E-commerce accounting has existed since we realized it was possible to make money selling goods and services on the internet. But e-commerce business wasn’t always for the everyday small business owner or entrepreneur. In 1982, Minitel service was first used in France for actions we now associate with typical online behavior like chatting, making travel plans, and purchasing goods.
In the UK, a woman named Jane Snowball made a Tesco grocery purchase powered by a phone line technology called Videotex through her t.v. Mrs. Snowball’s order is now considered one of the first online purchases ever made.
These now primitive online shopping services would soon be reimagined and replicated throughout the world, becoming a new platform for existing companies, and eventually an outlet for entrepreneurs looking to turn their passions into profits. Jeff Bezos sold his first book on Amazon.com in 1995, almost immediately changing the buying and selling of goods over the internet for all of the U.S. and countries worldwide.
Nowadays, most Americans shop online at some point each year, and B2C e-commerce is predicted to surpass $2.3 billion in sales by 2018. B2C e-commerce is predicted to reach over $2.3 trillion in sales by 2018. As a small business owner or startup selling goods or services online, productive e-commerce accounting can be the difference between simply staying afloat and seeing real profits. The time and energy saved using cloud-based accounting tools can be spent growing your business and learning from the competition and other challenges. Here are a few lessons to consider when considering an e-commerce accounting solution.
Information should be readily available
Having your business data in the cloud means you don’t have a giant question mark looming over every decision you make. Access your information online from anywhere, and save yourself the headache of constantly keeping messy — or mental — records of your expenses. Real-time answers make for better, faster problem-solving when it is most critical.
Always budget for success. Accounting is more than just keeping score. It’s planning for the future based on the information you have at your fingertips. AccountingSuite uses a simple budgeting tool which allows e-commerce companies to stay in control of finances, regardless of the situation, and prevents negative outcomes by early intervention. Armed with a budget that keeps your goals and success at the forefront, you can go about your work with more peace of mind.
Manage inventory carefully. Whether you’re selling beauty products or books, your inventory should be integrated with your e-commerce accounting solution to stay on top of changing finances. Now you can take inventory by category and location, and even track it by project or cost.
Reporting is easily streamlined. Reports are an integral part of your e-commerce accounting, and should be customizable and varied, giving you a unique perspective into your data. Great reporting should give you a look at trends and opportunities in order to save money and earn profits.
As an e-commerce business begins to increase sales and brand awareness, getting the right accounting solution tied to that hard work is vital. We’re in an age where online sales competition is fierce, but it’s also a growing market, and therefore offers almost endless business opportunities. It’s much easier to make informed decisions when your data is accessible via the cloud, you have a handle on your budget, and information regarding inventory is always available. Streamlining your reports and processes and and eliminating manual work is the only way to maintain and edge in the booming world of e-commerce.
Try AccountingSuite, the leader in simplified e-commerce accounting software for free today!