Whether you’re just starting your e-commerce brand or you’ve been in business for years, one thing you can’t escape is bookkeeping. But why should you care about whether or not your books will hold up to investor-level scrutiny?
As an e-commerce accounting firm, our clients usually come to us for one of two reasons. Either they know they’re not making as much money as they should be, or they hate accounting and the thought of doing it all themselves sounds like a headache. In both cases, Seller Accountant is prepared to lighten the load while increasing profitability, and your high quality books will help you do the rest.
Much like a personal budget, it’s easy to overspend in your business if you don’t know where your money is coming from or where it’s going. Rather than operating your budget on a wing and a prayer, quality accounting provides visibility into your business’s finances, allowing you to make more informed decisions for the health of your company.
Trying to run a business with a sloppy accounting ledger is like trying to drive a car with mud on the windshield – you don’t know where you’re going, so you don’t know when you might be about to crash. Professional bookkeeping done by accountants who understand the e-commerce niche clears your path towards profitability and lowers the stress associated with flying blind in your business.
When your partners see last month’s numbers and want to know “What happened and why?”, do you know how to respond? Professional-grade accounting answers questions like “Why did my profit decrease last month?” and “How did this supplier change affect COGS?” by creating consistency across a period of time and allowing for accurate month-over-month comparisons.
Much like how muddy accounting is like driving with an obscured windshield, neglecting to understand your cash flow is like driving without a map. If you’ve got to repeat what works and change what didn’t, you’ll need guidance on what got you to where you are, and solid accrual accounting equips you with that “map”.
Be Prepared for Anything
Starting a business means taking on many complex responsibilities, from filing taxes correctly, to approaching lenders and investors, to scaling or even selling your brand.
Anyone looking in on your business from the outside will only be able to judge it based on the data in front of them, and sloppy or unfinished data puts out an image that’s unpolished. Whether you’re approaching investors for a loan or a sale, you want to put your best foot forward and paint a picture of a business that’s well-kept and whose owners take pride in their brand.
As for tax time, clean, readable accounting will allow your CPA partner to make sure you’re getting the most out of your filing, from deductions and write-offs to participation in small business programs. If you’re handing your CPA slapdash books, they may not be able to catch all of the tax relief to which you’re entitled.
Work With Us
Ready to outsource your accounting and get investor-grade financials every month? Contact us for a free 15-minute consultation call. Got a question we can answer? Book a paid coaching call with one of our experts.