finances but also predicting how much your company has in the future. By readying your invoices, you can come up with a realistic income you can expect for the following month. 

      Follow Up on Outstanding Invoices

      Sometimes, we let unpaid invoices slide. While it is normal to have to follow up on outstanding invoices, this should be an urgent priority. Letting unpaid invoices go robs your company of the money you were expecting from a sale and disrupts the harmony of your finances.

      Following up on outstanding invoices can lead to them being paid which procures additional income for your company.

      Pay Bills

      While income adds assets to your business, expenses add liabilities, and paying them or leaving them unpaid could determine your net profit margin ratio for the next month as well as the overall health of your business.

      Clearing your monthly bills leaves you with less debt going into the next month, and less debt means more profit for your business. It can also help monitor how much you owe in business taxes before you submit your next tax returns.

      Evaluate Your Financial Situation

      Once all monthly tasks have been settled, you are left with your company's financial status, which you will then evaluate (ideally, with the help of an accountant). You will see how much your business has profited, how the cash flow is doing, how much there is to spend, or worse, how much you have lost and how much you still owe.

      Regardless, it is important to evaluate your finances because this is how you can decide on your company's future, and the steps to take to help it grow.

      Go Big With Unloop

      Bookkeeping can be difficult, especially for startups, so if you want to go big with your business, it's time for you to upgrade your company's bookkeeping and accounting processes.

      Unloop is one of the best accounting services on the market, and, luckily for you, we offer bookkeeping services, too. At Unloop, we can ensure you save money by having accurate records. We also handle accounts payable, forecasting, payroll, and tax services.
      Book a call with us, and see what Unloop can do for your business!

      Go Big or Go Home: Basic Bookkeeping for Startups
      Watch Now

      Starting a business comes with many headaches, and most have nothing to do with selling products and services. A huge responsibility of a business owner is managing a business's situation—building a culture, training employees, and, most of all, keeping the company's financial situation in good standing. 

      Since startup companies have little to no assets, they tend to go the simpler route with their financial records. Many startup owners prefer dealing with cash-basis accounting, better known as single-entry bookkeeping (which we'll discuss more later).

      While this is a good way to manage accounting for your startup, you can't depend on it forever. 

      If your business grows, you might have to expand your accounting to cover the new areas of your financial business structure, like assets, liabilities, and equity. The IRS even mandates that companies with annual gross sales of over $5 million cannot use single-entry accounting.

      Eventually (with enough hard work and luck), your business will grow, and along with it must grow your financial statements, financial transactions, and financial records—basically your whole accounting system. You'll need to make a choice: go big or go home.

      What Is Bookkeeping?

      In general terms, bookkeeping is the process of accounting for a company's business transactions. Bookkeeping organizes business transactions and turns them into records that reflect the company's financial situation, which completes the accounting process.

      Financial records are vital in keeping businesses afloat. Without bookkeeping, businesses would be in financial darkness. With no written or recorded financial information, any financial decision or transaction would have to be closer to a guess than a concrete decision. Simply put, a business without proper bookkeeping in place will not thrive, let alone survive.

      That said, not all forms of financial management are made equal. For example, startup accounting and bookkeeping differ from that of large businesses—it all falls on what is necessary and what your business prohibits you from excluding in a financial statement.

      Two Types of Bookkeeping

      Essentially, there are two types of bookkeeping, both with their own advantages and disadvantages.

      Single-Entry Bookkeeping

      Single-entry bookkeeping is the simplest form of accounting and bookkeeping. With single-entry bookkeeping, you simply state income and business expenses—usually accompanied by a brief description of the financial transaction and its date—against each other on a table and calculate the difference as your business's cash balance. This is also called cash accounting.

      Accounting for startups and small businesses usually starts with single-entry bookkeeping for several reasons. One is because single-entry bookkeeping is much cheaper. You can do it on cheap accounting software or, if you're frugal, you can even do it on a piece of paper with a pen or a pencil.

      While single-entry bookkeeping falls under generally accepted accounting principles, it isn't ideal, especially for growing businesses. This is due to single-entry bookkeeping having entries lacking detail. In addition, since single-entry bookkeeping does not specify the nature of income and business expenses, it cannot produce a balance sheet—an essential part of your company's financial health. It is also more prone to error and is unacceptable for taxes.

      If you're counting on your business growing, you will have to consider double-entry bookkeeping for your company's financial data.

      Double-Entry Bookkeeping

      Single-entry to double-entry bookkeeping is like Little League to the NBL. While single entry bookkeeping can get you an idea of your company's financial data, double-entry bookkeeping gives you the whole picture.

      With double-entry bookkeeping, you include debit and credit or the increase and decrease of accounts in different situations. For example, debit can increase assets and decrease liabilities, while credit can increase liabilities and then decrease assets.

      Single-entry bookkeeping does not have debit and credit and thus cannot specify the nature of accounts. A classic example of this is loans. In single-entry bookkeeping, the money produced from loans is inserted directly into income; in double-entry bookkeeping, the loan is tagged as a liability—a debit—adding context to your financial report and leaving you with much more accurate accounting.

      Double-entry bookkeeping takes notes of assets, liabilities, and equities, in addition to everything a single-entry system records. This can be used to produce a balance sheet. Large businesses prefer double-entry bookkeeping because it is more contextual, and it becomes easier to account for vast assets and put them into financial records.

      Eventually, large businesses will move to accrual accounting, something double-entry bookkeeping makes easier. By then, their finances will operate more on a schedule instead of relying solely on the income entering the company.

      Basic Bookkeeping Tasks

      Now that you know the two types, it's time we dive into the tasks which make up bookkeeping, some of which you might probably be doing already. Here are some bookkeeping tasks to do on a weekly and monthly basis.

      Weekly Bookkeeping Tasks

      Weekly bookkeeping tasks are mostly about records. Every week, you must input the week's transactions and prepare them for evaluation at the end of the month. Here are some of them.

      Record Transactions in a Journal, Bookkeeping Software, or Spreadsheet

      One of the first bookkeeping tasks you must do weekly is to record any type of financial transaction made in the company's name: mainly income and expenses.

      Most startup businesses do this in a journal, but it's ideal to do it on a spreadsheet or bookkeeping software since it's safer to store it digitally than have it out in the open.

      Label Financial Transactions

      Of course, it's not enough that you'll simply jot how much money is going in and out; you'll also have to mark transactions differently to ensure an accurate accounting of your finances.

      For example, while sales and loans both bring in money for the company, only sales can be labeled as assets in double-entry bookkeeping because loans have to be paid back in the future and are thus liabilities.

      File and Digitize Your Receipts

      After jotting your transactions in a journal or typing them into bookkeeping software, you'll want to file them for later reference. Physical copies of receipts should be shelved and digitized to avoid losing them.

      Digitization is important, especially in today's ecommerce world, where most transactions are done electronically.

      Monthly Bookkeeping Tasks

      Monthly bookkeeping tasks are important for your company's financial health and stability. The tasks you'll have to be doing on a monthly basis are about maintaining your company's financial standing and, more importantly, looking into its future.

      Reconcile Accounts

      Reconciling your accounts is, basically, double-checking. This helps maintain the integrity of your records and spot any inconsistencies that could be signs of fraud or theft within a company.

      Ready Your Invoices 

      Accounting is not only recording finances but also predicting how much your company has in the future. By readying your invoices, you can come up with a realistic income you can expect for the following month. 

      Follow Up on Outstanding Invoices

      Sometimes, we let unpaid invoices slide. While it is normal to have to follow up on outstanding invoices, this should be an urgent priority. Letting unpaid invoices go robs your company of the money you were expecting from a sale and disrupts the harmony of your finances.

      Following up on outstanding invoices can lead to them being paid which procures additional income for your company.

      Pay Bills

      While income adds assets to your business, expenses add liabilities, and paying them or leaving them unpaid could determine your net profit margin ratio for the next month as well as the overall health of your business.

      Clearing your monthly bills leaves you with less debt going into the next month, and less debt means more profit for your business. It can also help monitor how much you owe in business taxes before you submit your next tax returns.

      Evaluate Your Financial Situation

      Once all monthly tasks have been settled, you are left with your company's financial status, which you will then evaluate (ideally, with the help of an accountant). You will see how much your business has profited, how the cash flow is doing, how much there is to spend, or worse, how much you have lost and how much you still owe.

      Regardless, it is important to evaluate your finances because this is how you can decide on your company's future, and the steps to take to help it grow.

      Go Big With Unloop

      Bookkeeping can be difficult, especially for startups, so if you want to go big with your business, it's time for you to upgrade your company's bookkeeping and accounting processes.

      Unloop is one of the best accounting services on the market, and, luckily for you, we offer bookkeeping services, too. At Unloop, we can ensure you save money by having accurate records. We also handle accounts payable, forecasting, payroll, and tax services.
      Book a call with us, and see what Unloop can do for your business!

      Read more

      The choice of bookkeeping service package you make today will directly impact your profit margin and your time for the short or long term. You also have to account for the costs your business incurs more than your revenue for it to be profitable.

