One significant challenge sellers face online is managing their books. It’s easy to set up your storefront and upload your products, but, when it comes to bookkeeping, it’s an entirely different world. Ignoring the accounting aspect of your eCommerce Business is detrimental. That said, here are some things to keep in mind if you want an easy time with Shopify Accounting.
Don’t Mix Up Your Finances
When you start selling online, you can easily get tempted to mix your personal and business funds. This is something you have to shun from the get-go. To avoid any legal issues, you need to register your store details as a separate entity. It’s always a good idea to get some legal counsel if you aren’t sure about something–never wing it.
Hire an Ecommerce Business Accounting Expert
Many people avoid hiring experts because they fear spending more cash. If you know that bookkeeping isn’t your thing, you should always hire an expert to help out. You could take time to master bookkeeping and do everything on your own, but you may be too busy to learn about taxes and other complex bookkeeping requirements. Of course, this will mean spending more money. But, you can’t afford to let your entire Ecommerce Business crumble while trying to save a few dollars.
Make Use of Online Accounting Apps
If you are tech-savvy, you can also consider finding out which accounting software to use. Some apps such as FreshBooks and Kashoo work well for both Shopify and Amazon Sellers. These apps have feature-rich tools to help you automate bookkeeping. Some of the tools included in such software help with payment reminders and credit card processing, among other functions. Finding apps that work for both Shopify and Amazon Sellers is a good idea if you are also interested in FBA.
Keeping Track of Your Balance Sheet
If you already look through your income statement, that’s good, however, it’s not good enough. With the balance sheet, you will see a lot more than what you can find in your income statement. Your balance sheet allows you to get the whole picture of what’s going on with your online store. This financial statement contains your assets, liabilities, and equity. Keeping track of your balance sheet by using an excel spreadsheet makes your work easy. This should help tell you when you are in debt or if you have negative equity.