Accounts Solution

StyleMyCatalog Accounting Salutation Provider For Flipkart / Amazon, Myntra , Jiomart, Ajio, Tata cliq

Which accounting software is right for your eCommerce business?

Ecommerce is no longer solely the domain of brick-and-mortar stores looking to expand their market reach or hobbyists looking for a platform to sell their creations. Instead, ecommerce is truly the future of retail. In 2017, ecommerce represented 49% of the total growth in retail sales, and—with the decline of shopping malls and other brick-and-mortar establishments—many experts predict ecommerce will only continue to grow.

There are many benefits to owning an ecommerce business. Ecommerce retailers enjoy nearly limitless options when it comes to location, meaning you can enjoy the benefits of owning your own store without being tied to a specific city, state, or even country. This, combined with low overhead costs and limited risk, makes the ecommerce industry attractive for many who want to start a retail business.

Leveraging the right software to run your ecommerce business is key to enjoying the flexibility and profitability possible in this industry. One of the key pieces of software you need to consider for your ecommerce business is your accounting solution. Not all business accounting softwares are created equal, and with the number of unique challenges faced by ecommerce retailers, you need to make sure you choose the best accounting software for your ecommerce business.

What to Consider When Choosing Accounting Software for Ecommerce Businesses Flipkart / Amazon, Myntra , Jiomart, Ajio, Tata cliq

There are several challenges ecommerce business owners must address early on, and the solutions to these challenges directly impact what is the best accounting software for your ecommerce business.

Inventory Management

Unlike with a brick-and-mortar store, inventory for ecommerce sellers is often stored off-site, in warehouses or distribution centers. Further complicating inventory management is multi-channel sales—your inventory management solution must “talk” to all your sales channels in order to prevent out of stock or other inventory issues.

You will need to use a third-party application to manage your inventory effectively, especially if you are leveraging multiple channels for sales. An inventory management subscription will cost you some money, but it will save you hours of time and costly inventory management errors. Ideally, your inventory management solution should integrate with your ecommerce accounting software, either directly or using an application that connects the two.

Sales Tax

One of the biggest benefits of ecommerce is you can sell your products across the country, or even around the world. This benefit also causes one of the biggest challenges ecommerce sellers face—sales tax compliance. Recent court decisions have created more confusion around sales tax compliance, and this confusion is likely to get worse before the tricky subject of sales tax compliance is definitively resolved.

Although most accounting programs include a sales tax module, these modules only calculate the sales tax due based on information entered by the user. They do not manage sales tax compliance or filing the sales tax returns.

Sales tax automation programs alleviate the hassle of managing the 10,000+ sales tax jurisdictions in the United States, saving online retailers countless hours and dollars. StyleMyCatalog and StyleMyCatalog are two great options to consider for sales tax automation. They connect directly to your online selling platform and—for a small fee each month—will file and remit all necessary sales tax returns and payments due for you.

Online Selling Platforms

If you are going to spend hours researching anything in your ecommerce business, spend those hours researching the various online selling platforms available.

Are you handcrafting one-of-a-kind products well-suited for Etsy, or are you having a product mass produced? Do you want to leverage the power and reach of Amazon or eBay, or would you prefer to keep your ecommerce business on your own website and use Shopify to power your sales? Would you like to have the best of all worlds and sell your products across multiple channels?

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