Choosing accounting software with the right features for an e-commerce operation will help your business’s finances. Here are some features you should look for in accounting software for e-commerce.
Bank reconciliation is the process of comparing your business’s books against your bank records. When done manually, this is a tedious and time-consuming process. However, many accounting software providers now provide tools that can quickly and accurately match your bank statements with invoices, bills, purchase orders, expenses and other transactions recorded in your business’s books.
Accounting software often includes invoice-creation features. For service-based e-commerce businesses, the ability to email a quote or invoice makes it easier to get paid. Leading providers, such as FreshBooks, also track when customers receive and view your requests for payment. Customization tools can be used to build professional-looking invoices that match your e-commerce business’s brand, which is important for appearing legitimate in the eyes of online consumers.
You are more likely to get paid on time when you send a professional-looking invoice.
A subscription-based e-commerce business will appreciate the ability to send invoices at regular intervals. Many accounting software providers include recurring invoices on higher-tier plans.
The data captured by accounting software can be used to generate a variety of financial accounting reports that provide insight into how your e-commerce business is performing. These include general ledger reports, profit-and-loss statements, balance sheets, receivables and inventory analysis, and more.
E-commerce businesses that sell physical products often keep inventory off-site, which makes proper inventory management especially crucial. A few leading accounting software services also provide tools for tracking inventory, creating purchase orders and more.
Many accounting software providers provide tools for tracking time spent on projects. These tools, which are offered either as part of their accounting services or as stand-alone products, are useful for service-based e-commerce businesses, allowing them to convert billable hours into an invoice for payment.
Time tracking is also useful for creating accurate price quotes for future projects.
Service-based e-commerce businesses that send frequent invoices may find that not all customers pay on time. Accounting software allows you to set automated payment reminders so you don’t have to chase down customers.
Accounting software often integrates with your bank account so that all transactions from your financial institution sync with your general ledger.