Don't Sink Your Shopify Sales: Avoid These Common Accounting Mistakes
Ahoy there, mateys! Are you the captain of your Shopify store? Just like a ship out at sea, your business is constantly navigating through waves of customers, suppliers, and expenses. But beware, there are common accounting mistakes that can cause your business to sink like a stone. Don't let your Shopify sales go down with the ship! In this blog, we'll explore the critical accounting mistakes that can cause your business to take on water, and we'll show you how to navigate safely through the choppy seas of e-commerce. So hoist the sails and batten down the hatches - it's time to set a course for smooth sailing with Shopify!
Keep your Ship Afloat By Avoiding These Mistakes
1. The first to avoid mistake is not keeping track of your expenses.
It is easy to focus solely on your revenue and forget about the expenses that come with running a business. Without accurate expense tracking, you will not have a clear picture of your profit margins, and it can be difficult to make informed decisions about your business.
To avoid this mistake, it is important to keep track of all your expenses, from website hosting fees to shipping costs. Use accounting software or hire an accountant to help you stay organized and ensure that you are accurately tracking all expenses.
2. Another common mistake is not reconciling your bank statements.
This means that you are not checking to ensure that the transactions in your bank account match the transactions in your accounting software. If you do not reconcile your bank statements regularly, you may miss errors or fraudulent transactions, which can have serious consequences for your business.
Reconcile your bank statements on a monthly basis. This will help you catch any errors or discrepancies early and ensure that your financial records are accurate.
3. Finally, one of the most common accounting mistakes is not setting aside funds for taxes.
As a business owner, the onus is on you to declare your profits and pay taxes on them. If you do not set aside funds for taxes, you may be hit with a large tax bill at the end of the year, which can be difficult to pay off all at once.
Make sure to set aside a portion of your revenue for taxes each month. This will ensure that you have enough money to pay your taxes when they are due and prevent any unexpected financial strain on your business.
While Shopify is a great platform for selling online, it is important to avoid these common accounting mistakes By tracking your expenses, reconciling your bank statements, and setting aside funds for taxes, you can ensure that your financial records are accurate and make informed decisions about your business. Smooth sailing!
eSenshi is an accounting firm specializing in assisting eCommerce businesses. We provide a variety of services such as Virtual CFO services and Sales Tax Services to assist eCommerce businesses.
Salim is a straight-talking CPA with 30+ years of entrepreneurial and accounting experience. His professional background includes experience as a former Chief Financial Officer and, for the last twenty-five years, as a serial 7-Figure entrepreneur.
Recent Posts
