The use of technology has come so far that nowadays many companies choose to open up an e-commerce format.
E-commerce is the most trending and easy to access mode of doing business. It has become a vital part of the business field to expand and spread your business.
Since it does not have any Geographical restrictions, it can be reached in any part of the world.
Also, the growing competition makes it very necessary to open and choose e-commerce as a part of the business.
What E-Commerce Accounting Services
A form of accounting which includes the collecting, reporting, analysing and organising financial data and reports that is relational to business transactions and assets of any e-commerce business organisation.
E commerce provides a platform for online Sellers. It gives you opportunities in many ways like enjoying the benefits of technology, taking different opportunities, introducing and experimenting with new products with mineral funds.
With Ecommerce business or online business comes new challenges, like any other industry.
Sometimes, these challenges are beyond our scope and knowledge. We face things that we have never experienced before and we feel the need for a mentor or a guide.
Importance of E-Commerce Accounting Services
Companies that run e-commerce businesses might already know how difficult it is to manage all the financial aspects like bookkeeping and accounting.
So, you have arrived at the best place where you get the best service and solution.
Ecommerce Accounting Services are important they help you to:-
1. Managing Inventory
2. Keeps your cash flow on track
3. Delivery partner and Logistics
4. Credit and Commision
5. Marketing cost whether it is online or offline
6. Other expenses and cost
7. Track your earnings before Tax and Sales
8. Tax Rates and Payments
9. Manages Balance Sheets
Types of Accounting Services in E-commerce
A business requires to keep track over all the monetary accounting transactions of business for taxation purposes.
The accounting department is responsible for the job including setting accurate records, measuring how well the business is achieving their financial goals, and also they use communication to spread information among the board members.
There are many types of Ecommerce Accounting. Let us know about the most common and important ones:
1. Ecommerce Cost Accounting: This type of accounting includes the tracking of business spent on the production processes overall, that includes the workforce, material and several expenses that are calculated both the cost sides fixed and variable in every process of the project and also analyse the result.
2. Ecommerce Financial Accounting: This type of accounting is what the traditional accountants used to do, where they are required to secure records of the financial transactions of their business. Financial accounting is somehow similar to bookkeeping.
3. Ecommerce Management Accounting: This type of accounting works a little similar to financial accounting. There is a difference now, the former uses the data for business internal affairs but now it is used for external matters too. This data is used to create the reports that are later used for making statistics and charts.
4. Ecommerce Tax Accounting: This type of accounting solves business obligations that are specific types of tax, where diminishing the Taxes they were supposed to pay is considered in changing the tax protocols and interpreting some complex aspects.
5. Ecommerce Forensic Accounting: This type of accounting is financial investigation using accounting techniques to spot and dig up any fraud and embezzlement in the business and enforce integrity within it. This type of accounting demands investigative, auditing and accounting skills for the part of the accountant.
Types of E-Commerce Transactions:
E-Commerce Transactions are divided into six major types which have different features and characteristics:
1. Business to Business (B2B)
This e-commerce encompasses all electronic transactions of goods or services conducted between companies.
Producers and traditional commerce encompasses all electronic transactions of goods or services conducted between companies.
Producers and traditional commerce wholesalers typically operate with this type of electronic commerce.
2. Business to Consumer (B2C)
This e-commerce type is distinguished within the establishment of the business relationships among business and consumers.
This responds to the retail e-commerce where traditional retail trade used to operate.
3. Consumer to Consumer (C2C)
This kind of e-commerce encompsasses all electronic transactions of goods and services conducted between consumers.
Generally, these transactions are conducted through a third party which provides the online platform where the transactions are actually carried out.
4. Consumer to Business (C2B)
This type of ECommerce Accounting Services is very common in source based projects. A large number of individuals make their services or products available for purchase for companies seeking precisely these types of services or products.
5. Business to Administration (B2A)
This type of e-commerce encompasses all transactions conducted online between companies and public administration.
This is an area that involves a large amount and variants of services in a particular sector such as fiscal, social security, employment, legal documents and registration etc.
These types of services have increased in recent years with investments made within e-government.
Challenges Faced by an E-Commerce Business:
1. Cybersecurity
The biggest challenge faced by any e-commerce business is the security and privacy of data of the business.
A lot of information and data is involved while dealing with e-commerce, hence even a small technical issue can cause the damage to the retailers daily operational activities as well as it ruins the image of the brand.
2. Customer Experience
A good experience with your customer is the key to a successful ecommerce business.
Customers mostly expect a familiar but not exactly same experience from your services and products.
The business flow, segments the website and retail the personalised products that are based on the preferences of your customer.
3. Competitors Analysis with rising Competition
While being in this competitive market if you want to stand out, you need to offer something which is really unique.
The less amount of services you will offer your customers, the more likely they are to actually purchase something.
People these days have become smarter. They need more variety along with the best quality which is unique and different from others.
4. Product Return and Refund Policies
As per a survey, customers always look at the products return policy and convenient refund process before buying any product or making a purchase.
If the e-commerce site commits a no return and no refund policy then no matter how much the product is necessary or liked by the customer they will 98% not buy the product or never make any purchase from your brand.
A good refund and easy return policy works flexibly in attracting more shoppers to the website.
5. Go for the Right Technology
Selecting the right technology as well nas right partner is a very crucial and important step for an e-commerce business.
