What are the best accounting practices to use for an online business?

Due to the recent advancements in technology, e-commerce has grown to be one of the most popular avenues for a company to work in. In fact, the UK is the third largest eCommerce market accounting for 30% of global eCommerce sales. 

Online businesses have many benefits, including fewer expenses and a genuinely global reach. However, just like any business, you must still adhere to strict accounting guidelines, and eCommerce accounting can provide a variety of difficulties for businesses. 

SELECT THE RIGHT ACCOUNTING SOFTWARE 

For long-term success, it is essential to use suitable accounting software that meets the objectives of your business. 

Accounting software may assist businesses in managing their stock, receivables, and payroll while also streamlining the invoicing and payment procedures. 

The good news is that accounting software is widely available for businesses of all sizes, with integrated features to connect with the most popular e-commerce platforms like Shopify, such as Sage’s Intacct. 

REMAIN CURRENT WITH INVESTMENT MANAGEMENT 

A robust inventory management procedure must be set up early on for online shops offering goods or services. Keeping track of a surplus of goods might be expensive for your company. 

Nevertheless, managing an inventory is not an easy task. Understanding your budget and cash flow estimates is necessary to determine the minimum and maximum amount of inventory your business should hold each day. 

LIABILITY FOR SALES TAX, MANAGE 

Most firms find taxes and accounting to be a source of great frustration. Although difficult, they are essential to prevent costly fines and regulatory problems in the future. 

The tax repercussions if you have a global footprint will be even more complicated. 

A poorly managed tax liability can have a significant negative impact on your finances. Companies must engage with internal or external experts to prevent issues because, on average, 64% of SMEs struggle to pay their tax obligations. 

BE SURE TO MANAGE CASH FLOW 

Effective cash flow management is the most important necessity for every company. Without producing enough money, businesses will not be able to survive. 

Monitoring your incoming and outgoing money carefully will help you avoid issues and promote business success from the start. 

Additionally, it’s crucial to have an emergency fund on hand in case of a sudden and significant decrease in income. 

COLLABORATING WITH SPECIALISTS 

Because you want to run your online business, not worry about keeping the books straight. You must take advantage of the assistance and benefits that reputable financial partners and accounting experts can provide. 

It’s understandable why 24% of businesses in the UK now hire outside financial and accounting assistance. 

External financial partners can help you build your company over the long term in addition to assisting with navigating the way through accounting procedures and tax requirements. 

If you would like to see how Itas Solutions can help you and your organisation reap the benefits of BI technology in your accounting with the latest cloud solutions for your business accounting needs with powerful cloud accounting software such as Sage’s Intacct, we will only be too happy to show you the benefits and how we can help.  

WHO WE ARE 

Itas Solutions began in 1995 with just one client and today serves over 200 businesses around the UK and we are always on call to help our clients.  

Itas is a company trusted by our clients for more than 20 years, and we have grown through customer and IT professional recommendations who appreciate the knowledgeable yet individualised service we provide.  

You can reach out to us at [email protected], give us a call at +44 (0) 1824 780 000, or send an email to learn more about how Itas can assist your company with finance automation, Sage implementation, and improved purchasing control.