E-commerce accounting is a specialized branch of business accounting focused on tracking and managing the financial transactions of online businesses. Although it shares similarities with traditional accounting, the unique nature of online sales introduces specific challenges and complexities.

Ecommerce Accounting: Key Differences from Traditional Accounting

  1. Indirect Sales Channels: Ecommerce businesses often rely on various online platforms like Amazon, Shopify, or eBay, which adds complexity in tracking sales, fees, and revenues from multiple sources.

  2. Inventory Management: Unlike traditional retail, ecommerce often involves drop shipping or third-party fulfillment, requiring precise inventory tracking across locations and platforms.

  3. Tax Implications: Ecommerce faces complex tax challenges, especially with varying state and international sales tax rules, which traditional businesses may not encounter as extensively.

  4. Chargebacks and Refunds: Managing frequent chargebacks and refunds due to online sales can impact cash flow and requires accurate recording and reconciliation.

  5. Digital Marketing Costs: With significant investment in online ads and promotions, ecommerce accounting must accurately track and allocate digital marketing expenses to measure ROI.

Our E-commerce Bookkeeping Services

  • Software Setup: Setting up QuickBooks, Xero, or other bookkeeping software tailored to ecommerce needs.

  • Financial Transactions Recording & Categorization: Ensuring all sales, expenses, and income transactions are recorded and categorized accurately.

  • Credit Card & Bank Reconciliation: Matching bank and credit card statements to your books to keep them accurate.

  • Catch-up and Clean-up Services: Bringing your books up to date and resolving any discrepancies.

  • Software Migration: Seamlessly transitioning your financial data from one software to another without losing details.

  • Accounts Receivable and Payable Management: Tracking incoming payments and outgoing bills to manage cash flow effectively.

  • Loan Reconciliation: Balancing short-term and long-term loans to ensure financial accuracy.

  • Amazon Loan Management: Recording and tracking Amazon loans for smooth repayment and accounting.

  • Month/Year-End Journal Entries & Financial Reports: Preparing journal entries and reports to close each period accurately.

  • Ecommerce Platform Transactions: Recording sales and fees from platforms like Amazon, Shopify, Walmart, eBay, and Etsy.

  • A2X or Link My Books Integration: Connecting these tools with ecommerce platforms and accounting software to automate entries.

  • Monthly, Quarterly, and Year-end Reporting: Generating financial reports to keep you informed of your business's performance.

  • Full-cycle Bookkeeping: Comprehensive bookkeeping service covering every financial aspect of your ecommerce business.