Online store accounting is the process of managing and organizing an ecommerce business’s financial data, creating a foundation for accurate record-keeping, reporting, and analysis. While the basics of bookkeeping are similar to traditional commerce, ecommerce accounting is more complex and involves a different set of challenges, including inventory tracking and shipping logistics.
Tracking Inventory
Unlike traditional retail, where a customer can go into a store and purchase a product without having to wait for it to ship from the warehouse, ecommerce sales volume can fluctuate wildly depending on price fluctuations, demand, seasonality, and more. This volatility creates a challenge for accurately forecasting and planning inventory needs. Additionally, ecommerce business owners must factor in the cost of goods sold (COGS) for each product, plus the additional expense of shipping costs and warehousing/storage expenses.
Another unique element of ecommerce accounting is dealing with returns and chargebacks, which are recorded as deductions from revenue in your account balance sheet (under ‘Revenue – Returns and Allowances – Chargebacks – Inventory Adjustments’). This requires careful tagging of accounts to ensure your balance sheet always matches up.
Payment Processing
Depending on your platform of choice, some payment processors may add their own transaction fees and processing times to the overall sale. In addition, your sales tax rates may vary by state, requiring a special category in your account balance sheets and proper categorization of expenses.
Other ecommerce accounting tasks include reconciling bank and credit card statements, preparing financial statements, and analysing financial performance to drive decision-making and growth. Having an in-depth understanding of your ecommerce accounting helps you avoid costly mistakes and improve efficiency in your ecommerce business. счетоводство на онлайн магазин