5 Accounting Tasks for An E-Commerce Accountant to Focus On

by Jack John Outsourcing Partner for Bookkeeping and Accounting

Online store owners face a variety of accounting tasks at any given time. Some days, the load is light. Other days, it can feel like a tsunami coming our way. If you operate a small or medium-sized business, profits will likely increase as more revenue is generated.

However, maintaining and growing your business requires constant attention and strategic planning. This is a situation where an accountant will help you. You must choose the right ecommerce accountant near me to get the best benefits. This article lists the most important accounting tasks for an e-commerce accountant to focus on while they remain productive.

Important Ecommerce Accounting Tasks to Start With

Diligently managing the e-commerce accounting tasks will help you understand and prepare the cash flow and financial statements for tax filing. Some important e-commerce accounting tasks for you to start with include:

Categorize all transactions:

All transactions on your business’s ledger must be categorized. This categorization is essential for recording the number and value of all sales, expenses, and income. The right bookkeeping and accounting services for small businesses should categorize all transactions as either revenue or expense. If not, it can lead to additional confusion and mistakes when analyzing your financial statements.

Maintain a business budget:

A business budget is a statistical summary of all your business expenditures and other financial obligations, color-coded and arranged against your regular revenues. The total sum shows you how much cash you need to profit or break even. Proper budget management helps you compare the current and past data and make the right decisions to ensure proper cash flow usage and improve business activities.

Stay up-to-date with taxes:

Keeping up with tax law can be challenging even if you are an accountant by profession. As an online marketer, you must be especially aware of tax law as you begin to incorporate sales tax in your business model. Additionally, if you sell outside your home country, you’ll likely need to stay up-to-date with your country’s tax code.

Distinguish between returns and chargebacks:

The difference between returns and chargebacks is simple: chargebacks happen when a customer fails to pay for items purchased from an online store. Returns, however, are your store’s responsibility. While chargebacks can be a serious problem for small businesses that lack the resources to deal with them, returns are more commonly seen among larger businesses with multiple locations. You will want to be aware of the different types of returns so you can make an informed decision when rejecting a purchase from a customer.

Practice accurate recordkeeping:

You can search the internet for an “e-commerce accountant near me” or hire outsourced e-commerce accounting services for accurate recordkeeping. An e-commerce accountant can help your business stay accurate with recordkeeping, but you must take the initiative. While many online retailers offer basic accounting functions, many don’t offer an integrated accounting solution. Ensure your system includes all necessary functions, such as inventory tracking, sales management, general ledger, and more. Regarding your financial statements, ensure you’re entering all relevant data accurately.

Wrapping Up

Through this article, we have tried to help you stay on top of the most important accounting tasks for an e-commerce accountant to focus on. The opportunities and challenges of operating an e-commerce business are many. Regardless of your business size, financial statements are crucial in helping you grow your business. They can also provide you with a useful barometer to monitor the health of your business.

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Created on Sep 13th 2022 00:16. Viewed 127 times.

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