eCommerce Bookkeeping Services
We provide bookkeeping to eCommerce businesses so they can focus on their core business activities.
Track your inventory, payment from different channels, and more with IBN’s eCommerce bookkeeping.
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While attempting bookkeeping in-house, eCommerce businesses often face the following challenges:
Sales Tax Management
Sales tax management is a bookkeeping challenge for eCommerce businesses due to the complexity and variability of sales tax regulations across different jurisdictions. eCommerce businesses tend to have customers and operations in multiple states or countries, each with its own sales tax rules and rates. This requires businesses to keep track of the various tax rates, exemptions, and filing requirements, which can be difficult and time-consuming.
Monthly Revenue Recognition
eCommerce businesses have complex sales arrangements, such as discounts, refunds, and chargebacks, which can impact revenue recognition. In addition, revenue recognition standards, such as ASC 606, require businesses to recognize revenue based on the transfer of control of goods or services to customers, which may not align with their traditional accounting methods.
Several Payment Methods
eCommerce companies accept multiple payment methods, including credit cards, debit cards, PayPal, and other online payment methods, each of which may have different processing fees and settlement times, making it challenging to reconcile transactions accurately. They also have a high volume of transactions, which can be difficult to track and reconcile, especially if the company operates in multiple countries or regions.
Chargebacks and Disputes
Chargebacks and disputes impact the company's revenue, as the funds are returned to the customer, and the company may be charged a chargeback fee by its payment processor. If the company's chargeback ratio exceeds a certain threshold, it may face fines or even lose its ability to process payments. Therefore, eCommerce companies must have an effective system in place to handle chargebacks and disputes.
Foreign Transactions
Foreign transactions involve different currencies, exchange rates, fees, and tax implications. Therefore eCommerce companies must convert foreign transaction amounts accurately into their local currency using up-to-date exchange rates, which fluctuate very often. They must also account for additional fees incurred when processing foreign transactions, as well as comply with relevant tax laws and regulations.
Calculating Cost of Goods
eCommerce companies must track their inventory accurately and in real-time, especially if they sell across multiple sales channels or marketplaces. This involves tracking inventory levels, stock movements, and stock counts, which can be challenging for fast-moving or seasonal products. Additionally, accounting for shipping and handling costs when determining the COGS of the products requires a significant level of bookkeeping knowledge.
IBN’s eCommerce bookkeeping services provide financial support and guidance to new-age retailers. We provide accurate data analysis, precision bookkeeping, and clear financial reporting. This helps you understand your eCommerce finances better and develop strategies for business growth.
IBN bookkeeping services include: setting up appropriate accounts, reconciliation of transactions, tracking expenses and incomes, preparing Balance Sheets & Profit & Loss Statements, generate reports for cost centers, sales channels, and product types. And also generating performance trend reports seeing trends in revenues, sales volumes, etc.
We also provide knowledgeable advice on managing taxes as well as consulting on finding additional opportunities for savings with our skilled experts. By utilizing industry-leading technology, we ensure this data is secure and up-to-date at all times. Additionally, we offer insights from industry-leading experts that help inform the eCommerce business decisions you make every day.
Experienced Bookkeepers
With over 22+ years of experience, we have a proven track record of effectively managing accounting records for eCommerce businesses across the United States.
Value-Driven Approach
Our objective is not only to reduce your expenses but to provide value that exceeds the cost.
Ready to Scale
Our effective management solutions allow you to swiftly grow or decrease the quantity of bookkeeping services necessary.
Minimal Input Required
Our certified bookkeepers handle all aspects of the bookkeeping process, allowing you to be hands-off.
Your Data is Safe
You can trust IBN's capability to secure your data, as we employ the most advanced security technology to safeguard our clients' information.
Utilize Best Tools
Our certified bookkeepers are equipped to work with any accounting software of your preference, or we can suggest one that would be suitable for you.
