Senior Accountant, Amazon Accounting Job ID: 2826190

In fact, holding on too tightly to accounting and bookkeeping if you don’t have a financial background can actually create more issues than outsourcing it early on. Cloud accounting software, like Xero, is great at automatically syncing all of your bank transactions to your feed. However, occasionally one of your bank feeds might have an outage or some transactions go unaccounted for. We recommend that most businesses create cash flow forecasts at least once a quarter.

COGS and FBA Inventory

That is great news, but it could also affect inventory readiness. Clearly, demand for this product is growing, so it might be time to contact the supplier and boost production to avoid an inventory stockout. Tip – Fetcher has a daily inventory tracker and projection tool on the dashboard page. Download our ecommerce accounting tool kit and learn how to build a financial system to scale your business beyond 7 figures. When you have a financial system and processes in place, you can make more informed, data-driven decisions about the trajectory of your business.

Hire help to maintain your books

When you work as a full-time employee, taxes are deducted from every paycheck. The other aspect is asking lots of questions to learn more about them, how they work, and what processes they follow. The last part is key since both accounting and bookkeeping are process-oriented. You will also have the business intelligence to review what products are selling profitably, which benefit from paid acquisition, and clearly know how much money is on hand to pay yourself at the end of each month. By adhering to specific processes, this will mitigate the likelihood of missing out on valuable entries which could save you at tax time.

We provide support to leadership in finance planning, analysis, and reporting. Whether you choose the in-house or third-party route, you might still have some doubts on how to hire and find the right person or third-party service. This way they can help not only file your taxes, but also set up the necessary goals, objectives, systems, and provide proactive insights to key tax-savings strategies. However, when it comes to taxes, it is generally better to be safe than sorry.

Should you hire in-house or delegate to a third-party ecommerce specialist accounting firm like Bean Ninjas?

Unless you have defined bookkeeping systems and processes and an in-house controller managing the VA, the chances of your books double‐entry bookkeeping being a mess are high. Then, either you have to fix them or you have to pay extra money to your accountant to clean up your VA’s work at tax time. Having proper accounting and bookkeeping systems and processes in place can give you confidence in your numbers and help you make more strategic business decisions.

Payable to Amazon/Successful Charge transactions

You’ll be able to spot growth opportunities faster as well as get ahead of potential problems before they snowball. At the bare minimum, accurate tracking of transaction volumes (including Cost of Goods Sold (COGS) is essential for tax purposes as is effective inventory tracking. With Wave Advisors, you get a dedicated bookkeeper to help you maintain your records, plus an optional accounting coach for a one-time fee. Take that starting cash balance and consider the flow of cash to the 3 major areas of your business. All inflows to the business are net positive events, and all outflows from the business are negative events. A sibling to the Profit and Loss Statement, the Balance Sheet is another favorite financial statement among business executives.

1. Properly categorizing each component of the settlement ensures compliance, accurate financial reporting, and a clear understanding of your business’s true financial health.
2. Our work and service scope spans many industries and functions across the company, employing specialists in a wide range of professions.
3. This way, you have defined categories that show where you are spending your money.
4. Stick with me as we dive deeper into the abyss of the accounting world.
5. A2X’s COGS feature is designed to help sellers better understand their gross profit margin (sales minus COGS).

Empower business decisions with market intelligence data for leading global brands. Our work and service scope spans many industries and functions across the company, employing specialists in a wide range of professions. Whatever your life’s goals, you’ll find rewards here that go far beyond financial. The biggest difference between fast-growing eCommerce businesses who instructions and forms are able to sustain that momentum for a long… The advice you receive from your accountant and bookkeeper will only be as good as the information you share with them about your business, growth objectives, and challenges.

While you may be tempted to go with your personal bank and open additional business accounts, there are other options out there worth exploring. Each bank and account type has different benefits and stipulations. Investing activities involve buying and selling assets that are not related to the inventory.

For example, if your VA has access to your bank accounts, running a reconciliation report on a regular basis ensures they aren’t stealing from the company. The disadvantages are it accounting for goods in transit typically costs more, longer onboarding ramp-up, and management time. Depending on the experience level you need, the scope of work, and where you hire, you can expect to pay between $10 – $40 per hour for a bookkeeper. This doesn’t account for all of the additional expenses incurred with full-time employees, like payroll taxes, paid sick leave, benefits, etc.