Posts in category: E-Commerce Focus

Running an eCommerce business means dealing with constant movement—orders, returns, inventory, shipping, fees, and multiple sales channels. It’s fast-paced and full of opportunity, but without the right accounting structure, things can get messy fast. That’s why eCommerce accounting isn’t just about tracking sales—it’s about building a system that keeps everything aligned and profitable.

Each platform—Shopify, Amazon, Etsy, or others—comes with its own payout schedules, fees, and reporting formats. I help clients set up integrations that bring all their sales data into one place, making it easier to reconcile transactions and understand real profit. Just because money hits the account doesn’t mean it’s all profit—platform fees, shipping, advertising, and returns can take a big cut. I make sure each of these costs is properly categorized so there are no surprises later.

Inventory is another critical piece of the puzzle. Unlike traditional service businesses, eCommerce companies must account for physical goods. That means tracking cost of goods sold (COGS), monitoring inventory levels, and updating values as items move in and out. I use tools that sync with inventory systems to make sure the financials always reflect what’s on the shelf—or already out the door. Accurate COGS helps calculate true margins and keeps pricing strategies sharp.

Sales tax can also be a major headache for online sellers. Selling in multiple states means different tax rules, thresholds, and filing requirements. I assist clients in setting up automated tax collection and reporting based on where they have nexus. This reduces the risk of errors, missed filings, or penalties. Staying compliant isn’t just a legal requirement—it builds trust with customers and keeps operations running smoothly.

For eCommerce businesses, accounting isn’t a once-a-month task—it’s an ongoing process that supports growth. With clear reporting, clean records, and the right setup behind the scenes, online sellers can make smarter decisions, scale faster, and stay focused on what they do best: selling. I make sure their books are as streamlined as their storefront.

Inventory is the heartbeat of any product-based business. Whether selling through an online store, a marketplace like Amazon, or managing a mix of platforms, keeping accurate inventory records is essential—not just for operations, but for the health of your books. When inventory and accounting aren’t in sync, it’s easy to miscalculate profits, misprice products, or run into tax issues. I help clients bring clarity to this often-overlooked part of bookkeeping.

Accurate inventory tracking starts with understanding cost of goods sold (COGS). Every time a product is sold, a portion of inventory value needs to be moved from assets to expenses. If this step is skipped or estimated incorrectly, the profit and loss report becomes unreliable. I work with systems that automate this process, ensuring each sale reflects the true cost behind it. This makes margins accurate and helps business owners understand what’s actually driving profits.

I also focus on aligning inventory counts with real-time data. Many eCommerce sellers rely on spreadsheets or manual updates, which can quickly become outdated. I encourage using inventory management tools that integrate directly with accounting software. This reduces the chance of stock discrepancies and ensures that both financial records and inventory reports are always current. For growing businesses, this kind of accuracy is key to scaling without chaos.

Another important piece is managing inventory-related expenses—shipping, packaging, and storage fees all need to be recorded properly. These aren’t just operational costs; they affect the true cost of selling each item. By breaking down these expenses clearly, I help clients understand how much they’re really making on each product. It’s not just about selling more—it’s about selling smarter.

When inventory meets accuracy, the entire business becomes more efficient. There’s less waste, fewer surprises, and more confidence in financial decisions. I make sure that inventory is reflected correctly in the books, giving business owners a clear view of where they stand—and how to move forward with confidence.

Sales tax can be one of the most confusing parts of running an eCommerce business—especially when orders come from all over the country. Each state has its own rules, thresholds, and filing requirements, and staying compliant isn’t optional. I’ve worked with many clients who felt overwhelmed by sales tax at first, but with the right systems in place, it becomes manageable—and even stress-free.

The challenge begins with economic nexus. Selling a certain amount in a state—either by revenue or transaction count—can trigger a requirement to collect and remit sales tax there. I help clients identify where they have nexus, using reports from platforms like Shopify, Amazon, and Etsy. Once it’s clear where sales tax needs to be collected, I guide them through registration and setup, so everything runs smoothly going forward.

Automation is a huge advantage here. Platforms like TaxJar, Avalara, or native integrations with sales channels can automatically calculate and collect the right amount of tax based on the customer’s location. These tools also track filing deadlines and generate reports to simplify remittance. I make sure these systems are properly synced with accounting software, so nothing falls through the cracks—and so clients never have to guess about what they owe.

It’s also important to keep records clean and organized. I make sure that collected taxes are recorded separately from income and reported accurately in the books. This helps avoid errors during tax season or audits and provides clarity for business owners reviewing their financials. When tax is clearly tracked, it becomes just another line item—not a lingering concern.

Sales tax doesn’t have to be scary. With accurate setup, clear processes, and ongoing support, eCommerce businesses can stay compliant and focused on growth. I help clients take the guesswork out of multi-state tax so they can keep selling with confidence—knowing their books and obligations are handled the right way.