Whether you are an emerging online retailer or run an accomplished eCommerce store, automating business operations should be your #1 priority. This is especially true for accounting and bookkeeping processes — which, let’s face it, is usually the last thing on an eCommerce entrepreneur’s mind.
According to research, nearly 82% of businesses do not succeed because they downplay the importance of streamlined accounting operations.
Handling finances and managing cash flow is significantly complex and resource-intensive, and any inefficiencies in this department can hamper the long-term success of a company.
However, with new-age eCommerce accounting technologies that provide accurate visibility into your financial health — incomings, outgoings, sales, tax records, and so on.
Here’s looking at the myriad of benefits of an eCommerce accounting software for a business.
Streamlines accounting operations
Accounting data is undeniably complex and fraught with challenges. If you have been using traditional accounting practices to maintain records, your data is probably scattered across multiple systems — which means accessing a specific record or trying to assemble your finances for tax-filing can quickly turn into a nightmare.
However, a cloud-based ecommerce accounting software like Dext helps you remain organized and agile. It automates underlying operations — from receipt scanning to return/refund tracking — thereby ensuring all your accounting data is readily accessible from anywhere, at any time.
Automation does not just streamline operational efficiency but also frees up resources to direct towards the core process of your company.
Provides uninterrupted visibility into cash flow
For ecommerce businesses to make effective decisions, there should be quick and seamless access to real-time accounting data. This gives you insight into your cash flow and streamlines operational efficiency since you know you can proactively invest in resources when needed. Ecommerce accounting software provides visibility into transactional fees, pending payments, returns & refund data — thereby keeping you informed of your financial status at all times.
Businesses that only rely on bank or credit card statements take significantly longer to replenish inventory or onboard additional resources since the lack of real-time visibility into business spendings delays decision-making.
Helps you stay on top of tax-related matters
Ecommerce accounting software simplifies one of the most challenging responsibilities of a business owner — staying compliant with tax norms. It helps you cope with the complicated tax landscape by giving you an accurate picture of your revenue with details of tax rates in different jurisdictions.
Ecommerce accounting software supports integrations with automation tools like Taxjar that instantly capture tax rates and bring your sales channels and accounting system under one roof.
With access to comprehensive transactional data and tax rates, you can strive to remain punctual and proactive, plus prevent tax liabilities without lifting a finger.
Facilitates business scalability
Online retailers targeting high-growth sales have a tall task before them, especially if they lack insight into their profitability. It prevents them from reinvesting in lucrative assets in a timely manner, because sales channels don’t provide you knowledge of your profitability — which is a key performance indicator for businesses.
However, with eCommerce accounting software providing line-by-line information of business spendings and purchases—and generating real-time reports on top of that—business owners have real-time insight into their profit margins. This gives them the opportunity to adjust spendings or devise effective strategies to scale their business without compromising existing resources.
Dext ecommerce accounting software is designed to empower bookkeepers, accountants, and business owners with real-time insights and tools to take their eCommerce business to the next level.
Streamline eCommerce accounting and thrive in a competitive market with Dext.
