4 Helpful Guides for E-commerce Accounting
It’s that time of the year when draws are full of receipts, tax forms are posted and your blood pressure is probably rising like the paper works on your desk.
Stress no more, here are a few guides to help your e-commerce accounting and tax filing way more easier and less stressful than before.
1 – Merge Your E-commerce Store with an Accounting Program
Are you still doing accounting on scraps of paper or notepad? If yes then you must stop and get a cloud bookkeeping software.This app will allow you to generate and catalogue invoices easily, keeps a ledger of bank deposits and payouts running, and allows you to see your current inventory and past purchases with just one look.
Using good accounting software and integrating it with your online store will allow you to keep your books accurate, updated and it is time consuming because it manually puts in your calculation.
2 – Ensure All Transactions are Kept
Ensuring that you record your business expenses is very essential for accounting in order for business to flow effectively. A lot of expenses can be recorded before it’s time to pay taxes. What this does is reduce your business taxable income which includes shipping costs, website domain and hosting fees, bookkeepers and accountants if you have any. Also, ensure that for every purchase made, relevant information is recorded and that all receipts are stored. They can even be kept electronically if you do not wish to keep too many papers.
3 – Regularly Reconciling
Reconciling your account on a regular basis saves you from having to enter banking transactions manually. Also It takes two sets of records and makes sure they are agreeing, helps to outline errors in a transaction, duplicate charges and ensure every debit and credit is properly calculated. After you’ve integrated your accounting software with your bank you’ll now be able to section your transactions as they come in weekly and month.
4 – Note Your Due Dates
It’s important that you know and remember your tax deadlines because they have a tendency of sneaking up and missing its deadline can result in pricey penalties. Hence, to avoid this, ensure that you mark your calendar.
Listen, I know that the accounting part may not be the most exciting part while running an e-commerce business, but by spending time understanding, getting it right, and paying close attention to your numbers can lead and increase your sales.