E-Commerce Accounting & Bookkeeping Services by AquiferCFO

Optimize Finances and Inventory with AquiferCFO

Running an e-commerce business means you usually receive your funds every few weeks after a sale is completed. This can leave you without cash for a while. That’s why managing your cash flow is crucial. You need enough money in the bank to cover your expenses until you get paid.

AquiferCFO is a trusted partner in e-commerce accounting. We help to keep track of your cash flow and merchant expenses. This will help you feel more confident in running your business. Partnering with a trusted accountant for e-commerce business will save you time and help you grow your business. We ensure your financial records are accurate and help you stay compliant with tax laws while simplifying your financial processes.

Contact Sales

Key Accounting Considerations for E-Commerce Success

Merchant Fees & Foreign Exchange

Starting your e-commerce store is easy, but there are several important factors to consider. One of these is a merchant and foreign exchange fees. Tracking these fees locally and globally can be complicated. Since margins in e-commerce are usually low, these fees can reduce your profits. Therefore, it is crucial to keep accurate records of these costs when running an e-commerce business.

Inventory Management & Planning

Managing inventory is important for keeping the right amount of stock while keeping costs low. Buying inventory requires a lot of money, so it's crucial to know how much cash you have available before making purchases. You need to plan well for predicting demand and use smart strategies to manage your cash flow effectively.

Financial Reporting for Ecommerce

Financial reporting is key to business success. It's important to look closely at marketing costs, sales revenue, and customer acquisition costs. These numbers help you understand your business better so you can make smart decisions for the future. For an e-commerce business, managing cash flow is vital. To manage cash flow well, you need to know the costs and revenue for each sale. Our e-commerce bookkeeping services offer detailed financial reports to help your business grow.

E-Commerce Tax Complications

Many e-commerce businesses sell around the world. It’s important to know how taxes are calculated and what your responsibilities are when paying them. For example, if you sell in the US but have a store in Canada, do you need to collect sales tax from each state? If you do, how do you submit the sales tax you collect? These are important questions to consider. Good tax management ensures you pay the right amount of tax on time.

Key Factors to Maximizing Your E-Commerce Business

Accounting is crucial for the success of your e-commerce business. You need to manage cash flow, keep track of expenses, and maintain accurate records. These tasks can be challenging. AquiferCFO offers specialized help with accounting and bookkeeping for e-commerce. This support allows you to focus on growing your business and improving processes. With our expertise, you can handle the complexities of e-commerce finance and keep your business on track for long-term growth and success.

Managing Internal COGS

Knowing your internal costs of goods sold (COGS) is crucial for setting prices and making profits. Being clear about expenses related to manufacturing, storage, purchasing, and delivery can help you find ways to cut costs and boost profits. AquiferCFO helps you track and analyze all costs related to manufacturing, storage, purchasing, and delivery. With clear insights, you can improve your pricing and reduce costs.

Managing Burn Rate

Burn rate is important for e-commerce startups because it shows how fast they use their cash before making a profit. Understanding burn rate helps companies avoid running out of money and guides them in planning and fundraising. It also allows them to adjust their spending wisely. AquiferCFO helps you track your cash flow and spending rate. This way, you can see how quickly you are using your funds before you become profitable.

Categorizing
P&L

The P&L categorization helps analyze financial performance in detail, giving insights into how profitable specific segments or product lines are. By organizing financial data this way, businesses can identify areas where they can cut costs and boost revenue. AquiferCFO analyzes your profit and loss data to find specific profit centers and identify where you can cut costs or increase revenue.

Debt
Budgeting

Managing debt carefully helps businesses keep their debt in line with their financial abilities and growth goals. This strategy reduces the risk of taking on too much debt. It protects against financial stress and helps build a stable foundation for steady growth and success. AquiferCFO helps you manage and track your debt. This ensures your business stays within its financial limits, avoiding too much debt and supporting steady growth.

