What are the Tips for Applying E-Commerce Accounting? Here are the main tips you need to know to successfully apply E-Commerce accounting: Categorize Transactions Secure the Enterprise Budget Choose the Right E-Commerce Accounting Method Manage Expenses and Reduce Costs Increase your Profitability Pay your taxes on time Get Accounting Assistance 1. Categorize Transactions One of the most effective tips for online bookkeeping is to track all transactions. You must know each category regarding sales, costs, taxes. Most of the tools offered by the Strikingly platform are intuitive and will allow you to follow every detail of your transactions. You will be able to rely on the real-time financial data provided by the platform 's order management system and services. According to FinancePal’s article and market research, there are six transaction types you need to know to master your E-Commerce accounting: Revenue: This is the money that the company receives for its sales.
Expenses: This is the money spent by the company to ensure its proper functioning. Assets: This is everything the company owns in terms of money, equipment, vehicles, real estate, etc. Liabilities: These image manipulation service are the result balances of loans contracted by the company. Equity: invested in the business and which is generally not reimbursed. Returns and Chargebacks: This is money returned to a customer or credit card company because of a product return or fraudulent use of the card. Image taken from I2B Venture 2. Secure the Enterprise Budget When you maintain a certain budget for your business, you also secure its future. Conducting a seasonal budgeting strategy is a very effective E-Commerce accounting procedure.
For small businesses, there is what is called an off-peak period and which means that there are seasons that do not require large budgets. A prepared seasonal budget is a crucial and especially very useful element for small start-up businesses . This preparation for one year, for example, can help you secure the financial needs of your company. You will need to support this procedure with constant monitoring by checking your inventory as well as records to be informed of any changes. This will allow you to allocate more or less money in your budgets for the following months. 3. Choose the Right E-Commerce Accounting Method There are two types of accounting methods which are cash accounting and accrual accounting.