Electronic Commerce: Otherwise known as ‘E-commerce’- a term for any type of business or commercial transaction that involves the transfer of information across the Internet.
The world of E-commerce is almost as dense and complex as the effect that it has had on society, with investors and business owners everywhere continuing to ride the relatively recent wave that this phenomenon has produced within the Global Monetary system. Driven by the hegemonic forces of the Internet and digital technologies, E-commerce has fundamentally altered how people conduct business and is undoubtedly only going to continue to do so as the 00s wear on. Despite the incredible transformations that this electronic sensation has created, there are certain facets of business that remain intact- accounting being a key one of them.
At Accounting Solutions Ltd. we try to remain as steadfast in our vision of a technologically enhanced system of accounting as possible, and utilize a number of software applications that we believe should be at the forefront of the E-commerce wave.
Since we continue to serve the best interests of small business owners and taxpayers in the Chicago area, we are happy to share one of our most highly recommended pieces of software: QuickBooks. Using QuickBooks, budding entrepreneurs will be able to take advantage of a quick and efficient E-commerce system that will inevitably make their lives easier… at least most of the time. In our past experiences of showing our customers this system, we have run into a number of frequently asked questions that we feel could be answered concisely through our blog. If you are a small business owner looking to take accounting matters into your own hands, then say no more, just look into getting QuickBooks set up and read on below….
Which Version Of QuickBooks Should I Choose?
When actively choosing which Accounting Software is going to benefit your organization the most, there are a number of factors to consider. For one, the digital medium that you choose to utilize for your bookkeeping is an important thing to keep in mind. If you have a Mac, we recommend you start with QuickBooks Mac. If you have a number of integrated, non-static devices and want to take advantage of cloud technology, then QuickBooks Online is the right choice for you.
Beyond these basic decisions there are a variety of options in regards of which versions of the software you should implement. These are all available through the QuickBooks website (https://intuit.me/2CulVM8) and vary depending on the size and scope of your business. Do you have a large enterprise and want to enable flexibility across multiple users? Well, the Enterprise 18.0 may be the one for you. Have a start up that perhaps only utilizes one or two employees to watch the books? That is where the Pro 2018 steps in. In addition to some great online resources, QuickBooks also provides advisors based off your area who are more than happy to answer your questions.
How Do I Ensure Accuracy With My Financial Data?
One of the key features of the software program revolves around the Chart of Accounts and Item List. When setting up the electronic foundations for the financial component of your business, don’t forget to ensure accuracy of information by following the steps below:
1.) Before you start downloading orders from your clients into the QuickBooks software, make sure that the parameters of your Income Accounts are defined. If you are a vendor that specializes in a variety of products and services, you can create sub-accounts for the main sales account that can differentiate between these entities. Premier or Enterprise classes allow product sales to be separated directly by type.
2.) In addition to being able to separate products by type, you are also able to break apart the different costs of the items/services themselves and apply them to each individual item. Another great feature: you are able to add related costs such as shipping fees into these sub-accounts.
3.) As an Accounting Firm, we always remind our clients to keep an eye out for sales taxes. Make sure that when calculating sales tax using QuickBooks that you are following the most up-to-date standards in order to ensure accuracy of reporting. Sales tax differs state to state so definitely consider seeking advice from a CPA prior to fully implementing your software setup.
Should Customer Information Be Used As Part Of QuickBooks?
Sure, QuickBooks makes a phenomenal piece of accounting software. What it is not, however, is a CRM (Customer Relationship Management) system. While you do have the option to input customer names into the system, we generally advise against it as even the slightest typo can lead to multiple records being created, something which may underhandedly alter your overall KPIs.
What Is The Difference Between Sales Orders, Invoices, and Sales Receipts?
Each of these options is tailored towards different increments of your overall sales process. Sales orders are used to track orders that have been received but not shipped. Invoices are not used to record direct payments, but rather indicate the sale of an item to a customer or client. Finally, sales receipts fulfil both functions by recording both the sale and the payment. If you are looking for the easiest way to keep track of your e-commerce sales, we generally recommend the latter.
In the current state of affairs, E-commerce is an unstoppable engine that has upended the structures of traditional businesses. With such unlimited potential, we are thankful that simple applications such as QuickBooks exist as a way of easing entrepreneurs through its somewhat daunting gates. If you want to learn more about how QuickBooks can benefit your business, then Chicago’s finest CPAs at Accounting Solutions Ltd. are just a phone call (or a couple keystrokes) away.