      Accounting services are essential for a growing business, but they have a cost. As a business owner, you pay to keep your business numbers intact. So it's only logical to make a cost-effective choice before deciding to commit.

      If you're looking for bookkeeping price packages in Canada or the US, let Unloop help you with the following guide.

      Different Accounting Pricing Packages

      Bookkeeping and accounting firms adapt different pricing models for their services. This is to allow an option that will match the client's needs with the solutions they provide. There are at least three pricing packages.

      Flat Rate or Fixed Fee

      This type of bookkeeping pricing package offers you a fixed amount to pay for an agreed service. They may do the work earlier or later than expected, but as long as the service is completed, you must pay the rate.

      Hourly Rate

      Compared to a flat rate, an hourly rate charges you a fixed amount on an hourly basis. This type of accounting pricing package makes efficiency important because the longer the service takes to complete, the higher the amount you pay. The good news is that an hourly rate is a good option if you only need minor services.

      Monthly Cost or Subscription

      Some accounting businesses bundle services together and offer them on a fixed monthly bookkeeping and accounting rate called a subscription. They also offer different levels or what they call "tiers" that cater to different levels of accounting business needs.

      Different Accounting and Bookkeeping Services You Can Get

      Many accounting service companies offer a host of services for their clients. Their arrangement may vary depending on your case, or it may be a fixed package containing several services. But no matter what accounting service firm you deal with, you will encounter the following services.

      Bookkeeping

      This service is a staple in any bookkeeping service company. If there's only one service they have to provide, it is bookkeeping, which is the core process of any financial accounting.

      Reporting Financial Statements

      From bookkeeping, they can extend the service to financial statement preparation and reporting. In most cases, financial statements come bundled as part of bookkeeping service packages as it is connected to the process. But some accounting service firms offer monthly financial reports as a business advantage.

      Accounts Payable Assistance

      In some enterprises with a business-to-business (B2B) model, there can be frequent volume purchases, and these transactions often involve credits. Accountants understand that with the volume comes the complexity of managing accounts payable, which can wreak havoc on a business's cash flow. So they offer assistance and management as part of their service offering.

      Payroll

      As the number of employees increases, paying them becomes more challenging. That's because apart from the volume, you may also have different types of employees, such as regular full-time, part-time, or contract employees. All these employee types have different treatments. So accountants offer payroll services to ensure salary is paid accurately for everyone and the disbursement is recorded properly in the business's accounting system.

      Forecasting

      Accountants understand the value of knowing future revenue potential for management. So to relieve business owners of the guesswork, accountants offer forecasting services to project short-term and long-term income and how a purchase decision can affect future revenues.

      Sales and Income Tax Services

      Tax is the most complex subject for any business owner. Yet taxes are obligations that every business must fulfill. To ensure that business owners are paying the correct tax amount and avoid legal repercussions, accountants can offer tax preparation assistance to help businesses know the right tax amount to pay.

      bookkeeping price packages - Two professionals calculating and doing paperwork

      Things to Consider Before Committing to a Bookkeeping Service

      Before selecting from bookkeeping pricing packages offered by an accounting service company, consider the following criteria. These will help you determine the right arrangement that will maximize your profit.

      Your Business's Size

      How big the business is plays an important factor when choosing a bookkeeping service. There are several ways to measure your business size: the number of employees, the size of equity invested, and the volume of transactions.

      Each of these will affect how complex the accounting service is needed. For example, if you're a startup business with less than five employees, you may only need a part-time bookkeeping service, but if you have hundreds of regular workers, you'll need a skilled accounting team handling the payroll, books, and bank accounts.

      Your Business's Accounting Software

      Most small businesses use a program or software to handle their accounting and bookkeeping work. So it's important to tell your prospective bookkeeper what you are using (or not using) so they can do their best to adjust to your needs.

      As an example, Unloop is a bookkeeping agency that specializes in QuickBooks. If you're using the same software, the transition will be smooth, but if you're using a different accounting software such as Xero or Sage50, they will have to work with what you have or transition you to QuickBooks.

      The Bookkeeping Company's Industry Familiarity

      An accountant familiar with your industry will know how your numbers work. This means they are far more capable of working efficiently and giving you accounting information that they know will help.

      Unloop is a service agency that specializes in ecommerce. We know how to work with numbers and can provide you with the reports you need for decision-making. Not only that, but we can also offer advice on what steps you can take to maximize profitability.

      Bookkeeping Company's Scope of Service

      Inquire about what services the bookkeeping company has to offer. The more services they can offer, the better. That's because you can always expand the service you need for them, which makes for a more efficient operation of your accounting systems.

      You'll want to get a full-service accounting agency that offers services like the ones mentioned above. This way, you won't have to search for another company to do a different aspect of your accounting.

      The Bookkeeping Company's Client History

      A bookkeeping service company must have a track record of both past and ongoing clients. So check if they have some under their belt. This verifies their legitimacy and competence.

      It's much better if you can get feedback about their service. Check their website for client testimonials or ask for case studies you can read. If their clients are satisfied, then it's likely that you will be, too.

      The Best Bookkeeping Price Package for You

      Now that you know the different pricing packages and services available, you are in a better position to decide what the best package applies to your business. But to hone in on the most cost-effective decision, you must find out what your business needs and talk to an accounting service provider.Talk to Unloop. We have three different price packages to offer you to make sure it's customized according to your business needs. Book a call with us or check out our ecommerce services now.

      Bookkeeping Price Packages: Choosing the Best Option for Your Business
      Watch Now

      The choice of bookkeeping service package you make today will directly impact your profit margin and your time for the short or long term. You also have to account for the costs your business incurs more than your revenue for it to be profitable.

      Accounting services are essential for a growing business, but they have a cost. As a business owner, you pay to keep your business numbers intact. So it's only logical to make a cost-effective choice before deciding to commit.

      If you're looking for bookkeeping price packages in Canada or the US, let Unloop help you with the following guide.

      Different Accounting Pricing Packages

      Bookkeeping and accounting firms adapt different pricing models for their services. This is to allow an option that will match the client's needs with the solutions they provide. There are at least three pricing packages.

      Flat Rate or Fixed Fee

      This type of bookkeeping pricing package offers you a fixed amount to pay for an agreed service. They may do the work earlier or later than expected, but as long as the service is completed, you must pay the rate.

      Hourly Rate

      Compared to a flat rate, an hourly rate charges you a fixed amount on an hourly basis. This type of accounting pricing package makes efficiency important because the longer the service takes to complete, the higher the amount you pay. The good news is that an hourly rate is a good option if you only need minor services.

      Monthly Cost or Subscription

      Some accounting businesses bundle services together and offer them on a fixed monthly bookkeeping and accounting rate called a subscription. They also offer different levels or what they call "tiers" that cater to different levels of accounting business needs.

      Different Accounting and Bookkeeping Services You Can Get

      Many accounting service companies offer a host of services for their clients. Their arrangement may vary depending on your case, or it may be a fixed package containing several services. But no matter what accounting service firm you deal with, you will encounter the following services.

      Bookkeeping

      This service is a staple in any bookkeeping service company. If there's only one service they have to provide, it is bookkeeping, which is the core process of any financial accounting.

      Reporting Financial Statements

      From bookkeeping, they can extend the service to financial statement preparation and reporting. In most cases, financial statements come bundled as part of bookkeeping service packages as it is connected to the process. But some accounting service firms offer monthly financial reports as a business advantage.

      Accounts Payable Assistance

      In some enterprises with a business-to-business (B2B) model, there can be frequent volume purchases, and these transactions often involve credits. Accountants understand that with the volume comes the complexity of managing accounts payable, which can wreak havoc on a business's cash flow. So they offer assistance and management as part of their service offering.

      Payroll

      As the number of employees increases, paying them becomes more challenging. That's because apart from the volume, you may also have different types of employees, such as regular full-time, part-time, or contract employees. All these employee types have different treatments. So accountants offer payroll services to ensure salary is paid accurately for everyone and the disbursement is recorded properly in the business's accounting system.

      Forecasting

      Accountants understand the value of knowing future revenue potential for management. So to relieve business owners of the guesswork, accountants offer forecasting services to project short-term and long-term income and how a purchase decision can affect future revenues.

      Sales and Income Tax Services

      Tax is the most complex subject for any business owner. Yet taxes are obligations that every business must fulfill. To ensure that business owners are paying the correct tax amount and avoid legal repercussions, accountants can offer tax preparation assistance to help businesses know the right tax amount to pay.

      bookkeeping price packages - Two professionals calculating and doing paperwork

      Things to Consider Before Committing to a Bookkeeping Service

      Before selecting from bookkeeping pricing packages offered by an accounting service company, consider the following criteria. These will help you determine the right arrangement that will maximize your profit.

      Your Business's Size

      How big the business is plays an important factor when choosing a bookkeeping service. There are several ways to measure your business size: the number of employees, the size of equity invested, and the volume of transactions.

