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January 4, 2021January 4, 2021

How can an Accountant use Ecommerce to Sell Their Services?

Overview

Online platforms have revolutionized the way of doing business, and have had a major positive impact on consumer behavior. Ecommerce stands out in its ability to enhance a better business potential. Different sectors of the economy are exploiting the benefits that come with ecommerce, and accounting is not an exception.

Ecommerce for accountants is good not just to veteran accountants, but to budding accountants too. Again, both start-ups and already established businesses can use ecommerce services for their accounting needs.

This article will guide accountants on how they can make use of ecommerce services in order to sell their services.

Benefits of Ecommerce to an Accountant

One of the greatest challenges that face business owners is how to increase the profitability of the business and at the same time minimize on the cost of running the business. Closely connected to this is the need to embark on viable and sustainable alternatives that are going to stand the test of time. An accountant can make the use of ecommerce in order to boost on sales and profitability.

An accounting firm is a busy office and a busy firm. This is due to the critical nature of the service (almost every company is going to ask for accounting services). If you use ecommerce services, you are going to concentrate on the core mandate of the business. For example, managing of employees takes a lot of time and resources and it is an area that warrants a lot of attention. Thus, through ecommerce, you are going to have more time for your accounting needs.

Through ecommerce data analysis, you are going to understand which sections of your business are promising, and which segments are wanting. Upon deciding this, you can have a three point of action:

-Concentrate on the segment which is performing well, and playing less emphasis on the section which is not performing well

– Dropping the section which is not performing

-Boosting the section which is not performing

Ecommerce heavily relies on digital marketing as well as supply chain. For example, you need to be aware of the returns based on your ad spend. In addition to that, there is a need to evaluate the amount of stock to hold, and the amount to release. At the center of this is the need to ensure that the digital solutions that you choose are compatible to the needs of the accounting business.

You can use ecommerce for accounting in order to navigate the global business environment. For example, if you are a Palm Beach Accountant and are sourcing all your goods from the Chinese market, you may consider establishing an off-shore company in Hong Kong. This is going to help you in two major ways. One, establishing an offshore company will translate to 0 tax. Second, you will not be viewed as unethical because many entrepreneurs do not categorize Hong Kong as a tax haven. What is important is to try to spread your tentacles in a wide geographical area without stretching your resources.

Ecommerce for your accounting needs is going to help you prepare better for the future, work within the allocated budget, and ensure that there is better cash flow management. In addition to that, you are going to achieve a streamlined accounting process and have dedicated resources for your business.

Ecommerce in the accounting department will help you manage and withstand competition from the peers. Withstanding competition does not mean that you lower your prices. The practice of lowering prices is, basically, a race to the bottom and a form of prices wars. Rather than thinking about such an inconsequential strategy, think about how you can enhance the value of your products and services.

Again, the market will also have a cheaper product or service. Therefore, show your online visitors that, in the market, one gets what he or she pays for. Better business can be achieved through the following:

-Increasing the sales conversion rate

-Increasing sales to the site

-Increasing the average order value

Ecommerce options are going to help you manage how you get paid (payment getaway). Common payment getaways include Pay Pal (the most common), Stripe, and Braintree. Different ecommerce businesses will warrant a certain payment getaway. For example, if your business is global, Pay Pal has penetrated to most countries, but not all.

The most important thing in your PayPal get away is to ensure that the data and privacy of the online buyers is safe. With the security threats in the market, this is not easy to achieve, it takes a lot of time and precaution. On your part, it is good to ensure that the right amount reaches you, and in time for that matter. Remember, in ecommerce, you are going to deal with a large amount of transactions, and you have to learn how best to manage them.

How can an Accountant use Ecommerce to Sell Their Services?

Good accounting plays a critical role in evaluating the health of a business. For example, before investors make a decision on investing in you or not, they are going to look at your accounting records and see if interacting with you is worth it. Bad accounting could have harsh consequences on your business. For example, you may find that IRS will want you to explain a number of things concerning your business. Such mistakes will limit future business opportunities.

Having stated that, the following points can help an accountant use Ecommerce to sell their services. To start with, as an accountant, you need to make the right choice of your business entity. The choice of the business entity has far-reaching implications on what you can do and the tax modalities. For example, a sole proprietorship has a different tax modality from a limited liability company. If you are not sure about choosing the right business entity, then seek the services of a business consult who will offer you expert advice. Such decisions should be made early enough in order to avoid problems later,. This is because such mistakes are not easy to correct.

Accountants should have a habit of tracking the business transactions in order to ensure optimal outcomes. This can be done through sales orders, invoices, and receipts. In order to ensure that this is done effectively, automation is a matter of paramount importance. Tracking promotes accountability in doing business and helps in identifying errors which could affect the performance of the business.

