Accountant & bookkeeping for Ecommerce: E-commerce Bookkeeper

Optimize Cash Flow, Fees and Inventory with AquiferCFO

As an e-commerce business, your funds are released every few weeks after a successfully completed transaction leaving you with zero cash inflow until the first two weeks. Therefore, cash flow management for an e-commerce business is essential, ensuring you have enough money in the bank to pay your expenses before you get paid.

Stay updated with your cash flow, merchant expenses, and gain confidence in running your business with AquiferCFO.

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Key Accounting Considerations for E-Commerce Success

Merchant Fees & Foreign Exchange

Starting your e-commerce store is easy; however, there are quite a few moving parts you have to consider. One of those parts is merchant and foreign exchange fees. Keeping track of merchant fees locally and globally can be very complex. Margins in the e-commerce business are relatively low, and merchant fees can eat into your profitability. Therefore, accurately keeping track of these numbers is essential when running an e-commerce business.

Inventory Management & Planning

Inventory management is crucial for maintaining optimal levels of stock while minimizing costs. However, buying inventory is a capital-intensive process, and it’s essential to understand how much cash you have in the bank to make the correct purchase decision. It’s necessary to effectively plan for forecasting demand and implement cost-effective strategies to optimize cash flow.

Financial Reporting for Ecommerce

As in any business, financial reporting is crucial to success. It's essential to drill down into the marketing costs, sales revenue, and the customer acquisition cost. These metrics will help you gain transparency into the business so you can make strategic long-term decisions. For an e-commerce business, managing cash flow is essential. To effectively manage cash flow, you must understand the cost and revenue for each transaction. Our ecommerce bookkeeping services provide you with detailed financial reports to support your business growth.

E-Commerce Tax Complications

Most e-commerce businesses sell globally; therefore, it’s essential to understand how taxes are calculated and your obligations when paying them. For example, if you are selling in the US but have a store in Canada, do you collect sales tax from each state? If yes, how do you submit the collected sales tax? These are all critical questions that require careful consideration. Efficient tax management ensures the appropriate amount of taxes is paid promptly.

Maximizing E-commerce growth: Key factors to Consider When Scaling Your E-Commerce Business

Explore the reason why accounting plays an important role in the success of your FinTech business. Uncover the key accounting considerations to ensure you are on the path to success from day one. Accountants can provide the expertise needed to navigate the unique challenges of the FinTech Industry, ensuring your venture thrives in a competitive landscape.

Managing Internal COGS

Understanding internal COGS is essential for determining pricing strategies and profitability. Having Transparency related to manufacturing, storage, acquisition and delivery expenses can help identify opportunities for cost reduction, ultimately improving profitability.

Managing Burn Rate

Burn rate is crucial for e-commerce startups as it measures how quickly they use up cash before becoming profitable. It helps companies avoid running out of money and provides insight for planning and fundraising. It also helps companies make strategic adjustments to their spending.

Categorizing
P&L

The P&L categorization allows an in-depth analysis of financial performance, allowing for insights into the profitability of specific segments or product lines. By breaking down financial data in this manner, businesses can pinpoint areas for cost management and revenue optimization.

Debt
Budgeting

Strategically managing debt obligations allows businesses to ensure that their debt levels remain in line with their financial capacity and growth objectives, mitigating the risk of over-leverage. This approach safeguards against financial strain but also fosters a stable financial foundation conducive to sustainable growth and success.

P&L
Management

Regularly updating and reviewing P&L statements tracks revenue streams and expenses. Analyzing gross, operating, and net profit margins ensures financial health and operational efficiency, aiding informed decision-making. This allows the business to make proactive adjustments to strategies and resource allocation.

Transaction Summaries

Maintaining detailed transaction records ensures accuracy in financial reporting and analysis through proper categorization. This offers a transparent view of cash flow, vital for effectively managing subscription-based revenue models. This also helps with audits and compliance with regulatory requirements.

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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.

What is a CFO?

A CFO, or Chief Financial Officer, is a senior executive responsible for managing the financial actions of a company. This includes tracking cash flow, financial planning, and analyzing the company's financial strengths and weaknesses. A fractional CFO offers these services on a part-time basis, making them accessible for startups.

How can you help?

We provide tailored financial strategies, bookkeeping, and accounting services to help startups scale effectively. Our fractional CFOs work closely with your team to ensure financial health and strategic growth. We focus on delivering insights that drive your business forward.

What industries do you serve?

We specialize in serving various industries, including SaaS, healthcare, real estate, law firms, and crypto. Our expertise allows us to understand the unique financial challenges and opportunities within these sectors. This ensures that our services are both relevant and impactful.

What are your rates?

Our pricing is flexible and tailored to your specific needs. We offer custom pricing estimates based on the services you require and the complexity of your financial situation. Please visit our pricing page for more details.

How do I get started?

Getting started is easy! Simply reach out to us through our contact form or schedule a demo. Our team will guide you through the process and discuss how we can best support your financial goals.

Accounting Services for Ecommerce Industry