Good accounting practice is at the core of successful business management. Companies maintain accounts for several reasons; from tax planning to decision-making and reporting. However, although accounting is important it is also a very laborious task – especially when it comes to online stores. If you’re using an ERP or any accounting software to maintain accounts, then manually inputting the online sales data to the corresponding account can be a daunting task. Plus, there’s always a risk of errors that can be catastrophic for accounts. Therefore, it is very crucial for businesses to give careful consideration when it comes to maintaining accounts and their reconciliation.
Importance of good accounting practice:
A chart of accounts provides management with useful insights and serves as the basis for many important operational tasks. Well-maintained accounts help you keep track of taxes and help you with tax compliances & regulations. Similarly, accounts reflect the financial health of your organization which is crucial to all stakeholders and management for making decisions & planning. Furthermore, it helps the management to prevent fraud by detecting any unusual transactions. Therefore, one must put great emphasis to ensure that their business accounts are properly maintained.
Maintaining accounts for eCommerce business:
To ensure that your chart of accounts provides an accurate representation of your finance each account must be properly maintained. If you sell in various different regions, then each region would have different taxes and a corresponding tax account in the Chart of Accounts. Likewise, b2c and b2b customers would have different tax slabs with their relevant accounts. Depending on the nature of the business, there may be many different accounts that would need to be populated with relevant information as you make an online sale. Of course, manually matching the information of each online transaction with the relevant account and then inputting it is not the preferred way.
Fortunately, these arduous operational tasks can now be taken care of with modern business solutions. The x2xecommerce presents a wide range of integration solutions for different platforms that automatically populate your accounts with online sales data. These solutions work on the API technology to transfer data from webstore to your account-maintaining platform.
How integration allows for proper reconciliation of your accounts.
Transferring data from your webstore to your accounting platform is one thing, but what is really crucial is that the correct accounts are debited and credited with the online data. This is done by pre-defined mappings. Mapping is the process of matching relevant fields and accounts in different databases so your platforms know what the transferred data represents in their database. Mappings can be defined inside the x2x integration modules; so once the orders are downloaded the integration module automatically matches the fields of the web order with the pertinent account in the Chart of Accounts, posting the online data into those accounts.
Conclusion:
Accounting is a fundamental part of business management. Without good account maintenance, you’re at risk of losing the transparency of your business and incurring great losses. On the other hand, well-maintained accounts can help you manage your business effectively. With x2xecommerce integration solutions, you can ensure your accounts always remain updated with ecommerce transactions and are properly maintained without any difficulty; allowing you to manage your business with confidence.
The x2xecommerce team has years of experience in providing business solutions to ecommerce industry. Reach out to us for a free demo or any queries that you might have. The team will be more than happy to help you.