Why You CAN Afford a Bookkeeper With Nathan Hirsch
Up Arrow Podcast · with Nathan Hirsch · October 3, 2023 · 48 min
Summary
For ecommerce operators, understanding your financials is non-negotiable for sustainable growth and successful exits. This episode emphasizes hiring a specialized e-commerce bookkeeper from day one to ensure accurate financial reporting, facilitate sound decision-making, and streamline due diligence for acquisition, ultimately helping you avoid costly mistakes and focus on scaling your business.
Key takeaways
Prioritize hiring an e-commerce specific bookkeeper early on; don't wait until year-end or M&A to clean up books, as this leads to inaccurate data, missed opportunities, and increased costs.
Insist on detailed segmentation of financial data by marketplace, product, and brand to identify true profitability and make informed strategic decisions on where to allocate resources.
Avoid common bookkeeping pitfalls like using net deposits as top-line revenue or relying on generic accounting tools; specialized e-commerce accounting software and services are crucial for capturing all fees and accurate reporting.
Recognize that while you should understand your business numbers, your time as an entrepreneur is best spent on strategic growth initiatives, not day-to-day bookkeeping tasks.
Clean, accurate financial records from inception are critical for successful due diligence and maximizing your valuation during an acquisition process.
Nathan Hirsch is the Co-founder of EcomBalance, a monthly bookkeeping service helping e-commerce businesses manage their bookkeeping and finances. Nathan began his entrepreneurial journey in 2009 by selling products on Amazon and is best known for his involvement in co-founding Freeeup in 2015. With an initial investment of $5,000, Nathan helped scale the business to $12 million in yearly revenue before selling it in 2019. Nathan is also the Co-founder of AccountsBalance, EcomBalance's partner company, and the Co-founder of Outsource School, where he teaches business owners proven hiring methods for finding top-tier virtual assistants. In this episode… Finances are the driving force behind any company and indicate operational strengths and weaknesses. Most e-commerce business owners are ill-equipped to read and decipher financial statements, yet they shoulder bookkeeping responsibilities. Taking ownership of financials without accounting knowledge is a risk most entrepreneurs can't afford. Although hiring a bookkeeper is an additional monthly payment, business owners are relieved from the stress of balancing accounts. Bookkeeping requires understanding accounting principles and allocating time to read and record accurate financial details. Most e-commerce executives can't commit to recording expenditures amidst their leadership responsibilities. Nathan Hirsch testifies business owners who take financial responsibility are likely to spend more money fixing their mistakes than if they had hired a professional. He implores entrepreneurs to hire a bookkeeper, and, at the very least, review income statements, balance sheets, and cash flow monthly to recognize company trends. On this episode of the Up Arrow Podcast, William Harris welcomes Nathan Hirsch, Co-founder of EcomBalance, to discuss the pertinence of accurate bookkeeping for e-commerce businesses. Nathan shares common mistakes business owners make when balancing t
What does this episode say about finance & fundraising?
Prioritize hiring an e-commerce specific bookkeeper early on; don't wait until year-end or M&A to clean up books, as this leads to inaccurate data, missed opportunities, and increased costs.
What does this episode say about founder & leadership?
Insist on detailed segmentation of financial data by marketplace, product, and brand to identify true profitability and make informed strategic decisions on where to allocate resources.
What does this episode say about supply chain & operations?
Avoid common bookkeeping pitfalls like using net deposits as top-line revenue or relying on generic accounting tools; specialized e-commerce accounting software and services are crucial for capturing all fees and accurate reporting.
What does this episode say about analytics & attribution?
Recognize that while you should understand your business numbers, your time as an entrepreneur is best spent on strategic growth initiatives, not day-to-day bookkeeping tasks.
What does this episode say about finance & fundraising?
Clean, accurate financial records from inception are critical for successful due diligence and maximizing your valuation during an acquisition process.
