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What Does A Shopify Accountant Do?

You probably started your Shopify business because you had a game-changing idea, isn’t it? Or do you want to try something different in life and provide better for your family? We bet you didn’t start it for accounting, bookkeeping and other financial aspects. But, did you know that bookkeeping and accounting are the heart and soul of any eCommerce business?

If you want to run a profitable eCommerce business, then the accounts need to be perfect. We understand how tough it is to run a business in itself. But, if your accounts are in a mess, it will make it only harder. If this sounds like your case, this article is for you. In this article, we will discuss why accounting in eCommerce is important. Furthermore, we will also have a look at what a Shopify accountant does.

Why is Accounting Important for a Shopify Business?

Can you guess the healthy foundation of a Shopify business? Yes, it’s financing. Accurate finances form the crux of a successful Shopify business. If you are unaware of the number of sales done in a time or don’t have correct inventory numbers, it is a major fail. To add to that, if you are handling everything alone, it’s eventually going to be a mess. Recording your incoming as well as outgoing cash flow is important to running a Shopify business.

There are some basics that every Shopify owner should take care of. Let’s have a look at them.

  • Liabilities: An owner should know about any outstanding loans or debts.
  • Assets: An owner should know everything that the business owns.
  • Expenses: This includes inventory, team costs, outgoing cash, packaging and more.
  • Revenue: This includes all the incoming cash from affiliate deals, business from sales etc.
  • Equity: This is another crucial factor that you need to know. What percentage of the company do you own? Are you the sole owner or are there other partners in your business?

What Does a Shopify Accountant Do?

When you start an eCommerce business on platforms like Shopify, an accountant keeps a track of the revenue, fees and other financial records. All revenue and fees must be recorded correctly. The cash deposits usually have deducted fees. In addition, an accountant also needs to keep a track of payment plan options.

This will specify how the funds are received. Besides, a Shopify accountant should understand the available reports on Shopify. Moreover, it is the responsibility of the accountant to understand the reports and make the necessary entries. All this without your help or involvement. Last but not the least, an accountant also helps you with the permission levels.

Do You Need Cloud Accounting for Shopify Business?

If your business is in the beginner stage, then you will receive default reports in Shopify. However, as your business grows, the numbers will go on increasing. This is when your business will need cloud accounting to be handled by an accountant. One of the best things about using accounting software is that it saves a ton of time. In addition, this software ensures that your finances are up-to-date. Now, you would be confused about how to choose cloud accounting software for your business. Here are a few questions that will help you zero on the best one.

  • Does the software have any third-party integrations?
  • Does the software have direct integration with Shopify?
  • Is the software easy to use?
  • Does the software have automatic syncing with credit, business or other financial software?

Impressive Benefits of Having An Accountant For Shopify

Tracking every transaction for business is crucial. You cannot afford to miss out on any transaction as that can lead to several issues later. The responsibility of an accountant is quite tedious which is why it’s best to resort to online accounting. Let’s have a detailed look at the benefits of having an accountant for Shopify.

  • Maintaining Inventory Accuracy

It is usually tough to keep up with the ever-growing inventory details. However, an experienced professional can help you manage these well. You need to update the inventory after every sale which is taken care of by accountants. Accountants can help you manage the inventory keeping track of every item.

  • Syncing All Data

The benefit of syncing data is to avoid messy product descriptions. At the same time, syncing data has several other benefits like easy catalogue upload, consistent records and more. An accountant ensures all of your information on the business page is up-to-date.

  • Organised Tax Information

Tax information is one such tedious task that can be actually a struggle. Then, there are other businesses that overlook or ignore the consequences of not filing tax returns. Even though hiring an accountant can seem extra like an expense, they can actually help you simplify stuff.

Conclusion:

Having an accountant is not a need but a necessity. They give you better insights into the Shopify business. In addition, they take care of all tax information and simplify the entire process.  You can hire trusted Shopify accountants at eAccounts to keep your accounts up to date.

For more information, please contact us on 02921 056209 alternatively email admin@e-accounts.co.uk

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