For most business owners, the concept of bookkeeping is usually seen as a boring task that’s no less exciting than not being able to sell at all— especially in the case of Australian Shopify businesses that crave convenience. Bookkeeping, in its true nature, is regarded by most business owners as a “pencil-pushing” job where all that needs to be dealt with are the numbers that move in and out with each transaction that takes place. With a task list that’s solely composed of dealing with numbers, it can be easy to take a pass on the entire aspect of bookkeeping because of how boring and repetitive it is. However, the fact of the matter is that bookkeeping is a vital key for success.
Given the sheer importance of bookkeeping for succeeding as an e-commerce business, however, chances are that there’s one question that you might find yourself asking: “Is bookkeeping really important for my Shopify store?”
Well, the answer is simple and straightforward: yes, proper bookkeeping is absolutely essential for running a Shopify store.
The importance of bookkeeping for Shopify
At first glance, both bookkeeping and Shopify may seem like two opposite fields that won’t ever be used together, but the truth is that the latter needs the former to keep all its financial operations and records in check.
Despite the rate at which modern technology and e-commerce are evolving, Shopify stores are still quite far from not needing bookkeeping anymore. Regardless of whether you’re selling trinkets or construction materials, you’ll still have to rely on bookkeeping to successfully keep your operations as profitable as possible.
Fortunately, successfully fulfilling your Shopify store’s need for bookkeeping doesn’t entail having an accounting degree or spending a fortune on trial-and-error processes. As a matter of fact, successful bookkeeping for one’s Shopify store can be pulled off with fundamental knowledge and a dependable set of skills in multiplication, addition, subtraction, and division. Why you should invest in your Shopify store’s bookkeeping processes To better understand exactly why you should take extra effort in following and maintaining your Shopify store’s bookkeeping process, let’s go over a few different functions that the practice is responsible for: Proper bookkeeping is essential for setting the foundation for scaling and growth A non-negotiable condition of success is that calls for more paperwork. As your Shopify store continues to take on orders and gets itself further into the funnel of success, the amount of financial paperwork inevitably increases. Over the course of time, expanding your horizons and scaling your business will eventually turn into an endeavour that calls for accurately tracking, managing, and maintaining your finances. Through the use of a robust bookkeeping process (or the services of an outsourced e-commerce bookkeeper such as The E-Commerce Accountant), however, it will be a whole lot easier to scale and grow efficiently! Proper bookkeeping is vital for tax compliance Another reason any Shopify store owner should pay a great amount of attention to their bookkeeping practices is that they’re a vital component of effective tax compliance procedures. When you take the time to carefully go over your books, update them constantly, and prepare them in the best manner possible before filing your documents during tax time, you’ll be able to avoid costly fines in the process! Proper bookkeeping helps keep track of how well your Shopify store is performing One truth that continues to hold relevance even in today’s digitally-driven age is that no view of business’s finances can be clearer than one that puts proper bookkeeping into play. By constantly updating your books and keeping track of your checks and balances, you’ll be able to support your decision-making processes and overall awareness by having accurate data at all times. Conclusion Through an effective and efficient bookkeeping process, you’ll be able to steer your Shopify store’s efforts towards the right direction, shortening the amount of time it takes to bring your business to the next level. Are you looking for an e-commerce accountant in Australia? Get in touch with us today to see how we can help!