Are you finding it hard to manage your online store’s finances? If you own an online store, you must manage your financial paperwork properly. This will enable you to make wise decisions and thus increase your business.
Good bookkeeping is the backbone of any e-commerce business to thrive. It helps you control your costs, track your stocks, and strengthen your financial position.
In this article, we will explore the 5 major bookkeeping service providers in e-commerce. They will simplify the process and management of your finances. This way, you will have more time to focus on growing your online business.
Table of Contents
The Important Role of Bookkeeping for Online Stores
In the rapidly changing e-commerce environment, accurate financial recording is essential. As an online store owner, you handle many sales channels, manage inventory, and deal with sales tax in different places. To manage these tasks efficiently, good accounting will surely aid you by supplying important business decisions.
Financial Challenges of E-commerce Businesses
E-commerce companies have specific financial problems that are not experienced by brick-and-mortar stores. Dealing with sales from different platforms, such as Amazon, Shopify, and your own website, can be a real challenge. Tracking these sales requires very diligent bookkeeping, ensuring that you don’t lose any income or mistakenly report some expenses.
To give an example, the main financial difficulties faced by e-commerce businesses are:
- Monitoring cash flow across various sales channels
- Keeping track of stock and COGS (Cost of Goods Sold)
- Adhering to sales tax laws in multiple jurisdictions
How Proper Bookkeeping Affects Your Bottom Line
Accurate bookkeeping is crucial, and it directly affects your profitability. It allows you to identify potential cost savings and areas for improvement in your business operations. For example, through proper inventory tracking, you can avoid overstocking and therefore reduce costs. It also assures you that you are complying with tax regulations, thus getting rid of hefty fines.
There are some benefits of good bookkeeping for online shops, such as:
- Increased financial transparency, leading to more informed choices.
- More effective control over cash inflows and outflows, thus minimizing financial surprises
- Accurate tax compliance, thus not inviting audits and imposing fines
1. Bench: Best Overall Ecommerce Bookkeeping Service
Bench is a top choice for e-commerce bookkeeping services. It offers great features and good prices. As an online store owner, you need a reliable bookkeeping service to manage your money well.
Bench Overview
Bench is a full-service ecommerce bookkeeping service. It has features that meet the needs of online store owners. Their team of experts ensures your financial records are accurate and current.
Features
Bench has many features, like preparing financial statements and managing inventory. It also helps with sales tax compliance. These features make managing your e-commerce business’s finances easier.
- Financial statement preparation
- Inventory management
- Sales tax compliance
Pricing
Bench has pricing plans for various e-commerce businesses. Pricing depends on the number of transactions and the service level.
| Pricing Plan | Features | Cost |
|---|---|---|
| Basic | Financial statement preparation, inventory management | $299/month |
| Advanced | Basic features + sales tax compliance, advanced reporting | $499/month |
Pros:
Bench has many advantages, such as its wide range of features, quality service, and good prices. Their team is ready to help and guide you.
- Comprehensive features
- High-quality service
- Competitive pricing
Cons:
While Bench is an excellent e-commerce bookkeeping service, it can be too expensive for small businesses. But for most e-commerce businesses, Bench is a solid and reliable choice.
2. Bookkeeper.com – Best for Small to Medium Online Stores
If you own an online store, finding a good bookkeeping service is key. Bookkeeper.com is a top pick for its scalability and expertise. It’s perfect for small to medium online stores, providing e commerce bookkeeping services that grow with your business.
Bookkeeper.com Overview
Bookkeeper.com offers a wide range of bookkeeping services for online stores. Their team of experts prepares financial statements, manages inventory, and handles sales tax. This ensures your online store’s finances are accurate and current.
Features
- Financial statement preparation
- Inventory management
- Sales tax compliance
- Customized bookkeeping solutions
Pricing
Bookkeeper.com’s pricing is tailored to your online store’s needs. Their model is designed to be scalable. This means you only pay for what you need.
| Service | Description | Pricing |
| Financial Statement Preparation | Accurate financial statements for informed decision-making | Custom |
| Inventory Management | Efficient tracking and management of inventory | Custom |
| Sales Tax Compliance | Ensuring compliance with sales tax regulations | Custom |
Pros
Bookkeeper.com has many benefits, including online store bookkeeping expertise and scalable services. Their team of experienced professionals offers customized support for your business.
- Expert bookkeeping services
- Scalable pricing model
- Customized solutions
Cons
Some users might find Bookkeeper.com’s customized pricing model hard to predict costs upfront. But, the benefits of their bookkeeping for e commerce services often make it worth it.
3. Xero – Best for DIY Ecommerce Accounting
Ecommerce businesses often choose Xero for its DIY accounting features. Xero is a top accounting software with tools for managing finances. It’s great for online businesses that want to handle their accounting themselves.
Xero Overview
Xero is a solid choice for ecommerce businesses to manage their accounting. It offers tools like financial statements, inventory management, and sales tax compliance. Its easy-to-use interface and wide range of tools make it perfect for DIY accounting.
Features
- Automated bank reconciliation
- Inventory management
- Sales tax automation
- Financial reporting
- Multi-currency support
Pricing
Xero has three plans: Early ($9/month), Growing ($30/month), and Established ($60/month). Each plan fits different business stages, with features that grow with your business.