Ecommerce in accounting cannot be done without following the pertinent laws and regulations. Failure to follow the law is not only inconsequential but can be expensive to the business. When a business does not follow the prescribed legal procedures, such a business can be trapped in long court cases. Most importantly, the business should ensure that matters of tax are well taken care of.

An accountant can take advantage of states which do not have sales tax. These include New Hampshire, Oregon, Alaska, Delaware, and Montana. However, when one sells in a state with sales tax, there are tax implications. In other words, just because one’s business is based in a state with no sales tax does not mean that one will not pay tax when selling in states where sales tax is paid. The most important thing is to be informed.

An accountant should evaluate if he or she is going to be in need of the help of professionals. The accounting field is wide, and one could be over-whelmed. In such a case, some duties can be carried out by another professional. For example, a book-keeping professional plays a critical role in lessening the work-load that an accountant could face. After all, good accounting starts with good book-keeping.

Tax savings and tax planning is a legal way of reducing the cost of running the business. All you need to do is to stick to what the authorities have prescribed. These include the following:

-Wages

-Office rent

-Utility cost

-Equipment

-Accounting services

It really does not matter what strategy or system that you use. What is important is the ability to identify the right system and strategy through a careful decision making and rational analysis. This is largely based on the needs and preferences of the business. Whatever choices you make, you need to be faithful in order to realize optimal outcomes and wait until you realize positive outcomes.

Any option taken should be within the budget. In many cases, business owners have committed themselves to business choices that they cannot afford. This can be very harmful to business practice. The most prudent thing to do is to make a choice that one can afford. This stretches the resources of the business, and the business may not recover.

Accounting Services and Software

There are several accounting services and software that an accountant can use for ecommerce. To start with, FinancePal ensures that you are stress free when it comes to accounting, pay roll, and book-keeping. FinancePal has partnered with other players in the accounting industry. Such players include quickbooks. FinancePal is an affordable platform for your accounting needs.

Xero Standard Accounting (XSA) is a superior accounting services that lets you keep track of various office tasks such as copying, printing, faxing, and scanning. You need to configure some of your equipment so that you can effectively use accounting codes. Xero accounting software helps you to do everything in one place. In short, there are many opportunities for the use of Xero. You need to contact the company and make a decision on what is best for you.

Closely connected to this is the need to ensure that you can incorporate cloud computing. For instance, quickbooks and xero do use the cloud space. With cloud, you can access data from any device, and in any time. It offers the much-needed scalability which will help the business in the future.

When looking a cloud computing software, then make sure that you have the following in mind:

-The software should be easy to use

-The software should sync with credit cards and bank accounts

-There should be integration with business software that is already in use

-Safety and security is a necessity

The list for accounting services and apps is long. Therefore, you need to be careful about the option that is going to work for you. Word of mouth works very well when you think about options to make. Again, when you peruse through the internet, you can check the reviews from users, and the pros and cons of each option. It is always good to try options which are a bit familiar to you rather than wading in uncharted waters.

Outsourcing

There is an outsourcing option when it comes to ecommerce accounting. The good thing with such agencies is that they have been in the business, and understand the dynamics facing the business. Outsourcing to such an agency is going to save you time. Through this, you can concentrate on other business activities.

marketing with ecommerce for an accounting firm

Towards the Future

The future of ecommerce is bright and optimistic. In the coming years, more and more people are going to start their online search through the use of the internet. Therefore, if you use ecommerce for accounting, you are going to grow your business in leaps and bounds. Therefore, as you plan for the future, think about what scalability can do for you.

Accountants should position themselves towards having a future in the field of ecommerce. After all, some of the ecommerce giants, Amazon for instance, started as simple entrepreneurial start-ups. There is no reason why you cannot achieve the same. What is important is to be patient and strategic in the process of doing business.

Conclusion

Unlike traditional retail service, an ecommerce business has certain challenges that it faces in its operations. As an accountant, you need to be aware of these challenges early enough so that you can prepare yourself early enough and make an informed decision. Overall, an accountant can make use of ecommerce service to his advantage.

October 30, 2020October 30, 2020

How Accountants use Ecommerce to Boost business and Get More Clients

Running a successful business is an exciting venture for any entrepreneur. You may have record sales, but if you can’t manage your cash flow, you may be on a fast track to business failure. But this doesn’t have to be the case. Did you know that accountants can use ecommerce to boost their business and get more clients?

Let’s cover the basics first.