      Each of these will affect how complex the accounting service is needed. For example, if you're a startup business with less than five employees, you may only need a part-time bookkeeping service, but if you have hundreds of regular workers, you'll need a skilled accounting team handling the payroll, books, and bank accounts.

      Your Business's Accounting Software

      Most small businesses use a program or software to handle their accounting and bookkeeping work. So it's important to tell your prospective bookkeeper what you are using (or not using) so they can do their best to adjust to your needs.

      As an example, Unloop is a bookkeeping agency that specializes in QuickBooks. If you're using the same software, the transition will be smooth, but if you're using a different accounting software such as Xero or Sage50, they will have to work with what you have or transition you to QuickBooks.

      The Bookkeeping Company's Industry Familiarity

      An accountant familiar with your industry will know how your numbers work. This means they are far more capable of working efficiently and giving you accounting information that they know will help.

      Unloop is a service agency that specializes in ecommerce. We know how to work with numbers and can provide you with the reports you need for decision-making. Not only that, but we can also offer advice on what steps you can take to maximize profitability.

      Bookkeeping Company's Scope of Service

      Inquire about what services the bookkeeping company has to offer. The more services they can offer, the better. That's because you can always expand the service you need for them, which makes for a more efficient operation of your accounting systems.

      You'll want to get a full-service accounting agency that offers services like the ones mentioned above. This way, you won't have to search for another company to do a different aspect of your accounting.

      The Bookkeeping Company's Client History

      A bookkeeping service company must have a track record of both past and ongoing clients. So check if they have some under their belt. This verifies their legitimacy and competence.

      It's much better if you can get feedback about their service. Check their website for client testimonials or ask for case studies you can read. If their clients are satisfied, then it's likely that you will be, too.

      The Best Bookkeeping Price Package for You

      Now that you know the different pricing packages and services available, you are in a better position to decide what the best package applies to your business. But to hone in on the most cost-effective decision, you must find out what your business needs and talk to an accounting service provider.Talk to Unloop. We have three different price packages to offer you to make sure it's customized according to your business needs. Book a call with us or check out our ecommerce services now.

      Read more

      The wine business is one of the most vertically integrated businesses there is. A vineyard can work down the supply chain by building a winery and going further with an ecommerce storefront. But winery bookkeeping and accounting become more complex with this integration.

      Sounds daunting? Let Unloop show you how bookkeeping and accounting for wineries work as simply as possible.

      short graphic summarizing the processes and accounting systems of a wine business

      The Vineyard

      At the top of the wine industry supply chain is the vineyard. This business takes care of grapefruit planting up to harvesting, which wineries will use as a raw material for making wine. The following is the vineyard's production process.

      1. Planting - Farmers plant rows of grapes on a vast land using machinery and direct labor, which takes days to finish depending on the vineyard's land area and available labor.
      2. Pruning - From the time when farmers plant the grapes, there's a period of dormancy that takes years. During these times, activity is focused mainly on pruning the growing branches to ensure high-quality grape yields.
      3. Veraison - Veraison is the peak period of growth for grapes. It’s when they are ripe and ready for picking.
      4. Harvest - Harvesting is the final step in a vineyard's lifecycle, where manual laborers select grapes and clip them off the branches. The grapes are then shipped to a winemaker or made into wine in-house during this time.
      closeup shot of ripe grapes with the vineyard as a blurred background

      Vineyard Bookkeeping & Accounting System

      A vineyard is heavy on agricultural activities. The production is long-winding, and it will take years before the vineyard realizes a profit. Given the situation, accountants follow these accounting practices.

      Cash Accounting Method

      Most farm businesses operate using the cash basis accounting method, where income or costs are immediately recognized as soon as the cash is received or spent. 

      With this accounting type, farms have a clearer view of their cash flow. It also makes tax filing easier because they won’t have to pay taxes in accumulated amounts, unlike in accrual accounting.

      Since vineyards are farms, vineyard accountants and bookkeepers use the same accounting method, making it easier to record production costs accurately.

      The Cost of Goods Produced (COGP)

      According to accounting principles, accountants use COGP to allocate vineyard costs associated with growing grapes, such as direct labor, overhead, and other supplies and activities involved in the process. 

      They do so to avoid any miscalculations and confusion between the cost pool of the winery and the vineyard.

      Cost Capitalization

      Grapes take years to grow. As a result, the vineyard only gets revenue after several years. Farming costs add up during that time without any income to offset them. To resolve this problem, accountants may capitalize on the vineyard's expenses so the business realizes a profit according to the total sales in the given period.

      The Winery

      Harvesting the grapes is the departure point of the vineyard and the start of the winery production processes. In the winery, the grapes are turned into wine and are stored as collections for sale in the future.

      In most cases, vineyards also have a wine production facility (i.e., winery), so the two terms are often mixed up. But wineries work differently. The video below details the winemaking process.

      Winery Bookkeeping & Accounting System

      As briefly shown above, wine production has a different behavior compared to the vineyard. It has similar functions to a general manufacturing process, with some nuances. As a result, accountants adjust their practices according to the winery's needs.

      The Accrual Method of Accounting

      Professionals use the accrual basis accounting method for winery accounting. It's a rational choice because obtaining the raw material for winemaking may not need to be paid immediately due to integration. 

      On the other hand, getting cash from a sale of a barrel or bottles may also take time. To avoid any miscalculations, accountants record transactions once incurred.

      The Cost of Goods Sold (COGS)

      Wineries use the common COGS system primarily because they have a tangible good to sell for a profit.

      The Ecommerce Wine Store

      At present, many wine sellers take their products online. Ecommerce marketplaces, like Amazon, offer a vast network of wine consumers, making it attractive for sellers of all kinds. Online wine sellers can choose between these two models.

      Third-Party Wine Retailer Model

      A third-party seller can offer a wide variety of wines from different wineries. They are strictly retail. They must also follow the steps a direct-to-consumer takes to have an ecommerce presence (see next section).

      However, two additional core steps are necessary to enter the ecommerce market.

      1. Source a Wine Supplier - Sellers search for wineries, wine wholesalers, and distributors to get their products. They buy in bulk for lower prices and sell for a profit.
      2. Create a Brand - Third-party wine sellers must create a brand to establish their identity and credibility in the ecommerce market. The brand will help them differentiate themselves from the rest.

      Direct-to-Consumer (D2C) Model

      Wineries can now sell their wine bottles directly to consumers using the power of ecommerce. Smaller wineries often use a D2C approach, which offers a high-profit margin and a seamless transition, leveraging their existing supply and brand.  

      All that’s left for wineries like yours to do are the following:

      1. Set Up an Online Store or Marketplace Seller Account - If you sell wine on Amazon, you must register for a seller account and provide the necessary information about your winery brand. The platform then reviews your account before activating it for selling.
      2. Upload Wine Inventory - Once you have an active seller account, you may take photos of your wine inventory and post them online with full descriptions and other helpful content.
      3. Plan for Wine Packaging and Shipment - Wine bottles are fragile, so carefully plan their packaging and shipping to avoid in-transit mishaps. Also, check state laws about alcohol selling and distribution to prevent issues that could lead to shipping delays.
      4. Engage in Digital Marketing and Advertising - Consider hiring a digital marketer and other ecommerce professionals to help attract the right customers and transform your wine bottles and barrels into substantial revenue.

      Outsource Your Ecommerce Bookkeeping and Accounting

      The challenge of running a winery business is that it has two different accounting systems—one for the vineyard and another for the winery itself. Plus, you can take your business online, like creating a separate retail business with another accounting system. Establishing multiple accounting systems is no easy feat, so outsourcing the job to the experts can be significantly beneficial

      Here's what wineries can expect when they outsource their financial management.

      Accurate Bookkeeping

      Accounting professionals will record all the ecommerce business financial data using double-entry accounting software, such as QuickBooks. This service will include generating financial statements and other financial reporting documents as needed.

      Reporting on Cost of Goods Sold

      The ecommerce retail side of the wine business will have separate COGS recordkeeping. Accountants and bookkeepers report this financial data to you or include them in the income statement for your analysis

      Tax Assistance

      In the ecommerce market, adherence to accounting compliance is essential, which often entails tax management, such as sales tax and income tax. By outsourcing your ecommerce accounting, you'll gain access to seasoned bookkeeping experts who can collaborate with your accountant, ensuring precise tax filing obligations based on comprehensive records and data.

      shot of a glass of wine with wine bottles beside it and a blurred background of wine barrels

      With Unloop, Financial Management Will Be a Breeze for Your Ecommerce Wine Business 

      Whether you own a vineyard or are a third-party wine seller, outsourcing your bookkeeping and accounting will lift a huge burden off your back.

      Ecommerce has a lot of potential to scale. If the demand for wine spikes, it will be more challenging to do bookkeeping and accounting on your own, so leave it to the experts at Unloop and focus on growing your winery into a successful business. Book a call with us if you want to know more about what we are capable of, or check out our bookkeeping services now for more information.

