Tyler Johnson’s Post

📣 Customer Showcase: Finaloop, an accounting and software solution for ecommerce companies. 🔎 Finaloop connects to all the business apps an ecommerce company uses and reconciles and categorises the accounting and financial data using our Merchant Enrichment and Categorization products to automate bookkeeping. Our core enrichment capability enables Finaloop to identify transactions such as COGS, merchant fees, financing costs, refunds and chargebacks. ⭐ Once data has been cleaned and categorized, Finaloop can map our categories to accounting conventions to build fully reconciled financial statements in real-time. 🤖 By providing companies with accurate, real-time data and a comprehensive financial overview of their businesses, ecommerce business owners are able to make better decisions to grow their business. ⁠Ecommerce is a fast moving segment and traditional accounting and bookkeeping solutions are not designed for this new industry. But using Ntropy to enrich financial data, Finaloop is able to build a new solution specific for ecommerce owners and we are excited to partner with them. "𝘖𝘶𝘳 𝘦𝘹𝘱𝘦𝘳𝘪𝘦𝘯𝘤𝘦 𝘸𝘪𝘵𝘩 𝘕𝘵𝘳𝘰𝘱𝘺 𝘩𝘢𝘴 𝘣𝘦𝘦𝘯 𝘨𝘳𝘦𝘢𝘵. 𝘞𝘦 𝘸𝘦𝘳𝘦 𝘢𝘣𝘭𝘦 𝘵𝘰 𝘲𝘶𝘪𝘤𝘬𝘭𝘺 𝘪𝘯𝘵𝘦𝘨𝘳𝘢𝘵𝘦 𝘪𝘯 𝘢 𝘮𝘢𝘵𝘵𝘦𝘳 𝘰𝘧 𝘥𝘢𝘺𝘴 𝘸𝘩𝘪𝘤𝘩 𝘨𝘳𝘦𝘢𝘵𝘭𝘺 𝘩𝘦𝘭𝘱𝘦𝘥 𝘢𝘤𝘤𝘦𝘭𝘦𝘳𝘢𝘵𝘦 𝘰𝘶𝘳 𝘴𝘱𝘦𝘦𝘥 𝘵𝘰 𝘮𝘢𝘳𝘬𝘦𝘵. ⁠ ⁠𝘛𝘩𝘦 𝘦𝘯𝘳𝘪𝘤𝘩𝘦𝘥 𝘥𝘢𝘵𝘢 𝘕𝘵𝘳𝘰𝘱𝘺 𝘱𝘳𝘰𝘷𝘪𝘥𝘦𝘴 𝘮𝘦𝘢𝘯𝘴 𝘰𝘶𝘳 𝘤𝘶𝘴𝘵𝘰𝘮𝘦𝘳𝘴 𝘴𝘢𝘷𝘦 𝘩𝘰𝘶𝘳𝘴 𝘦𝘢𝘤𝘩 𝘮𝘰𝘯𝘵𝘩 𝘯𝘰𝘵 𝘩𝘢𝘷𝘪𝘯𝘨 𝘵𝘰 𝘮𝘢𝘯𝘶𝘢𝘭𝘭𝘺 𝘤𝘢𝘵𝘦𝘨𝘰𝘳𝘪𝘻𝘦 𝘵𝘩𝘦𝘪𝘳 𝘣𝘢𝘯𝘬 𝘵𝘳𝘢𝘯𝘴𝘢𝘤𝘵𝘪𝘰𝘯𝘴 𝘴𝘰 𝘵𝘩𝘦𝘺 𝘤𝘢𝘯 𝘤𝘭𝘰𝘴𝘦 𝘵𝘩𝘦𝘪𝘳 𝘣𝘰𝘰𝘬𝘴 𝘲𝘶𝘪𝘤𝘬𝘦𝘳 𝘢𝘯𝘥 𝘧𝘰𝘤𝘶𝘴 𝘰𝘯 𝘵𝘩𝘦𝘪𝘳 𝘣𝘶𝘴𝘪𝘯𝘦𝘴𝘴." Alon Cohen, Product Lead at Finaloop

