Regular Bookkeeping is Key!
Growing ecommerce businesses with increasing sales volume need to ensure their financial data is been processed regularly and the frequency is been followed by the bookkeeper be it daily, weekly or monthly. Regular bookkeeping helps a business report accurate cash position for various decision making. It also helps staying away from last minutes surprises!
Ensure Sales reconciles to Payment Gateway reporting and that the cash balances out!
ecommerce companies works on a complex financial platforms where we can see multiple sales platforms to multiple marketplaces and multiple payment gateways to multiple currencies. Reconciling these accounts regularly is key to ensure data does not get out of control with integration playing a big role between all these data points. Note, digital businesses are generally on "pay and take" model and hence reconciling sales plays a big role in ensuring the cash balances out.
Don't forget Inventory Management
If the sales platforms are the heart of a online ecommerce business, it would not be wrong to say that inventory management application are the veins needed to supply the blood (goods) at appropriate time and in optimal quantity to the heart and the brain (consumers). We are bkm have trained ourselves to ensure we understand this relationship and optimally execute the processing requirements to ensure we have a more accurate financial reporting.
Reporting is an integral part of a accounting process and identifying key performance indicators for the business play a vital role in ensuring a smooth flow of business operations. An online and digital brand is may have variety of product categories and might be operating in various geographies through multiple sales platforms. This undoubtedly calls for accounting reports that speak!
Budgeting and Cash Flow Management
Closing a month's accounts timely helps budget for various costs and helps in managing cash flow and resources in the most optimal way. When we all know the hard reality of today's business world is "survival of the fittest", it immediately leads to another question in mind - "are we ready?" Keeping budgets handy would eventually help take cash flow decisions on time!