Do you need to know what the right eCommerce accounting software for your business is? You’ve come to the right place.
Working as an eCommerce business owner is a non-stop job. Whether sorting out stock issues, trialling new products, or communicating with vendors, you’re constantly juggling multiple tasks.
One of the most important things to get right is your accounting obligations. Managing this with anything other than a cloud platform is almost impossible these days. But choosing the right accounting software can be difficult.
Why do you need to use accounting software as an eCommerce business?
Online accounting software can now do much of the heavy lifting that, traditionally, an accountant would have taken care of.
Whilst working with an accountant is still recommended for many businesses — you can’t put a price on great advice — businesses are now empowered with a toolset to manage their own books to the highest standard.
Important features include:
- You’ll get clear financial reports to make business decisions easier, helping you visualise trends in real-time through graphs and charts.
- Your books will now be accurate as everyone works off the same portal. No more spreadsheet mix-ups.
- Collaborate with your team far easier — cross-business communication can now all run from the same financial records.
- You’ll be compliant for MTD, as all VAT-registered businesses must now submit their records digitally.
What’s the best accounting software for eCommerce businesses?
There are various cloud-based accounting software options available, with some being more appropriate than others for your eCommerce business.
For instance, if your online business trades worldwide, your sales taxes must be calculated accordingly. This means using software to help you work under different licences with minimal issues.
If you sell different types of products, your business licence will come with additional associated costs. You need your software to understand the particular needs and potential snags of your business type.
It may be that your business is in need of a bespoke software solution, which may be outside of the specs a cloud platform can provide. In that case, you’ll need to speak to an accountant (like us) to help advise you on getting this set up.
As an eCommerce business in the UK, there are three main platforms:
UK-based Sage offers bookkeeping and cloud support through its online and desktop platforms.
We’re mentioning it here because its cheapest offering is a desktop solution, giving users more control over how their platform is managed. However, this does lack the benefits that the cloud has to offer.
Sage has built-in GDPR compliance, offers full on-phone support and audit trails at its lowest price point.
The original cloud accounting platform, QuickBooks is built for busy business owners, accountants, and anyone who needs to manage their finances effectively.
QuickBooks Online is a great choice for an eCommerce business. It will integrate seamlessly with your sales channels, linking to inventory tracking and helping you see trends before the competition.
An online-only solution, Xero is a powerful platform that combines bookkeeping, bank account connections and automation to provide a service designed for the modern business owner.
Designed to make small business accounting easier, Xero has a feature set that includes syncing bank transactions, inventory management and clear financial reporting.
Like the other two suggestions, it also has a simple mobile app for both Android and iPhone.
What software do we recommend?
As a Xero Gold Partner, our experience, understanding and passion for Xero as a platform mean we recommend it to all our clients.
If you’re running an eCommerce business, Xero will help you pay your bills quickly and effectively, manage your cash flow from your online store, and integrate with your eCommerce platform of choice (like Shopify).
Xero has unlimited users, so scaling won’t be an issue, and runs anywhere in the world (provided you have an internet connection).
If you need to integrate other applications, the Xero ecosystem of over 700 different programs will help you connect to what you need to make your business run better.
It’s worth noting that most cloud accounting platforms offer the same set of services. Making a decision often comes down to personal preference, but heeding the advice of an accountant is always a good place to go if you’re unsure.
Talk to us, and we’ll help you choose the eCommerce accounting software that suits your business.