When you know exactly how much money is passing through your business, it enables you to maintain a positive profit margin. If you suffer a loss, your cash flow statement pinpoints where overspending occurred so you can strategize to reverse the trend. When you have a clear picture of what your money is doing, you can get a better handle on your business spending. An accountant can provide valuable insights, ensure compliance with tax regulations, and help with financial planning, which may be particularly important for growing e-commerce ventures. Once you have the three items above, you’ll be ready to set up your accounting for your e-commerce business.

You should review all these items to determine the overall financial health of your company. Another significant drawback to Xero compared to QuickBooks is the relatively small number of independent bookkeepers available in the US to help you manage your books. Research shows that a staggering 91% of customers surveyed want SMS texts from brands they like, with WhatsApp marketing also reaching between 98 and 99% open rates. Similarly, this presents the opportunities of content creators on these platforms – a skyrocketing market, yet still an untapped area.

Set Aside an Emergency Fund for Major Expenses

Managing an online store involves navigating numerous financial considerations and hurdles. Payment processing, handling customer returns, managing shipping logistics, and maintaining efficient inventory management are just a few of the critical challenges faced by e-commerce businesses. To address these challenges effectively, businesses must employ robust financial management solutions.

• Because e-commerce retail tends to involve less physical space and equipment, your greatest assets are likely to be your cash and inventory.
• With these and several other factors, you can estimate the profitability of an SKU.
• In the interim, while we’re impressed with Zoho Books’ customer support, it’s not as easy to use as QuickBooks Online.
• However, having access to reliable financial data is often more critical.
• Analyze where you can cut some costs, and you can improve a narrow profit margin.

Typically, pool businesses charge around INR 5,000 to INR 10,000 for regular maintenance. Networking is going to be your best bet for landing contracts as a consultant. Use professional social media, such as LinkedIn, go to local networking events for professionals and stay in touch with former colleagues. You should keep your personal website updated with contact information for your consulting business. Consultant fees vary wildly, depending on your area of expertise, so your rate may be  around INR 493 per hour. Beyond the numbers, the success of a bookkeeping business hinges on the strength of client relationships.

Adjust Entries at the End of Each Accounting Period

All of these (and more) solutions exist, often providing tools allowing anyone to start an online business. In the meantime, start building your store with a free 3-day trial of Shopify. There are several effective ways to manage bookkeeping responsibilities in-house ecommerce bookkeeping or externally by using helpful tools and technologies. Although bookkeeping is an investment, it’s generally much more affordable than attempting to correct costly mistakes down the road. Bookkeeping beginners need quick wins to get started quickly and efficiently.

Consultants, information technology (IT) technicians and freelance accounting are all fairly profitable small businesses. A popular business to start with little money is a landscaping business. It’s a good idea to have some experience https://www.bookstime.com/ mowing lawns, clipping hedges, gardening and using a weed whacker. The equipment you’re going to use likely requires you to have a truck to haul it from yard to yard, so this idea is best for you if you already have one.