      Winery Bookkeeping & Accounting: From Vineyard to Ecommerce Storefront
      Watch Now

      The wine business is one of the most vertically integrated businesses there is. A vineyard can work down the supply chain by building a winery and going further with an ecommerce storefront. But winery bookkeeping and accounting become more complex with this integration.

      Sounds daunting? Let Unloop show you how bookkeeping and accounting for wineries work as simply as possible.

      short graphic summarizing the processes and accounting systems of a wine business

      The Vineyard

      At the top of the wine industry supply chain is the vineyard. This business takes care of grapefruit planting up to harvesting, which wineries will use as a raw material for making wine. The following is the vineyard's production process.

      1. Planting - Farmers plant rows of grapes on a vast land using machinery and direct labor, which takes days to finish depending on the vineyard's land area and available labor.
      2. Pruning - From the time when farmers plant the grapes, there's a period of dormancy that takes years. During these times, activity is focused mainly on pruning the growing branches to ensure high-quality grape yields.
      3. Veraison - Veraison is the peak period of growth for grapes. It’s when they are ripe and ready for picking.
      4. Harvest - Harvesting is the final step in a vineyard's lifecycle, where manual laborers select grapes and clip them off the branches. The grapes are then shipped to a winemaker or made into wine in-house during this time.
      closeup shot of ripe grapes with the vineyard as a blurred background

      Vineyard Bookkeeping & Accounting System

      A vineyard is heavy on agricultural activities. The production is long-winding, and it will take years before the vineyard realizes a profit. Given the situation, accountants follow these accounting practices.

      Cash Accounting Method

      Most farm businesses operate using the cash basis accounting method, where income or costs are immediately recognized as soon as the cash is received or spent. 

      With this accounting type, farms have a clearer view of their cash flow. It also makes tax filing easier because they won’t have to pay taxes in accumulated amounts, unlike in accrual accounting.

      Since vineyards are farms, vineyard accountants and bookkeepers use the same accounting method, making it easier to record production costs accurately.

      The Cost of Goods Produced (COGP)

      According to accounting principles, accountants use COGP to allocate vineyard costs associated with growing grapes, such as direct labor, overhead, and other supplies and activities involved in the process. 

      They do so to avoid any miscalculations and confusion between the cost pool of the winery and the vineyard.

      Cost Capitalization

      Grapes take years to grow. As a result, the vineyard only gets revenue after several years. Farming costs add up during that time without any income to offset them. To resolve this problem, accountants may capitalize on the vineyard's expenses so the business realizes a profit according to the total sales in the given period.

      The Winery

      Harvesting the grapes is the departure point of the vineyard and the start of the winery production processes. In the winery, the grapes are turned into wine and are stored as collections for sale in the future.

      In most cases, vineyards also have a wine production facility (i.e., winery), so the two terms are often mixed up. But wineries work differently. The video below details the winemaking process.

      Winery Bookkeeping & Accounting System

      As briefly shown above, wine production has a different behavior compared to the vineyard. It has similar functions to a general manufacturing process, with some nuances. As a result, accountants adjust their practices according to the winery's needs.

      The Accrual Method of Accounting

      Professionals use the accrual basis accounting method for winery accounting. It's a rational choice because obtaining the raw material for winemaking may not need to be paid immediately due to integration. 

      On the other hand, getting cash from a sale of a barrel or bottles may also take time. To avoid any miscalculations, accountants record transactions once incurred.

      The Cost of Goods Sold (COGS)

      Wineries use the common COGS system primarily because they have a tangible good to sell for a profit.

      The Ecommerce Wine Store

      At present, many wine sellers take their products online. Ecommerce marketplaces, like Amazon, offer a vast network of wine consumers, making it attractive for sellers of all kinds. Online wine sellers can choose between these two models.

      Third-Party Wine Retailer Model

      A third-party seller can offer a wide variety of wines from different wineries. They are strictly retail. They must also follow the steps a direct-to-consumer takes to have an ecommerce presence (see next section).

      However, two additional core steps are necessary to enter the ecommerce market.

      1. Source a Wine Supplier - Sellers search for wineries, wine wholesalers, and distributors to get their products. They buy in bulk for lower prices and sell for a profit.
      2. Create a Brand - Third-party wine sellers must create a brand to establish their identity and credibility in the ecommerce market. The brand will help them differentiate themselves from the rest.

      Direct-to-Consumer (D2C) Model

      Wineries can now sell their wine bottles directly to consumers using the power of ecommerce. Smaller wineries often use a D2C approach, which offers a high-profit margin and a seamless transition, leveraging their existing supply and brand.  

      All that’s left for wineries like yours to do are the following:

      1. Set Up an Online Store or Marketplace Seller Account - If you sell wine on Amazon, you must register for a seller account and provide the necessary information about your winery brand. The platform then reviews your account before activating it for selling.
      2. Upload Wine Inventory - Once you have an active seller account, you may take photos of your wine inventory and post them online with full descriptions and other helpful content.
      3. Plan for Wine Packaging and Shipment - Wine bottles are fragile, so carefully plan their packaging and shipping to avoid in-transit mishaps. Also, check state laws about alcohol selling and distribution to prevent issues that could lead to shipping delays.
      4. Engage in Digital Marketing and Advertising - Consider hiring a digital marketer and other ecommerce professionals to help attract the right customers and transform your wine bottles and barrels into substantial revenue.

      Outsource Your Ecommerce Bookkeeping and Accounting

      The challenge of running a winery business is that it has two different accounting systems—one for the vineyard and another for the winery itself. Plus, you can take your business online, like creating a separate retail business with another accounting system. Establishing multiple accounting systems is no easy feat, so outsourcing the job to the experts can be significantly beneficial

      Here's what wineries can expect when they outsource their financial management.

      Accurate Bookkeeping

      Accounting professionals will record all the ecommerce business financial data using double-entry accounting software, such as QuickBooks. This service will include generating financial statements and other financial reporting documents as needed.

      Reporting on Cost of Goods Sold

      The ecommerce retail side of the wine business will have separate COGS recordkeeping. Accountants and bookkeepers report this financial data to you or include them in the income statement for your analysis

      Tax Assistance

      In the ecommerce market, adherence to accounting compliance is essential, which often entails tax management, such as sales tax and income tax. By outsourcing your ecommerce accounting, you'll gain access to seasoned bookkeeping experts who can collaborate with your accountant, ensuring precise tax filing obligations based on comprehensive records and data.

      shot of a glass of wine with wine bottles beside it and a blurred background of wine barrels

      With Unloop, Financial Management Will Be a Breeze for Your Ecommerce Wine Business 

      Whether you own a vineyard or are a third-party wine seller, outsourcing your bookkeeping and accounting will lift a huge burden off your back.

      Ecommerce has a lot of potential to scale. If the demand for wine spikes, it will be more challenging to do bookkeeping and accounting on your own, so leave it to the experts at Unloop and focus on growing your winery into a successful business. Book a call with us if you want to know more about what we are capable of, or check out our bookkeeping services now for more information.

      Read more

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

      Almost every business owner across all e-commerce platforms can agree that accounting and bookkeeping for e-commerce are some of the most tedious parts of running a company. While they are undeniably challenging, both are essential to keep a business afloat.

      This post will focus on e-commerce bookkeeping, the common challenges e-commerce business owners face, and some tips to overcome them.

      7 Common Bookkeeping Challenges for E-commerce Businesses

      Bookkeeping primarily involves documenting all financial transactions around your business. Keeping track of these may seem easy initially, but once they pile up, they pose challenges. 

      Bookkeeping obstacles may seem inevitable, but you can always be one step ahead. Read this blog about common e-commerce bookkeeping challenges and note the tips we'll share with you.

      #1: Inconsistencies in Cash Flow Statements

      Proper bookkeeping is crucial in monitoring your cash flow. To create a working budget for your business operations and assess your financial health, you must know how the money goes in and out of your business. 

      Unfortunately, most small e-commerce businesses have problems with their cash flow.

      At the end of each accounting period, businesses tend to have unbalanced cash flow because of various factors, including failure to keep tabs on their accounts receivable and payable. 

      Solution

      Here are simple tasks you can do to ensure your cash flow remains consistent:

      short graphic showing tips for cash flow management

      #2: Issues with Your Inventory Management System

      Even seasoned small business owners find inventory management confusing. The more products you sell and the more sales channels you open, the harder it is to keep up with your stock management.

      When tracking inventory, you monitor item count, determine their value, and trace locations (if you’re multiple warehouses or outsourcing). Every sale you make means a change in your inventory. Changes also happen when you process returns and refunds.

      Solution: Your inventory is the backbone of your business's cash flow management. Manually tracking inventory is a difficult endeavor, but not impossible.

      It is best to have ecommerce accounting software with inventory tracking features to avoid any issues. The software will automate the whole inventory management process so you can fully control the stock's movements.

      #3: Calculating Expenses and Overheads

      Running a business is not all about income. While gaining sales is the better part of running it, you must also manage and understand your expenses. If you don't monitor your costs, you can spend over your budget, which could reflect a negative income. 

