According to a research in 2018, bad cash flow management and accounting and finance of accounting and finance Insufficient understanding is the main obstacle of enterprise success.
It may be part of this statistics? This article aims to understand, track and manage your corporate accounting by providing operating solutions, thereby expanding your knowledge -no more time.
Woocommerce provides business owners with a great platform to sell their products. Its customization allows you to support and automate your business process like others. One of the most important processes in these processes is accounting.
No matter where you are or selling, bookkeeping management is an important part of any start -up or growing e -commerce website. The accounting platform is not only used for annual income tax; it helps track sales, customer records, expenses and suppliers. It also monitor the profits of the products you sell, who sells to and who purchased from.
The accounting platform monitoring funds enter and exit, and it can help you make more wise decisions -what are what, such as which ones which ones Products are the most favorable maps, not just how much you sell.
Today, the sales tax collection and declaration of tracking stores are equally important. As the sales tax relationship is becoming more and more common, it is important to understand how much sales tax you charge and the amount of these amounts and payment is correctly submitted and paid.
In addition, the accounting platform can help you pay close attention to inventory so that you can understand the inventory and when to re -order. All of this can help you operate more efficient and more favorable business through
. Tired of managing the Excel worksheet and scattered data? Are you ready to control your corporate accounting? If so, continue to read.
Use an accounting platform for your WooCommerce store
What is one of the biggest benefits of the accounting platform? Use business data to provide management and reporting functions to provide you with:
more accurately understanding Your business health status
Make the ability to make more wise decisions
[12]3] Tools that can expand their business without additional efforts
Each is also valuable -you will see how they affect your business accounting -related fields below.
The cost of sales
An important indicator of the e -commerce store is sales
cost (COGS)
. If your business is based on product, the inventory may be your biggest expenditure.
However, if there is no accurate COGS (, for example, ,
knows that you sell 10 small components at $ 500), you will not be feasible for feasible. Decide. If you know that each of these 10 small components is $ 20, you can plan how much to order, how much your net profit will be, and what contribution to your overall profit.
Understanding your expenses is vital to effective business planning: it enables you to understand the cost and forecast, plan and budget accordingly. Your profit determines your profitability, unless you know your cost, there is no way to know these profits.
The accounting platform can do this without continuous physical labor. When you record how many products you buy and what price you buy, the accounting platform will accurately show how much inventory is. When you sell these products, you will see this in your available inventory and be able to determine the real profit after deducting the cost of the product. In addition to understanding COGS’s business planning and profit analysis advantages, there are also tax benefits. Taxation is calculated based on gross profit, and the profit of gross profit is reduced income. Monitoring all costs can ensure accurate final taxable income!
Accurate profit and loss report
Bidding and loss is the two important indicators to measure the health of the enterprise. There are many ways to fully record your general income and expenditure. When tracking in the accounting platform, these data can be used to make decisions and check the models and historical records that cannot be accessed in the manual electronic form.
For example, how does the last six months of your marketing correspond to the sales of your highest and minimum profit margins? Do you invest resources and labor to products that bring high -income but low -profits? Will COGS rise over time, and can it be reduced by buying different quantities in different periods of time?
You can draw accurate reports through your accounting platform tracking income and expenditure. Accurately record sales and expenses requires accurate and complete data input -many accounting platforms will automatically obtain these data, and can even be connected to your credit card or bank account to import this information. Continue reading to understand how to automate these types of data records.
Inventory and margin tracking
Woocommerce allows you to track the inventory in a local way for sales purposes, enabling you to provide customers with specific quantitative products of products , Will not be oversold or too low.
The accounting platform provides different inventory tracking advantages. It is worth noting that ,
input, adjust and update the amount of inventory are easier and more efficient
. This will also update related accounting fields, such as your inventory asset account and sales cost.
For example: you can open a accounting platform (such as QuickBooks), enter the 50 small components provided by the supplier, and then click to save. You will then have a record of paying to the supplier and record the product cost. QuickBooks will increase your inventory and related inventory assets and sales cost accounts correctly by 50 – All of this inputs a bill.
Response and bank bills Use accountant accounting One of the best reasons for the platform is that it combines all your income and expenditure, which helps ensure that the data you enter is an important last step to match the actual transaction and bank and credit card statement. This is called \”reconciliation\”.
In addition to capturing the income or expenditure, the reconciliation also helps to discover unexpected transactions, especially in terms of theft and unauthorized expenditures or bills. The reconciliation is usually performed on a monthly or quarterly.
Use QuickBooks as an accounting platform for your WOOCOMMERCE store
Quickbooks online (based on cloud) or on the desktop, It is a popular choice for Woocommerce users.
Use QuickBooks , You can track the sales, costs, customers and suppliers, profit and loss, sales costs, inventory, etc. without becoming an accountant.
By integrating it to your daily or weekly workflow, not entering all data at the end You can continue to monitor and manage the financial status of the enterprise.
Regularly using accounting platforms like QuickBooks do not need a lot of time to invest. Integrated integration such as MyWorks’ Sync for WooCommerce can synchronize all your store data, so it is easy to set up -in addition, you don’t need to manually enter new data. After having an effective QUICKBOOKS account, there are several initial steps, such as entering the company’s start date and connecting your bank account. After completion, you can track your accounting data! This can be completed manually or automatically. Manual settings
You need to create a product in Quickbooks first, enter the COGS and inventory information of each product, and then allocate income and expenditure accounts.
In the next, enter your Woocommerce store order. These may include all past sales or start from the date you choose; ideal, you should choose a starting point and put all sales of this fiscal year together. Orders can be used as invoice input -if customers do not pay immediately, this is the best choice -or sales receipt, if you process payment when buying, this is a perfect choice.
After entering your Wookommerce order, you will be able to extract the accounting report to evaluate the financial status of your store and continue to use QUICKBOOKS to track suppliers and continuous costs. Do you have too many products and orders in Woocommerce to enter these data manually? Still no time? Good news: You can integrate WooCommerce and Quickbooks to automatically synchronize all past data and current data in real time.
Automatic settings
Personal priority, you can choose integration to help automation this process and save time. Although manual management data seems to be a low -cost solution, the required time investment may lead toBig opportunity cost.Like any new business system, you need to evaluate the solution that can be used and determine the solution that can best meet your specific needs. As the owner of the Woocommerce shop, you already have dozens of daily processes.Add manual accounting responsibilities, such as manually entering customers and sales, adding and managing product lists, correct recording and submission of sales tax, adding bank deposits, checking your account, and maintaining the current inventory level.
Fortunately, accounting no longer needs to become a task to consume more accounting.Integration can automatically keep your accounting and inventory data latest.MyWorks’s Quickbooks Sync used in WooCommerce is such an integration
