A properly managed accounting system is the key to a successful business. It helps you to understand the health of your business, the viability of your decisions, and ensure regulatory compliance like filing of tax returns on a timely basis. Bookkeeping refers to the activity of recording your routine transaction on the other hand accounting involves the bigger stuff like drawing of financial statements, preparation of forecasts, and management information reports. When you start an E-Commerce business, generally you choose a selling channel like Amazon, Shopify, E-bay, BigCommerce, Etsy, etc. The major challenge lies in keeping track of the inventories, confusing tax compliance, complex structure relating to selling channel’s commission & fees, cash flows, and returns. It is where an E-Commerce CPA specialist comes in handy. Benefits of maintaining a proper accounting system are –
- It allows you to better forecast your business performance
- It puts you in the driver’s seat by empowering you with accurate financial information
- It facilitates your adaption with ever-changing Sales Tax laws
- It assists you in understanding your inventories and related costs
- It allows better management of shipping & handling of returns
- Better payroll management