– 6 Top Tips From The Experts For E-Commerce Accounting

Running an e-commerce business is exciting. You set your own hours, build a brand, and (hopefully) watch sales roll in. The financial side of things isn’t exactly thrilling. Accounting mistakes can eat into your profits, cause tax headaches, and even trigger audits. Not fun.

Here are seven essential accounting tips that will keep your e-commerce business profitable, compliant, and, most importantly, stress-free.

Hire an accountant (or at least get expert help)

Handling your own books might seem like a money-saving move—until you miss a deadline or make a mistake that costs you big. Late filings can lead to penalties, and incorrect reports might even trigger an audit.

If hiring an accountant isn’t in your budget, at least consult one for tax season. They’ll ensure everything is in order and help you maximize deductions. And, they won’t judge your questionable spreadsheet skills.

Keep business and personal finances separate (seriously, do it)

You might think, “Oh, I’ll just use my personal card for a few business expenses, what’s the harm?” Well, it’s all fun and games until tax season rolls around and you’re stuck sifting through transactions, trying to remember if that $120 Amazon purchase was for printer ink or your latest impulse buy.

Set up a dedicated business bank account and credit card. This not only simplifies bookkeeping but also helps you maintain clear records if you ever get audited (it’s no one’s idea of a good time). And, it makes reconciling transactions with accounting software really easy.

Track inventory costs like an expert

Inventory isn’t just “stuff”, it’s money sitting on your shelves. If you don’t track your cost of goods sold (COGS) correctly, you could be overestimating profits and underestimating expenses.

Use inventory management tools like Shopify to track stock levels, reorder points, and fulfillment costs. A recent study found that 43% of small businesses either don’t track inventory or do it manually, leading to errors that can cost thousands per year. Don’t be that business.

Monitor cash flow like your business depends on it (because it does)

Here’s a hard truth: 82% of small businesses fail due to cash flow problems. It doesn’t matter if your store makes six figures in sales if your money is tied up in unpaid invoices and slow payouts from payment processors.

To avoid cash flow disasters:

• Use cash flow forecasting tools to predict upcoming shortfalls.
• Negotiate better payment terms with suppliers.
• Take advantage of instant bill payments through Forwardly to avoid unnecessary transaction fees.

Automate your bookkeeping (your future self will thank you)

E-commerce moves fast—blink, and you might miss an order. With so much happening in real-time, manually entering data into your accounting system isn’t just outdated; it’s a massive drain on your productivity. Every minute spent reconciling transactions or fixing human errors is a minute taken away from growing your business. Accounting software like QuickBooks Online and Xero can seamlessly integrate with your e-commerce platforms, automatically syncing your sales, expenses, and bank transactions. This means no more spreadsheets and no more late-night number-crunching

Pay vendors faster without extra fees

When you’re running an e-commerce business, keeping your suppliers happy is just as important as keeping customers happy. Late payments can strain relationships and even lead to delayed shipments.

With Forwardly’s vendor bill payment solution, you can:

• Pay vendors instantly in under 60 seconds or low-cost same-day ACH transfers.
• Eliminate the hassle of writing checks or dealing with slow ACH transfers.
• Automate bill payments directly from your accounting software, so you never miss a due date.
• Skip pre-funding or sharing account details, just pay directly from your bank.

Forwardly makes it effortless. Whether you’re paying vendors, managing cash flow, or syncing transactions with your accounting software, Forwardly helps you save time, money, and headaches.

Want to simplify your payments and keep your business financially strong? Try Forwardly for free today!