Generally, your eCommerce business will live or die based on how you manage your cash flow. Whether you sell the products through BigCommerce, Shopify, Amazon, or Etsy, you need a sound accounting system to manage your finances.
By now, as an eCommerce business owner, you would know how important is proper bookkeeping is for your eCommerce business. It will get complicated, especially when you expand your business and don’t have in-depth knowledge or experience of bookkeeping terms and principles. This is where cloud based financial bookkeeping software comes into play.
Cloud accounting solution for businesses:
Cloud accounting allows all the accounting and bookkeeping tasks to be done online and store all the data on the cloud in a secure manner. One of the significant benefits of it is that you can get real-time access to all your business information at any time and anywhere.
There is numerous cloud based accounting software available with their own benefits. However, most of them are expensive and involve a steep learning curve. This can result in tight budgets for small businesses that make it essential to choose the right accounting software.
This brings Xero into play. Xero is a cloud based accounting software that is specially designed, keeping in mind mainly the small businesses.
A short overview about Xero accounting software:
The motto of Xero – Beautiful Accounting, and they live up to it. Following the simple goal of making small businesses successful, Xero is loaded with several intuitive features. Let’s have a small glance at some of the key features of it, which addresses almost all the accounting and bookkeeping needs.
- Bank connections and reconciliations – Xero allows you to set up automatic feeds from multiple banks and several bank accounts. With this, bank transactions will flow automatically in a secure and reliable way into Xero accurately every single business day. Further, reconciliations can be done quickly with the help of coding suggestions. It even allows the grouping of similar transactions and matching them instantly.
- Inventory management – Managing inventory cannot be easier than this. Xero provides the real-time log of the bestselling product and the profit you have made with just a click. Moreover, it also helps track the stock levels and values daily. The highly accurate input comes in handy to help you while making business purchases and pricing decisions.
- Purchase orders and paying bills – Xero helps set up the complete purchase order process with the comprehensive audit trail. It is quick and straightforward to convert the purchase order into a bill whenever required. Moreover, the purchase dashboard with the inbuilt charts and graphs provides a complete overview of the pending bills and purchase orders that helps you to stay on top of all the business expenses.
- Payroll management – Xero is equipped with the robust Payroll app that aids with everything required to track the working hours, manage leaves, and process payments. It also enables the employees to view their payslips, apply for leave effortlessly and submit the timesheets.
- Customized professional invoices – Xero has some of the best invoice templates that can be conveniently customized with the company branding. Setting up automated invoice reminders is brisk. These online invoices can be replicated efficiently, thus reducing the repetitive work. It will also be protected with the two-step authentication process to protect the documents from unauthorized changes. In addition, sending the online invoices will help in getting faster pay.
- Xero dashboard – It gives you an up-to-date picture of the cash flow and business finances. Since it can be visualized with charts or graphs, it will make it easier to understand the insights.
The 4 financial reports that every seller can obtain with proper bookkeeping:
- Balance sheet – This allows you to analyze the business efficiently. It includes anything that you convert into cash within a year, such as accounts receivable, prepaid expenses, inventory, and so on. It also includes the fixed assets that you will not sell quickly to raise cash. The report also contains the short and long-term liabilities for your convenience.
- Profit and loss report – This report is also called an income statement. It indicates the business’s financial performance over a particular period of time – say for a few months or a year. It can be used to know the trends, monitor some specific KPIs, and predict the company’s future performance. Especially you can review your profit or loss report to identify trends like sales, seasonality, overspending across specific categories of expenses, spikes, and many more.
- Cash flow forecast – This report will be like the business’s crystal ball. It helps in predicting cash surpluses or shortages before they may happen, which means you will not get into a critical situation.
- Inventory forecast – It is the process of gauging the future sales volume based on the recent and predicted sales trends. The inventory forecast report will consider all the SKUs, seasonality, and sales velocity. It allows you to make an informed decision about how much inventory you should order within the given time, what are the products to be ordered and when to order them.
About cloud based financial bookkeeping services at Free Cash Flow:
Free Cash Flow is a multifaceted team with 20 years of experience. We have rich experience in the field of Accounting, Taxation, Finance, and Bookkeeping. Our qualified and experienced team has collaborated with numerous big and small firms. We provide the complete range of cloud based bookkeeping services and accounting solutions for all types of businesses.
Especially if you are an entrepreneur with an online presence and intend to keep the accurate set of books at the end of the business day, we are here to help you. We assist such business people with the best accounting software like Quickbooks and Xero to automate everything. We ensure that there are on top of all the accounting tasks and maintain an excellent inventory to track all the essential cash flow anytime easily.
Whether you run a small, medium, or large industry, who are eager to outsource your bookkeeping and accounting requirements to a qualified and experienced team at a reasonable cost, reach us to make the daily bookkeeping and accounting tasks more accessible. The result will be instant access to high-quality bookkeeping and accounting information that enables you to improve your business and financial decisions.
The primary need for every business is to have a clear understanding of their business’s financial health so that they can easily spot the problem areas before it gets out of their control or to identify new growth opportunities. Hence, we design the best solutions for each business, keeping in mind each client’s unique financial requirement and analysis.
Free 30-Min Strategy Session
By the end of this Strategy Session, you will have a clear understanding of the next steps you can take for your business to take advantage of the tax deductions you are missing out on.
The bottom line:
When you are ready to outsource accounting and bookkeeping, why not consider cloud based financial bookkeeping? With Xero, you will have peace of mind knowing that you have the right tool to manage the business’s finances and cash flow efficiently. Ultimately, it will set you up for increased business growth and generate more revenue. To know more about our services and how we can help you grow your business, contact us today and discuss your specific requirements with us to get the best solution.