MeruAccounting Blog 3 July

1. Bookkeeping for Amazon Sellers Amazon, as we all know, is an e-commerce platform that enables third-party sellers to sell either new or used products at a fixed price online. Amazon is one of the most popular choices for starting a new business. So much so that some 100,000+ new Amazon businesses open their doors each year. Of course, not all of those businesses survive, and one of the primary reasons for that is poor amazon bookkeeping and accounting. Why bookkeeping is essential for Amazon sellers While we think of an Amazon sellers’ business, bookkeeping and accounting are some of the last things that strike our mind. While bookkeeping might not be the most exciting subject, it is crucial to help Amazon sellers understand where their business stands as far as finances are concerned. Understanding your FBA business numbers will allow you to grow your business and help you make wise decisions by helping you see what is working and capitalizing on trends. Better Business Decisions Accounting and bookkeeping for Amazon also help to extrapolate vital information to make informed decisions. Important information from this accounting data will allow you to acquire customers, analyze sales, inventory management, and operating expenses. Further financing In order to expand your business, if you ever require a loan, you’ll need to provide the creditor or the bank with various financial information. This is easy to do if your books are accurate and up-to-date. Systematic bookkeeping eases the financial reporting, which would’ve been a tedious task if not done regularly. Product Management

2. Bookkeeping not only serves as a checker for the financial health of your online seller business but it also gives product insights through sales data. It becomes straightforward for the seller to identify which product sales are highest and which product sales are down. It can help you answer questions like, which products should I axe? Which should I double down on? How much inventory you should order etc. Accounting In E-commerce Accounting is a painful necessity. It’s the boring side of the business. But, if you want your business to grow, you can’t avoid it. As a business owner, you will need to maintain an up-to-date view of your finances at all times. When you have a clear picture of what your money is doing, you can get a better handle on your business spending. This allows you to develop and consistently improve your profit margin. Financial statements offer an organized view of this information.

3. Specialized E-commerce accountants VS Traditional bookkeeping Bookkeeping might not be the favourite subject for many, but it has been around ever since the double-entry system came into existence. It is a crucial tool to help E-commerce sellers and Amazon FBA sellers to keep a watchful eye on where their business stands financially. While some E-commerce and Amazon Sellers have taken bookkeeping seriously and have tried to integrate bookkeeping with their day-to-day business activities, still for many of them, it becomes too overwhelming to maintain accounts and focus on their business. This is where specialized E-commerce accountants come into the picture as they have taken time to learn what is the key areas to focus on for Amazon sellers and make it easier for you to understand your business more by integrating your seller accounts with proper systems and processes for bookkeeping and accounting which will help you to make better decisions. For More Information