      Here are some types of business expenses you should consider and how to manage them:

      short graphic showing the types of business expenses and how you can manage them

      #4: Sales Tax Liabilities

      The biggest challenge for e-commerce business owners is handling sales tax. Tax, in general, is the most complicated part of accounting. 

      a note about sales tax definition

      The issues start with identifying your tax nexus. Depending on where you belong, sales tax rates may differ. In bookkeeping, sales tax has its own ledger. This will help the owner track if they are collecting the right amount. But it can disrupt your cash flow if you don't know the correct rates. 

      Solution: You can overcome difficulties in sales tax by doing the following:

      • Knowing which economic tax nexus your business belongs to
      • Seeing if your selling platforms can collect sales tax for you and maximize this feature
      • Investing in accounting software that automatically calculates the sales tax for your products

      #5: Handling Seller Fees

      Paying monthly fees to maintain an online selling presence is common, but managing them isn't always easy. Miscellaneous fees, including listing, advertising, shipping fulfillment, and other merchant fees, can be difficult to track because they are applied differently. 

      When you have bulk orders, these fees may go unnoticed and unlisted. Failing to list them as expenses can reflect discrepancies on your balance sheets at the end of the accounting period. And if you sell on multiple platforms, it adds another layer of complexity to the system.

      Solution: Fortunately, online calculators exist for accounting fees in popular marketplaces like Amazon and Shopify. Still, the best solution to avoid mistakes is automation through accounting software. Don't play a guessing game with your fees. When errors pile up, it will cost you more money in the future.

      #6: Doing Manual Data Entry

      Traditional bookkeeping method isn’t wrong, but it's a thing of the past. 

      Even if you own a small business, never underestimate its demand for record-keeping. You may find manual entry easy at first, but it will be harder to keep up as your business grows.

      Solution: Again, investing in cloud accounting software is the best solution for this problem. You don't have to worry about investing big money in an accounting system. Instead, take advantage of software you can use for free. 

      Even free versions can do the basics of e-commerce bookkeeping. You don't have to spend much (if at all) at the beginning to automate your record-keeping process.

      #7: Vulnerability to Fraud

      Fraud is probably the biggest concern that will get your bookkeeping into shambles. Imagine your records being manipulated. Data manipulation can affect your business's financial health if things get out of hand. 

      Small e-commerce businesses are more prone to fraud compared to larger companies. They don't have as much security for their financial statements and other documents as big companies do. 

      Here are some common fraud cases you should look into:

      • Payroll schemes
      • Cash theft
      • Inventory theft
      • Reimbursement schemes
      • Cheque tampering

      Solution: You can prevent fraud by being consistent and transparent with your records. Furthermore, assigning a dedicated and trustworthy e-commerce bookkeeper for your bookkeeping process can keep your financial records secure.

      Bookkeeping service
      Bookkeeping service: Do you need it? yes or no

      Get Professional Ecommerce Bookkeeping Services at Unloop

      If you're an ecommerce business owner, you must have many things on your plate. Managing a business has many aspects; bookkeeping can be time-consuming and confusing for some. Instead of worrying about it, let Unloop handle it for you.

      Our bookkeeping services cover the following tasks:

      • Automating your entire bookkeeping process regardless of what e-commerce platform you are selling on
      • Preparing all necessary financial reports, like income statements, cash flow statements, balance sheets, etc.
      • Creating custom analytics and KPIs based on your business needs
      • Filing taxes on behalf of your business

      E-commerce bookkeeping may seem like a walk in the park, but it is better to let professionals assist you when your business starts to grow. This way, the process is guaranteed to run smoothly and without problems. 
      Aside from bookkeeping, Unloop also offers different accounting services for small business owners. Book a call with our experts and work with us today!

      Bookkeeping for e-commerce: 7 Issues and How To Overcome Them
      Watch Now

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

      Almost every business owner across all e-commerce platforms can agree that accounting and bookkeeping for e-commerce are some of the most tedious parts of running a company. While they are undeniably challenging, both are essential to keep a business afloat.

      This post will focus on e-commerce bookkeeping, the common challenges e-commerce business owners face, and some tips to overcome them.

      7 Common Bookkeeping Challenges for E-commerce Businesses

      Bookkeeping primarily involves documenting all financial transactions around your business. Keeping track of these may seem easy initially, but once they pile up, they pose challenges. 

      Bookkeeping obstacles may seem inevitable, but you can always be one step ahead. Read this blog about common e-commerce bookkeeping challenges and note the tips we'll share with you.

      #1: Inconsistencies in Cash Flow Statements

      Proper bookkeeping is crucial in monitoring your cash flow. To create a working budget for your business operations and assess your financial health, you must know how the money goes in and out of your business. 

      Unfortunately, most small e-commerce businesses have problems with their cash flow.

      At the end of each accounting period, businesses tend to have unbalanced cash flow because of various factors, including failure to keep tabs on their accounts receivable and payable. 

      Solution

      Here are simple tasks you can do to ensure your cash flow remains consistent:

      short graphic showing tips for cash flow management

      #2: Issues with Your Inventory Management System

      Even seasoned small business owners find inventory management confusing. The more products you sell and the more sales channels you open, the harder it is to keep up with your stock management.

      When tracking inventory, you monitor item count, determine their value, and trace locations (if you’re multiple warehouses or outsourcing). Every sale you make means a change in your inventory. Changes also happen when you process returns and refunds.

      Solution: Your inventory is the backbone of your business's cash flow management. Manually tracking inventory is a difficult endeavor, but not impossible.

      It is best to have ecommerce accounting software with inventory tracking features to avoid any issues. The software will automate the whole inventory management process so you can fully control the stock's movements.

      #3: Calculating Expenses and Overheads

      Running a business is not all about income. While gaining sales is the better part of running it, you must also manage and understand your expenses. If you don't monitor your costs, you can spend over your budget, which could reflect a negative income. 

      Here are some types of business expenses you should consider and how to manage them:

      short graphic showing the types of business expenses and how you can manage them

      #4: Sales Tax Liabilities

      The biggest challenge for e-commerce business owners is handling sales tax. Tax, in general, is the most complicated part of accounting. 

      a note about sales tax definition

      The issues start with identifying your tax nexus. Depending on where you belong, sales tax rates may differ. In bookkeeping, sales tax has its own ledger. This will help the owner track if they are collecting the right amount. But it can disrupt your cash flow if you don't know the correct rates. 

      Solution: You can overcome difficulties in sales tax by doing the following:

      • Knowing which economic tax nexus your business belongs to
      • Seeing if your selling platforms can collect sales tax for you and maximize this feature
      • Investing in accounting software that automatically calculates the sales tax for your products

      #5: Handling Seller Fees

      Paying monthly fees to maintain an online selling presence is common, but managing them isn't always easy. Miscellaneous fees, including listing, advertising, shipping fulfillment, and other merchant fees, can be difficult to track because they are applied differently. 

      When you have bulk orders, these fees may go unnoticed and unlisted. Failing to list them as expenses can reflect discrepancies on your balance sheets at the end of the accounting period. And if you sell on multiple platforms, it adds another layer of complexity to the system.

      Solution: Fortunately, online calculators exist for accounting fees in popular marketplaces like Amazon and Shopify. Still, the best solution to avoid mistakes is automation through accounting software. Don't play a guessing game with your fees. When errors pile up, it will cost you more money in the future.

      #6: Doing Manual Data Entry

      Traditional bookkeeping method isn’t wrong, but it's a thing of the past. 

      Even if you own a small business, never underestimate its demand for record-keeping. You may find manual entry easy at first, but it will be harder to keep up as your business grows.

      Solution: Again, investing in cloud accounting software is the best solution for this problem. You don't have to worry about investing big money in an accounting system. Instead, take advantage of software you can use for free. 

      Even free versions can do the basics of e-commerce bookkeeping. You don't have to spend much (if at all) at the beginning to automate your record-keeping process.

      #7: Vulnerability to Fraud

      Fraud is probably the biggest concern that will get your bookkeeping into shambles. Imagine your records being manipulated. Data manipulation can affect your business's financial health if things get out of hand. 

      Small e-commerce businesses are more prone to fraud compared to larger companies. They don't have as much security for their financial statements and other documents as big companies do. 

      Here are some common fraud cases you should look into:

      • Payroll schemes
      • Cash theft
      • Inventory theft
      • Reimbursement schemes
      • Cheque tampering

      Solution: You can prevent fraud by being consistent and transparent with your records. Furthermore, assigning a dedicated and trustworthy e-commerce bookkeeper for your bookkeeping process can keep your financial records secure.

      Bookkeeping service
      Bookkeeping service: Do you need it? yes or no

      Get Professional Ecommerce Bookkeeping Services at Unloop

      If you're an ecommerce business owner, you must have many things on your plate. Managing a business has many aspects; bookkeeping can be time-consuming and confusing for some. Instead of worrying about it, let Unloop handle it for you.

