So, you’ve launched your eCommerce business—congrats! You’re selling products, growing your brand, and making things happen. But here’s the thing: if your accounting isn’t on point, your business might feel like it’s running on a shaky foundation.
Don’t worry. You’re not alone. At Insogna CPA, we’ve helped plenty of eCommerce entrepreneurs (just like you) streamline their accounting, ditch the stress, and focus on growing their business. Let’s dive into the essentials of eCommerce accounting, break it down into bite-sized pieces, and get you on the right track.
Step 1: Nail the Basics of eCommerce Accounting
If accounting feels like a foreign language, we’ve got you covered. Here’s what you need to know:
1. Bookkeeping: Think of It as Your Financial Diary
Bookkeeping is where it all starts. It’s about keeping track of every sale, expense, and fee. Basically everything happening with your money. You’re likely juggling platforms like Shopify, Etsy, or Amazon, and let’s be real, that can get messy fast.
The solution? Automation! We can help you sync your sales platforms with accounting software like QuickBooks Online. It’s like giving your bookkeeping a personal assistant. Everything gets tracked without you lifting a finger.
2. COGS (Cost of Goods Sold): What Does It Actually Cost to Sell Your Stuff?
COGS sounds fancy, but it’s really just the cost of making or buying your products. Think materials, manufacturing, packaging, and shipping.
Here’s why it matters: If you sell a product for $50, but your COGS is $20, your gross profit is $30. But you’ll also need to cover other expenses like ads or fees from your sales platforms. Knowing your COGS gives you a clear picture of how much you’re actually making.
At Insogna CPA, we help you figure this out so you can price your products with confidence (and avoid any “uh-oh” moments later).
3. Gross Revenue vs. Net Revenue: Why You Need to Know Both
Gross revenue = total sales. Net revenue = what you actually keep after expenses like refunds, advertising, and platform fees.
Here’s a truth bomb: gross revenue might look great on paper, but net revenue tells you how profitable your business really is. If the difference between the two surprises you, don’t sweat it. We can help you track both with ease.
Step 2: Pick the Right Accounting Software
The right tools can make or break your workflow. But don’t worry, you don’t need to become a software expert. That’s what we’re here for.
- Go for Automation: Look for tools that sync with your platforms and payment processors. QuickBooks Online and Xero are great options.
- Think Long-Term: Your software should grow with your business. Scalability is key.
- Get Expert Advice: Not all tools work for every business. We can help you choose the right one and set it up to run like a dream.
Step 3: Work Smarter, Not Harder, with Insogna CPA
We know running an eCommerce business isn’t easy. That’s why we make accounting as painless as possible. Here’s what you get when you work with us:
- Automation Magic: Say goodbye to manual data entry. We’ll integrate your sales platforms, payment processors, and inventory systems so everything works together seamlessly.
- Tax Compliance, Simplified: From sales tax to income tax, we’ve got you covered. We’ll make sure you stay compliant and avoid any nasty surprises.
- Clear Insights: Need to know where your money’s going? We’ll deliver real-time reports that break it all down, so you can make smart decisions fast.
We’re not just here to crunch numbers, we’re here to help you crush your goals.
Let’s Make Your Accounting Work for You
You didn’t start your eCommerce business to spend hours staring at spreadsheets or Googling tax rules. That’s where we come in. At Insogna CPA, one of the top CPA firms in Austin, Texas, we help eCommerce entrepreneurs like you build solid financial foundations.
👉 Schedule a free consultation today and let’s get your business set up for success—because you deserve an accounting team that’s as invested in your growth as you are.