If you’re looking for a new ecommerce bookkeeper, you may be curious about what you should be looking for.
Just need someone to do your books?
We encourage you to dream bigger!
The truth is that an ecommerce bookkeeper can—and should do a lot more than simply make sure your transactions line up every month.
They should give you meaningful data that allows you to make better decisions about your business.
In today’s blog, we’re going to dive into what an ecommerce bookkeeper does, and what you can expect in terms of output each month.
Let’s dive in.
What is an ecommerce bookkeeper?
First things first, let’s tackle what an ecommerce bookkeeper even is.
Well, it’s a bookkeeper who specializes in the world of ecommerce.
Bookkeepers in general are responsible for balancing the books.
This includes tasks like:
- Reconciling day-to-day financial transactions and completing the posting process in your accounting software (like QuickBooks Online, Xero)
- Verifying that transactions are recorded in the correct category
- Maintaining suppliers ledger, customer ledger and general ledger
- Bringing the books to the trial balance stage
In other words, it’s their job to make sure that every transaction that goes in and out of your business is accounted for.
All of the invoices you pay match the exact amount that goes out of your bank account. And the same with sales transactions.
And in the world of ecommerce, your bookkeeper should be ensuring that inventory is accurately capitalized, and the correct amount of COGS are expensed every month.
The primary goal is to ensure that all financial transactions within the business are accurately recorded and that there is a clear record of income, expenses, and any other financial activities.
This helps your business maintain financial accuracy, track profitability, and comply with tax regulations.
But what if an ecommerce bookkeeper can do more?
What else can an ecommerce bookkeeper do?
The really good ecommerce bookkeepers go beyond reconciling your transactions each month. They help you understand the numbers behind your business.
- Where are you spending too much?
- Which sales channels are performing the best?
- How can you improve your margins?
These are all questions that good ecommerce bookkeepers should be proactively answering for you in the form of tailored financial reports.
If your monthly reporting doesn’t include highlights of valuable information that you can actually use in your day-to-day business, you’re doing it wrong.
For example, if labor costs are cutting too far into profits, good financial reporting will make it easy to spot.
Here at Equivion, our ecommerce bookkeepers love helping ecommerce business owners spot opportunities for growth in their business.
Some of the most common things we check in our clients’ end-of-month reporting include:
- Making sure that sales and pending balances are being imported accurately from the ecommerce accounting software (A2X, Linkmybooks, Dext, etc.)
- Ensuring that expenses look reasonable every month, and if there is a big increase/decrease, making sure we understand why.
- Identifying expense categories that could potentially be cut completely or reduced.
- Performing fraud detection to make sure that no unauthorized or unexpected transactions exist.
- Organizing transactions in a way that ensures maximum deductibility during tax filing time.
- Making sure that the business is compliant with all applicable laws and regulations (payroll, sales tax, income tax).
- Organizing the financial statements in a clear and concise way, making them easy to interpret.
And that’s just the tip of the iceberg!
Find Your Dream Ecommerce Bookkeeper
So, now that you know what to look for in an ecommerce bookkeeper, it’s time to start your search!
Remember, the best ecommerce bookkeepers are more than just number crunchers. They’re partners who can help you understand your business and make better decisions.
So don’t be afraid to ask questions and interview different candidates before making a decision. After all, this is a relationship that will last for years to come.
And hey, if you’re looking for a team of experienced ecommerce bookkeepers who are passionate about helping businesses grow, Equivion is here for you. We’ve helped hundreds of ecommerce businesses achieve their financial goals, and we’d love to do the same for you.
To get started, head over to our contact page to schedule a free call to learn more about our services and how we can help you take your business to the next level.
It’s really simple – start here!