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All You Need to Know About Ecommerce Bookkeeping

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While Opening an e-commerce store is an impressive venture for any entrepreneur. With an online shop, your products are accessible day and night, year-round, to a world array of consumers. The World Wide Web authorize you to cast a good net for a distinct segment audience, drop-ship orders, and roll in the hay, all while maintaining a small physical footprint.

Once your new store has been found out and goes survive the web, you’ll get to make sure that your stock levels are sufficient for tracked expenses, among other concerns. Online accounting software offers integrable solutions to help with all of these things.

What is bookkeeping?

Bookkeeping is the process of recording and managing all financial transactions for your business; including sales, purchases, and payments. Online Bookkeepers track all costs and income to assist a corporation make informed financial decisions. The goal of bookkeeping is to show you your business’s bigger financial picture, balance your accounts, and improve cash flow management more strategically. As a retailer, your inventory is the base of your business, and almost everything you do depends on it. Because many of your financial documents and reports focus completely on your inventory.

What Makes Retail Bookkeeping Unique?

Given this nature of the business, accounting processes within the retail sector to differ from other industries. While accounting basics are universal across the board to all or any companies, bookkeeping intrinsically will be different for various areas. Hence, accounting for the retail store will not be the same for restaurants or hospitals as these businesses’ fundamentals vary with each other. Thus, owners within the retail sector need to be especially conscious of the principles of accounting relevant to their establishment.

The Basics of E-commerce Bookkeeping:

You must take several necessary steps when you are setting up a bookkeeping workflow for an online e-commerce store. A clarify version of this process might look something like this:

  • Get yourself accounting software
  • Track your cash flows
  • Determine how to count inventory
  • Understand your cost of goods sold
  • Calculate all other expenses
  • Figure out your break-even sales requirement
  • Track your sales and profits before tax
  • Set up the proper tax rates for customers
  • Plan for your tax payments
  • Understand your balance sheet

Before you start doing the math to calculate your revenue and costs, it’s a best idea to make sure you understand the basics principals. The good place to start is with financial statements.

Financial Statements You Need to Know About Online bookkeeping services:

As a business owner, you need to maintain an up to date view of your finances at all times. When you have a transparent picture of what your money is doing, you’ll get a far good handle on your business pay out. This allows you to develop and frequently improve your profit. Financial statements offer a structured view of this information.

Here are three main types of financial statements that are used in almost every business model, regardless of size or industry:

  • Balance sheet
  • Income statement
  • Cash flow statement

Let’s check out each of the primary three financial statements in additional detail.

Balance Sheet:

A record provides detailed information about a few company’s assets, liabilities, and shareholders’ equity. 

  • Assets 

Assets are things that a corporation owns that have value. This typically means they will either be sold or employed by the corporate to form products or provide services that will be sold. Assets include property, like equipment and inventory. 

  • Liabilities 

Liabilities are something that a person or company owes, generally a sum of money. Liabilities are set over time through the transfer of economic benefits including money, goods, or services. Most companies will have these two line items on their balance sheet, as they are part of ongoing current and long-term operations. Liabilities also include obligations to supply goods or services to customers within the future.

  • Shareholders’ equity

Shareholders equity is usually called capital or net worth. It’s the money that might be left if a corporation sold all of its assets and paid off its liabilities. This extra money belongs to the shareholders, or the owners, of the corporate.

Income Statement 

An earnings report may be a report that shows what proportion of revenue a corporation earned over a selected period (usually for a year or some portion of a year). Your income statement includes the entire money deliver in over a given period (month, quarter, or year). This statement show both operating and non-operating income. Using income is any money made through regular business activities; if you own an e-commerce clothing retail business, your primary operating income is from inventory sales.

Non-operating income reflects money made through means indirectly linked to your business activities. Your non-operating payment might include property sales, equipment sales, or investment returns to use the above example of a clothing retail store. If you primarily operated out of a warehouse, then sold that space and moved into a smaller one, take advantage of the sale would be considered non-operating income. The same could be true if you made take advantage of reselling equipment sort of a home appliance or if your company received dividends from an investment of its funds.

