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Ecommerce Businesses

Get eCommerce bookkeeping off your plate & grow faster

Our eCommerce bookkeeping services are best for businesses selling on Amazon, Shopify, Walmart, Ebay, Etsy, and other platforms.

"4 months in and click volume has tripled."
Brian Dukes
Exit Wise
A woman with a laptop in front of her, smiling while making a call on her smartphone.

Trusted by eCommerce stores worldwide

6 Figure Brand

"Perfect communication the whole way through set up. Their monthly reports are exactly what I need to run my company - it's amazing!"
Ronan Walsh
Digital Trawler

7 Figure Brand

"The EcomBalance team is accessible when we have questions and they got us caught up on 6 months of bookkeeping exactly as promised. "
Spencer Carlson
Ballard Products

8 Figure Brand

"We struggled to find bookkeepers that truly understood our business. EcomBalance has been all of that and much more. Best in the business."
Neils Olson
Trio Beauty

Ecommerce Bookkeeping Resources

Ecommerce bookkeeping is recording, organizing, and managing financial transactions of an online business. 

 

You need to accurately record every transaction sale, purchase, expense, and refund. Your chart of accounts helps you to categorize them properly. You also need to regularly check that your records match your bank statements and payment processors.

 

Make sure that your inventory software is properly set up to accurately track inventory and ensure accurate COGS calculations. You also need to know what sales tax rules apply to your business and calculate and track it for every sale.

 

Generate reports that show your business performance and help you report and pay accurate taxes.

Integration with Online Platforms 

 

You need to integrate your ecommerce platform with your bookkeeping software. This eliminates the need for tedious and error-prone manual data entry. 

 

You often can’t do physical inventory checks, so your data needs to be accurate so you can make good decisions. This also gives you reliable financial reports on sales figures and expenses in real-time.

 

Some integrations can automate sales tax calculations, which is a huge help. Your location and your customers’ locations can make tax compliance difficult.

 

High Volume Transactions and Digital Payments 

 

Ecommerce businesses can easily scale up, meaning you deal with loads of transactions. This can lead to a lot of manual data entry work and a high risk of errors if you don’t implement automation. 

 

You also need to do bank reconciliation more often as digital transactions can be hard to track. You also have to treat payment processing fees and chargebacks as separate categories.

 

International Currencies and Tax Regulations 

 

When you sell to customers in other countries, you need to consider their currencies. You need to record all sales and expenses in the currency they occur in. Your platform will convert them to your set currency, but you can’t use these values.

 

You need accounting software that supports multi-currency accounting. You also need to talk to a financial advisor about using hedging strategies to protect your business against currency fluctuations.

 

Ecommerce businesses need to understand sales tax nexus based on physical presence and sales volume in different locations. Foreign tax regulations for countries you sell to might mean that you have to register for VAT or other taxes. 

Using Technology for Efficiency

 

Beginners and small businesses can benefit from simple ecommerce accounting software

 

  • QuickBooks Online has a user-friendly interface and affordable plans. It integrates with popular ecommerce platforms and offers basic inventory management features.
  • FreshBooks is also easy to use and covers simple bookkeeping needs. It helps with expense tracking and automatic bank reconciliation.

 

Growing businesses need more robust solutions.

 

  • Xero offers multi-currency support and strong inventory management capabilities. It integrates with numerous ecommerce platforms and apps. We recommend Xero for international businesses.
  • Zoho Books is affordable with robust automation features. It helps with recurring invoices and bill payments. It also integrates with popular payment gateways and other tools.

 

Managing Multichannel Sales

 

Go for a heartier accounting software that can handle multichannel transactions. Look for features that seamlessly integrate with your selling platforms. With a centralized accounting system, you can keep things simple to avoid mistakes. 

 

Take advantage of available automations to reduce manual work and errors. You can use tools like Zapier or Automate.io when built-in integrations don’t cut it.

 

Track stock levels across all sales channels with a central inventory management system. Some accounting software offers this. 

 

Use software with sales tax automation features. You do not want to do these calculations manually.

 

Dealing with Returns and Refunds

 

Track every return and refund along with customer information, product details, the reason it was returned, the date of return. Don’t forget to add any associated processing fees and disposal costs. Categorize each one in your accounting software accordingly. 

 

Update your inventory levels if the item can be resold. Adjust your COGS calculations, too.

 

Consider accounting software that can manage returns and refunds. Look for automated inventory updates, pre-configured return categories, and integrations with return management systems.

The core bookkeeping principles remain the same, but ecommerce has some unique aspects. Ecommerce businesses can scale rapidly, so bookkeeping systems need to keep up.

 

Everything happens digitally, so you need to track inventory, online payments, and refunds. Make sure your online platforms, payment processors, and shopping cart systems integrate with your bookkeeping software.

 

Sales tax rules can be more complex because you can attract customers from different states and countries. You also have to consider shipping costs and manage digital product downloads and online returns.

 

One key consideration is potential online fraud and chargebacks. Marketing campaigns can also be more complex to record.

Daily Bookkeeping Tasks

 

  1. Record and categorize each transaction. 
  2. Track your cash flow to monitor your financial health and view daily income versus expenses. Make sure you can avoid potential shortfalls.

 

Much of this can be automated by integrating your ecommerce platforms with your accounting software. Tools like QuickBooks Online, Xero, FreshBooks, and Zoho Books have these features. 

