Did You Know
Many Amazon and e-commerce businesses:
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Know total sales, but not true profitability by product.
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Have difficulty reconciling Amazon deposits with sales, fees, refunds and advertising.
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Make purchasing decisions without reliable forecasts.
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Rely on year-end financial statements rather than timely management information.
We help discover the formula for making money and gaining financial clarity in your e-commerce business.
the reason to work with us:
we are here to help
How we Can Help You
45 min
It starts by checking the status of your bookkeeping. Are the books even done? Are they done correctly?
1. Accounting Setup Review
Assessing how bookkeeping and accounting is configured for your business, including chart of accounts, sales channels, inventory, payment processors and integrations.
What can be done better?
2. amazon settlement Review
Analysis of marketplace settlements to determine whether sales, Amazon fees, refunds, advertising, taxes and other transactions are being recorded accurately.
Do your deposits reconcile?
3. Bank and Credit Card Reconciliation
Verification of reconciliations to ensure marketplace deposits, inventory purchases, expenses and credit-card activity are properly accounted for.
Can these bookkeeping tasks be automated?
4. Financial Reporting
Review of profit and loss, balance sheet and cash-flow reporting to determine whether management is receiving useful and timely financial information.
What reports actually help you make decisions?
5. Integration and Automation
Evaluation of Amazon, Shopify, QuickBooks and supporting applications to identify opportunities for better integration and more efficient accounting.
Where can technology eliminate manual work?
6. bonus - 3rd party review
Comprehensive review and assessment of critical third-party providers, focusing on the value they bring to the business through their products or services.
Where is the competitive advantage coming from?
then we continue the search
Grow from current PRODUCTS?
Do you know which products and sales channels are generating your best returns?
Let's examine sales, product costs, Amazon fees, advertising and order activity. Revenue alone cannot identify your most valuable products.
>> We don't stop there. We find your contribution margin.
We examine the relationship between selling price, landed product cost, marketplace fees, advertising, returns and other variable costs. We can compare this data across individual products and categories to identify where profit is actually being created.
ARE AMAZON FEES EATING YOUR MARGIN?
Do you know the true cost associated with selling each product through Amazon?
Let's examine referral fees, FBA costs, advertising, returns, storage and other marketplace charges. What remains after Amazon gets paid?
>> Are rising sales hiding declining margins?
We examine marketplace costs alongside sales and product costs to determine your true contribution margin. Once these costs are visible, you can make better pricing, advertising and product decisions.
Do you know the best KPIs
(key performance indicators)
for your e-commerce business?
Are you classifying your KPIs between daily, monthly, and annual metrics?
How do these numbers need to evolve to drive PROFIT to the bottom line?
>> That's where budgeting, forecasting, and scenario analysis come in.
we look at the what-if scenarios.
We examine different scenarios—from changes in sales and advertising to supplier costs, inventory purchases and marketplace fees—to understand their effect on profitability and cash flow. This allows you to make decisions before committing your capital.
always, we look to see what else matters
wrong entry of inventory & equipment purchases
Most businesses take a shortcut when posting entries for inventory and equipment purchases by simply expensing them.
Let's check that your business processes are optimized and drive utilization of the balance sheet.
PROFITABILITY BY PRODUCT OR channel
How are Amazon and other marketplace sales recorded in the accounting software?
Can you identify the products producing your strongest contribution margins—and those consuming inventory, advertising dollars and cash without generating an adequate return?
>>Are bookkeeping limitations hiding poor-performing products?
We review your accounting workflow and management reporting to improve visibility into sales, inventory, marketplace costs and product profitability. Better accounting creates better information for pricing, purchasing and growth decisions.
Reliable accounting turns marketplace activity into useful management information.
Amazon provides enormous amounts of data. Accounting provides financial data. Neither automatically tells an entrepreneur what decision to make.
The opportunity comes from bringing operating and accounting information together. When sales, product costs, inventory, fees and cash flow can be interpreted together, management gets a clearer picture of what is creating value.
>> Do you have the right financial information to make your next decision?
>> Which financial disciplines matter most for an e-commerce entrepreneur?
1. Visibility: Know what you actually make after product costs, marketplace fees and advertising.
2. Inventory: Understand how much cash is committed to inventory and how quickly that investment is returning.
3. Forecasting: Anticipate inventory purchases, operating expenses and cash requirements before they happen.
4. Decisiveness: Use reliable monthly financial information to decide what to price, promote, reorder, discontinue or grow.
option #1 - do nothing
Continue relying on marketplace dashboards and year-end financial statements.
You may know how much you sold without knowing exactly where you made—or lost—money.
Still deciding?
option #2 - DO IT YOURSELF
Build your own integrations, reconcile marketplace activity and develop your own management reporting.
This can work, but financial analysis competes with the time required to actually operate and grow the business.