Are you looking to start your e-commerce business? A solid accounting system can make or break a business, giving access to up-to-the-minute figures on an international scale. The best accounting software for e-commerce 2024 remains Xero, and here’s why.
E-commerce has never been hotter; the combination of COVID aftermath, innovative technology and shopping apps, means that the general public has become increasingly comfortable with the concept of shopping online and using smaller merchants for the first time. This increase in demand has driven accounting systems to up their game too as they fight for their slice of the e-commerce pie.
The big things
Xero ticks all the boxes for accounting in general, as do many of the most popular alternatives. It is MTD compatible for both the VAT and the incoming Personal Tax requirement (2022/23). Since April 2022, it has been mandatory for all VAT-registered businesses to record VAT and submit it via MTD-compatible software.
It feeds in transactions from bank accounts and online payment systems such as PayPal and Stripe. And it is very intuitive and easy to use. Now onto the interesting stuff…
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Built for you
Xero’s online accounting system was built with e-commerce in mind. This single fact makes it the best accounting software for e-commerce in 2023 or years ahead. Xero is at the forefront of changes to e-commerce legislation and even assisted HMRC with MTD rollout. If something is coming down the pipeline that will affect your e-commerce business, Xero will have the tech in place before you even know you need it.
It has highly functional and reactive mobile apps for both iOS and Android, with collective access and real-time data that allows you to gain full visibility and control over your eCommerce business, wherever you are.
The built-in interactive dashboard allows you to quickly access and manage your items, monitor inventory and keep an eye on sales trends, while the project management tools can help you to track expenses, budgets, payments, billable time and more.
Internationally-minded
Xero knows that e-commerce has no borders, so it makes working with multiple currencies as easy as working with GBP. You can set default currencies for vendors and platforms and Xero will do the heavy lifting for you, automatically creating unrealised gains and losses with exchange fluctuations and realising them when transactions are complete.
Works with your platforms
Whether through its inbuilt integrations or its app marketplace, Xero can save you a tangible amount of time by doing the hard work for you. Hook up integrations to your selling platforms, and your payment systems, and simply scan receipts on your phone to have everything end up in the right place on autopilot. Xero seamlessly keeps track of your business accounts and numbers using cloud-based storage software.
Some of our favourite integrations:
BookKeep is a new alternative to A2X and we will be covering it in more detail soon.
Global access to your data
Xero is available on iOS, Android, Mac, and Windows, so you can take it with you wherever you go. Additionally, the real-time updates mean your e-commerce accountant has access to your figures at their fingertips whenever they need it, which means no more meetings and phone call relays to get your accounts sorted!
As an increased number of businesses allow employees to work from home, having flexible access to your business accounts is now a major factor. With Xero, you can manage your business accounts from anywhere in the world at any time with internet access.
Robust cash flow forecasting
With the complexities of international VAT and seller fees, staying on top of your cash flow is an essential part of tending to your e-commerce business. Xero always supported cash flow forecasting through integrations, but in 2020, they rolled out a user-friendly cash flow tool directly into the dashboard. Of course, if you want more detail, you are welcome to integrate with Float, a cash flow-specific app.
Having an accurate and updated cash flow analysis is crucial for business success. Your cash flow allows you to know whether you can afford to take certain financial risks and forecast the future of your business. Xero accounting app ensures your cash flow can be viewed in real-time to make decision-making easier.
The best bit
The best e-commerce accounting software doesn’t have to be the dearest. Xero subscriptions start at just £15 per month or are included in your monthly subscription when you sign up for our e-commerce accounting services.
Will you help me set up Xero?
Our team are happy to help you set up Xero, whether it is your first accounting system, or you are looking to convert your existing accounts. We’ll also recommend the right integrations for your e-commerce business so you can hit the ground running.
Next Steps
If you are considering Xero as your e-commerce accounting system, please heed our advice. It is the best accounting software for e-commerce this year and every year. If you would like help converting to Xero or making the most of your existing subscription, please get in touch with our team.
Why choose Unicorn Accounting?
At Unicorn Accounting we are e-commerce accountants who help make your online business a growing success. We offer e-commerce accounting advice, financial management, bookkeeping, cash flow statement, and tax filing services to support and scale your business.
Our team of accountants and Xero-certified advisors have experience working with both small start-ups and family-run online stores to large-scale, international retail and e-commerce brands.
If you’ve got an online store, we have the best solution for you. Providing you with a financial arm to your business through our sector experience, and skills with innovative technologies. To see how we can help you maximise the scalability of your e-commerce brand all year round, get in touch with Unicorn Accounting today.
Related articles
https://unicornaccounting.co.uk/blog/how-to-use-syft-for-xero-e-commerce-reporting-integration/
https://unicornaccounting.co.uk/blog/how-to-automate-your-e-commerce-business/
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Breakout E-commerce accountants and Xero specialists to supercharge your UK online business growth.