      Our bookkeeping services cover the following tasks:

      • Automating your entire bookkeeping process regardless of what e-commerce platform you are selling on
      • Preparing all necessary financial reports, like income statements, cash flow statements, balance sheets, etc.
      • Creating custom analytics and KPIs based on your business needs
      • Filing taxes on behalf of your business

      E-commerce bookkeeping may seem like a walk in the park, but it is better to let professionals assist you when your business starts to grow. This way, the process is guaranteed to run smoothly and without problems. 
      Aside from bookkeeping, Unloop also offers different accounting services for small business owners. Book a call with our experts and work with us today!

      Read more

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

      In recent years, ecommerce platforms like Amazon have undeniably taken a greater role in the economy and our lifestyles. So if you wish to survive the competitive ecommerce world this 2023, hiring an Amazon bookkeeper isn’t just a nice-to-have—it’s essential.

      Let us convince you why hiring bookkeeping services for Amazon sellers is not only a mere luxury for those who can afford them but an indispensable key to online success.

      Why the Future Is Bright for Amazon FBA Sellers

      closeup shot of two people looking and discussing a business report

      There will always be skeptics, and it isn't a bad thing. It’s only natural to know that the ecommerce industry isn't just a passing trend before jumping on the bandwagon.

      Ensuring long-term growth becomes especially important when investing your money to buy initial inventory and hire employees. 

      Is setting up a store and selling on the world's largest online retailer worth it? Yes! Here are a few reasons establishing a business on Amazon is ideal.

      1. Amazon Surpasses Traditional Retailers

      Big-box stores like Walmart and Target always come to mind when shopping. Be it grocery items, furniture, or appliances, the go-to for almost everything you need is a big-box store. For this reason, physical retailers enjoy a steady supply of customers, keeping their aisles busy and parking lots full. 

      However, in 2020, Amazon's Gross Merchandise Value (GMV) exceeded that of Walmart. Amazon achieved a 41% GMV growth, while Walmart grew by 10%. These numbers translate to the volume of sales made within a year.

      Given this trajectory, it's clear that Amazon is on an upward swing, and today might be a good time to get involved.

      2. Amazon Continues to Enjoy Market Supremacy

      When asked about ecommerce, which company comes to mind? If Amazon isn't the first thing you thought about, you might be living in a cave! Amazon has truly taken over the ecommerce market. 

      Projections for Amazon promise a favorable outlook for the company and ecommerce in general, as analysts predicted that Amazon would take 50% of the ecommerce market share. The marketplace is nearing this benchmark after taking almost 40% of the market share in 2022. 

      Source: Data from Statista.com

      How does this translate for Amazon sellers like you? If you want to increase your products' visibility, be smart and put them up on display on Amazon. The more people visit Amazon, the higher the chances of translating traffic into actual sales.

      3. Mobile Ecommerce Steadily Gains Ground

      Smartphones have become inseparable from us. We have been doing most of our daily activities with the help of these gadgets. For instance, a meal can be delivered right to your home's doorstep through a mobile app.

      Taking advantage of this shift to mobile use, ecommerce platforms like Amazon optimize their websites and apps to work seamlessly with mobile devices. This leads to mobile commerce being projected to exceed $510 billion in sales in 2023.

      You can gain from this projected growth by having your products accessible on mobile devices through the Amazon app. In fact, the Amazon app is listed as one of the top mobile commerce platforms, gaining close to 21 million monthly active users and almost 35 million downloads in 2022.

      4. Social Commerce Generates Interest and Traffic

      Consuming all sorts of content on social media platforms is addicting. Entrepreneurs have seized this valuable opportunity by buying ad spaces and building a marketing strategy for social commerce.

      With a well-managed and engaging social media page, you can convert traffic on your page to sales on your Amazon store. You can even tap influencers and micro-influencers to generate interest in your products. 

      As long as social media remains popular, you can use the platform to promote your products and increase your brand's visibility on the Amazon marketplace.

      What Can an Amazon Bookkeeper Do for Your Small Business?

      Thanks to your hard work and a touch of luck, you've managed to grow your ecommerce business, receiving thousands of orders daily. Congratulations! But can you keep up? 

      Scaling up your business means adding new members to what used to be a one-person team. Unless you have eight tentacles, you cannot juggle crucial tasks like inventory management, shipment, and accounting via your Amazon Seller Central account.

      That's why you must hire bookkeeping services to keep your financial transactions in order and avoid financial trouble. And the best part? Hiring professional bookkeepers is as easy as booking a call!

      Read more to familiarize yourself with what bookkeepers can do for you and your growing business.

      graphic showing the benefits of hiring an Amazon bookkeeper

      Track Your Cash Inflows and Outflows

      You must have a system that keeps track of the number of goods sold and the money going in and leaving your business. New small business owners can get away with collecting receipts and encoding them manually on their self-made spreadsheets. 

      But as you scale up your operations, manual entry will be time-consuming and prone to costly errors. Hiring an Amazon accountant or bookkeeper with an accrual accounting system will help you monitor your cash inflow and outflow. They can do all the work on your behalf. 

      No matter how busy your daily business operations are, you can always rely on your bookkeeper to consider every penny that goes in and out of your business.

      Keep Your Taxes in Order

      Losing receipts and skipping accounting for your daily income and expenses is all too easy. But even though you’re unlikely to face immediate legal consequences for such lapses, you must still do your due diligence concerning money matters. 

      Your negligence might result in penalties from government auditors when tax season comes. A tight schedule is no excuse for overlooking your tax accounting. So, it’s time for you to hire a team of professional bookkeepers to settle and minimize your taxes for you. 

      While you still have to file taxes yourself, bookkeepers prepare everything to account for every cent you owe the government.

      See the Bigger Picture

      Are you a hands-on business owner? Nothing beats being in the trenches of your growing business and attending to every transaction yourself. But too much involvement on the ground may prevent you from seeing the bigger picture. You need to zoom out to check how your small business is doing.

      Professional bookkeepers employ the best bookkeeping software for Amazon sellers to generate summary reports about your business' performance. 

      For example, is your business making money? Which quarter saw growth in Amazon sales? You can answer all these questions by glancing at your summary report.

      Use Data for Projections

      In addition to tracking your daily earnings, you should also set targets for the future growth of your business. 

      Of course, you'll have milestones and deadlines to meet along the way. However, crafting a timetable should be based on past performance and cash flow for it to be realistic and achievable.

      Fortunately, you can instantly skip the complicated math and request a projections report with an experienced ecommerce bookkeeper. You can rely on their projections based on the data gathered from your business's past performance. They even use cloud accounting software that takes additional data from current trends observed in the market.

      Find Exceptional Amazon Accounting Services Today!

      2023 might just be the best time to become an Amazon FBA seller. Aspiring ecommerce businesses will definitely benefit from the current industry trends, including social commerce and mobile commerce. 

      However, you will need help in such a risky yet rewarding endeavor. Amazon bookkeeping and ecommerce accounting can be difficult without the help of professional accounting services. 

      So don't let your Amazon business get caught in the tangle of accounting and sales tax liability web! Ditch your clunky Google Sheet spreadsheets and hire a reliable Amazon seller bookkeeping service today!

      Book a call now and check out our bookkeeping services for budding entrepreneurs like you!

      Why an Amazon Bookkeeper Is Crucial for Your Amazon Business in 2023
      Watch Now

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

      In recent years, ecommerce platforms like Amazon have undeniably taken a greater role in the economy and our lifestyles. So if you wish to survive the competitive ecommerce world this 2023, hiring an Amazon bookkeeper isn’t just a nice-to-have—it’s essential.

      Let us convince you why hiring bookkeeping services for Amazon sellers is not only a mere luxury for those who can afford them but an indispensable key to online success.

      Why the Future Is Bright for Amazon FBA Sellers

      closeup shot of two people looking and discussing a business report

      There will always be skeptics, and it isn't a bad thing. It’s only natural to know that the ecommerce industry isn't just a passing trend before jumping on the bandwagon.

      Ensuring long-term growth becomes especially important when investing your money to buy initial inventory and hire employees. 

      Is setting up a store and selling on the world's largest online retailer worth it? Yes! Here are a few reasons establishing a business on Amazon is ideal.

      1. Amazon Surpasses Traditional Retailers

      Big-box stores like Walmart and Target always come to mind when shopping. Be it grocery items, furniture, or appliances, the go-to for almost everything you need is a big-box store. For this reason, physical retailers enjoy a steady supply of customers, keeping their aisles busy and parking lots full. 

      However, in 2020, Amazon's Gross Merchandise Value (GMV) exceeded that of Walmart. Amazon achieved a 41% GMV growth, while Walmart grew by 10%. These numbers translate to the volume of sales made within a year.

      Given this trajectory, it's clear that Amazon is on an upward swing, and today might be a good time to get involved.

      2. Amazon Continues to Enjoy Market Supremacy

      When asked about ecommerce, which company comes to mind? If Amazon isn't the first thing you thought about, you might be living in a cave! Amazon has truly taken over the ecommerce market. 