 

Monthly Bookkeeping Routines

 

  1. Reconcile your bank statements with your accounting software monthly. Reconcile your payment processor accounts, too. 
  2. Review your inventory levels weekly so you can accurately predict demand and avoid stockouts. Make sure you consider shrinkage, theft, and returns that you can resell.
  3. Update your COGS calculations based on adjusted inventory levels.
  4. Generate and analyze key financial reports at least monthly or quarterly for smaller businesses. Check your overall profitability and financial position. Analyze sales trends and plan for needed improvements.
  5. Check your sales tax collection and remittance, and file your sales tax returns on time.
  6. Review your chart of accounts. 
  7. Update outdated information in your accounting software.

 

Annual Bookkeeping Considerations

 

  1. Collect your financial records and accounting reports for the entire year. Hire a qualified tax professional to ensure you are filing all necessary tax returns. Ask them about all allowable deductions, too. 
  2. Do a complete physical inventory count and compare the actual levels with your accounting records. See if you missed any discrepancies and implement measures to do better moving forward.
  3. Look over your fixed assets and update depreciation calculations for the year in your accounting records.
  4. Do a deep analysis of your financial statements and compare the year-over-year data to identify trends. Use this to adjust goals and decide on strategies for the coming year.
  5. Check for any outstanding accruals or prepayments to account for in the current year.
  6. Close the books in your accounting software so you can start fresh in the new year.

Why Outsource Your Ecommerce Bookkeeping?

 

The best reason to outsource ecommerce bookkeeping is to free up your valuable time and energy. 

 

Secondly, you can focus on core business activities while passing off this task to a qualified professional. They have expertise and streamlined processes for faster and more efficient bookkeeping.

 

Compliance improves, too, because the experts stay up-to-date on tax regulations and filing requirements. Many bookkeeping services specialize in ecommerce businesses. They understand your specific challenges and accounting needs.

 

Third, outsourcing services can scale up or down so smoothly. They adapt seamlessly as your business grows.

 

Choosing the Right Ecommerce Bookkeeping Service

 

You must first evaluate your needs. Consider your transaction volume and inventory management complexity. Look at your international sales presence. Think about the complexity of your businesses and how well-versed you are with bookkeeping. 

 

Next, you can list the specific bookkeeping services you need. Research potential bookkeeping services with a good reputation and ecommerce experience.

 

Compare services offerings and shortlist the ones that align best with your specific needs. Make sure they are comfortable with software integrations and automations. Get quotes and check that their pricing is completely transparent.

 

Schedule consultations with the top three providers. Ask them questions about their processes and how they handle communication and specific challenges. Choose the one you’re most comfortable with and who provides the best value for money.

How EcomBalance Bookkeeping Works

We give you a pricing quote

After sharing information about your business, we'll dive into your current books and send you with a custom pricing quote.

We get you fully connected

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 handle your books

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 deliver monthly financials

We send you a Profit & Loss statement, Balance Sheet, and Cash Flow statement by the 15th of each month.

Need other eCommerce bookkeeping services?

Getting your books caught up, running payroll, sending invoices, handling AR and AP -- reach out and we'll gladly make sure it's included in your package.

What you get with EcomBalance

eCommerce expertise

All of our eCommerce bookkeepers specialize in Amazon, Shopify, Ebay, Walmart, Etsy, etc. and have years of experience in eCommerce bookkeeping.

Simple, process-driven, and reliable

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 support and proactiveness

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!

Monthly financial analysis

With your books, receive monthly analysis on your reports so you can know your eCommerce numbers better and make smarter business decisions.

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Support

Consider us a part of your business

In depth onboarding

Meet with us on a Kickoff Call so we can fully understand your eCommerce business and develop a strong relationship for the long run.

Your own dedicated team

Work closely with a dedicated eCommerce bookkeeper to keep your books clean and to answer all finance related questions you have.

1 business day email response time

Email us at any time and we'll get back to you within 1 business day, and usually faster!

Ability to text us at any time

We understand some clients love being able to text their bookkeeper so you have that option as well.

Financials

The most accurate and on-time reports

Delivered within 15 days each month

Get your books by the 15th each month so you can make smart decisions for growing your eCommerce business.

Vetted each month by 2 levels of eCommerce bookkeepers

All of your books will be vetted multiple times each month before being delivered to you. This is to ensure absolute accuracy.

Easy to digest and analyze

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.

Business specific suggestions and strategies

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.

Need help catching up your books?

Let us take that stress off your plate. With our EcomBalance Catch Up and Clean Up services, your eCommerce books will be up to speed in no time. We'll backdate as far as needed and provide you with tax ready financials for strong reporting.

We work with all eCommerce platforms

We integrate with your sales channels and tools so everything's in one place.

Get in touch

Speak with us

Still have questions? Schedule a call with one of our founders, Nathan Hirsch and Connor Gillivan, to learn more about EcomBalance and how it can help your eCommerce business.

Get your eCommerce bookkeeping rocking!

See what it's like running your business with expert eCommerce bookkeepers on your side. Try us for free -- we'll do your most recent's months books so you can see what it's like working with us.

Frequently Asked Questions

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: 

  • You receive accurate and on time books every month 
  • Helping you fully understand your financial numbers by providing analysis with your monthly statements
  • Excellent customer support that will be there for you as you scale your business

 

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: 

 

  1. Fill out our quick Pricing Quote form
  2. Send View Only access to your current Quickbooks Online or Xero account. 

 

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.

Exclusive finance guide

Want better bookkeeping?

It's possible! Subscribe below & we'll send you our Bookkeeping Packet. A pack of resources to teach you about bookkeeping.

You’ll get our Ecommerce Bookkeeping Guide, The 10 Ecommerce Bookkeeping Mistakes Ebook, our Monthly Finance Meeting Agenda, & a few surprises!