Nathan Hirsch What you need to know about Bookkeeping for eCommerce

We started a business not knowing what we are doing and we’re fed a lot of misleading information from other “Professionals” that ultimately could have caused a lot of issues long term. Nathan and his team are phenomenal to work with. We run a robust and somewhat complicated ecom business. We struggled to find the right bookkeepers that truly understood our business and could actually be a value add to our decision making. Ecombalance has been all of that and much more.

• We struggled to find the right bookkeepers that truly understood our business and could actually be a value add to our decision making.
• Probably because it serves a fundamental client need.
• One, it’s more expensive than just hiring a separate bookkeeper.
• “Cafés can run up costs very quickly – if you have three unprofitable weeks, you’re sunk.

Those are the top two accounting software. Trying to do accrual in Excel or doing bookkeeping in Excel or anything like that is not going to go well for you. If you use something like QuickBooks and you know what you’re doing as a bookkeeper, QuickBooks allows you to show your books in accrual in cash. They also give their perspectives on the eCommerce industry in 2022. This is a great episode for eCommerce sellers who want to build and scale a trustworthy business.

eComBalance are accounting / bookkeeping rockstars!

You should be focused on sales, marketing, and expansion. Second of all, most entrepreneurs are not good at bookkeeping and they have to pay to get their books cleaned up down the line. Cleaning up books is usually way more expensive than hiring someone to do it correctly from day one. We couldn’t have sold it to better people.

We prefer QuickBooks because our bookkeepers have more experience with QuickBooks. We’ve used Xero with other companies. If you’re already in QuickBooks or you don’t have books and we’re setting up for the first time, we’ll use QuickBooks. For some reason you love Xero or if you’re already set up in Xero, we’re not going to migrate everything over to QuickBooks.

Nathan Hirsch

We highly recommend EcomBalance to anyone looking to get their financial books in order and better understand their business’s finances. If you have all three of those working together, that’s how you can take off as a business. If you’re small, let’s say you’re under $1 million, you probably need a CPA and a bookkeeping service.

• The main thing is helping you make great business decisions every single month, which is what’s going to allow you to not only take bookkeeping off your plate but scale your business.
• Personally I was talking about qualified bookkeepers as opposed to unqualified.
• What you want as an entrepreneur is an automatic system where it’s like, “It’s the first of the month.
• That $10,000 conference sponsorship can turn into a multiple of four so that could be an extra $40,000 that you sell it from.

Those are the only two tools that we’ll use. If you’re doing an accrual basis, you’re going to have a much more accurate picture of what you’re making every single month even though that $50,000 was charged in January. Let’s say you’re selling retail and you’re on Net 90 where Walmart doesn’t pay you for three months, accrual lets you factor that in.

Company Setup

We have accountants who put clients our way as they do not want to do the bookkeeping or the management account role. This works really well if there is a trust between parties and both parties have set up their profit structure to make a profit. EcomBalance has been an invaluable resource for our business, EcomGraduates. Before working with them, we struggled to understand the financial health of our business and create accurate budgets. But with their bookkeeping service, we now have a clear picture of our financial situation and have been able to make better financial decisions. In addition, their network of professionals has helped us find an amazing accountant and financial advisor.

Our goal is to provide information where you don’t need a meeting with us every single month to understand your books. In my opinion, if you have to meet with us every single month to understand what we’re sending you, we’re not doing a good job on our side. We want to put things in a clear and easy way with a nice chart of accounts where you understand your business. If you have questions or you want to set up a meeting or whatever it is, we’re happy to accommodate that. We say the 15th but our goal is to get it out earlier. By the 15th, we provide an income statement, balance sheet, and cashflow along with findings and recommendations.

As I expected, as far as I could see, everyone in the room put up their hand. I then asked them to keep their hands raised if they provided a significant volume of such services to clients for whom they did NOT also provide a year-end accounts and tax compliance service. The trend is that accountants https://grindsuccess.com/bookkeeping-for-startups/ now realise they may have to do some bookkeeping. I know from experience you earn the higher amount when it is you that has completed the books the client knows and is happy to pay for that personal service. Bookkeeping is bookkeeping, generally accepted accounting principles.

• Since then, we’ve been trying to figure out how we stay in the eCommerce space and what we do differently.
• We have a team that handles non-eCommerce clients.
• Until they reach a certain size, small firms are not able to afford £30,000-£50,000 a year for a trained accountant to handle their management and financial reporting.
• That offering virtual FD services is important to SMEs is beyond dispute but the first criteria for most of them has to be that the online service is simple, straightforward and comprehensive.
• Ecombalance has played a huge role in helping us to straighten out our business financials.

You’re no stranger in this virtual studio we call 2X eCommerce. Last time, you were all about freelancers. There was a platform that you successfully exited called FreeUp. Tell bookkeeping for startups us about all that has transpired between the last time you were here and now. Turn transactions into relationships and experience seamless subscription commerce with Recharge.

How to Work with Ecommerce Bookkeeping Services with Nathan Hirsch of EcomBalance

For the most part, our expectation is you get the income statement, cashflow, and balance sheet every single month in a clear way for you to understand along with findings and recommendations. You can have an internal meeting with your business partner, your husband, your wife, your team leaders, or whoever it is to understand your business and to make business decisions. I’m not necessarily here to teach people bookkeeping accounting. First of all, you should be using QuickBooks or Xero.

If you spent $50,000 in inventory today, if you do cash basis, that’s going to show up in your books right now even though you might be selling that $50,000 over the next three months. Nathan Hirsch is a lifelong entrepreneur and currently the CEO of EcomBalance and Outsource School. Nathan is best known for co-founding FreeUp.net in 2015 with an initial $5,000 investment, scaling it to $12 million in yearly revenue, and having it acquired in 2019. Today, he leads EcomBalance, an online bookkeeping service for eCommerce and digital businesses, and Outsource School, a membership teaching business owners how to hire effectively online.