The ever-evolving complexity of e-commerce businesses demands that overall operations be automated for greater success in management. From cash flow management to inventory management, every aspect needs to be streamlined to produce desired outcomes.
Here, an accounting software solution presents itself as a boon, allowing businesses to transform their accounting records into actionable business intelligence and insights—which can be used to forecast and achieve long-term business goals.
An eCommerce accounting system helps you gather accurate amounts from every sale, remit taxes as required, calculate merchant fees and track inventory with ease.
In this article, we’ll look at some of the most useful ways in which eCommerce accounting software can help a company drive sales.
-
Sort Every Transaction and Derive Useful Insights
Categorizing transactions is one of the most effective ways of gathering useful knowledge to increase your sales. You should sort every transaction on your balance statement and mark it based on whether it is an income or expense. The best accounting software automatically sorts your transactions and lets you just review them, in case you need to assign more relevant categories to them, such as reimbursements, salary, tax, etc.
This also helps determine which products are selling best, which products are qualified for upselling, and what your net income is attributed most to.
You can accurately estimate your business expenses, profits and losses, regular or one-off expenses, net revenues, etc to plan your budget for success.
-
Keep Track of Your Business Budget
An eCommerce accounting software makes it easier to tally your business spending while staying compliant with financial obligations. It presents your financial expenses in a neatly stacked manner to analyze your regular revenue so you know how you can steer your business towards profitability.
Budgeting is an ideal practice to track your cash flow patterns, monitor unplanned expenses, avoid falling into debt, and stick to long-term financial goals.
-
Streamline inventory management
An eCommerce accounting software lets you stay on top of your inventory. You have uninterrupted visibility of orders, returns, refunds completed payments, etc so there are no delays in your operations. A single dashboard provides instant access from anywhere, using any device with an internet connection.
This helps you avoid losses due to unnecessary inventory build-ups—which can be detrimental to your liquidity. With streamlined inventory management, you have knowledge of the minimal and maximum volume of inventory that you need to maintain—that complies with your budget and long-term cash flow projections.
Increase Sales With Streamlines eCommerce Accounting
With modern eCommerce software like Dext, you can automatically sort out the following tasks:
- Staying in sync with your sales data attributed to your online and offline store since every transaction can be sourced directly from your accounting system.
- Avoid duplication and data entry errors. You can easily reconcile bank statements and records to identify and fill gaps in your books.
- You can initiate payouts for pending invoices.
- You can automatically calculate merchant fees and sales tax for every transaction.
- It helps you gain clarity with respect to the net and gross income amounts.
- You can automatically reconcile sales data with your current bank balance.
- You can generate reports to gain better knowledge of where you stand financially.
- An eCommerce software helps you stay on top of your books, prepare accurate reporting and tax filing reports, and seamlessly integrate with other e-commerce and payment platforms.
- Since the UI is intuitive and easy to use, even business owners with no knowledge of bookkeeping can get a handle on their finances.
- It initiates automatic categorization and sorting of product data across platforms.
With the right eCommerce accounting solution and due diligence, you can streamline your accounting, and operations and leverage financial insights to translate to greater sales!
Sign up for a free trial of Dext now!
