Bookkeeping is an excellent way to track your company’s finances. Apart from being an efficient tool in measuring the earnings of the company, it’s also a great way to determine any losses so you can determine how you can reduce them in the future. It may be that simple but it’s a task that’s considered essential if you want your business to survive and thrive.
Even if your business is done mostly online, like an e-commerce store, you still need to do bookkeeping. It’s actually more important because that kind of business has a lot to do with numbers that every single digit should be tracked carefully. Any reputable accountant for e-commerce businesses can attest to that. If you’re still unsure of its importance, here are some of the reasons to do bookkeeping that should be enough to convince you:
It Gives You a Forecast of the Next Steps for Your Business
Can you honestly say right now that you know for sure where your business is headed in the near future? Are you a hundred percent sure that you’ll be earning more profits or do you fear you’re headed towards several losses?
If you can’t answer for certain, bookkeeping can give you helpful information as to the current standing of your business as well as what you can expect in the coming days. It may all be numbers and computations but those figures are exactly what’s going to tell you all about the progress of your business from an accountant’s point of view.
It Helps Ensure That You Are Not Overlooking Anything, Especially Your Taxes
Everybody needs to pay their taxes regularly, even e-commerce businesses. Bookkeeping can tell you how much your business needs to pay so you can comply with your obligations to the government tax-wise. It would allow you to compare the taxes you pay every month. The changes you see will benefit you because it’s an indication of your business’ performance.
It Helps You Detect Any Fraudulent Activity
This is something that you wouldn’t want to discover but in case it happens, you should be able to detect it immediately. Bookkeeping allows you to determine whether or not there are illegal activities happening behind your back. Such illegal activities could include fraudulent transactions like money laundering.
It Allows You to Determine the Ups and Downs of Your E-Commerce Business
Bookkeeping will give you a detailed look at all the transactions happening as well as all the important numbers, including any transaction fee, international conversions, and more. It may also seem irrelevant at the beginning but if you don’t pay attention to this task, you may end up regretting it when you find the boat sinking because you neglected the “small things” that accumulated over time. If you do bookkeeping, you can follow any changes in the rates and fees that you need to pay.
Conclusion
E-Commerce businesses can be profitable. It’s one of the reasons that ay people are considering doing it too. However, it’s not just about posting your products online and waiting for customers to start pouring in. You need to take care of the business just like you would foster a business with a brick-and-mortar store. Bookkeeping is one of the things that you should perform to ensure that you are on top of everything and you know where your business is heading.
If this is something completely foreign to you, you need to hire accountants for Amazon sellers in Australia or Shopify who can handle the task for you. Of course, you must ensure that you’re getting someone with a solid reputation.
The Ecommerce Accountant is an established firm known for offering services for accounting for Shopify businesses and other eCommerce sellers in Australia. Contact us today to find out how we can help you!