The world of e-commerce is constantly evolving, and with the increasing reliance on technology, it’s no surprise that accounting software has become an essential tool for businesses in this space.
And as a business owner, managing your finances is crucial to your success, but it can also be a tedious, stressful process. Don’t worry, you’re not alone. And that’s why you’ll want to bookmark this guide.
Now we are going to highlight the top seven accounting software features that most e-commerce businesses overlook. By the end of this article, you’ll better understand how to use your accounting software to its fullest potential to streamline your financial management.
We’ll cover everything from inventory tracking to expense management, giving you the insight you need to make informed decisions and ensure success of your e-commerce business.
So, whether you’re a seasoned e-commerce professional or simply ready to get your feet wet, discover the top seven accounting software features you may have overlooked.
Let’s dive into your accounting software.
Why is accounting software important for e-commerce?
Efficiency is a recipe for success in today’s fast-paced and highly competitive e-commerce landscape. And one area where efficiency can significantly impact your bottom line is financial management. That’s where accounting software comes in.
The importance of having the right accounting software for e-commerce businesses is hard to underestimate. The ability to integrate with other business tools, such as inventory management, shipping, and payment processing systems, is crucial for streamlining operations and maximizing efficiency. By using comprehensive accounting software, companies can focus on growing their businesses instead of spending countless hours on manual data entry and reconciliation. Accounting software is essential for e-commerce businesses, as it helps automate tedious tasks connected with managing finances, freeing up valuable time and resources.
Let’s break down the intricacies even further.
E-commerce businesses often rely on multiple platforms and tools for day-to-day operations. Accounting software that integrates with your existing tech stack can streamline the data flow, reducing the risk of errors and saving time on manual data entry.
Real-time financial reporting
In the dynamic world of e-commerce, having access to real-time financial data is crucial for making quick, informed decisions.
Accurate inventory tracking
The right accounting software can help you accurately track your inventory and automatically update stock levels. That way, you have the right products in the right quantities, minimizing stockouts and overstock situations.
Automated invoicing and payment processing
Efficient invoicing and payment processing are essential for maintaining healthy cash flow. Accounting software can automate these processes, reducing the time it takes to generate invoices, process payments, and reconcile transactions.
E-commerce businesses often face complex tax requirements due to the global nature of online sales. Accounting software can help you stay compliant by calculating and tracking sales tax, VAT, and other tax obligations, making tax filing and reporting to your accountant easier and more accurate.
As your e-commerce business grows, so will your financial management needs. Investing in accounting software that can scale your business guarantees that you can continue to benefit from streamlined financial management, even as your operations become more complex.
And there you have it. A proper accounting system is an indispensable tool for e-commerce businesses to streamline financial management.
The best part? It enables e-commerce entrepreneurs to focus on what matters most: growing their business and staying ahead of the competition.
7 must-have accounting software features for e-commerce businesses
So, are you using your account software features to the fullest? Let’s find out.
1. Automated data entry and synchronization
Time is of the essence. It’s a non-renewable resource. Any opportunity to save time and reduce errors can give your online store a competitive advantage. And one such opportunity lies in automating data entry and synchronization within your accounting software.
Manual data entry can be time-consuming and prone to human errors, leading to inaccurate financial records, missed opportunities, and costly mistakes.
Why work harder when you could work smarter? Automated data entry and synchronization streamline this process by automatically importing and updating financial data from your various business tools and platforms.
For example, when you sell a sweatshirt on your e-commerce platform, your accounting software can automatically create an invoice, update inventory levels, and record transactions in your general ledger.
This streamlined process removes the need for manual input, reducing the chances of errors and freeing up time for more strategic tasks. Sounds idyllic, right?
These automated accounting software features also make collaboration and cloud storage a breeze, an important aspect for all work-from-home teams in the e-commerce industry.
And speaking of remote teams, most e-commerce businesses may overlook the benefits of using Citrix or its alternatives to achieve this streamlined workflow across global borders.
Citrix is a popular platform that allows users to access applications and data from anywhere, but it can be expensive and complex to set up and maintain. So by using a Citrix alternative, you can enjoy the benefits of cloud-based accounting software functionality without the hassle and expense of managing a Citrix infrastructure.
It’s a win-win solution. You save time and money. And your accounting team members can add value to your business from anywhere in the world.
2. Accounting software with integrated payment gateways
Offering customers a smooth and secure checkout experience reduces shopping cart abandonment rates, boosts conversions, and builds trust.
One key aspect of providing this top-notch customer experience is the ability to process payments efficiently and securely. And that’s where integrated payment gateways come into play.
An integrated payment gateway allows customers to complete transactions on your website without jumping to a third-party processor. It might not seem like a big deal to you, but it reduces the friction in the checkout process and helps maintain a consistent brand experience.
Security is also a major concern for online shoppers, and integrating a reputable payment gateway can help put customers at ease. These gateways use advanced encryption and security functions to protect sensitive financial information, reducing the risk of fraud and data breaches.
Integrated payment gateways can speed up payment processing time, improving cash flow and reducing the time it takes for funds to appear in your business account.
With so many moving parts, a fast and efficient cash flow management process can make or break your business. Now you can purchase more inventory, pay down accounts payable, and keep the lights on in your warehouse.
3. Multi-currency capabilities
One of the best parts about running an e-commerce business is that you can operate globally. That means you could be accepting payments from your customers in Florida one day and paying the suppliers in Thailand the next.
So when you’re dealing with global customers and suppliers, it’s crucial to have software that supports multiple currencies.