Cash Flow Statement:

Cash flow statement report a company’s inflows and outflows of money. This is important because a company need to have sufficient money to pay its expenses and purchase assets. While an earnings report can tell you whether a corporation made a profit, an income statement can tell you whether the corporate generated cash.

An income statement shows changes over time instead of absolute dollar amounts to some extent in time. It uses and reorders the knowledge from a company’s record and earnings report.

Online accounting software such as online accounting services helps you keep track of this entire amount because it makes the data you need for cash flow statements readily available. This is most important because aside from being your most detailed financial report, an accurate cash flow statement can prevent overspending or run away of inventories.

Why Inventory Cash Flow is essential for Retailers: 

Having an accounting department dedicated to your company internally is often extremely expensive. Maintaining an organized, cost-effective inventory is perhaps the most essential aspect of any retail e-commerce business model. Holding stock is more than just stockpiling items you intend to sell; it also means keeping track of your inventory cash flow.

Cash flow refers to the amount of money “flowing” in and out of business on a monthly, quarterly, or annual basis. When you know exactly how much money is passing through your business, it enables you to maintain a positive profit margin. If you suffer a loss, your income statement pinpoints where overspending occurred, so you’ll strategize to reverse the trend.

If you produce all the clothing you sell in-house, you would possibly add the value of raw materials and equipment acquisition/maintenance. 

If you have bulk inventory that has to stay frozen, you’d include the cost of running and maintaining your freezer in the cash flow sheet. Calculating income specifically for your inventory is important. In a listing income document, for instance, costs listed should be exclusively inventory-related. 

Keeping track of inventory cash flow means knowing your inventory’s overall cost and value, which tells you how much net profit you make from your stock sale. To estimate your inventory value, you need to know how many units you’ve purchased, the cost of manufacturing or purchasing each company, and how much you plan on marking up each unit when you sell it.

Inventory Costing Methods:

When businesses first start, they may arbitrarily choose a system for managing their inventory. Ineffective inventory choices can cost your business money and even cause you to pay more taxes than you need to.

The most common methods of inventory costing management are:

  • (FIFO) First in first out 
  • (LIFO) Last in first out
  • Weighted average
  • The retail method

Inventory Tracking Methods:

Determining your inventory cost doesn’t need to be complex, it does require a consistent and detailed picture. Keeping track of your physical inventory stock is called inventory tracking, and there are two methods: periodic and perpetual.

Periodic Inventory System

Periodic inventory management allows a company to trace its beginning inventory and ending inventory within an accounting period, but it doesn’t track the inventory on a daily or per-sale basis. Under this technique, companies record all purchases to a purchases account. Once the physical inventory available has been counted, the balance within the purchases account is shifted into the inventory account, adjusted to match the top inventory cost.

Using periodic inventory tracking method, you must perform physical counts of your inventory at regularly scheduled meanwhile. A physical count involves calculating every individual unit you have in stock and recording each item’s cost and sale value. Each time you recount, you’ll update your inventory income sheet to reflect what proportion of money your company spent and gained on inventory therein period. 

Depending upon the dimensions and complexity of your e-commerce business, you would possibly prefer to do periodic inventory annually, quarterly, or monthly. If your business is starting, you might benefit from doing it monthly because this will help you get a more accurate picture of your overall inventory during a period of time when there’s likely to be more fluctuation as your business gets off the bottom.

Perpetual Inventory Tracking

A perpetual inventory tracking method records adjustments to inventory balances after every transaction through point-of-sale inventory systems. This eliminates the store’s need to close down for physical inventory stock taking as perpetual inventory systems allow for continuous stock taking. Perpetual inventory system keeps a running account of the company’s inventory that updates after every item sale or return.

Perpetual inventory systems involve more record-keeping than periodic inventory systems, which use specialized, automated software. Every item is kept on a separate ledger.