At NeonPanel, we are dedicated to helping e-commerce businesses streamline their accounting processes. Over the past six months, we've noticed that while precise tracking and calculations are essential, they can sometimes overwhelm our clients. The Challenge The FIFO (First-In, First-Out) method is commonly used for calculating the Cost of Goods Sold (COGS). This method ensures precise cost allocation by tracking individual shipments. However, this precision comes at a cost: it requires detailed tracking and data recording, which can be time-consuming and complex. Traditional FIFO Method: - Accuracy: Highest precision by tracking individual shipments. - Process: Requires matching each landed cost bill to its specific shipment. - Complexity: High, due to detailed tracking and data recording. - Result: Accurate cost allocation but time-consuming and complex to analyze. Our Solution: FIFO Light To simplify this process while maintaining reasonable accuracy, we developed FIFO Light. This method eases the traditional FIFO approach by allowing costs to be linked to larger inventory orders instead of individual shipments. This reduces the complexity of tracking each shipment while still providing consistent cost allocation. FIFO Light Method: - **Accuracy:** Balances simplicity and accuracy. - Process: Connects landed cost bills to either inventory orders or shipments but calculates as if linked only to inventory orders. - Complexity: Lower, simplifying the tracking process. - Result: Smoother COGS calculations, reducing spikes and making management easier. Example Consider purchasing 2000 items at $5 each under Inventory Order (IO) TST0001: - Shipment 1: 1800 items by sea with a $3600 freight cost. - Shipment 2: 200 items by air with a $1200 freight cost. Full FIFO Calculation: - Sea Shipment: ($3600/1800) + $5 = $7 per item. - Air Shipment: ($1200/200) + $5 = $11 per item. FIFO Light Calculation: - Combined: ($3600 + $1200)/2000 + $5 = $7.4 per item. Key Takeaways - Traditional FIFO: Best for businesses that need precise cost allocation and detailed tracking, despite the complexity. - FIFO Light: Ideal for businesses that want to simplify their processes while maintaining reasonable accuracy. By understanding the differences between FIFO and FIFO Light, businesses can choose the method that best fits their operational needs and complexity, ensuring effective inventory management and accurate financial reporting.

At Fiskal we are always on the lookout for innovative tools that can increase efficiency and decrease cost. Today I want to highlight Finaloop.com Finaloop is an e-commerce accounting platform designed specifically for brands looking to automate its bookkeeping and financial reporting. It integrates with major e-commerce platforms (Shopify, WOO) and marketplaces (Amazon, ETSY, Walmart, Ebay, Faire) and provides real time data. Reasons why I like: -Industry specific P&L -Heavy lifting of bookkeeping done via software, more time for valuable work -Consistent and accurate reporting -Intuitive interface I am aware that the inventory module is being further developed and looking forward to some more flexibility on the P&L layouts, specifically contribution margin. Overall this software is a great example of how technology will replace routine accounting tasks, freeing up more time for value added services.

🚀 The future of e-commerce bookkeeping is here! 📈 Explore how automation and AI are revolutionizing bookkeeping processes for e-commerce businesses. This article delves into the latest advancements and how they can streamline operations, enhance accuracy, and free up time for strategic growth. #Ecommerce #Bookkeeping #Automation #ArtificialIntelligence #FinanceTech #BusinessInnovation #FutureOfFinance Read more here: https://lnkd.in/d2jn4D4E

Ecommerce Accounting: A brief complete guide. Ecommerce businesses face unique accounting challenges. Unlike traditional brick-and-mortar stores, ecommerce businesses must deal with online sales, digital marketing, and inventory management. This can make it difficult to keep track of your finances and ensure that you are complying with tax regulations. The Importance of Ecommerce Accounting Good ecommerce accounting is essential for the success of your business. It can help you: Track your income and expenses Make better business decisions Avoid tax penalties Secure funding The Two Main Ecommerce Accounting Methods There are two main methods of accounting for ecommerce businesses: cash basis accounting and accrual basis accounting. Cash basis accounting: This is the simpler of the two methods. With cash basis accounting, you record income when you receive payment and expenses when you pay them. Accrual basis accounting: This method is more complex, but it provides a more accurate picture of your business's financial health. With accrual basis accounting, you record income when it is earned, regardless of when you receive payment, and expenses when they are incurred, regardless of when you pay them. Choosing an Ecommerce Accounting Solution There are several ecommerce accounting solutions available on the market. When choosing a solution, consider your business's needs and budget. Some factors to consider include: The features of the solution The ease of use The cost Customer support. Setting Up Your Chart of Accounts Your chart of accounts is a list of all the accounts that you use to track your income and expenses. It is important to set up your chart of accounts correctly so that you can generate accurate financial reports. The Importance of Financial Reports Financial reports are essential for understanding your business's financial health. They can help you track your progress, identify areas for improvement, and make better business decisions. There are a number of different financial reports that are important for ecommerce businesses, including: Income statement Balance sheet Cash flow statement Conclusion Ecommerce accounting is an important part of running a successful ecommerce business. By following the tips in this guide, you can ensure that your finances are in order and that you are making sound business decisions. For more information or support please contact us at: www.Swift.CPA support@swift.cpa (772) 202-0405