      Projections for Amazon promise a favorable outlook for the company and ecommerce in general, as analysts predicted that Amazon would take 50% of the ecommerce market share. The marketplace is nearing this benchmark after taking almost 40% of the market share in 2022. 

      Source: Data from Statista.com

      How does this translate for Amazon sellers like you? If you want to increase your products' visibility, be smart and put them up on display on Amazon. The more people visit Amazon, the higher the chances of translating traffic into actual sales.

      3. Mobile Ecommerce Steadily Gains Ground

      Smartphones have become inseparable from us. We have been doing most of our daily activities with the help of these gadgets. For instance, a meal can be delivered right to your home's doorstep through a mobile app.

      Taking advantage of this shift to mobile use, ecommerce platforms like Amazon optimize their websites and apps to work seamlessly with mobile devices. This leads to mobile commerce being projected to exceed $510 billion in sales in 2023.

      You can gain from this projected growth by having your products accessible on mobile devices through the Amazon app. In fact, the Amazon app is listed as one of the top mobile commerce platforms, gaining close to 21 million monthly active users and almost 35 million downloads in 2022.

      4. Social Commerce Generates Interest and Traffic

      Consuming all sorts of content on social media platforms is addicting. Entrepreneurs have seized this valuable opportunity by buying ad spaces and building a marketing strategy for social commerce.

      With a well-managed and engaging social media page, you can convert traffic on your page to sales on your Amazon store. You can even tap influencers and micro-influencers to generate interest in your products. 

      As long as social media remains popular, you can use the platform to promote your products and increase your brand's visibility on the Amazon marketplace.

      What Can an Amazon Bookkeeper Do for Your Small Business?

      Thanks to your hard work and a touch of luck, you've managed to grow your ecommerce business, receiving thousands of orders daily. Congratulations! But can you keep up? 

      Scaling up your business means adding new members to what used to be a one-person team. Unless you have eight tentacles, you cannot juggle crucial tasks like inventory management, shipment, and accounting via your Amazon Seller Central account.

      That's why you must hire bookkeeping services to keep your financial transactions in order and avoid financial trouble. And the best part? Hiring professional bookkeepers is as easy as booking a call!

      Read more to familiarize yourself with what bookkeepers can do for you and your growing business.

      graphic showing the benefits of hiring an Amazon bookkeeper

      Track Your Cash Inflows and Outflows

      You must have a system that keeps track of the number of goods sold and the money going in and leaving your business. New small business owners can get away with collecting receipts and encoding them manually on their self-made spreadsheets. 

      But as you scale up your operations, manual entry will be time-consuming and prone to costly errors. Hiring an Amazon accountant or bookkeeper with an accrual accounting system will help you monitor your cash inflow and outflow. They can do all the work on your behalf. 

      No matter how busy your daily business operations are, you can always rely on your bookkeeper to consider every penny that goes in and out of your business.

      Keep Your Taxes in Order

      Losing receipts and skipping accounting for your daily income and expenses is all too easy. But even though you’re unlikely to face immediate legal consequences for such lapses, you must still do your due diligence concerning money matters. 

      Your negligence might result in penalties from government auditors when tax season comes. A tight schedule is no excuse for overlooking your tax accounting. So, it’s time for you to hire a team of professional bookkeepers to settle and minimize your taxes for you. 

      While you still have to file taxes yourself, bookkeepers prepare everything to account for every cent you owe the government.

      See the Bigger Picture

      Are you a hands-on business owner? Nothing beats being in the trenches of your growing business and attending to every transaction yourself. But too much involvement on the ground may prevent you from seeing the bigger picture. You need to zoom out to check how your small business is doing.

      Professional bookkeepers employ the best bookkeeping software for Amazon sellers to generate summary reports about your business' performance. 

      For example, is your business making money? Which quarter saw growth in Amazon sales? You can answer all these questions by glancing at your summary report.

      Use Data for Projections

      In addition to tracking your daily earnings, you should also set targets for the future growth of your business. 

      Of course, you'll have milestones and deadlines to meet along the way. However, crafting a timetable should be based on past performance and cash flow for it to be realistic and achievable.

      Fortunately, you can instantly skip the complicated math and request a projections report with an experienced ecommerce bookkeeper. You can rely on their projections based on the data gathered from your business's past performance. They even use cloud accounting software that takes additional data from current trends observed in the market.

      Find Exceptional Amazon Accounting Services Today!

      2023 might just be the best time to become an Amazon FBA seller. Aspiring ecommerce businesses will definitely benefit from the current industry trends, including social commerce and mobile commerce. 

      However, you will need help in such a risky yet rewarding endeavor. Amazon bookkeeping and ecommerce accounting can be difficult without the help of professional accounting services. 

      So don't let your Amazon business get caught in the tangle of accounting and sales tax liability web! Ditch your clunky Google Sheet spreadsheets and hire a reliable Amazon seller bookkeeping service today!

      Book a call now and check out our bookkeeping services for budding entrepreneurs like you!

      Read more

      One of the numerous responsibilities of managing a business is bookkeeping. A business needs to record all its assets and expenses to determine how good—or bad—the business is doing. Good bookkeeping is the foundation of seamless accounting, and we're here to help you with your bookkeeping process.

      In this article, we'll discuss how double-entry accounting works and why this bookkeeping method is the one you should use for your business.

      Defining Double-Entry Accounting

      The practice of documenting transactions in at least two accounts is known as double-entry accounting. Transactions in double-entry bookkeeping often appear in the debit and credit entries.

      Having two columns allows you to monitor if both sides are balanced, which will help you pinpoint problems early on. Double-entry bookkeeping is one of the most efficient ways to monitor your company's financial health and growth.

      If you plan to use this accounting method, you should know the different account types a transaction may fall into. Here are the primary account types for the double-entry accounting system.

      Different Account Types

      • Asset Accounts: This account shows the money related to the things a company owns. This can pertain to cash in a business's checking account or the money used to buy the company's space.
      • Liability Accounts: This account reflects everything a business owes to other businesses or individuals. This includes mortgages, loans for machinery, and credit card balances.
      • Income Accounts: This account pertains to all the money received by the business. Transactions under this account usually come from sales a business generates from its products and services.
      • Expense Accounts: This account shows all the money your business spends. This can include purchased goods for your inventory, rent, utility bills, and advertising costs.

      A chart of accounts, which includes each account on the balance sheet and income statement where an accountant makes an entry, is necessary for the double-entry system. Companies can add and modify accounts to better reflect their unique operations, accounting, and reporting requirements.

      credit and debit accounts

      How Double-Entry Bookkeeping Works

      It's possible for you to do double-entry bookkeeping manually. But, if you're using this bookkeeping method, getting an accounting software will make it easier to set up and prevent errors.

      Accounting software options are not just for accountants. They are designed with business owners in mind. Even with little knowledge of accounting, you can surely use them with ease. To help you with the process, here are four crucial steps to start your double-entry bookkeeping system.

      Create a Chart of Accounts

      As previously stated, you need to record business transactions in at least two accounts for double-entry bookkeeping. The first step is to set up the chart of accounts where you'll be recording transactions.

      Bookkeeping software can set up charts for your business automatically. Take advantage of the technology to make the process easier for you.

      Use Credit and Debit Entries for Transactions

      In this bookkeeping method, the debit entry is on the left side of the ledger accounts, while the credit entry is on the right. It makes it easier to see if your accounts are balanced this way.

      A debit entry in the charts will increase the amount of assets and expense accounts. The amount of the obligation, revenue, and equity accounts will rise as a result of a credit entry. If you handle your finances properly at the end of the accounting period, all your accounts should be balanced.

      Ensure All Transactions Have Two Components

      Once your accounts are set up, and you understand how credit and debit work, you can start recording your financial transactions. For example, at the end of February, say you are due to pay $250 for rent. Here is how it would appear in your bookkeeping.

      DateAccount Debit Credit 
      02/28/2023Cash $250
      02/28/2023Expenses (Rent) $250 

      If you only list the $250 in expenses at the end of the accounting period. You will find a missing $250 in your cash account. If you're lucky to remember where the money went, you have your book balanced, but if not, you'll have discrepancies in your data.

      Consider another scenario where you spend $800 in business expenses.

      DateAccount Debit Credit 
      03/12/2023Rental car $350
      03/12/2023Meals $160 
      03/12/2023Hotel$290 
      03/12/2023Cash $800

      In double-entry accounting, you can clearly see the different expenses you use on your travel. This will give you a clear picture of spending patterns, which allows you to strategize how to spend and handle your finances.

      Generate Business Financial Statements

      After encoding all the data in your accounts, you will be ready to generate financial statements. Use these statements to assess the status of your financial health. Read and understand them to strategize further on how to lower your expenses or boost your revenue.

      You can also use financial statements to get a bank loan. Furthermore, investors look at your financial statements to see if your business is eligible for sponsors or huge investments.

      Advantages of Double-Entry Accounting

      At first glance, the double-entry method may sound complicated because of the left and right entries you must do. But even professional accountants will recommend double-entry accounting for businesses. Here are some reasons why you should do it.

