Accounting and e-commerce business basics
Posted: Wed Dec 18, 2024 4:45 am
Accounting and bookkeeping are different concepts, but both equally important to keep track of your business. These tedious tasks may not be the most exciting things for small business owners. That’s why many eCommerce sellers outsource these tasks for others to do for them.
Whether you handle accounting and bookkeeping tasks yourself or outsource these jobs to others, know that these tasks are crucial to any business as they keep business records up-to-date and accurate.
What is the difference between accounting and bookkeeping?
There is a clear difference between bookkeeping and accounting. However, these bc data china two concepts go hand in hand when running your eCommerce business . Bookkeeping is the recording of a company’s financial transactions. Accounting, on the other hand, is the interpretation of those business transactions.
With e-commerce bookkeeping , business owners or a hired bookkeeper keep track of sales, purchases, and payments. Bookkeeping is how your business records all costs and revenues. It is also a way to keep track of the company's expenses and profits and have records of these transactions.
Bookkeeping is the process of keeping accounting records and organizing data. This procedure applies whether you sell on WooCommerce or a marketplace like Amazon or Etsy .
Essentially it is tracking and organizing:
Sales orders
Invoices
Sales receipts
Bank statements
Credit card statements
Accounting is the act of interpreting, analyzing, classifying, reporting, and summarizing numbers. It is not enough to simply document expenses and income. You need to analyze the numbers to see if you are making a profit or losing money. With these answers, the e-commerce owner can figure out the best way to proceed with their business.
When you use bookkeeping and accounting together, you can keep track of your financial figures. You will also have a clear picture of the financial status of your business.
How to keep financial data more accurate
To know how your business is doing financially, you need to keep accurate records. When you do, you can easily pull out figures and data when needed. Maintaining accurate financial reports keeps your business legal. It allows you to report real and accurate figures when tax time comes around.
Whether you handle accounting and bookkeeping tasks yourself or outsource these jobs to others, know that these tasks are crucial to any business as they keep business records up-to-date and accurate.
What is the difference between accounting and bookkeeping?
There is a clear difference between bookkeeping and accounting. However, these bc data china two concepts go hand in hand when running your eCommerce business . Bookkeeping is the recording of a company’s financial transactions. Accounting, on the other hand, is the interpretation of those business transactions.
With e-commerce bookkeeping , business owners or a hired bookkeeper keep track of sales, purchases, and payments. Bookkeeping is how your business records all costs and revenues. It is also a way to keep track of the company's expenses and profits and have records of these transactions.
Bookkeeping is the process of keeping accounting records and organizing data. This procedure applies whether you sell on WooCommerce or a marketplace like Amazon or Etsy .
Essentially it is tracking and organizing:
Sales orders
Invoices
Sales receipts
Bank statements
Credit card statements
Accounting is the act of interpreting, analyzing, classifying, reporting, and summarizing numbers. It is not enough to simply document expenses and income. You need to analyze the numbers to see if you are making a profit or losing money. With these answers, the e-commerce owner can figure out the best way to proceed with their business.
When you use bookkeeping and accounting together, you can keep track of your financial figures. You will also have a clear picture of the financial status of your business.
How to keep financial data more accurate
To know how your business is doing financially, you need to keep accurate records. When you do, you can easily pull out figures and data when needed. Maintaining accurate financial reports keeps your business legal. It allows you to report real and accurate figures when tax time comes around.