Ecommerce accounting is quite different from the traditional bookkeeping brick-and-mortar sellers practice. So it’s critical to understand a set of core building blocks to get the full picture of your business’ financial performance.
Why? Savvy online retailers know that having a solid grasp of ecommerce accounting basics plays a huge role in accumulating relevant data about a store’s fiscal health and fueling growth.
Leveraged wisely, these basics of accounting can set your operation on the path to long-term success. From tracking cash flow to collecting and validating sales tax, you’ll continually use these tenets throughout the life of your business. And, when applied strategically, they’ll give you insights to sustainably scale while avoiding the most common accounting errors.
Review common accounting terms, GAAP, and the accounting cycle for business owners, applicable whether you sell online with a physical inventory, sell online without inventory (via digital goods or dropshipping), or in person through a POS terminal.*