Pros
Xero shines with its comprehensive feature set, user-friendly interface, and excellent scalability. It works well with many e-commerce platforms and has strong inventory management. Xero’s CEO says, “Our goal is to make accounting and financial management easier for small businesses.”
“Xero has been a game-changer for our business, allowing us to streamline our financial processes and focus on growth.”
— Xero User
Cons
While Xero is powerful, it might be harder to learn for those new to accounting. Some users also find the cost of extra features and integrations a drawback.
| Plan | Price | Features |
| Early | $9/month | Basic features for small businesses |
| Growing | $30/month | Additional features for growing businesses |
| Established | $60/month | Comprehensive features for established businesses |
4. QuickBooks Commerce – Best for Inventory-Heavy Businesses
Ecommerce businesses with lots of inventory need strong bookkeeping. QuickBooks Commerce is perfect for them. It has advanced inventory management and financial tools.
Advanced Features and Pricing
QuickBooks Commerce has features for ecommerce businesses with lots of inventory. Let’s look at what it offers.
Features
- Advanced Inventory Management: Track inventory in many places.
- Multi-Channel Selling: Sell on different ecommerce sites.
- Automated Inventory Updates: Keep inventory levels right with updates.
- Comprehensive Reporting: Get detailed reports on inventory, sales, and finances.
Pricing
QuickBooks Commerce has plans for all sizes. The basic plan starts at $39 a month. Larger businesses can get more advanced plans.
Pros
QuickBooks Commerce is great for managing inventory and finances. It works well with popular ecommerce sites. Experts say it’s changed how ecommerce businesses manage their stuff.
“QuickBooks Commerce has been a game-changer for our ecommerce business, allowing us to streamline our inventory management and financial reporting.”
Cons
Some might find setting up QuickBooks Commerce hard. It might cost more than other services. But, it’s worth it for businesses with complex inventory needs.
In summary, QuickBooks Commerce is a top choice for ecommerce businesses with lots of inventory. Its advanced features and financial tools make it perfect for streamlining bookkeeping.
5. A2X – Best for Amazon and Shopify Sellers
If you sell on Amazon or Shopify, you need a good bookkeeping system. A2X is a top pick for this. It’s made for online store owners to manage their finances easily.
A2X Overview
A2X makes bookkeeping for e-commerce businesses simple. It automates financial tasks like reconciliation, inventory, and sales tax. This makes it easy to manage your finances. It also works well with popular accounting software.
Features
- Automated Financial Reconciliation: A2X matches your sales data with bank statements. This saves time and reduces errors.
- Inventory Management: It tracks your inventory levels and costs. This ensures your financial reports are accurate.
- Sales Tax Compliance: A2X helps manage sales tax. This makes tax compliance easier for your e-commerce business.
Pricing
A2X has a tiered pricing model based on transactions. This means you only pay for what you need. For the latest pricing, check the A2X website.
Pros
- Simplified Bookkeeping: A2X automates many tasks. This reduces the work for your business.
- Accurate Financial Reporting: With its automation, you can trust your financial reports.
- Compliance Made Easy: A2X helps with sales tax compliance. This lowers the risk of errors or penalties.
Cons
- Limited Customization: A2X has many features but some users might find it less customizable than others.
- Transaction-Based Pricing: Businesses with lots of transactions might find the pricing too high.
Comparison of Ecommerce Bookkeeping Services
There are many ecommerce bookkeeping services out there. It’s important to compare them to find the right one for your online store. Look at different factors to see which service fits your business needs best.
Pricing Comparison Chart
It’s key to know how much each service costs. Here’s a chart to show you the prices:
| Service | Basic Plan | Advanced Plan | Premium Plan |
| Bench | $249/month | $499/month | Custom |
| Bookkeeper.com | $299/month | $499/month | $699/month |
| Xero | $9/month | $30/month | $60/month |
Feature Comparison Matrix
Each service has its own set of features. Here’s a matrix to compare them:
| Feature | Bench | Bookkeeper.com | Xero |
| Inventory Management | Yes | Yes | Yes |
| Sales Tax Automation | Yes | No | Yes |
| Multi-Channel Support | Yes | Yes | No |
Best Use Cases for Each Service
Each service is good for different things. For example, Bench is great for full financial management. Xero is best for those who want to manage their own books and inventory.
By looking at prices, features, and what each service is good for, you can choose the best one for your ecommerce business.
Conclusion
Choosing the right ecommerce bookkeeping service is key for your online store’s financial health. It involves managing sales channels, tracking inventory, and handling sales tax. This is important across different places.
By picking the right e-commerce bookkeeping service, you can make your financial operations smoother. You’ll also reduce mistakes and get insights into your business’s performance. The best services offer features and benefits for various business needs.
When looking for an online store bookkeeping service, think about a few things. Look for integration with your ecommerce platforms, good inventory management, and sales tax automation. This ensures your financial data is correct and follows the rules.
Investing in a good e-commerce bookkeeping service helps you make smart choices. It drives growth and keeps you competitive in the ecommerce world.