Why should I care about the quality of my Amazon accounting?
Seller Accountant’s bookkeeping service creates investor-grade business financials, while giving you full visibility into your business.
With Seller Accountant as your e-commerce bookkeeping partner, you will:
- Understand where your money is coming from and where it’s going.
- Be able to clearly and easily answer questions like “What happened last month and why did it happen?”
- Have clean, consistent accrual accounting-based books so you are ready for everything from tax time, to borrowing money, to expanding your operations.
Two types of e-commerce sellers use Seller Accountant:
Seller A: “I’m not making as much money as I need to be, and I don’t understand why.”
Seller B: “I hate accounting, and it’s a headache.”
Does one of the above pain points hit too close to home? Contact us for a free consultation.
Successful entrepreneurs are hardwired to focus every ounce of energy on creating value for their customers, employees, and hopefully, for themselves in the form of a profitable business. BUT most entrepreneurs also naturally focus on what they are good at and like doing, and sometimes we fall into the trap of putting off important things just because we don’t want to do it.
And that’s often where bookkeeping gets cast aside until the last possible moment.
However, it’s vital to your business’s sustainability that you keep accurate, up-to-date books. Here’s why:
4 Good Reasons to Maintain Quality, Accurate Books
- Security and controls
- Simply put, you cannot ensure that employees, partners, vendors and scammers don’t steal from you if you don’t have a clear picture of where your money is going. This could be as simple as discovering that your merchant provider double-charged or mischarged you, or it could be a trusted employee embezzling money from your business. This thought will keep you awake at night unless you are able to look at your accounting system and your bank statements and quickly say, “Yeah, that makes sense.” Good bookkeeping equals lower stress!
- Valuation and capital raising
- Going into a valuation you will need financial statements from at least the previous three years, copies of your business’s tax filings and returns, and an up to date balance sheet. If you foresee a need for capital raising, now is the time to begin recording accurate and professional accounting.
- Taxes – Don’t pay too much or too little!
- Next let’s talk about taxes! The IRS puts the burden on you to prove that any expense was legitimate. This isn’t hard to do if you have a good bookkeeping system, but it is impossible to do if you don’t! So you are left with two less-than-desirable outcomes: paying extra taxes (which most business owners do) or risking an audit where you would have to pay back taxes and penalties.
- “What gets measured gets managed”
- As Peter Drucker famously said, “What gets measured gets managed.” As important as the other three points are, this might be the most important reason to have accurate financials. You cannot grow your business unless you can learn to improve your processes and manage toward profitability, and you cannot do those things without an accurate scorecard.
- In summary, I hope that these 4 reasons (security, capital raising, taxes and business visibility) have convinced you that accurate and reliable books are crucial to running a successful e-commerce business. Seller Accountant is here to help with your Amazon accounting needs if you ever run into trouble.
Check out our blog for more Amazon bookkeeping info.