Online store accounting is the process of keeping records and analyzing data to understand a business’s financial health. This can help you manage expenses, meet tax obligations, and plan for future growth. It is typically performed by an accountant or bookkeeper who specializes in eCommerce.

The basic tasks of ecommerce bookkeeping include tracking all income and expenditures, adjusting the chart of accounts to accurately reflect the diverse nature of transactions in e-commerce (including returns, discounts, taxes, shipping fees), reconciling bank statements, and preparing financial reports. Depending on the complexity of your business, you may choose to use an automated accounting solution which streamlines the transaction-tracking process and makes it much easier for an accountant to review your books at a glance.

A well-organized chart of accounts enables you to easily track the money coming into and going out of your company. It includes categories for all the things you sell, like inventory or services, as well as other operating expenses like website hosting and shipping costs. You should keep your chart of accounts updated on a regular basis and recategorize items as needed to accurately track your e-commerce spend.

Many ecommerce platforms offer built-in inventory tracking features. However, if you sell across multiple platforms you’ll need a centralized system that captures all sales and updates your inventory in your accounting software. Otherwise, you’ll find yourself constantly ordering and reordering from vendors due to inaccurate or out-of-date inventory records.

Understanding your sales trends enables you to plan for future inventory purchases and avoid running out of popular products. It can also help you minimize carrying costs and ensure that you’re maximizing sales. Finally, it’s crucial to know how much you owe in sales and income taxes and to pay estimated quarterly payments so that you’re never hit with a big tax bill at the end of the year. счетоводство на онлайн магазин