P&L
Management

Regularly updating and reviewing profit and loss statements helps track income and expenses. By analyzing gross, operating, and net profit margins, a business can ensure its financial health and efficiency. This process supports better decision-making and allows the business to make timely changes to its strategies and how it uses resources. AquiferCFO updates and reviews your P&L statements regularly. They provide insights on profits, margins, and how to use your resources effectively. This helps you make timely decisions.

Transaction Summaries

Keeping detailed records of transactions helps ensure accurate financial reporting and analysis. This clear tracking of cash flow is especially important for managing subscription-based revenue models. It also makes audits easier and helps meet regulatory requirements. AquiferCFO keeps clear and accurate records of all transactions. This helps track cash flow better and makes audits easier, especially for businesses that rely on subscription revenue.

Get more information

Our Clients

Rich and the aquifer team helped us significantly improve our financial infrastructure. This allows us to focus on scaling faster, while feeling confident we have the right financial systems in place."

Cody Ruberto

Founder & CEO of URIDE

The Aquifer team has been incredibly insightful in approaching our finance stack, making them an invaluable partner for our business. They work with us rather than around us and continue to lend their expertise in the world of web3 accounting."

Justin Ho

CFO of Mojito

Aquifer was instrumental in helping GDA scale by providing financial infrastructure & processes, financial advisory seed + Series A rounds, corporate accounting & tax support, and any other ad-hoc projects. The team brought a strong sense of co-founder ownership."

Micheal Gord

Founder & CEO of GDA

We Integrate With All Your Finance Tools

We are experienced in the tools you use and use integrations to ensure we are accurate and efficient in our accounting operations.

Meet our Finance Experts

Our team at AquiferCFO brings specialized skills in accounting and finance, ready to support your business with precision and expertise.

Rich Zhou

CEO & Founder

Rich drives AquiferCFO’s mission to help startups scale with financial clarity and growth strategies.

Terence Papadacos

Manager of Accounting & COO

Terence ensures operational efficiency and financial strategy, helping clients achieve business growth.

Lydia Yu

Manager of Accounting

Lydia delivers precise bookkeeping and reporting, supporting businesses across the Asia-Pacific region.

Alexander Williamson

Senior Manager of Accounting

Alexander uses data analysis to provide clients with actionable financial insights for better decision-making.

FAQs

Find answers to your most pressing questions about our services and solutions.

How Do E-Commerce Businesses Benefit From Outsourcing Accounting and Bookkeeping?

Outsourcing bookkeeping for ecommerce allows the businesses to focus on core operations while experts manage financial tasks. This ensures accurate financial records, improved cash flow management, and more strategic decision-making, all while reducing the risk of errors and compliance issues.

What Common E-Commerce Bookkeeping and Accounting Challenges Can AquiferCFO Help Me Navigate?

E-commerce businesses often face complex challenges in tax reporting, such as handling sales tax across multiple jurisdictions, managing international transactions, and navigating evolving tax regulations. AquiferCFO’s specialized expertise ensures compliance and accurate reporting, minimizing the risk of costly mistakes.

What Common Mistakes in E-Commerce Accounting Businesses Make?

Common mistakes include poor cash flow management, neglecting to track inventory costs accurately, and failing to plan for tax obligations. These errors can lead to financial strain, missed growth opportunities, and penalties for non-compliance. AquiferCFO helps businesses avoid these pitfalls by providing detailed financial insights and proactive strategies.

What Does the Outsourced Accounting Process Look Like With AquiferCFO?

The process begins with an initial consultation to understand your business needs. AquiferCFO then sets up e-commerce accounting systems for tracking income, expenses, inventory, and taxes. Regular updates and reports are provided to ensure you stay on top of financial performance. We handle everything from daily bookkeeping to monthly financial reviews, allowing you to focus on growing your business.

Why Should I Outsource Accounting Instead of Handling It In-House?

Outsourcing e-commerce accounting allows you to tap into specialized expertise without the overhead costs of hiring a full-time in-house team. AquiferCFO offers scalable, cost-effective solutions that ensure financial accuracy, compliance, and valuable strategic insights—all while freeing up your internal resources.

Accounting Services for the E-commerce Industry