Needless to say, the first step for any start-up in terms of funds is to just do it themselves. So if you're stressed that your new online store has you doing everything, including money management, don't worry! You are definitely not alone in this regard.
Over time, your business will start to grow. At a certain point, you're going to have to trust someone else and be able to delegate important tasks. That includes managing the finances through accounting and bookkeeping.
E-commerce generally refers to goods and services being sold or bought in the digital space. There are multiple factors involved when it comes to e-commerce cash flow. It's particularly true as payment processors come into play and more channels of payment come in. Several apps have a habit of being linked to QuickBooks, too. Unfortunately, not all of these apps end up working together nicely.
When exactly does that certain point come to pass? When is it time to get an expert to help you out? Read on to learn more about whether or not there's a perfect time to hire an e-commerce accountant.
Are You Able to Handle Integrating Apps?
Yes, there are apps that make banking and finances easy. That said, some accounting software integrates with certain apps in an attempt to make things convenient. It's not unusual to find this confusing, especially if there are plenty of figures to deal with on a daily or weekly basis. Experts can help you by taking the stress off of your hands and answering any questions you may have. This is also where manual procedures can end up automated as well.
Are Your Profits in Order?
Gross sales will look amazing, but there are deductibles and fees to think about. It's hard to move forward if you don't actually have your profits in order and things aren't clear. Yes, it's your legal obligation to prepare your taxes, and you should absolutely fix your finances.
There are so many other aspects to finances, like profit. This also includes investing in the business’s growth through more equipment, materials, employee training, or whatever's needed. Eventually, bookkeeping and accounting will have to focus a little less on just tax compliance and balance out entirely.
Are You Updated on Sold Goods and Your Inventory?
Yes, it's entirely possible to monitor and track one's inventory. It's just as possible to have a running list of your products as they're sold and/or fees of services as they're rendered. What if the transactions are in the dozens per day? The hundreds? Or even the thousands? You're definitely going to need professional help the moment your business starts to pick up. That way, nothing falls through the cracks, especially when bank reconciliation is in order.
Is there a perfect time to hire an e-commerce accountant? The short answer is not specifically, because it varies from person to person and business to business. However, there are certain points that can be used as indicators.
Doing all the accounting and bookkeeping is natural for start-ups or business owners just starting out. Later on, however, it will have to be delegated. If you're already struggling to stay updated on goods vs inventory, profits and integrating apps, it’s time to work with an e-commerce accountant.
Need to get an ecommerce accountant in Australia for your business? Reach out to The ECommerce Accountant! We are business advisors for online stores and influencers.