E-Commerce Accounting in Winnipeg
With professional accounting services, you can access vital financial information and view and print financial statements from anywhere in the world, upload and track transactions from your website automatically, and do so much more. Improve your cash flow management and grow your business with Compass Accounting.
Why Accounting Services Are Important for E-Commerce Businesses
From tracking transactions to growing your business, there’s no end to the advantages of accounting services for e-commerce businesses. You’ll be able to develop products, improve client acquisition, or focus on whatever else your strengths are. We’ll focus on your finances.
Accurate financial reporting
As an e-commerce business, you’re getting revenue from around the world. You may also be dealing with suppliers and contractors from around the world. Monitoring your cash flow is essential to business growth – that’s something the accurate financial reporting offered through our accounting services can help you do.
With our services, transactions made on your website are automatically recorded and tracked to provide an accurate snapshot of revenue streams. You can also follow all of your expenses, view transactions at a glance, and view cash flow, balance sheets, and other financial statements in just a few clicks. That’s accurate financial reporting you can access anywhere in the world.
Inventory planning & management
Knowing how much inventory you need on hand at any given moment can make or break an e-commerce business. Too much inventory, and you may find yourself in debt without enough revenue. Too little, and you’ll lose out on growing and retaining your customer base.
With our accounting services, you’ll be better equipped to predict how much inventory you’ll need at any given time. You’ll also have the tools you require to assess how much financing you should secure for inventory, and how your incoming cash flows can help you pay for that financing.
Merchant fees & foreign exchange
With money coming in from around the world, you’ll have to price your products with foreign exchange rates and merchant fees in mind. Our accounting services will help you set the right rates for your products. We can also help you determine which merchants to use, the best e-commerce platform for fees, and more.
E Commerce Accounting Services
Payroll
There are a lot of roles to play in an e-commerce business – and a lot of people to pay. We can help you manage your payroll automatically, including managing deductions like CPP and EI. Your employees will be paid on time, every time – leaving you time to focus on growing your business.
Ecommerce bookkeeping services
Cash flows quickly in e-commerce businesses – and our controller and bookkeeping services will help you keep track of it all. You’ll be able to access vital financial statements with the click of a button, wherever you are in the world. And we’ll help you make cash flow management decisions, allowing you to grow your business sustainably.
Sales tax management
Remitting sales tax, be it GST, PST, or HST, can be a hassle if it’s not automated. We can help. We’ll automate sales tax remittance for your e-commerce business. We can also help you evaluate how much profit you’ll make on each sale after tax, and help you price your products appropriately.
Cloud accounting
Our accounting services are accessible wherever you are in the world, 24/7 – all through the use of our cloud accounting software. We use Xero, one of the best SaaS in the industry, to give you access to important financial data wherever you are. You’ll have total control over the software, including granting as much access to team members as you need. And we’ll set up your e-commerce platform, so transactions are automatically recorded, taking the stress out of accounting.
List of Business Deductions for E-Commerce Businesses
E-commerce & merchant fees
E-commerce companies are often able to claim a variety of fees as tax-deductible expenses necessary to run their business. These fees can include merchant fees and fees by platforms like Shopify and Amazon. To get a better understanding of which fees may be tax-deductible, talk to your accountant! You may also be eligible for advertising-related fees on websites like Amazon.
Shipping expenses
Your shipping expenses may be tax-deductible. That includes the cost of the shipping service, as well as the cost for packaging and materials. Those costs can quickly add up for e-commerce businesses, so be sure to record and track the cost of materials and shipping with our accounting software!
Inventory
Valuing inventory and managing cost of sales can be complex. Our accounting services can help you determine how much inventory you should have on hand, how to value that inventory, how to report it, and what tax deductions you can take on that inventory.
FAQ
- What financial statements do e-commerce companies need? E-commerce businesses will typically make use of at least four financial statements: Balance sheets, income statements, cash flow statements, and shareholders’ equity statements. Other financial statements may be useful at times – and you’ll have access to a plethora of reports with our accounting software.
- Why does good accounting matter for e-commerce companies? Want to grow your business? You need great accounting practices. Accounting services are worth their weight in gold – by understanding what tax breaks are available to you, what your cash flow looks like, how to better invest in your business, and more, you’ll be able to maximize your revenue.
- How do e-commerce companies manage their inventory? There are a lot of techniques used in an inventory management strategy, including First In, First Out (FIFO), forecasting demand, and calculating reorder points. Then there’s determining how much financing you should put toward inventory, setting price points, and more. We can help you with the financial side of inventory management.
Start Working with Us Today
Interested in growing your business with our accounting services? Start working with us today! We’ll work together to bring your e-commerce business to the next level.