As an ecommerce business owner, the decision to reinvest profits is critical for sustainable growth and long-term success. Let's explore why adopting a Profit First approach can benefit your business and how it sets the stage for strategic development. The Impact of Profit Reinvestment Reinvesting profits without a clear strategy can create a cycle of [...]
In challenging times, it's important to chart a course for coming out the other side. Data-driven strategies and detailed planning can both be a crucial part of steering your business through the storm. That means, the best time to evaluate and plan is now, before the storm begins. This way, you’re prepared to make informed [...]
Unlocking the secrets of profitability in your ecommerce business requires a special understanding of your financial statements. One report in particular, your balance sheet, provides 5 driving profitability forces to keep your eye on. So, let's discuss them and how they can impact your profit and your business. The 5 Drivers Picture your financial statements [...]
For any ecommerce business, understanding its performance is crucial for growth and sustainability. While Gross Margin remains a fundamental metric, there are several others worth delving into. Let's explore three key KPIs, how to calculate them, what insights they offer, and the benchmarks to aim for. Inventory Days Inventory Days assess how efficiently you convert [...]
If you’ve been here a while, and probably even if you haven’t, you know we're big advocates of Profit First. It's a system I use in my own business and modified it for my clients so I could write the book on Profit First for Ecommerce Sellers. However, as much as I believe in its [...]
Now that the hustle and bustle of Q4 and tax season is starting to slow down, it’s a great time to start thinking about how much padding you have in your cash reserve cushion. It’s never too late to add some extra stuffing, so let’s talk about how you can build your cushion up this [...]
Just like last year, prices are still continuing to rise to crazy prices, and yet we still have to somehow save to pay that tax bill coming up, on top of gas and groceries. If you’re not prepared, it can get a little scary. So, are your accounts ready? Profit First Prep Profit First can [...]
In the beginning of ecommerce, success was all about marketing and advertising to make a sale. However, over the years ecommerce business owners began to focus on operations as they saw colleagues exit with high multiples because of the high level of aggregator buying activity. Top line revenue got moved to the back burner to [...]
Like every year, January for bookkeepers everywhere was predominantly spent finalizing financial statements for our clients. For us, year-end is akin to any normal month-end; accuracy remains paramount throughout the year. However, this time of year, ensuring precise inventory figures is essential for taxes. Naturally, challenges will always occur. If, by some stroke of luck, [...]
In the ever-changing landscape of ecommerce, businesses continually fight with new challenges. Now that we’re at the beginning of a new year, we’re coming off a seasonal sales surge. According to Adobe's predictions, online spending was expected to grow by 4.8% last holiday season, reaching an astonishing $221.8 billion. This forecast marks a significant jump [...]
