With online stores becoming a part of the modern consumer experience, it’s safe to say that the eCommerce industry is now stronger than ever. Thanks to the sheer number of opportunities, lower entry barriers, and easier outsourcing, more daring entrepreneurs have been taking the risk of jumping into eCommerce and trying their hand at finding retail success.
As great as it is to hear an eCommerce success story, however, running an online store will never be easy, especially when it comes to overcoming all the challenges that are to come.
The struggles of running an eCommerce business
Nowadays, the entire task of running an eCommerce business has become even more detail-oriented because of all the processes that go into the experience. Whether it’s dealing with inventory management, making shipping arrangements and handling logistics, or running inventory management, there’s no doubt that running an eCommerce business is difficult.
Out of all the different factors that you’ll have to struggle with, however, it’s important to make sure that your eCommerce business’s bookkeeping solution can withstand the workload.
Why it’s important to choose the right bookkeeping solution
Regardless of whether you’re using accounting software, doing the process by yourself, or outsourcing the services of a professional, your solution should handle the various challenges of eCommerce bookkeeping. Aside from ensuring that your eCommerce business’s bookkeeping solution can withstand varying workloads and intricacies for a certain period, it’s also important to consider the right factors in choosing the best option.
To ensure that you don’t make an investment in a bookkeeping solution that isn’t fit for your eCommerce business’s needs, here are a few factors that you should consider:
#1: Support for multiple currencies
One all-too-common mistake that business owners make when choosing a bookkeeping solution for their company is that they opt for an option that only supports one currency at best. Know, however, that such an option can be troublesome during expansion.
Not going for a bookkeeping solution that supports multiple currencies can put your business at risk of missing out entirely on opportunities to get more customers. Sure, it might not seem like you’ll go beyond one currency, but the fast pace of eCommerce will put you in a spot where you’ll have to accommodate international customers. This is why it’s best to prepare your solution as well!
#2: Inventory tracking capabilities across all sales platforms
As an eCommerce business in an ever-expanding digital economy, chances are that you’re probably selling across different platforms at any given point in time. If your bookkeeping process isn’t capable of tracking inventory across sales platforms, however, then you are setting your business up for an array of problems with its inventory.
Without an ability to track inventory across sales platforms, chances are that you will be unable to fulfill consumer demands and lose control over your inventory. If you’re looking to avoid any mix-ups in the long run, then it’s best to build out a central solution & workflow that tracks inventory across all platforms—such as Amazon, Shopify, and even eBay—for accurate stock counts.
#3: Accurate tracking and handling of merchant fees
One of the most important factors that you need to consider is the ability of how your potential solution can accurately track and handle merchant fees.
Nowadays, the existence of merchant fees from eCommerce is as fixed as the platform itself and plays an integral role in determining the overall expenses and budgeting that any online business must adhere to. The best way to keep your records as accurate as possible is to go for a system that accurately tracks and handles merchant fees while including them in your final reports and statements.
Running an eCommerce business can be a difficult experience because of all the different factors and details that need to be considered. Yet, getting your bookkeeping solution right is a leap in the right direction. By ensuring that your bookkeeping solution is apt for your eCommerce business’s needs, you are positioning your company for growth while avoiding any long-term complications and inaccuracies!
We understand running a small business is complicated. Your financials shouldn’t be. Take the guesswork out of the accounting and let us help you build your blueprint for success.
Contact us today for your free assessment to find out how Blueprint Accounting can support your business.