Our friends at PingPong Payments recently hosted Seller Accountant CEO Tyler Jefcoat on their Crossover Commerce podcast. In the video below, Tyler and host Ryan Cramer chat tax filing and cleaning up your books in preparation for a sale.
- What are “clean” books?
Having clean books means “having an unassailable picture, from point A to point B, that allows you to deduct all of your valid expenses for your tax partner and feel like you can put your head on the pillow and not worry at all about whether you’re going to be audit-bait in the future.” The two most important documents you can look to for the health of your business are your P&L and your Balance Sheet.
- Entrepreneurs often have an all-or-nothing mindset that solid accounting can help settle.
Good accounting practices provide a solid set of data – cold, hard facts about your business’s performance – that allows you to celebrate your wins and make informed decisions when a strategy doesn’t pan out the way you planned it.
- There are three important funnels in an e-commerce business: sourcing, customer base, and working capital.
These three funnels need to be aligned in a way that allows you to make up for weaknesses in one area with strengths in another. You can read more about this concept in our blog post The Most Profitable Sales Channel for Your Product.