With a multi-currency capabilities feature, your business can:
- Automatically convert transactions from one currency to another
- Tack transactions and balances in multiple currencies
- Accept payments from anywhere in the world
One of the main functions of accounting software with multi-currency capabilities is that it helps avoid costly mistakes when dealing with foreign currencies. So say goodbye to errors in conversion rates or misinterpreting the tax implications of transactions in different currencies, which can lead to significant losses.
On top of that, having multi-currency capabilities helps you make better decisions about your pricing and shipping strategies. With this extra data in your back pocket, you can determine the optimal prices for products in different markets and make smarter shipping decisions based on accurate currency conversion rates.
4. Accounts receivable management
One of the most frustrating things about running an online store is that, at some point or another, you’re likely to face delays in receiving customer payments, which can affect your cash flow.
So staying up-to-date on your accounts receivable should never be an afterthought. Thankfully, most accounting software features include some type of accounts receivable management.
And with this feature in your accounting software pack, you can manage your invoicing and payment processes more efficiently, helping you improve your cash flow and get paid on time.
Here are some more benefits of using accounts receivable management for your e-commerce business:
- Improve customer relationships by preventing disputes over payment deadlines.
- Reduce the risk of bad debt by identifying customers with a history of late payments and offering incentives to pay early or reduce the risk of non-payment.
- Avoid cash flow problems by allowing you to track overdue payments and take the necessary actions to collect them.
- Streamline your payment processes by automating invoice generation and payment reminders.
And don’t forget about your accounts payable. You’ll want a dual feature to manage accounts payable and receivable to achieve the perfect balance.
5. Customizable reporting features
Custom reports are an accounting team’s best friend. And here’s why:
- See a clear picture of the business’s financial health. Think of it as a health check-up for your business. Customizable reports can provide a detailed view of your cash flow, revenue, expenses, inventory, etc., so you can make solid financial decisions and plan for the future.
- Identify trends and patterns. Learn which products are selling like hotcakes, which customers are the most profitable, and when you made the most sales.
- Stay on top of your tax liabilities. Let’s face it, dealing with taxes can be a headache. But customizable reports can help you track sales, income, and other taxes to avoid any nasty surprises come tax season. Your accountant will be happy.
So when choosing bookkeeping software, look for one with customizable reporting features. Trust us, your business (and your sanity) will thank you.
6. The inventory management feature
Knowing how much inventory to keep in stock is a constant battle. Too little, and you risk running out of stock and losing sales. Too much, and you tie up valuable capital and storage space. But with effective inventory management, you can strike the perfect balance and keep your business running smoothly.
And did you know that there are accounting software features that can help you achieve this balance? It’s going to save you a whole lot of headaches, and here’s why.
Let’s say you sell purses online. You have 100 purses in stock and sell an average of 10 daily. If you aren’t paying attention and don’t manage your inventory correctly, you might not realize that you’re running low on stock until it’s too late.
With the proper inventory management functionality, you can set a minimum threshold for how many purses you want in stock at all times, say 20. You’ll receive a notification to reorder more when your inventory reaches this threshold. Doing so makes sure you have enough stock to meet demand and helps you avoid lost sales and dissatisfied customers.
You can adjust your inventory levels based on seasonal or promotional trends, capitalize on demand spikes, and avoid excess inventory during slower periods.
Still not convinced of the power of this accounting software feature? Let’s review some more benefits.
Inventory management helps to reduce costs
Managing your inventory can help reduce costs associated with holding too much inventory. Overstocking can tie up valuable capital and result in unnecessary storage and handling expenses. Conversely, understocking can lead to lost sales and expensive rush orders.
Inventory management improves cash flow
Effective inventory management can help you optimize cash flow by reducing the amount of capital tied up in inventory, learn how to improve inventory turnover, reduce lead times, and minimize the amount of excess inventory.
Inventory management enhances forecasting
By understanding your inventory levels and trends, you can better forecast demand and plan your purchasing and production accordingly. Say goodbye to stockouts, overstocking, and unnecessary expenses.
Inventory management increases efficiency
Inventory management can help you streamline your operations and reduce the time and resources required to manage your inventory. Now you have free time for other important business activities like marketing and sales.
Inventory management can be a juggling act. But with the help of technology, it’s now easier than ever. So use this account software feature to your advantage. You won’t regret it. And neither will your bottom line.
7. Enhanced security for all your e-commerce accounts receivable data
Did you know that small to medium-sized businesses are the target of more than 50% of all cyber-attacks?
So the last thing you want is to risk losing valuable financial information to cybercriminals. That’s why you should never forget to look for enhanced security protocols when cross-referencing accounting software features.
For instance, Synder is an accounting system that protects the security of all your e-commerce accounting data at a high level. Here are some of the ways Synder maintains the security of your accounts receivable data:
- Adherence to the industry encryption standards
- Compliance with GDPR and CCPA
- SOC2 compliance
- Independent PEN testing
Find the best accounting system to grow your business
Uncovering and applying the often-overlooked features in accounting software can make a world of difference for e-commerce businesses.
From automated data entry and synchronization to integrated payment gateways, these top features can save time, reduce errors, and streamline your financial management processes, contributing to your business’s long-term growth and success.
We urge all business owners and entrepreneurs to carefully consider these features when choosing an accounting system, as they can greatly enhance efficiency and ease the burdens of financial management.
But if you’re struggling to find accounting software that fits the bill, we recommend Synder. It’s a powerful accounting solution designed specifically for e-commerce businesses, offering seamless integrations and advanced accounting features tailored to your unique needs.
Plus, you can sign up for a free trial to put these features to the test. And the best part? No credit card is required and you can cancel at any time.
So, don’t hesitate. Start exploring these features and unlock the full potential of your accounting software today to propel your business to new heights.