Accounting for eCommerce Platforms

Flashkicks Ltd

The client: A wholesaler to retail (B2B) taking orders from clients at retail outlets when dropping off goods.

The problem: This was a paper process and rather laborious and prone to error and duplication.

The process: 

• Initial paper orders taken at retailers premises whilst delivering
• Orders are taken back to the accounts department for entering into invoice format
• Invoice raised manually to accompany the delivery later that week
• On delivery, further paper orders made and cycle repeats

As a result of this complicated process, orders were not processed until the next day and were prone to duplication, omissions and errors. This put limitations on those who could carry out processes, with a limited number of people able to operate the finance system.

With customer balances only known by the accounts department, procuring money from customers could be a slow process.

These kinds of processes cause several issues to businesses and prevent them from growing.

The solution:

To help the business move forward and enable more efficient accounting, we moved the client to Xero to enable cloud-based bookkeeping – giving multiple people access and making it possible to manage accounts from any location.

We set up eCommerce software through Shopify for the wholesaler, enabling all products and stock to be entered onto the system using a tablet. Orders are then submitted via tablets to the accounts department and to the stock team immediately, ready to take immediate action.

The result:

Key results for the client included:

• Orders being prepared and carried out quicker and more accurately
• Balances of retailers outstanding available at fingertips and handled quicker
• Systemic process, allowing the client to use the system for ordering, invoicing and delivery work
• Growth in sales
• Removal of non-profitable retailers
• Less time spent running the business and more time working on the business to enable future growth.

Lacey wholesales

The client: An Amazon seller (B2C)

The problem: The client had started selling items via Amazon as a way of making money whilst remaining employed. As the business became a success, the owner left their full-time employment to run the business. Eventually, the finances became difficult to manage as it was difficult to assess whether or not the business was making money due to the turnover.

The client’s existing accountants were not prepared to use integrated cloud accounting software to help run the business, leading them to move to us at Together Accounting.

The solution: 

To make the business easier to manage, we immediately transferred the client to Xero. This meant sales were fed directly to Xero accounting software, with a direct link for the transactions using A2X Accounting. We also established a precise stock management system which enabled the client to have a real-time view of stock.

The result:

• The client now had a better understanding of performance, as well as being able to access the information in real-time.
• The client saved time in dealing with the finances as the transactions were automatically added to the accounting software, enabling them to concentrate on growing the business.
• The client now has an understanding of their stock value, the performance of sales, leading to informed decisions as to what’s selling well or what’s selling poorly. This ensured improved critical analysis in relation to stock decisions.
• Better business insights to ensure the client was better informed to make critical decisions.
• We were able to give them necessary insight into their business to enable them to make informed growth and stock investment decisions
• Stock-lines removed or changed
• New more profitable lines introduced
• Added profit growth