Featured Image Caption: eCommerce Accounting Software
Staying on top of cash flow is key to charting a successful future for your eCommerce business. You may be hitting sales targets and ensuring continuity of operations but without accurate financial records and knowledge of accounting basics, you are unlikely to figure out when your acquisition and operating costs surpass your total sales. This could ditch you into financial troubles and even hamper your scalability plans.
Maintaining books goes far beyond simply tracking expenses and invoices; you need to have clear knowledge about which of your products are best sellers and which are attracting losses. You need to be able track and manage your inventory to streamline operations and give your business a competitive edge.
Which is why an eCommerce accounting software is an indispensable tool for your business.
In this article, we’ll explore 5 reasons why eCommerce businesses should leverage a modern, cloud-based eCommerce accounting software to manage their finances.
5 Reasons Why You Need an Ecommerce Accounting Software
To speed up operations
An eCommerce business owner must be connected to multiple platforms, apps, and payment modes for the smooth-functioning of their business. At any given point, they need to be integrated with their customer relationship management systems, payment processing platforms, and supply chain management software to cater to their customers proactively.
Fortunately, an eCommerce accounting software platform makes it easier for businesses to integrate with other systems and eliminate manual, time-consuming tasks in the process. The software automatically sources data from different platforms once integrated and helps streamline bookkeeping so you don’t miss any expenses or incomes.
To provide proactive customer support
The best eCommerce accounting software have AI-powered chatbots and other support channels to provide instance assistance and resolution to users. This saves businesses overhead costs on recruiting customer support teams to perform repeatable tasks.
To automate maintenance, updates, and backups
As you scale your business, your inventory will expand, you will attract more sales and customers—which means you will need additional resources to manage finances. However, a cloud-based accounting software is designed to accommodate a business’s scalability plans. This way, companies are not labored with additional maintenance tasks; patches and upgrades are deployed online over the cloud.
A backup is created regularly on the cloud which ensures all your data remains secure for future use and this protects your business in the long-term. Plus, since your software stays up to date with the current accounting trends, you can always strive for a competitive edge in the market.
To have business finances overview
With the help of an eCommerce accounting software which you can integrate with your eCommerce channels and payment apps, you can access a comprehensive overview of your finances in a central location.
Modern accounting software like Dext have unparalleled reporting capabilities—which gives businesses the upper hand from analyzing and reviewing their data and glean useful insights. It helps them understand which of their assets are performing well and which areas require improvement. You can effectively identify trends and patterns to devise fruitful strategies for your future.
A cloud-based eCommerce application lets you track and manage your finances from anywhere, without having to switch applications.
This also streamline cash flow management and helps you forecast and predict future expenses based on real-time insights.
To collaborate seamlessly
If you have more than one accountant and bookkeepers handling your business finances, you need to streamline communication and collaboration between them to ensure everyone remains on the same page. With an eCommerce accounting software’s built-in collaboration capabilities, accountants can easily and instantly share key financial documents with each other every month and maintain efficiency in finance management. You can effectively eliminate the physical sharing of financial data—which is a time-consuming and disruptive process.
An eCommerce accounting software has all data stored in a central location, an insightful overview of which can be accessed directly from the dashboard. For detailed reports, accountants can download on-demand reports and share them with other accountants effortlessly.
The key to success as an ecommerce business owner is managing your cash flow efficiently and being able to devise innovative strategies to increase sales based on real-time insights.
The right eCommerce accounting software can help you with both. It gives you insight into your best sellers, products that aren’t profitable, your net income, profits and losses, and so on—so you are better informed to make business decisions. With uninterrupted insight into your inventory, you can strive to provide accurate stock information and avoid delays in processing orders. Even payment processes are streamlined with automated reminders helping you avoid payment backlogs.
Sign up for the Dext ecommerce accounting software and take your eCommerce business to the new heights!