The world of eCommerce is changing fast. With $211.7 billion being spent online, it’s becoming more important than ever for your business to have a good money management system in place. We’ve rounded up the best bookkeeping tips for 2023 and beyond.
We’ll help you make sense of every dollar coming in and out so that you don’t have to waste your precious time on business finances. Let’s dive in and start creating an efficient bookkeeping system for your business.
Table of Contents
1. Use Simple Accounting Software to Manage Finances
You can’t be a successful eCommerce business if your books are a mess. You need to be able to accurately track how much money is coming in and going out, which will help you know what’s happening with your business at any given time. These eCommerce accounting services will help transform your finances regardless of your bookkeeping skills.
Bookkeeping software takes all the guesswork out. These programs are designed specifically for small businesses that don’t have large finance departments and hours of free time. The more streamlined your finances are, the better your business will be overall.
Bookkeeping software also helps a ton at tax time. For an eCommerce business and a smaller company, tax accountants and lawyers are expensive. This software aims can be a game changer at tax time as well.
2. Keep Physical Copies of Your Records as Well
It is important to keep physical copies of your records. A printed copy will help you to stay organized and structured, which can help you avoid mistakes in the future. You should also make sure that all your employees have access to these copies so they can easily access them when needed.
If possible, organize all your business’s records into different folders or boxes based on what type of information is stored in them. This way it’s easy for everyone in the organization who needs access without having to sift through tons of papers looking for something specific.
3. Create a Budget and Stick to It
It’s important to create a budget and then stick to it. Create a list of all your expenses for the month. Add up all those monthly costs such as rent, utilities, and groceries, and put them in order.
This will give you an idea of what kind of money your business has available each month. Make sure that every dollar that goes into your bank account at the end of each week or month is in this budget. A budget is key to knowing what you have left to invest in your company and employees at the end of the year.
4. Keep Track of Your Invoices and Collect Payments
Use a paid invoicing service. This is one of the best ways to keep track of your invoice payments. It’s also an easy way to send out invoices and collect payments without having to manually enter each transaction into your accounting software or spreadsheet.
Make sure your invoices are clear, and legible, and include your logo so they stand out from other eCommerce businesses in the same industry as yours. You’ll want these details included on every page of each invoice because this will make it easier for customers who receive multiple bills at a time.
Easy Bookkeeping Tips to Implement Now
The key takeaway is that you can get started on your own eCommerce business without being totally overwhelmed by bookkeeping. There are so many different options out there, and it can be overwhelming to know what’s best for you.
We have some great bookkeeping tips for getting started with your own accounting software and keeping track of your finances. Check out our business and finance sections for more great resources and guides.