E-commerce & Shopify Bookkeeping by a Dedicated Bookkeeper

Having access to accurate financial information is even more important. Several studies show that eCommerce sales global e-commerce sales will increase to 6.4 trillion USD by 2024. The statement will show both non-operating and operating income. The money you get through routine business activities is the operating income.

LLCs are typically subject to self-employment tax, which includes both the employer and employee portion of Social Security and Medicare taxes. The entire net income of the LLC is subject to this tax, regardless of whether it is distributed to the owners or retained in the business. Both S Corporations (S Corp) and Limited Liability Companies (LLCs) are popular business structures that offer liability protection for owners. However, they differ in terms of taxation and distribution of profits. What are they, what options to sellers have and how do those options impact the future of their business? Our staff of accountants will work with your company to support you to your vendors.

Helps in understanding profitability

A million dollars in revenue does not equate a big profit or cash at hand. The real value of your business is when you cash out by selling the business. What you are selling at that point is a brand; the great reviews, good reputation and the company’s potential to perform better in the future. Without accurate record keeping, you cannot tell which part of your business is doing well or not. For example, to make informed decisions about what is chopping into your profit or  which widget brings in most sales cannot be determined without proper bookkeeping. Our highly trained accounting experts will help keep track of your cash flow, give you advice on where to cut costs, and support you along the way.

• But never fear, though, an awesome ecommerce accountant will be able to help you navigate the rapids of sales tax compliance.
• This is especially true when it comes to tracking returns and exchanges.
• It offers a host of money management features including unlimited users, double-entry bookkeeping, and budgeting support.
• They can prepare sales reports to understand product profitability.
• You may need our full line of services, or you may decide to choose services a la carte.
• We are experts in both accrual and cash basis accounting methods and we are happy to follow whichever method you prefer.

Switching methods requires filing paperwork with the IRS. There are many different accounting providers available—from accounting software platforms to traditional accounting firms. Before getting started with a vendor, however, you’ll need to choose an accounting method.

How do you do eCommerce accounting?

Bookkeeping automation is the perfect solution to streamline this process, automatically updating financial records in real-time and minimising the risk of inaccuracies or discrepancies. With the help of LedgersOnline, it’s easy to keep track of your business’s finances so you can reach your full potential as an online store owner. Are you feeling owerwhelmed with the backlog of bookkeeping for your business? LedgersOnline is here to help you get back on track with our catch-up bookkeeping services.

Some eCommerce platforms have inventory management features built-in, so they will automatically track inventory for you. E commerce payment processing makes it possible to accept various methods of payment from customers online. Payment processors also provide security and fraud protection Small Business Bookkeeping Services features. Under this method, you might receive a purchase order for an $800 handmade coffee table, make the table, and then ship the table to your client. Under a cash accounting method, you only record income from the table when the purchaser’s payment lands in your account.

Accounts Payable Services

Conclusively LLCs are subject to self-employment tax on all profits and offer more flexibility in the distribution of profits. S Corps can help reduce self-employment tax by separating salary from dividends and must distribute profits based on the ownership percentage. On the other hand, https://kelleysbookkeeping.com/llc-accounting-everything-you-need-to-know/ S Corporations can help reduce self-employment tax. S Corp owners are considered employees and must pay themselves a reasonable salary. The salary is subject to Social Security and Medicare taxes, but any additional profits distributed as dividends are not subject to self-employment tax.