Ecommerce bookkeeping is the practice of recording, organizing, and managing all of the transactions (sales, processing fees, marketplace fees, expenses) and financial information for an eCommerce business.
Most often, eCommerce bookkeeping is managed in an accounting software like Quickbooks Online or Xero with add on tools like A2X or LinkMyBooks to pull data from marketplaces (Amazon, Shopify, Ebay, Etsy, etc.) into the main software.
Keeping your eCommerce bookkeeping up to date each month is important so that you can see what’s happening in your eCommerce business. It helps you to make smart decisions for inventory, growth, and overall expenses.
Managing your eCommerce bookkeeping each month requires an organized process. Here are 9 steps to follow:
1. Separate your business and personal finances.
2. Choose an eCommerce bookkeeping software and system.
3. Get your transactions into your accounting software.
4. Categorize all transactions.
5. Reconcile bank accounts at the end of each month.
6. Review your financial statements.
7. Make revisions, where necessary.
8. Lock your books once done each month.
9. Final reconciliation and analysis.
Bookkeeping, in general, is very similar across industries, but eCommerce is unique for a number of reasons.
1. Sales tax can be very confusing, depending on where you’re selling your products online.
2. Inventory management is an ongoing issue for eCommerce business owners and it gets even more confusing when incorporating it into your bookkeeping.
3. Ecommerce bookkeeping tends to have large amounts of transactions from different channels (Amazon, Shopify, Ebay, Etsy, etc.). Pulling all of that data in and making sense of it takes time.
4. Given all of the moving parts of an eCommerce business, it can be difficult to understand the eCommerce bookkeeping numbers even once they’ve been organized.
Most eCommerce business owners handle their eCommerce books on their own as they get the company started and revenues off the ground. But they eventually regret it and want that time back for growth activities.
Bookkeeping becomes a laborious and time consuming task that is better to pass off to an eCommerce bookkeeping professional once the business can afford it. Plus, as an eCommerce business gets more complex, it will become harder and harder for the owner to keep the bookkeeping accurate and on time each month.
After sharing information about your business, we'll dive into your current books and send you with a custom pricing quote.
We work with you to connect all of your sales channels and accounts so that you don't have to worry about it going forward.
We take care of keeping your books up to date throughout the month and keep you updated on anything that seems out of place.
We send you a Profit & Loss statement, Balance Sheet, and Cash Flow statement by the 15th of each month.
All of our eCommerce bookkeepers specialize in Amazon, Shopify, Ebay, Walmart, Etsy, etc. and have years of experience in eCommerce bookkeeping.
We're process people & we keep things simple. We'll set your eCommerce books up so that they are powered by proven processes and can easily be built upon.
Fast responses, accurate information, and a dedicated eCommerce bookkeeping team to work with month in and month out. We're always only one email away!
With your books, receive monthly analysis on your reports so you can know your eCommerce numbers better and make smarter business decisions.
Meet with us on a Kickoff Call so we can fully understand your eCommerce business and develop a strong relationship for the long run.
Work closely with a dedicated eCommerce bookkeeper to keep your books clean and to answer all finance related questions you have.
Email us at any time and we'll get back to you within 1 business day, and usually faster!
We understand some clients love being able to text their bookkeeper so you have that option as well.
Get your books by the 15th each month so you can make smart decisions for growing your eCommerce business.
All of your books will be vetted multiple times each month before being delivered to you. This is to ensure absolute accuracy.
Financials can be confusing and unhelpful. We make sure your reports are easy to read and include key takeaways from the month specifically for your business.
Want advice on your books each month? Let us know and we'll pinpoint specific ways you can save money and make more money each month.
First and foremost, we’re eCommerce bookkeeping experts. We cater to businesses in the eCommerce industry specifically service providers, softwares, and sellers on Amazon, Shopify, Ebay, Etsy, Walmart, etc.
Here’s what we focus on:
In addition, we’re a bookkeeping company built by eCommerce entrepreneurs. Our founders, Nathan Hirsch and Connor Gillivan, we 8 figure sellers themselves and then built and sold their second business, FreeUp.
We take the time to get to know your eCommerce business, balance the books, then provide you with monthly reports. On both plans, we provide you with a monthly Profit and Loss Statement, Balance Sheet, and Cash Flow Statement.
We also offer eCommerce (Amazon, Shopify, Ebay, etc.) specific product sales reports, employee payroll reports, AP & AR management, paying invoices, running payroll, and much more. If there’s a service you need that’s not on this page, simply get started and speak with us about it.
For eCommerce businesses, sales and COGS are reported on an accrual basis. Link My Books (the tool we use to connect with eCommerce marketplaces and processors) imports all sales and COGS data under accrual basis accounting.
We don’t offer a service to accrue expenses and other accounts since that would cost significantly more time and money (and is unnecessary for most businesses).
If you are not an eCommerce business, our sister company AccountsBalance does bookkeeping on a cash basis.
To get started, all you have to do is:
With that information, we’ll dive in to truly understand your business and provide you with a custom pricing quote for working together.
During your first month, you won’t be charged and we’ll complete the bookkeeping of your previous completed month in business. We’ll show you why working with us is high level and you’ll be able to meet your dedicated Bookkeeping team.
You’ll get our Ecommerce Bookkeeping Guide, The 10 Ecommerce Bookkeeping Mistakes Ebook, our Monthly Finance Meeting Agenda, & a few surprises!
