Accounting for eCommerce Sellers
We streamline your e-commerce bookkeeping and accounting systems, further upsurging productivity.
(Note: Sellers sells the product on Amazon, Flipkart, Myntra, Ajio, Shopee, Shopify, and Paytm contacts us for Accounting)
What is eCommerce Accounting?
Recording of financial transactions of e-Commerce seller/operator is called accounting for eCommerce. In business entities, transactions generally related to sales, purchase, revenue income, revenue expenses, capital income, capital expenses, cash transactions, bank transactions, etc., and commission, transportation, costing, advertisement, TDS, and TCS online orders are specified in an eCommerce business (i.e Business in Amazon, Flipkart, Ajio, Myntra, Shopify, Shopee and Paytm, etc.)
Why Every eCommerce Business Entity Should Maintain Its Accounts?
Out of the many objectives of business entities, earning profits and business growth are the main objectives. It is impossible to know the profit earning and measure the growth of a business without accounting. Through accounting, a business owner can easily track its business and where it is going.
Apart from personal objectives of accounting, there are some legal obligations to maintain accounting records.
In the case of eCommerce seller/operator, entities generally face problems related to the recording of transactions and maintaining the records of return of online orders, cost in transportation, finding out the sale price and list price, overall costing of the products listed the online portal. To overcome all these related problems, accounting in the manner of eCommerce business is effective.
Information, Data and Documents required for Costing and eCommerce Accounting.
For doing this work, the following information, data and documents are required:
- Product master and details for making costing of the product
- Packaging details of the product
- Sales report extracted from eCommerce portal
- Purchase invoices
- Bank statement
- Cash receipt and cash payment records
- Expenses records like rent, electricity, salary, wages, conveyance, stationary, business promotions, advertisement etc.
- Account adjustments details
How myaccountants.in can help you to complete your eCommerce Accounting?
myaccountants.in has knowledgeable and experienced team members to guide you and resolve your queries related to everything about eCommerce Accounting. You can follow the steps given below to get done your eCommerce Accounting through us.
Step 1. Book your service by making payment for selected service and you can ask queries related to the service in case of any doubt.
Step 2. After receipt of your payment, our team member will contact you to understand your requirements related to the eCommerce business and guide you to send the required documents and information to get your accounting done and he will tell you about how much time it will take to get your costing and accounting done.
Step 3. Our team will start the process of making costing to find out the best price to be listed on the online portal after considering the other factors cost i.e. purchase cost, inward shipping cost, packaging cost, saturate cost, advertisement cost, cost of commission to eCommerce operator, advertisement cost and outward shipping cost.
Step 4. Apart from the costing, our team will also analyze the profitability of the products that which product is profitable and which is not.
Step 5. After completion of all costing and accounting work, our team member will send you the costing and account data on your email ID.
General Questions and Doubts related to eCommerce Accounting.
Q 1. How eCommerce accounting is different from General Accounting?
Ans. The method of doing business through an online platform is different from doing business in physical form so the strategy, costs, process, and challenges are different hence finding out the best price to list and profitability is important for consideration in eCommerce businesses.
Q 2. Why eCommerce accounting is important?
Ans. Whenever an entity operates a business through online mode, there are lots of other factors involved i.e. Competition, Marketing, Advertisement, Shipping, Packaging, Commission to eCommerce operator. Because of so many complex factors involved in the eCommerce world so it is difficult to sustain and grow business hustle free in such an environment. To smoothen the business processes in the eCommerce world, recording financial transactions and doing the costing calculations are important.