Accounting Basics for Online Sellers
Nobody gets into because they love accountancy. But if you want your new venture to succeed and grow, you can’t afford to ignore the finances.
Bookkeeping and taxes can be scary for first-time business owners, but it isn’t too tricky as long as you pay attention to the basics.
In this blog post we share some business finance fundamentals that you need to get right if you want to sell online successfully.
How are you selling?
Whether you are selling online to supplement income from a job or you are launching a full-time online sales business, there are a number of online platforms to sell on.
Platforms like Ebay, Shopify, Etsy and Fulfilled by Amazon (FBA) all have benefits and drawbacks, so it will be up to you to choose the one that suits you best.
Choose your accounting software
The easiest way to manage your finances when you are selling online is to use accountancy software like Xero.
Xero is a powerful accountancy solution for online sellers, with a range of features and integrations that makes tracking financial information easy.
And because the software is cloud based, it means you can access your financial data on the move, which is handy if you are trying to juggle online selling with work or other commitments.
Get an accountant
Cloud accounting software does make life easier, but it isn’t a replacement for a specialist accountant.
Using an accountant means that you can access expert knowledge. They will be able to answer all of your quick questions and can offer advice to stay compliant and reduce your tax liability.
Cloud Accountant is an online sales accountancy specialist with the expertise to boost your business. Using the Xero platform, we can work closely with clients with the ability to log in to the account to get a clear financial picture.
Set up integrations
One of the key benefits of Xero for online sellers is the range of third-party integrations that it supports.
For FBA online sellers that sell on the Amazon platform, A2X automatically imports Amazon settlements into the accounting system, saving you time and effort.
Xero also integrates seamlessly with DEAR Inventory, eliminating the hassle of manual data entry and making it easy to manage complex inventory flows.
Watch your cash flow
Once you have your accounting system set up the way you like it, you need to make sure you look after the financial health of your business.
One of the best ways of doing this is paying close attention to your cash flow. Simply, making sure you have more coming in than going out.
Cloud accounting software like Xero makes this easy and your accountant will be able to advise you when your cash flow position is getting tight.
For more information about accountancy for online sellers, speak to a member of the team today. Call: 0808 281 0303.