Accounting may look like a boring topic, but it’s a painful necessity. You can’t avoid it if you want your ecommerce business to grow. The concept of ecommerce in accounting involves the use of a digital platform that can be accessed by recording and analyzing all transactions taking place. In this post, we’ll discuss how accountants can use ecommerce to increase or boost their businesses.

To track business cash flow

If you want to know whether your business is making money, you should keep an eye on the cash flows. An accountant can use ecommerce to see what is coming in and getting out of the business. Whether you’ve seen cash flow complications or you’re looking for a new opportunity to grow your business, you should have enough cash at hand.

Because a steady cash flow is critical to the success of any business, an accountant can use ecommerce to buy inventory or make a last-minute deal for a product or service.

Since the concept of ecommerce revolves around buying or selling things over the internet, you can track your cash flow when you sell your products on ecommerce marketplaces.

An accountant will first analyze the sales channels to optimize inventory at any given time. For instance, paying for products with shorter cycles will help to speed cash in, so you can experiment on products that have shorter cycles.

If there’s a delay between the time a customer pays and when the money reflects the bank, then you should figure out when you’ll have money to spend. Ecommerce sellers like amazon offer a free template to track cash. Other tips that can help improve cash flow through ecommerce include:

Avoid technical cash flow statements
Offering monthly payment plan to your customers to guarantee what’s coming in
Don’t pay for goods or services earlier than you have to
Keep a reserve in your bank to take care of unforeseen events

Accountants can gauge their liquidity levels by isolating the accounts payable and receivable. That way, it’s much easier for a business to plan for the future. Generally speaking, accurate cash flows should be evidence-based such that they can help to do future forecasts.

To introduce money-saving solutions

Every accountant wants to focus on solutions that put their capital to the right use. One way accountants can use ecommerce to save money is the automation of tasks. Some of the key operations for any business are:

Task and project management
Customer service and ticketing operations
CRM processes
HR management
Automation of document management

Since accounting revolves around the automation of repetitive tasks, embracing ecommerce can help to save time, improve productivity, keep accurate financial data, secure data storage, and retrieve data easily.

To categorize transactions

When money comes or leaves your business, it has to be recorded. Through a digital accounting portal, you can reliably track all cash flow. For instance, you can automate transactions using top-notch accounting software. This will eliminate the need to work on them manually.

With accounting software, you can set daily or monthly alerts. You can set an interval that suits you best. Whatever you want it to do will depend entirely on the volume of business. If you have a plan in place, you can avoid spending too much or too little.

If you integrate your accounting software with an ecommerce store, you don’t have to log in when performing every transaction. You can also do some reconciliation by ensuring what appears online matches with the account balance. As you do this, the deadlines for the transactions have to be kept.

Maintaining a budget

In any ecommerce business, maintaining a budget is of paramount importance. Think about it – no product is in demand all the year (even the staples). You expect some fluctuations over the year. With this in mind, you should budget some tasks for your clients to make accounting much easier.

Help to count inventory

Inventory refers to the product you sell. An accountant can use ecommerce to figure out the amount of inventory available and when to reorder. Sometimes, the simple task of tracking goods is complicated by the rate of sale (turnover), overhead costs, cost of purchase, etc. To ensure the profitability of your business, you need accurate inventory management. An accountant will know:

When to order
How much to order
How long the stock will take to reach the store

Determining the cost of the inventory doesn’t have to be complicated. It will give an accurate picture of how many units of the inventory you have at a given time. An accountant can use perpetual inventory tracking using automated accounting software. So, every time they add a new product to the inventory, it will automatically update. If your business runs out of inventory, it will affect your ecommerce business success.

With an ecommerce business, you don’t expect the so-called `shrinkage’. This is where part of the inventory is damaged, stolen, or lost. Without a physical store, you expect lower shrinkage.

When businesses start, they may choose an inventory system that best suits their business. But only a few will revisit to see what works and what doesn’t work. Since inventory management is part of the overall accounting process, an accountant will leverage ecommerce to find an ideal inventory system.

Lowering costs

Unlike brick and motor setups, the cost of setting up an ecommerce store tends to be lower. With a physical business, an accountant can use ecommerce to add an online component. This would be better than operating another storefront where one can easily lose money on.

Since an accountant understands the mechanics behind your business, they know the tools to use to supercharge the finances in the business. And because they understand the tax environment, they minimize the taxes and reinvest back into your business.

With ecommerce, you don’t need a physical store, so you’ll save on maintenance, utilities, and any other utilities. One can essentially open an ecommerce business without hiring additional staff. And because you’re not confined in a specific space, there’s no limitation to what you can do. Similarly, if you’re selling ecommerce products, you expect little or no overhead cost.

