If you have a business and you want it to grow, choosing a reliable platform to work on, like the popular eCommerce site Amazon, will be a good option for you. This platform gives sellers an exciting opportunity to sell their products to a wide range of customers without worrying about storage and other business details, such as transaction, delivery, and customer service.
Through its Fulfillment by Amazon (FBA) program, small businesses like yours can outsource the entire selling process, making use of the platform’s expertise and experience to fuel your eCommerce setup. If you successfully partnered with Amazon and your small business started growing, one of the most crucial things you should keep an eye on is your accounting and bookkeeping.
Why are these facets crucial when it comes to the FBA?
The main challenge for most FBA operators is that they do not understand how much profit they are making from the business. While it may initially seem a good thing, seeing a simple increase in sales does not necessarily mean that your business is thriving and growing.
If you know what your exact numbers are, then you can make informed decisions for your business—a task that your accounting and bookkeeping service can provide.
Knowing your numbers will give you the edge to capitalise and grow your business.
It will help you see which among the products you are selling are doing well. You get a better picture of what strategies work and base your next steps on it. You will see more business opportunities better and get ahead of any potential problems.
Moreover, keeping track of your cash inflows and outflows allows you to see where your business stands at the moment.
With all the information you have, you will know how much you deserve as pay for all your hard work each month.
How to Make Your Accounting and Bookkeeping Work for Your FBA Business
Here are the things you should keep in mind when it comes to your business accounting and bookkeeping process:
Work on your bookkeeping regularly
Many business owners think that they can always speed through their bookkeeping tasks a few weeks before the tax deadline. They prefer to do it once a year, just when it is needed, and deal with it again in the next tax year, thinking it helps save time. If this is the mindset you employ, you are only putting yourself in a high-risk situation for later on.
Bookkeeping affects other aspects of your business, such as your financial reports and cash flow monitoring. It can also help you track your business status better with regular upkeep. After all, it ensures that all the numbers you have and the data you use are accurate!
Without proper record keeping, especially for a platform as busy as Amazon, you will lose track of your performance and progress, making it more difficult to base your business decisions on accurate data.
Never settle for Amazon’s default reports or your Excel spreadsheet
Some Amazon sellers prefer not to hire a tax accountant to save money or be on top of their store’s finances on their own. This move is only advisable for people who have a background in either accounting or bookkeeping. If you are clueless about how these facets work, you will actually save more money if you seek help from the professionals!
Asking for professional help or using more reliable bookkeeping programs will not only ensure you get accurate information and sound business advice, but it also gives you enough time to focus on growing your business. If you settle with doing it yourself and problems occur later, you will have no choice but to spend more just to fix everything.
By dealing with your bookkeeping properly, you get a timely and accurate basis for all your business decisions. You have a better understanding of your business finances, and it gives you the confidence to make your next move, such as scaling your business or creating your online store.
Do you need an Amazon bookkeeper who can help keep track of your business finances? The eCommerce Accountant is dedicated to assisting online entrepreneurs in dealing with their everyday financial struggles. We strive to help our clients minimise their taxes and increase their profit, as well as document their records properly. Connect with us today to find out more about our services.