With the United States, China, and Europe being three major markets, the global eCommerce market will cross $2 trillion this year. This is your chance to accelerate the growth of your eCommerce business and take it to the next level.
Whether you’ve been selling online for a while or have just launched your eCommerce store, you can’t ignore the importance of business accounting. You should track sales and expenses, manage finances, and invest in bookkeeping right from the onset of your eCommerce business.
Hiring a team of accountants will mean that you’ll be handing them financial control. Also, it may be out of your budget as a small business owner.
However, eCommerce business owners like you should do yourself a favor and get accounting software for yourself.
Ecommerce accounting tools such as LessAccounting can help you automate tasks such as eCommerce bookkeeping, inventory management, time tracking, expense tracking, invoicing, and cash flow management.
The best way to find out if an accounting solution is right for your eCommerce business is to try it for a few days before you actually buy it. The majority of accounting software programs for small businesses offer a free trial for new users.
Before we discuss the features an accounting solution offers, let me tell you about the basics of eCommerce accounting, why you need accounting software for your eCommerce business, and how to choose the right one.
First things first:
You need to ensure that your company is making profits. The money you’re earning should be greater than what you’re investing if you want your estore to survive and succeed. And the easiest way to track this is to monitor your cash flow.
First things first:
You should create a business bank account to separate your company finances from your personal savings.
Software such as LessAccounting can help you save time with bookkeeping. It can easily set up your books by importing expenses and deposits through bank account integration.
And to ensure that money keeps flowing in, you should:
You should send invoices to your clients and track fees and payments. While doing it all manually can take a lot of time and effort, eCommerce accounting solutions like LessAccounting enable you to automate invoicing and payment tracking.
You just need to save contacts to send invoices. In fact, you can also send reminders to clients to prevent payment delays. And, accepting payments is as easy as a breeze. This software offers payment acceptance via PayPal and all major credit cards.
If you’re running a product-based eCommerce business, you don’t have to worry about inventory management. But if you’re selling products, you will have to track and manage your inventory.
Inventory is the product you sell or the materials used to manufacture the product. It also includes the packaging materials you use for your product shipping and delivery. In the case of an Amazon FBA business this is even more crucial.
As an eCommerce business owner, you should decide on the minimum volume of inventory that you want to keep at all times. You should track inventory so that you can reorder products and materials before the stock passes the minimum volume point.
By importing data directly from your bank account, you can keep your bookkeeping records up to date. You should use accounting programs such as LessAccounting to create your balance sheet in just two clicks.
You can share sales tax reports or other custom reports with your accountant to make tax filing easier.
You should create a marketing plan to reach out to your target audience and drive qualified leads. You can also do competitor research to identify relevant business opportunities.
Once you’ve got a list of qualified leads, you should prepare business proposals to engage and convert them into buying customers.
LessAccounting offers editable templates to help you quickly design custom business proposals for your potential clients.
What’s more? Once the client accepts your proposal and you deliver the work to them, you can easily turn these proposals into invoices.
An eCommerce accounting software such as LessAccounting is a tool that automates that can help you track orders, sales, fees, revenue, inventory, and taxes. Many eCommerce companies and accountants use cloud-based accounting programs to manage the finances of their small businesses.
Business accounting can be a tedious and daunting process. But it is necessary for small businesses to manage finances carefully to grow the company over time.
What can you do in such a scenario?
You should understand that you can’t do it all on your own. Sooner or later, you’ll realize the need to invest in an accounting system for your eCommerce business. The sooner, the better!
The best accounting software such as LessAccounting, Xero, and QuickBooks Online can simplify everything for you – from bookkeeping to invoicing to inventory management. As a business consultant, I recommend that you choose cloud-based software solutions.
With cloud-based accounting software for eCommerce businesses, you will be able to enjoy a number of benefits.
While most accounting programs offer basic benefits, they differ in a number of ways. When choosing the right software for your eCommerce business, you should consider many important factors, which I’ll discuss in the section below.
Ecommerce sellers experience various challenges when running their e-stores and accounting. You should choose the accounting program that can offer solutions to these challenges.
Some of the factors that should influence your decision are as follows:
The software you choose should be simple and easy to use. There is no point investing in complex solutions that will take you hours to understand and use. I believe that every business owner should take a detailed demo before buying any small business accounting software packages.
You should also find out which accounting tools offer mobile apps to help you access your accounts from your mobile devices.
The software you choose for your small business should be able to automatically integrate with all major marketplaces such as Shopify, BigCommerce, and WooCommerce. Also, these integrations should be in real-time so that your accounts are updated without errors.
Your software should also integrate with third-party tools such as Gmail, contract management tools, and more. These integrations will enable you to automatically update your inventory levels, taxes, payment details, and more.
Most accounting software programs offer basic reporting. If your business expects accelerated growth, you should look for a tool that offers advanced reports and balance sheets.
When calculating the cost of accounting software, you should consider their acquisition cost, monthly operational cost, and support cost. You should also look for discounts on total billing if you buy an annual subscription to the tool.
You should look for a solution that offers a free trial and also check to see if it requires that you enter your credit card details?
You should check product ratings and reviews to see if the software company offers good customer support and technical help. If it does not, you may have difficulties in using the software for your small business accounting.
You should choose the software that provides 24/7 support to prevent any hassles later.
Let’s take a closer look at what makes LessAccounting the best accounting software for your eCommerce business. I’ve put together its key features and pros and cons below.
LessAccounting is one of the leading accounting software programs with many features designed to support eCommerce businesses. Thousands of businesses use this simple and affordable accounting system to automate their invoicing and accounting tasks.
LessAccounting can help save you time during finance management and tax filing. It offers impressive, editable templates for business proposals and invoices. You can quickly keep records, track payments and business expenses, and automate reporting and balance sheets.
And the best part?
LessAccounting is easy to use and it offers seamless integration with major eCommerce platforms such as Shopify and other useful collaboration tools such as Project Management and Basecamp.
As an eCommerce business owner, you can easily keep a tab on all your accounting and finance needs from anywhere at any time with LessAccounting’s online accessibility.
While their accounting software package plans start from $24/month, you can sign up for their 30-day free trial. They don’t ask for your credit card details. They also offer an invoice only plan for free.
You can trust their customer support team, which is known to offer quick resolutions. This makes LessAccounting one of the best accounting solutions capturing the market.
When it comes to eCommerce accounting, there are many accounting software options available for you to choose from.
With so many choices available, it gets difficult for eCommerce business owners like you to choose the right accounting solution for your business. You should look for solutions that provide you with the features you need and are within your budget.
Choosing the right one will save you time and help you get paid more quickly, sell more, and keep a tab on your finances and bank transactions. One such accounting tool that best meets the industry standard is LessAccounting.
LessAccounting helps businesses get paid faster and makes accounting easier. It allows you to generate beautiful proposals, send invoices within minutes, maintain accurate records, get ready for tax filing, and manage the overall finances of your business.
However, before making any decision, you should try out its free version and see if it meets your requirements. It’s always better to try first and then invest!
Sign up now to try LessAccounting for free using your email address. You can connect with our support team for help.
Do you have questions about choosing the right accounting software for your eCommerce business? Leave them in the comments below.