Will help figure out the breakeven point for your business

Budgeting is an important part of running your ecommerce business. An accountant will not only know what the business made last month but can also make projections of what to expect in the coming months.

While the task of ecommerce is to make a business thrive online, this is something that should be taken seriously. An accountant will help to determine if the turnover of a business is enough to finance its operations. If the revenues are greater than the expenses, then your ecommerce business is heading in the right direction.

Helps to get businesses finances in order

An accountant can use ecommerce to develop an expense tracking method. For instance, he or she can use cloud-based software to track all the expenses automatically. Also, there are dozens of tools that can help you handle bookkeeping. There are two ways to oversee bookkeeping: cash and accrual method.

The accrual method records expenses at the time of the transaction. You can record a payment rather than when it lands on a client’s account. On the other hand, the cash method records revenues as soon as they are received.

An accountant will review the method that works best and what doesn’t work. Of course, the time you spend doing your accounting will determine how much time costs your ecommerce business. Other ways an accountant will keep finances in order include:

Preparing the financial statements
Managing payroll processes
Tax audit
Closing the books at the end of the year

When you choose to work with an accountant, you’ll know how to hand over your financial tasks.

To access financial aid

An accountant can use ecommerce to access financial aid to expand their business. Some businesses usually have a problem accessing capital, but this isn’t a problem if the firm can show that it’s a going concern.

Allows the business to scale up quickly

With ecommerce, you can serve customers in a small space. And as your clients increase, you won’t feel like you’re in a crowded ecommerce space. This means that you can manage your ecommerce business without worrying about the physical aspects.

Helps to track logistics

Any accounting professional will tell you that logistics is key to a successful business. When all operations in your ecommerce business are digitized, you can collect data and crunch the numbers. You’ll not only understand what is selling best, but you’ll also focus on the absolute best.

How an accountant can use ecommerce to get more clients

If you want to make more money online, you should acquire most customers and retain the existing ones. So, how can an accountant help?

Getting referrals from clients

As an accountant, you should know that your clients don’t exist exclusively to you – they interact with other ecommerce businesses. So don’t be afraid to ask for referrals. Their recommendation will add value to your accounting firm. It can be helpful if you’re proactive. If you use the wait and see approach, you could be losing an opportunity of connecting with valuable clients.

Also, you can use professional sites like LinkedIn. When you put their testimonials on their website, you’ll be surprised by the kind of recommendations and endorsements you’ll get. Some firms use a structured reward program to provide their existing clients with defined discounts.

Upsell complementary services to your existing clients

Did you know you can boost your ecommerce business by offering additional services to your existing clients? If they use the services of the competitors, you should convince them that you’ll serve them better. Do you get the picture? You can use ecommerce to set up a special meeting or workshop. What additional benefits can you offer to your existing clients? Don’t just talk about your accounting firm, you should explain how you can offer them benefits like:

Accurate and reliable data
Fee benefits
Better service
Improved productivity

Partner with qualified professionals

Think about building alliances with other professionals. Through ecommerce, you can connect with other trusted professionals. Also, when you search online, you’ll find other competitive firms that you share a common goal. You can also partner with other firms that are less specialized in the practice. That way, you get to know some of their clients. Still, through ecommerce, you can partner with firms in different fields like:

Legal
Technology
Recruitment
Investment

In today’s commerce age, networking is an opportunity to meet new prospects. You can even arrange for a virtual meeting with prospects and explain what your ecommerce business offers. Think about what can make your business valuable to prospects.

Engage More Clients with Social Media

As a tech-savvy accountant, you should think about the collective intelligence of your firm. You can read a lot of information using social media platforms. Think about the benefits that you’ll reap if you share what you do with your clients. When selling your firm’s services to get more clients, you should give genuine information.

Any successful accounting firm doesn’t stop marketing. So, as you interact with customers, you should understand their requirements and act to the best of their knowledge. And because of the stiff competition in the market, you want to be sure you get to your clients first.

Through ecommerce, getting to your clients is often quicker. When clients send emails, you can capture important information. For example, if you’re promoting a specific product or service in Palm Beach, a Palm Beach Accountant can get in touch with their prospects with minimal effort. To ensure your business success, you should identify the clients’ challenges and make them a priority.

Conclusion

Ecommerce is arguably one of the expanding industries in the world. Since convenience and money prompt more customers to shop online, the accounting profession shouldn’t be left behind. That being said, accountants should be aware of their business strategies and how the internet fits in their company’s success. In any growing business, success is determined by hiring the right people. An accountant can leverage ecommerce to help the business thrive in the digital arena.