How to Choose an e-Commerce Accounting Software
Your selling channel and e-commerce accounting software — these are your ultimate tools for managing your online business finances. When these two communicate well, staying on top of your books becomes less taxing.
Looking for an accounting software for your e-commerce business? (Remember not to compromise on features that are non-negotiable on your end, especially if you need them!) Here are the top functionalities you may want to keep an eye out for.
1. Platform integrations
It's best to choose a software that integrates with your e-commerce platform (e.g. Shopify, BigCommerce, and e-Bay). This way, records and transactions are in sync for easier monitoring of receivables and payables. Some platforms offer a third-party connector to do this, but direct e-commerce accounting integrations is a more ideal option.
2. Comprehensive reports
To better understand your numbers, you need a visualised data that outlines the growth or fluctuations of your finances. Most e-commerce accounting programs generate basic financial statements so users have a clear grasp of where they stand.
3. Sales tax configuration
Sales tax is an important facet of your e-commerce accounting function. Select a software that supports automatic sales tax calculation based on the different jurisdictions of the U.S. such as QuickBooks, Xero and Zoho Books.
4. Inventory management
With a proper inventory management system, you have an idea of what's in stock and what's in order. When embedded in an accounting software, it allows for seamless and real-time tracking of your stock levels, which then reduces the chances of selling unavailable products.
There are a lot of software options to choose from today and a lot of extended capabilities that make up an impeccable experience in managing business finances. For a well-rounded bookkeeping service, look for an e-commerce accounting software that would best cater to the needs of your entity. Once these requirements are met, it's easier to explore other features to supplement your current subscription.
If you need further help in your e-commerce F&A facet, D&V Philippines is here to help. Our finance and accounting solutions harness the power of automation and technology to better serve the growing demands of your scaling online business. Grab your copy of our whitepaper Succeeding Online: Refining Your Accounting Processes Through Technology And Automation to know more or schedule a free consultation with our experts.