The e-commerce business growth is dependent on the technology they are adapting and are limited for and if anything is going down in terms of technology then surely you have tied up with a wrong agency.
E-Commerce Accounting Services
1. Quickbooks
Quickbooks is a well known and very powerful accounting software brand that is used for e-commerce business, this tool has everything that all you require to manage your business finances.
These integrated e-commerce sites need tracking of expenses and sales optimization. Your data is totally safe and protected with Quickbooks.
2. Zoho Books
Zohobooks is a well known and popular accounting servicing brand. Zohobooks takes care of all your essential and sensitive data and also manages your business finances.
From strock tracking, bank reconciliation, accounting, and workflow zoho book is the best option to relay.
3. Fresh Books
Fresh books is one of the best and most used cloud accounting for the businesses. This app helps you to manage your ECommerce Accounting Services and finance data with a surety of privacy and data security.
Fresh books help you to send professional invoices faster, track your time, calculate your expenses, and manage all the finance tasks of your business.
4. Xero
Xero ecommerce accounting software is a very popular and useful accounting app.
This software helps you to put control of your finances and also gives you the tips that you should adopt.
Xero helps you to streamline your e-commerce business with the easiest and finest way.
E-Commerce Services Offered by Especia
1. Ecommerce Bookkeeping services: it will save your time, as well as fulfil your expectations by providing you the ebay solutions.
2. Ecommerce Payroll services: we will help you to meet your business goal, provide you recruiting support, manage and streamline payroll-related rules, regulations and services, maintain employer compliance, save your business fines and fees.
3. Ecommerce Account Payable: we will make sure to keep you informed of all the accounts payable.
4. Ecommerce Accounts Receivable: we will make sure to keep you informed of all the accounts receivable.
5. Ecommerce Inventory Management: we will also help you in managing your inventory with proper guidance that is required.
6. Ecommerce Budgeting and forecasting: our main services will be taken care of with proper time management.
7. Ecommerce Cash flow projections.
8. Ecommerce Financial reporting: the financial reporting will be presented simply that is understood.
9. Ecommerce Invoice Processing: we will also help in managing and processing the invoice information.
10. Ecommerce Tax Compliance: we will manage and inform you of all the tax related work and keep free from the fines and charges.
Process of E-Commerce Accounting
Understanding your requirement: Before proceeding to do the task, we make sure what the client wants and what are their expectations.
1. Records: We access your records, analyse them and then plan accordingly.
2. Updating your account books: Our experts will make sure to update any past mistake or errors in the account book.
3. Keeping Records: We start updating the data as soon as any transaction occurs.
4. Delivery: All the necessary financial statements to provide our clients with a summarised brief and help them understand important KPIs for improvement.
Benefits of E-Commerce Accounting
- Helps in product costing:
Costing a product is a very difficult task for an ecommerce business because pricing of product is not only based on the cost of goods sold.
- Expert Advice on Inventory Management:
Managing an inventory by an e-commerce business is really a hustle, and if you are the one who is selling over multiple e-commerce platforms, it will only lead you up to mess.
An ecommerce accountant can help you in creating a system that will help in tracking inventory and sales, making it easier to know when the new stock needs to be ordered.
- Providing Assistance in Projecting Sales
An informative E-Commerce accountant can help you estimate sales volume by looking at historical data and anticipating future sales, further helping you understand the risks of your products. They will consider cost, competition, and customer services to assess the risk.
- Helps in Preparing Tax
We help you to handle your taxes by calculating the implications of purchases.we are also able to identify any deductible tax that helps you in reducing your tax implications.
While we help you with deductibles specifics to e-commerce business with full time support and dedication .
- Handles Cash flow issues in your Business
Every Business needs to ensure that they are having enough cash flow to run their operative activities.
You might find it difficult to pay your employees and keep necessary supplies stocked if you are short on cash.
For your business to be successful, it's essential that you understand cash flow to improve work efficiency and avoid hurdles that will come in future.
How E-Commerce Accountant helps in growing your Business
Running a business is not just about the right decision making skills and getting lowest prices but it is more about the finance management skills behind your business growth.
1. There are so many factors that are needed to be considered including discounts, vouchers, competitors pricing, e-commerce platform fee and many more.
An e-commerce accountant helps you to calculate the best cost of your goods to be sold and how you can make profit in several genuine ways.
2. There is always a chance that you might run out of stock because of the end number of orders or of high demand.
Here the role of an e-commerce accountant is to guide you with the right inventory that will help you to manage your stock on time.
3. An accountant who has experience as well as expertise in the e-commerce business field can definitely help you in making and implementing a plan that will help you in increasing your sales.
4. An e-commerce accountant can help you in several ways but the ebay he can help us in, is managing your business cash flows by making reports that will help your business to grow.
Why Especia for E-Commerce Accounting
Especia is one of the best leading firms in Ecommerce Accounting outsourcing in Delhi NCR.
The best software or best professionals not only eases your work but also provides you a surety and accuracy with professionalism.
Especia uses the best e-commerce accounting softwares that guarantees you with 100 % of accuracy, standards and best outcome.
This helps you to gets a clear and a fair financial report that is been prepared under the observation of highly professional and expert team along with this we provide you accurate book-keeping without any fault.
Helps you to collaborate your department with other ones, supports you e-commerce business with multiple user ends, provides you the exact calculation of your sales tax on time.
Also helps in managing inventory so that you will never face any issue related to out of stock or minimum inventory.
