You have set up your online store, hurray! It takes a lot of perseverance to reach this stage. Running an ecommerce business involves an ever-growing to-do list, doesn’t it? But let’s be honest, some of these items are mundane and time-consuming, yet extremely crucial — like bookkeeping.
Here's a secret — you don’t need to be an accounting whiz to get your bookkeeping right. We'll go over how to do your own bookkeeping as a small business, along with some resources that will boost your confidence.
The Benefits of DIY Bookkeeping
Why should you handle the books yourself? DIY bookkeeping saves costs and provides an accurate understanding of your company’s financial wellness. Here are some of the benefits of doing it yourself vs. using a bookkeeper:
Reduced stress come tax season
You'll have the power to make better business decisions, plan strategy and stay in control of your money
Saved expense of hiring a bookkeeper or accountant
You'll keep a pulse on the financial workings of your business
Your company's financial info will stay private
Ability to choose your own accounting process and software
How to Do Your Own Bookkeeping
If you're wondering, "Can I do my own bookkeeping?" the answer is yes. Doing your own bookkeeping for your ecommerce business can be done if you're willing to understand the important steps needed to accurately track your financial transactions.
Pro tip: Lookout for solutions that have inventory tracking and sync seamlessly with your ecommerce platform.
Top Small Business Bookkeeping Tools
We've rounded up some of the most affordable and user-friendly tools that will make you a bookkeeping master and relieve you of number crunching. The majority of these solutions are cloud-based (you can access them from anywhere) and offer free trials.
Wave is touted as one of the most user-friendly bookkeeping tools for small businesses. Its easy-to-read dashboard and affordability (it’s completely free!) make it a top choice for solopreneurs. The software offers unlimited invoicing, receipt tracking, bank reconciliations and can integrate with Paypal, Etsy, FreshBooks, and QuickBooks.
Is QuickBooks good for ecommerce? Well, over 3.3 million small businesses in the U.S. use this software that manages expense tracking, billing, invoicing, inventory tracking and reporting. With packages from $25/month, QuickBooks Online is best for small businesses on a budget. It has a powerful interface that ties with Etsy, Shopify and Amazon.
Kashoo's accounting software suits any type of small business, even if you just set up shop yesterday. The TrulySmall solution offers real-time reconciliation and reporting, automatic categorization and invoicing. The app’s Smart Inbox centralizes your workflow and highlights transactions needing your attention. Kashoo’s low price point of $20/month for unlimited users makes it stand out.
FreshBooks hasn’t become one of the most recognizable names in the small business world for no reason. Owners love FreshBooks for its straightforward dashboard, mobile interface and detailed guides. The platform has plans which start as low as $7.50/month.
Zoho Books' ecommerce bookkeeping software includes inventory management, banking, and financial tracking tools. The software integrates with leading payment gateways like Stripe, PayPal, and Forte; plans start at $15/month.
Xero’s top feature is its powerful mobile interface. You can accept payments, create invoices and purchase orders, track inventory and view statements on the go. The tool allows an unlimited number of users; plans are as low as $11/month.
OneUp, used by 700,000 users, is an all-in-one tool priced at $9/month for one user. OneUp automates and streamlines your bookkeeping; the program “learns” your accounting and can accurately reconcile bank transactions with invoices (woah!).
Bookkeeping Keeps Your Business Running Smoothly
Accurate bookkeeping practices lead to better, more informed financial decisions. Using the recommended bookkeeping tools will keep your ecommerce business running like Usain Bolt.
Need some additional help for your ecommerce business? Check out our DIY course for starting your business. We'll guide you through each step of forming your own business.
Swara Ahluwalia is a freelance content writer with experience in the technical, B2B and SaaS domain. She also has curated content for various lifestyle brands. In her downtime, you will most likely find Swara training for her next marathon or spending time with her two daughters.