      Improves Accuracy of Accounting Records

      When you run a business, keeping an accurate record of your transactions is vital for business success. With double-entry bookkeeping, every detail of your finances is recorded. You can ensure the important numbers are noted, and it is easy to spot any discrepancies.

      Furthermore, it makes it easier to track which businesses and individuals you owe as well as track those payments your business is yet to receive.

      Helps With Crucial Business Decision Making

      How you choose to handle your finances will dictate the success of your business. Double-entry accounting can help make more informed business decisions that cater to its growth. 

      For example, in double-entry bookkeeping, you break down all the expenses. It can be for travel, marketing, or even replenishing your inventory. You can analyze the data and brainstorm strategies to control your costs. It helps you make decisions if you need to control your money or spend more towards the development of your business.

      Widens Financial Analysis Scope

      The big difference from single-entry accounting is that double-entry accounting is more comprehensive, allowing business owners to widen their financial analysis. Imagine if you have a single-entry accounting process that only shows your expenses. You cannot compare it with anything, other than the historical data you have on hand.

      But with double-entry accounting, you can see the money coming into your business. This will give you confidence that you are also gaining profit as you spend to run business operations.

      business receipts

      Get Professional Bookkeeping Help With Unloop

      One thing about double-entry accounting is it's complicated for business owners, especially those new to the industry. But don't worry! Unloop is here to help small business owners with their double-entry bookkeeping.

      We are a team of experts that helps businesses with their bookkeeping and accounting needs to grow in their industry. We offer bookkeeping services which include:

      • Setting up necessary applications to jumpstart bookkeeping by integrating QuickBooks Online, Xero, A2X, Gusto, or Fathom.
      • Creating necessary financial statements such as income statements, cash flow statements, and balance sheets on a monthly basis.
      • Handling your inventory and CoGS using FIFO or WAC methods.
      • Helping you with filing your annual tax returns.
      • Providing unlimited consultation via Slack, so you are always up to date with your bookkeeping queries.

      On the surface, bookkeeping is simply keeping an organized and complete record of business transactions. But in reality, keeping up with recording is a challenge, especially when you handle all the other tasks in your business. Professional services ensure that every dollar that goes in and out of your business is accounted for.

      We hope this quick overview of double-entry accounting helps you understand bookkeeping for your small business. Remember, Unloop offers several accounting services if you need more professional help. Talk to our experts by booking a call with us today!

      Bookkeeping Starters: A Guide To Double Entry Accounting
      Watch Now

      One of the numerous responsibilities of managing a business is bookkeeping. A business needs to record all its assets and expenses to determine how good—or bad—the business is doing. Good bookkeeping is the foundation of seamless accounting, and we're here to help you with your bookkeeping process.

      In this article, we'll discuss how double-entry accounting works and why this bookkeeping method is the one you should use for your business.

      Defining Double-Entry Accounting

      The practice of documenting transactions in at least two accounts is known as double-entry accounting. Transactions in double-entry bookkeeping often appear in the debit and credit entries.

      Having two columns allows you to monitor if both sides are balanced, which will help you pinpoint problems early on. Double-entry bookkeeping is one of the most efficient ways to monitor your company's financial health and growth.

      If you plan to use this accounting method, you should know the different account types a transaction may fall into. Here are the primary account types for the double-entry accounting system.

      Different Account Types

      • Asset Accounts: This account shows the money related to the things a company owns. This can pertain to cash in a business's checking account or the money used to buy the company's space.
      • Liability Accounts: This account reflects everything a business owes to other businesses or individuals. This includes mortgages, loans for machinery, and credit card balances.
      • Income Accounts: This account pertains to all the money received by the business. Transactions under this account usually come from sales a business generates from its products and services.
      • Expense Accounts: This account shows all the money your business spends. This can include purchased goods for your inventory, rent, utility bills, and advertising costs.

      A chart of accounts, which includes each account on the balance sheet and income statement where an accountant makes an entry, is necessary for the double-entry system. Companies can add and modify accounts to better reflect their unique operations, accounting, and reporting requirements.

      credit and debit accounts

      How Double-Entry Bookkeeping Works

      It's possible for you to do double-entry bookkeeping manually. But, if you're using this bookkeeping method, getting an accounting software will make it easier to set up and prevent errors.

      Accounting software options are not just for accountants. They are designed with business owners in mind. Even with little knowledge of accounting, you can surely use them with ease. To help you with the process, here are four crucial steps to start your double-entry bookkeeping system.

      Create a Chart of Accounts

      As previously stated, you need to record business transactions in at least two accounts for double-entry bookkeeping. The first step is to set up the chart of accounts where you'll be recording transactions.

      Bookkeeping software can set up charts for your business automatically. Take advantage of the technology to make the process easier for you.

      Use Credit and Debit Entries for Transactions

      In this bookkeeping method, the debit entry is on the left side of the ledger accounts, while the credit entry is on the right. It makes it easier to see if your accounts are balanced this way.

      A debit entry in the charts will increase the amount of assets and expense accounts. The amount of the obligation, revenue, and equity accounts will rise as a result of a credit entry. If you handle your finances properly at the end of the accounting period, all your accounts should be balanced.

      Ensure All Transactions Have Two Components

      Once your accounts are set up, and you understand how credit and debit work, you can start recording your financial transactions. For example, at the end of February, say you are due to pay $250 for rent. Here is how it would appear in your bookkeeping.

      DateAccount Debit Credit 
      02/28/2023Cash $250
      02/28/2023Expenses (Rent) $250 

      If you only list the $250 in expenses at the end of the accounting period. You will find a missing $250 in your cash account. If you're lucky to remember where the money went, you have your book balanced, but if not, you'll have discrepancies in your data.

      Consider another scenario where you spend $800 in business expenses.

      DateAccount Debit Credit 
      03/12/2023Rental car $350
      03/12/2023Meals $160 
      03/12/2023Hotel$290 
      03/12/2023Cash $800

      In double-entry accounting, you can clearly see the different expenses you use on your travel. This will give you a clear picture of spending patterns, which allows you to strategize how to spend and handle your finances.

      Generate Business Financial Statements

      After encoding all the data in your accounts, you will be ready to generate financial statements. Use these statements to assess the status of your financial health. Read and understand them to strategize further on how to lower your expenses or boost your revenue.

      You can also use financial statements to get a bank loan. Furthermore, investors look at your financial statements to see if your business is eligible for sponsors or huge investments.

      Advantages of Double-Entry Accounting

      At first glance, the double-entry method may sound complicated because of the left and right entries you must do. But even professional accountants will recommend double-entry accounting for businesses. Here are some reasons why you should do it.

      Improves Accuracy of Accounting Records

      When you run a business, keeping an accurate record of your transactions is vital for business success. With double-entry bookkeeping, every detail of your finances is recorded. You can ensure the important numbers are noted, and it is easy to spot any discrepancies.

      Furthermore, it makes it easier to track which businesses and individuals you owe as well as track those payments your business is yet to receive.

      Helps With Crucial Business Decision Making

      How you choose to handle your finances will dictate the success of your business. Double-entry accounting can help make more informed business decisions that cater to its growth. 

      For example, in double-entry bookkeeping, you break down all the expenses. It can be for travel, marketing, or even replenishing your inventory. You can analyze the data and brainstorm strategies to control your costs. It helps you make decisions if you need to control your money or spend more towards the development of your business.

      Widens Financial Analysis Scope

      The big difference from single-entry accounting is that double-entry accounting is more comprehensive, allowing business owners to widen their financial analysis. Imagine if you have a single-entry accounting process that only shows your expenses. You cannot compare it with anything, other than the historical data you have on hand.

      But with double-entry accounting, you can see the money coming into your business. This will give you confidence that you are also gaining profit as you spend to run business operations.

      business receipts

      Get Professional Bookkeeping Help With Unloop

      One thing about double-entry accounting is it's complicated for business owners, especially those new to the industry. But don't worry! Unloop is here to help small business owners with their double-entry bookkeeping.

      We are a team of experts that helps businesses with their bookkeeping and accounting needs to grow in their industry. We offer bookkeeping services which include:

      • Setting up necessary applications to jumpstart bookkeeping by integrating QuickBooks Online, Xero, A2X, Gusto, or Fathom.
      • Creating necessary financial statements such as income statements, cash flow statements, and balance sheets on a monthly basis.
      • Handling your inventory and CoGS using FIFO or WAC methods.
      • Helping you with filing your annual tax returns.
      • Providing unlimited consultation via Slack, so you are always up to date with your bookkeeping queries.

      On the surface, bookkeeping is simply keeping an organized and complete record of business transactions. But in reality, keeping up with recording is a challenge, especially when you handle all the other tasks in your business. Professional services ensure that every dollar that goes in and out of your business is accounted for.

      We hope this quick overview of double-entry accounting helps you understand bookkeeping for your small business. Remember, Unloop offers several accounting services if you need more professional help. Talk to our experts by booking a call with us today!

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      About unloop

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

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