eCommerce accounting is challenging. It seems like it should be simple enough, but too many companies and accountants make bookkeeping errors that lead to poor operational and strategic decisions.
As you know, bad decisions lead to poor results.
So, why is it so hard?
For starters, unlike most other businesses, most transactions pass through sales channels NOT the bank account. Just looking at the bank account for revenue is seriously misleading, so you’ve got to dig into the sales channels for the right information.
Other areas that make bookkeeping for ecommerce challenging are:
- Sales tax
As well as knowing how all these affect the Balance Sheet and Profit & Loss Statement!
See what we mean? It’s a LOT!
LedgerGurus is here to help!
We have compiled a short guide outlining the 5 Signs of Bookkeeping Trouble for an eCommerce Business. These 5 signs are found on your Balance Sheet and Profit & Loss Statement.
We want to help you know what to look for so you can make good business decisions.
We’ll show you:
- What inventory is supposed to look like on your books
- Where sales tax needs to show up on your books
- Where to go to get accurate revenue information
- What your COGS should look like when everything else is done correctly
As you read, we recommend having your financial statements on hand to validate your books. If you find any of these signs, you will have a starting point for cleaning up your books.
We’ve also got lots of resources to show you HOW to do all of these things, whether you want to do them yourself or make sure that your accountant is doing them correctly.
If you decide that you need an ecommerce accounting expert to do it for you, we’re happy to help you with that, too!