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Essentials of Online Store Accounting

Ecommerce accounting involves accurately recording all the money that flows in and out of an online store. This includes both income and expenses, and every sale or expense must be categorized correctly to ensure the accuracy of these reports.

Tracking inventory is another crucial component of ecommerce accounting. This can be done either manually or automatically, depending on the specific ecommerce platform. It helps ecommerce stores to know how much inventory is moving in and out, so they can better manage their cash flow.

Sales trends: Tracking sales patterns can help ecommerce businesses minimize storage costs and avoid inventory backlogs that can lead to lost revenue and a bad customer experience. It also allows for more accurate forecasting and budgeting.

Taxes: Ecommerce businesses must pay both sales and income taxes. The former must make estimated tax payments based on sales volume, while the latter must collect and remit taxes to state authorities.

Getting set up for success: It’s important to get an accountant or bookkeeper on board early to establish the right chart of accounts. This will help you record and categorize transactions properly from the beginning and avoid a messy, unorganized record-keeping system that could cost you money in the long run.

Setting up a business bank account is also essential, as this will prevent you from mixing personal expenses with business ones and makes it easier to break out your first transactions. Ideally, you should open this before making any sales, as you will need the account information to start categorizing correctly. счетоводство на онлайн магазин


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