Bookkeeping in Ecommerce Made Simple with Siddhartha Havelia and Manvi Arora, Ep #112
Maximizing Ecommerce
· with Siddhartha Havelia and Manvi Arora
· June 24, 2021
· 45 min
Summary
This episode emphasizes the critical need for specialized bookkeeping in ecommerce. It highlights that as an ecommerce business grows and diversifies its sales channels, fundamental bookkeeping practices quickly become insufficient. Ecommerce operators should consider outsourcing to expert bookkeepers who deeply understand the complexities of online retail to accurately track profitability and manage multi-currency transactions effectively.
Key takeaways
Do not rely on basic spreadsheet bookkeeping as your ecommerce business scales or adds more sales channels, as this approach is not sustainable or accurate for complex operations.
Outsource your bookkeeping to specialists who have intimate knowledge of ecommerce financial intricacies, such as multi-currency transactions and platform-specific reporting.
Ensure your bookkeeper can effectively explain financial concepts and profitability insights, not just process transactions, to help you make informed business decisions.
Seek bookkeepers who are recognized within the ecommerce ecosystem, such as those ranked on platforms like the Amazon Service Provider Network, to ensure specialized expertise.
One question I get frequently is about bookkeeping. Starting out you can pull a couple of reports and throw them on a spreadsheet and be ok (probably). As you get bigger and add more channels, your business becomes more complex, and so does the amount of time you have to spend on bookkeeping (especially if you have multiple currencies). I have found that unless you have a passion for accounting and have an intimate knowledge of bookkeeping software, bookkeeping is one of those things you should outsource to someone who know what to do. Oftentimes sellers will work with someone who maybe understands bookkeeping but they don't really understand ecommerce, and then they end up asking me for recommendations. I've used the same bookkeeper for over three years, and my CPA has been happy with their work (and he would definitely tell me if he wasn't). Good bookkeepers can be hard to find (especially that understand this business). That is why I am excited to bring on Siddhartha Havelia and Manvi Aurora who do the bookkeeping for my business. Their company, Mercurius Advisory Services, is one of the top ranked bookkeeping services on both the Amazon Service Provider Network and Upwork. Plus I find that they are good at explaining things so I brought them on for a discussion about bookkeeping and to share ways you can better manage "the books" to keep an eye on your profitability. Connect with Siddhartha and Manvi Book a free consultation (affiliate link)<
Frequently asked about this episode
What does this episode say about financial management?
Do not rely on basic spreadsheet bookkeeping as your ecommerce business scales or adds more sales channels, as this approach is not sustainable or accurate for complex operations.
What does this episode say about operations management?
Outsource your bookkeeping to specialists who have intimate knowledge of ecommerce financial intricacies, such as multi-currency transactions and platform-specific reporting.
What does this episode say about outsourcing?
Ensure your bookkeeper can effectively explain financial concepts and profitability insights, not just process transactions, to help you make informed business decisions.
What does this episode say about financial management?
Seek bookkeepers who are recognized within the ecommerce ecosystem, such as those ranked on platforms like the Amazon Service Provider Network, to ensure specialized expertise.
