Charting Your Path to Ecommerce Success

Understanding financial statements can often feel like trying to read a book in a language you don’t know. For many ecommerce business owners, it’s not about lacking the ability; it’s about using a financial blueprint that doesn’t fit the unique needs of your business. At bookskeep, we’re here to guide you in crafting a financial foundation that aligns with your goals. 

Start with the Right Blueprint: Your Chart of Accounts 

Your Chart of Accounts is the backbone of your financial system. Think of it as your business’s organizer, where every dollar earned and spent is categorized for clarity and control.  

When set up correctly, this tool becomes your secret weapon for making informed decisions and staying ahead of your financial game. 

So, what makes a Chart of Accounts ideal for ecommerce businesses? Let’s break it down. 

Simplify Your Categories 

Clarity is king. Grouping similar expenses together helps you maintain a streamlined and understandable structure. For instance, a single “Supplies” account can encompass paper, ink, cleaning products, and other essentials.  

We work with our clients to customize charts of accounts specifically for ecommerce businesses to ensure they track all revenue streams and associated fees effectively. The result? Financial reports that are clear, accurate, and actionable. 

Focus on Meaningful Reports 

With today’s advanced accounting tools, it’s easy to create detailed reports. However, not all reports are created equal. The key is to focus on high-level summaries that give you a quick snapshot of your business health.  

These “big picture” insights highlight what’s working and where you need to pay attention, saving you from getting lost in unnecessary details. 

Zero in on Critical Metrics 

For ecommerce businesses, the numbers that matter most are often tied directly to the cost of goods sold. One metric to monitor closely is your gross margin. To ensure accuracy, classify costs correctly in your accounting system.  

Additionally, any income or expenses not related to your core business should be categorized under “Other Income” or “Other Expenses” to keep them from distorting your profit calculations. 

Customize for Efficiency 

Your accounting software should work for you, not the other way around. By tailoring your Chart of Accounts to reflect the metrics you care about most, you’ll gain immediate access to the insights you need.  

This customization makes your monthly financial reviews faster and more effective, freeing up valuable time for growing your business. 

Why It Matters 

Having a tailored Chart of Accounts is critical for tracking every dollar and preparing for tax time. It goes beyond just glancing at your bank balance—it’s about understanding the story behind your numbers. With the right setup and guidance, ecommerce financial management becomes a lot less daunting. 

If your financial blueprint needs a refresh or you’re ready to tackle your numbers with confidence, bookskeep can help. Reach out today and let’s build a system that works for your business! 

Interested in Profit First? 

If your ecommerce business isn’t where you’d like it to be in terms of profitability, check out my book, Profit First for Ecommerce Sellers. It answers important questions about how to implement Profit First in an ecommerce business. Take control of your money and your business, and put Profit First to work for you!  

You can also sign up for the Profit First for Ecommerce Sellers Online Course. As a Mastery Level, Certified Profit First Professional, I will teach you why Profit First works so well for ecommerce businesses and the particular challenges for businesses that have physical products requiring inventory management. You will learn how your behavior drives your money management habits for your business and how you can set up your business bank accounts to work with your habits. 

Check out all our ecommerce accounting and profit advising services here!