If you’re an e-commerce business, you know the pain and suffering involved in managing sales tax. Each state, and in some cases different counties within a state, have differing tax laws. Taxes can vary depending on the county in which you are selling!
There are many moving parts in an eCommerce business. As if monitoring sales on several different platforms isn’t confusing enough, add managing inventory, taxes, payroll, and marketing. All of this can be overwhelming if you don’t have processes in place to manage your eCommerce business.
Operating an e-commerce business means dealing with a lot of moving parts and invariably bookkeeping problems. The problem we see most often is organizing information stored in a number of different places, then consolidating it in one place to create useful data used to make insightful business decisions.
Feeling overwhelmed – yet grateful – for all those Amazon transactions? We have clients that spend hours and hours reconciling their Amazon orders, fees, inventory and payments manually in QuickBooks. We also see eCommerce businesses hiring someone solely dedicated to manually connecting Amazon transactions with QuickBooks.
As an eCommerce business, you know how complex the back-end coordination can be: this effort is the root of all your operations. Trying to tie all of your ordering processes and connect them to an efficient inventory management system is a big enough task. Then having to connect all this to invoicing and bookkeeping in your accounting software is another challenge.
eCommerce sales are predicted to reach nearly $500 billion by 2018 in the U.S., according to Forrester Research. We at BudgetEase are also seeing an increased need for bookkeeping assistance from eCommerce businesses due to the high volume of transactions and limitations on interfacing between software programs.
Twin brothers Max & Zach Zitney founded JerkyXP in 2013 out of a passion for competitive online gaming and providing socially safe snacks. With just $1,200, the brothers launched a beef jerky business out of their college dorm.
This is part one in our blog series "Transitioning to eCommerce: A Bookkeeper's Perspective." Read part two here.
You have a great idea for an eCommerce business. Our eCommerce clients are doing amazingly well. Here are 4 things we see to guarantee smooth sailing when starting an eCommerce business:
Are you considering taking your business online? An established distributor who now is moving into the eCommerce realm called me. She was concerned that QuickBooks Desktop would not be able to meet the needs of her WordPress website based eCommerce business. She is representing 11 manufacturers and never takes possession of the inventory. Customer orders will be for products from multiple companies. She wanted to know how she will process orders without purchasing an expensive program.