If you are just getting started in the world of e-commerce, then you may find that you struggle to keep track of your finances, but it doesn’t have to be that way. For someone who has never had to do accounting before, the whole job can seem rather overwhelming. The good news is that you can learn the basics quite quickly, and once you make it a part of your day to day routine you’ll quickly notice that it doesn’t actually take up very much time at all!
Learn the Rules First
You’ll find life a lot easier if you learn the rules and regulations that apply to your business in your state or country. If you’re in the UK then there’s lots of information available on the HMRC.gov website. If you’re in the USA, then the BusinessUSA website, at http://business.usa.gov is full of information. Most countries should have a similar website that will offer advice about tax and finances for the business, and heading straight to that kind of official source will help you to make the right decisions during that early set-up period, which can be critical to avoiding fines and stress at a later date. regarding doing business in that territory and the financial and tax implications of doing so.
The most basic, golden rule of accounting is to keep records of everything you spend and all money coming in. If you keep detailed records like this then you will not need to worry about being audited later. Keep them filed in a clear and systematic order, so that you can enter your income and expenditure more easily later. Ideally, in addition to paper records, you will have a detailed digital form so that you can search them at a later date. It is much easier to search digital records than paper ones and you will need to keep your records for several years so it’s best to keep things that will make sense. If you need representation then check out Vat Global.
Pick Good Accounting Software
For ease of use, to avoid issues with lost files, and to ensure that you’re always getting the best and most up to date records, pick a good online accounting solution. These solutions can help you to keep good control of your accounting, and you’ll find that there are great cloud offerings that are low cost, and that is near-self explanatory to use. Most of the mainstream solutions by big companies are ‘good choices’ so deciding which one is best for you comes down to the specific industry you’re in, how big your business is, and your budget, as well as a little bit of personal preference. Here are a few suggestions for you.
Wave accounting is completely free, and this means that it’s a brilliant choice for people on a budget. There are no subscriptions, and they aren’t just offering a limited free trial, the solution is completely free to use and all users get access to accounting, payroll, invoicing and other features. You can import data from PayPal, upload records in spreadsheet format, and enjoy some easy to generate reports, as well as make invoices and payslips all in the same app. It’s perfect for a small business.
QuickBooks’ online offering is a cloud version of the popular desktop software that is used by a great number of big businesses. The online version is easy to use and can integrate into a lot of e-commerce software, including Shopify, Etsy, Amazon and eBay platforms. This can save you a huge amount of time when it comes to tracking inventory and expenses, and it will allow you to easily keep track of your expenses and inventory. There is a one-month free trial, but after that, you will need to pay a subscription fee, and the pricing is tiered depending on the size of your business and what features you want to use.
This particular solution is aimed squarely at small business owners. It is clean, quick, efficient and easy, and it integrates with a large number of different apps. It has an easy to use interface and it can be integrated into a lot of the popular apps that small businesses use. Kashoo has free, unlimited support, but you’re unlikely to need it because it is a very simple program. You can teach yourself by either experimentation or by using the video tutorials that are provided on the website.
Kiwili is the best online accounting software for small businesses and freelancers. Doing your accounting can’t get easier using Kiwili. It offers a lot of necessary features for entrepreneurs like automated accounting to ease your work, invoicing to send professional invoices, billing to be sure to get paid on time, online payment processing via Stripe and reporting to have real-time tracking of your activity.
Kiwili also offers other useful features like project management and time tracking. In short, you can manage your whole business efficiently with Kiwili.
This is another popular service – indeed it is thought of as one of the market leaders in Australia, New Zealand, and the UK. It offers great customer service, and it aims to help small businesses around the world thrive by offering easy to use, reliable software for all manner of businesses. With cash flow, invoicing, payroll and payments all supported in one easy to use a platform, it’s easy to see why it’s popular. It’s secure, simple and perfect for almost any business. You can enjoy a seamless interface across all the devices that it runs on, saving you time and money. Xero is a platform that professionals in the finance industry trust, so you can be confident that it’s ideal for getting the job done.
Don’t Be Scared to Ask for Help
If you have any doubts about the accounting system or you’re not sure what you need to do with your business, call in an accountant early on. You can find accountants online, but do make sure that whoever you choose has good reviews and that they understand accounting law in your country. You can find flat rate services, and these could save you a lot of money in the early days compared to ones that bill by the hour. The important thing is that you get advice early on so that you know what you’re doing and so that you don’t work yourself into a corner and end up in trouble with the tax man.