• New Wave Accountants

How an E-Commerce Accounting Expert Can Solve Your Xero Qualms of Growth - What to Know

As your business continues to evolve, it isn’t uncommon to experience a certain loss of control along the way. This reality is especially true when it comes to modern businesses that take on even more customers. Sooner or later, you may come to realize that it’s a lot harder to control all the different parts of your e-commerce system.

At first, it may have seemed all-too-easy to shift back and forth between your various e-commerce and e-commerce accounting systems. However, once the demands of expansion begin to set in, you’re most likely going to feel the struggle of several disparate systems that don’t communicate at all. The typical setup for a business that’s experiencing a startup to slight-growth e-commerce system mix-up tends to look something like this:

  • You either have Woo-Commerce, Magento, or Shopify as your e-commerce website’s shopping cart engine

  • Your website runs on WordPress

  • You use Xero as your accounting platform

  • The payment gateways that your website accepts consist of VISA, Paypal, Mastercard, Afterpay, American Express, and Direct Debit

  • You also sell via eBay and Amazon

  • You also have a separate platform that logs in and records your invoices

These are six separate facets of your e-commerce system that you have to watch out for, which makes it much harder to operate smoothly, considering the increase in your business’s customers. While your e-commerce website may be appealing as can be when taken at face value, the mere separation between various parts of your e-commerce can make for a behind-the-scenes nightmare you’ll never expect.

The common question of growth

Once your influx of customers starts to roll in, however, you may notice that the frequency of your re-keying information from one system to another increases to the point where it seems like it will never stop. The overwhelming number of e-commerce accounting tasks alone can easily lead to a messy Xero file that holds anywhere between ten to 100 deposits a day that never seems to match your sales.

A simple solution for a complicated problem

Having a complicated problem can be easily solved with a simple solution: you can hire an e-commerce accounting expert to set up an integration between your shopping cart and Xero system.

By hiring an e-commerce accounting expert, you can put an end to all the re-keying, re-entering, endless matching, and excessive merchant fees from various, unsynced accounting channels.

Here are a few ways that an e-commerce accounting expert can help you by syncing your Xero system and shopping cart:

A proper overview of your e-commerce’s financials

With your e-commerce growing more rapidly than ever, the number of significant business decisions that you’ll have to make will inevitably grow. When that happens, it entails the need for a proper view of your e-commerce’s financials. If you have a messy back-end and unsynced e-commerce accounting streams of data, however, getting an accurate picture of your business’s financials can be impossible.

Through the help of an e-commerce accountant that can sync your Xero system and shopping cart, you can make your business’s numbers accurate again (as opposed to going back to the manual recording). Once the necessary adjustments are in place, you can go back to running your business as optimally as possible again.

Lower costs

Aside from being a headache to deal with every single day, having an unorganized, unsynced e-commerce accounting system can also be immensely costly due to the room for confusion involved. By having an e-commerce accountant work on syncing your business’s Xero system and shopping cart while reeling other parts of the system, you can avoid the unnecessary system-to-system costs with ease.

Final words

While it may be true that an increased influx of customers is an accurate indication of growth, it is also a sign of an impending threat in regards to your e-commerce accounting systems.

If you’re looking for a Xero accountant in Australia, get in touch with us today! We’re happy to help.

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