You have a growing ecommerce business and have hit the point where you are scaling your business, hiring additional staff or researching distribution centers, hiring virtual assistants or an off shore support service (so you aren’t responding to requests 24×7). You want to focus on growing your business, selecting new products, adding new vendors, and taking some time off. To shift your focus from working IN your business to work ON your business you need to know where you stand financially. To do this you need an Ecommerce Accountant.
What is an Ecommerce Accountant?
Simply, it is an accountant that understands your business, understands your market, and embraces technology.
What should you expect from an Ecommerce Accountant?
You want a trusted advisor that can answer the key questions about your business on a daily basis:
- What were your sales from yesterday, last week, last month? (you are in a real-time online business, getting this information 30 to 60 days later is useless)
- What is the cash flow status? Can you take money out of the business (to buy inventory, hire more staff, invest in infrastructure, pay yourself)
- How profitable is your business? Per SKU, per channel (Amazon, eBay, your shopping cart, retail, wholesale)
An Ecommerce Accountant should embrace technology:
- They will login to your shopping cart, marketplace, credit card gateway and processor, not just your bank accounts.
- They will work on doing zero data entry, accessing your transactions, and entering summary information into the accounting platform.
- They will use cloud accounting solutions like Xero.com, Bill.com and others that provide them (and just as importantly, you) 24/7 access to your financial information.
An Ecommerce Accountant should provide the following core services:
- Manage and reconcile all your financial transactions
- Monitor your income from all sources
- Manage your accounts payable and pay your bills
- Manage the complete sales tax process from configuring sales tax on your shopping cart, to managing the tax collected, to filing sales tax returns
- Provides all the core financial services, including payroll
This is the standard you hold your accountant to whether they are a bookkeeper that you employ, your CPA provides bookkeeping services or you outsource your accounting. You need someone who is managing and monitoring the financial aspects of your business on a daily basis.