As an Amazon Seller, you are well aware of the benefits of automation, so how can you streamline and automate your accounts? While you will always need to cast a glance from time to time, we recommend A2X for easy hands-off accounting.
The era of the online marketplace is still in full swing with more and more businesses turning to Amazon, amongst others, to offer their products to a global audience. It’s a wonderful time to be selling but managing to successfully account for your costs and expenses can be a timely business. A2X is a convenient tool that will minimise the time you spend accounting and bring clarity you’ve only dreamed of.
How can e-commerce stores benefit from accounting software like A2X?
Specialised e-commerce accounting software helps e-commerce store owners automate transactions, streamline financial management, and save money. But not only that, but e-commerce business owners can also save time and reduce the likelihood of errors by reducing manual input and repetitive tasks.
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Accounting software plays a critical role in helping e-commerce sores manage finances efficiently and effectively. Consequently, this can also help to improve operational efficiency and inform important business decision making.
This blog will explain how e-commerce entrepreneurs can utilise A2X features and functions on Amazon.
What is A2X?
A2X is an e-commerce accounting software for sellers that helps businesses keep track of their finances. The software automates e-commerce for Shoptify, Amazon, Etsy, eBay, and BigCommerce stores.
The Cash vs Accrual Conundrum
Businesses that are new to Amazon and its kin are prone to take the easy route when starting. If your business is still maturing using a cash basis can seem like the least time-intensive route but even in the medium-term, you will run into problems. Trying to compare KPIs and figures year on year or even month on month is impossible if you are recording income as it arrives. Keeping an accurate record of stock and expenses also becomes a dream. By using an accrual basis, you have true figures to help you see your business’s growth in real terms.
There’s one thing in life we can guarantee – the tax people will show up once a year asking for their dues. When they start knocking having an accurate recording of all your fees and expenses to hand will ensure you don’t end up misreporting. Have some clear figures ready to go and you’ll make it one yearly task that you don’t have to dread.
Using A2X software automates your e-commerce accounting for you. When you integrate A2X with your Amazon store, it will quickly and easily import financial data into readable reports and summaries.
Giving Amazon Sellers A Helping Hand
A2X makes accrual accounting simple. Every fortnight all your selling activity is logged in a settlement file. Every time Amazon creates a new settlement file it will be automatically uploaded to the system in its entirety. Separate transactions will be created for every fee, expense and income and these will then be split into the appropriate month even if the payment period straddles two months. It’s a precise method that requires no man hours to complete.
Automation is Your Friend
If you are using Xero for your accounts, you can quickly and easily integrate your profile so A2X will upload all transactions right to your ledger. Once set up, the system will quietly work away in the cloud linking your Amazon Seller account straight through to your ledger seamlessly while you can get on with more pressing matters.
This ensures that all of your financial data and history are correctly stored and reported for when it is time to submit your reports to the tax man.
Stock Control – An Added Bonus
One of the benefits, and difficulties, of Amazon Marketplace, is the global network of fulfilment centres. Once your business becomes international it can become a hassle to know where your stock levels lie in any given locale. A2X will track the data directly from Amazon and be able to give you a clear snapshot of stock levels no matter how global your Amazon business becomes. Automated monthly stock valuations are at your fingertips whenever you need them.
Viewing your stock in real-time can help a business not to over or under-buy stock. Save on storage fees and keep your cash flow balanced by only buying the stock you need when you need it.
The Cost of Your Time is Precious
The one thing we don’t have enough of is time. A2X scales with your business and they’re so convinced it’ll be a time-saver (as are we!) that they offer a risk-free guarantee. Very few people like to spend their days tied to their accounts. While that’s definitely our cup of tea you’ll be better off adding an automated accounting tool to your Amazon Seller software and spending more time on the things you love. By freeing up your time, you can focus on growing a business you’re passionate about without the worry of accounting admin becoming too much.
Next steps
So, we’ve said our piece. Now it’s up to you to see the real impact this tool can make in your business.
If you would like more information about the top accounting tools available for e-commerce websites, get in touch with us today.
Why choose Unicorn Accounting?
Ensure you keep on top of your finances and tax obligations by outsourcing to an accountant. This means that you don’t need to worry about your end of year accounts, payroll, or bookkeeping requirements.
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. Or click here to get a free quote.
Disclaimer: This is not an advertisement for A2X, we just recommend it to our clients who have had great success with it.
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