Integrated E-Commerce & ERP
Inventory Management.
Inventory management is a challenge even without its tie-in to accounting. It is the backbone of every online retailer’s cash flow, so it’s important to have it under control. Most successful sellers use automated and integrated inventory management systems that can scale. These systems will provide the most accurate data so financials will always be up-to-date.
No More Manual Entries!
Reduce Costs
There are several items to track with every sale: local sales tax, seller fees, inventory quantity sold, shipping costs, and more. Manual entry of all this data becomes overwhelming as the business grows. Some sellers outsource this process to an accountant, but you might be surprised by the cost.
Data Analytics
When it comes to analytics and reporting, some ecommerce platforms offer more than others. This poses a challenge to sellers who have limited access to store performance data. They would get delayed information, constantly reacting to what has already happened. Solid reporting allows you to be proactive based on up-to-date analytics and performance history.
Real-time Visibility
You need greater visibility into your accounting to be proactive. With real-time store performance tracking, you can see how quickly inventory is moving and which channels are the biggest revenue drivers.
E-Commerce Accounting
One challenge with retail is that success often means lots of small transactions with lots of data points. In a traditional brick and mortar store a good point of sale system can automatically categorize sku-level sales data and some of them will even capture CRM data for you to help you build your email list.
Most entry-level accounting systems including Quickbooks Online and Xero aren’t great at handling 10,000 detailed transactions each month. The system will slow down and can’t handle that level of specificity. Which is why you need a robust and advanced Enterprise Resource Planning system that streamlines your processes.
Small business owners may look to e-commerce as an opportunity to reach a broader consumer base. However, implementing an online retail strategy requires careful attention to e-commerce accounting, which allows entrepreneurs to grow their revenues while maintaining full tax and regulatory compliance.
With proper e-commerce accounting, businesses can develop strategies to boost their profits while also ensuring they are following all pertinent laws and regulations.
In order to find clear records of e-commerce transactions, businesses may need to familiarize themselves with back-end dashboards and reporting functions within their e-commerce platforms, such as WooCommerce. This is why Brilliant Link has developed a solution that allows you to manage your eCommerce store directly from your ERP system.
Accounting records may include sensitive information about customers, including their names and credit card numbers, or proprietary information about the business’s financial status. Businesses need proper information technology security to maintain this data securely. Using a cloud-based accounting platform that offers superior security protocols is crucial.
Given the specific nature of e-commerce, it is important to implement the right processes to facilitate data recording processes. With thousands of transactions, cloud accounting is not even a question anymore: the costs of hiring someone to manually add that data into an accounting software would be sky-high and it would be very prone to error.