🚀 E-commerce Bookkeeping Revolutionized! 📈 Learn how automation and AI are transforming e-commerce bookkeeping. Discover the latest advancements that streamline operations, enhance accuracy, and save time for strategic growth. #Ecommerce #Bookkeeping #Automation #ArtificialIntelligence #FinanceTech #BusinessInnovation #FutureOfFinance #Elevaracc

Delving into E-commerce Accounting: Unraveling the Unique Challenges E-commerce businesses operate in a dynamic and fast-paced environment, presenting unique accounting challenges that demand tailored solutions. Let's explore how these ventures navigate intricate accounting landscapes, focusing on two key areas: inventory management and online payment processing. 1️⃣ Inventory Management: For e-commerce retailers, maintaining accurate inventory records is paramount to ensuring smooth operations and customer satisfaction. However, managing inventory in an online marketplace comes with its own set of complexities, including tracking stock levels across multiple sales channels, handling returns and exchanges, and accounting for perishable or seasonal goods. E-commerce accounting systems must seamlessly integrate with inventory management software to provide real-time visibility into stock levels, automate replenishment processes, and reconcile inventory discrepancies efficiently. 2️⃣ Online Payment Processing: Online transactions are the lifeblood of e-commerce businesses, but managing payments can pose significant accounting challenges. E-commerce platforms often rely on third-party payment processors, each with its own fee structures, transaction processing times, and reconciliation procedures. Accounting for online sales requires meticulous tracking of revenue streams, transaction fees, chargebacks, and refunds, while ensuring compliance with tax regulations and financial reporting standards. E-commerce accounting solutions must streamline payment reconciliation processes, reconcile bank deposits with sales data, and provide insights into transaction trends and payment performance. By understanding the intricacies of e-commerce accounting, businesses can implement robust accounting systems and practices tailored to their unique needs, enabling them to overcome challenges, optimize financial performance, and drive sustainable growth in the digital marketplace. Let's embrace innovation and best practices in e-commerce accounting to thrive in an ever-evolving landscape! #EcommerceAccounting #FinancialManagement #BusinessSuccess

WHY IS ACCOUNTING IMPORTANT TO ECOMMERCE BUSINESS? Accounting is crucial to ecommerce businesses for several reasons: 1.     Financial Management: Accounting helps in managing the financial aspects of the ecommerce business, including tracking revenues, expenses, assets, and liabilities. This ensures that the business has a clear understanding of its financial health and can make informed decisions. 2.     Tax Compliance: Ecommerce businesses are subject to various tax regulations, including sales tax, income tax, and international taxes if they operate globally. Proper accounting ensures accurate recording and reporting of financial transactions, facilitating compliance with tax laws and regulations. 3.     Budgeting and Planning: By maintaining detailed financial records, ecommerce businesses can develop budgets and forecasts to plan for future growth and expansion. Accounting data provides insights into revenue trends, cost structures, and cash flow projections, helping businesses make strategic decisions. 4.     Investor and Stakeholder Confidence: Investors, lenders, and other stakeholders often require financial statements to assess the performance and viability of an ecommerce business. Accurate accounting demonstrates transparency and reliability, enhancing confidence and trust among stakeholders. 5.     Inventory Management: Many ecommerce businesses deal with physical products and need to manage inventory efficiently. Accounting systems help track inventory levels, monitor stock movement, and analyze inventory costs, ensuring optimal inventory management practices. 6.     Performance Evaluation: Accounting provides metrics and key performance indicators (KPIs) that enable ecommerce businesses to evaluate their performance. Metrics such as profitability ratios, return on investment (ROI), and gross margin help assess the effectiveness of business operations and identify areas for improvement. 7.     Legal Compliance: Proper accounting practices ensure compliance with financial regulations and reporting requirements imposed by government authorities and regulatory bodies. This reduces the risk of legal issues and penalties associated with non-compliance. 8.     Decision Making: Ultimately, accounting data empowers ecommerce business owners and managers to make informed decisions. Whether it's pricing strategies, marketing investments, or expansion plans, having accurate financial information is essential for making sound business decisions. In summary, accounting is indispensable for ecommerce businesses as it provides the foundation for financial management, compliance, planning, and decision-making, ultimately contributing to their success and sustainability C2B SOLUTION & CONSULTANCY Website: www.c2bsolution.com Email: c2bsolution@gmail.com          Contact No: +92 301 8691707

IMPORTANCE OF ACCOUNTING AND BOOKKEEPING IN BUSINESS

Learn how ecommerce accounting helps business owners organize their finances and plan for growth. Ecommerce Accounting: A Beginner’s Guide for 2024 https://lnkd.in/eBPTvCka