When an item is scanned for packaging or enters your inventory storage, the software automatically updates your inventory count, purchase account, and overall cash flow figures to represent your inventory’s current value perpetually.

Online Accountant offer inventory tracking services to mechanize your inventory and cash in of the perpetual system. With this tracking method your total sales and inventory cost are instantly update every time when you add a new product to your inventory or sell an item. Also you can integrate your QuickBooks account with your favorite online store inventory app to make tracking a blow.

Sales Order, Invoices, and Sales Receipt:

You’ve likely heard of sales orders, invoices, and sales receipts and have probably dealt with one or all of the above.

Sales Orders

A sale order is a written request that a customer make for one or more of your products. A sales order is essentially a request for a product or service, written on a form that will ultimately become a receipt. For example, if you are shopping for various paints, raw materials, and tools at a landscaping nursery, you will select the products and quantities while shopping. 

You will then communicate the order request to the sales rep or write down your request directly on a form. The order is completed before you choose up the supplies and materials within the yard. You will use this order as a receipt to verify the acquisition at the loading point. The main takeaway here is that the customer makes the order and prepays the order before receiving the supplies or service. The declaration confirms that the customer has paid and is owed a specific product or service.

Invoices: 

An invoice is an order that’s intended for the aim of requesting payment. It lists the activities performed or the value of individual materials or components and provides a complete cost for the finished product. Invoices are a touch less common in e-commerce business models, but you’ll use invoices if you produce customized products.

If your e-commerce business produces custom furniture pieces, for instance, customers may communicate directly with you rather than filling out a sales order. Over phone calls, emails, and/or text message exchanges, you would possibly work with the customer to work out the materials, dimensions and allow the piece of furniture you propose to create. 

During this case, an invoice might break down how the individual material and labor costs contributed to the finished product’s entire cost. You can even be including shipping costs on the invoice. An invoice will function as proof of the customer’s requests and a receipt that lets the customer see the pricing break down for all products. It also is a useful record of how your inventory materials are getting used.

Receipt

A receipt is a proof-of-purchase received after the goods are delivered, but it differs from an invoice or a sales order because it doesn’t serve as a request. Receipts list the item or services purchased and delivered, display how much the customers paid. In e-commerce, a sales order or invoice may form the idea of a receipt. You might even package your products with a copy of the original sales order or invoice to serve as the receipt when your customer takes delivery.

Online accounting services allow you to make sales receipts, sales orders, and invoices, which you’ll then link together with your other accounts to assist you in tracking inventory. When a sales order is fulfilled, Online accounting services allows you to quickly and perfectly update your inventory tracking on the cloud to reflect your current inventory level. You can even set up alert to let you know when a specific inventory type is getting low, so you will know when to restock.

Conclusion: 

If your business is small you can use online software to prepare work orders and invoices. If you’ve got many purchasers, consider investing in order management and invoicing software. This allows you to enter, manage, and track orders. It’s a good idea to read up on the basics of bookkeeping for online retail businesses so you will understand what to focus your observation on while you’re busy getting your business off the ground.

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Finance

Features and Benefits of Using the Home Loan EMI Calculator

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The Indian home loan market is estimated to grow at a CAGR rate of 22% between 2021 and 2026. Thus, this is a perfect time to invest in real estate. Nevertheless, it is essential to have proper knowledge regarding EMI payments. Therefore, it is wise to rely on a home loan EMI calculator to evaluate the EMI amount and other key factors beforehand to avoid further issues. 

What is a home loan EMI calculator?

Availing a loan is a crucial financial decision. Hence, before availing of a loan, it is essential to do a loan planning exercise to estimate monthly EMIs. A home loan calculator helps borrowers calculate the monthly EMI based on the principal amount, loan tenor, and interest rate of a home loan. This calculator makes loan planning easier for borrowers. Hence, individuals can take a look at the features and benefits of home loan EMI calculator that will make their repayment more convenient:

Aspects and advantages of home loan EMI calculator

This simple, user-friendly tool will evaluate the home loan EMI amount at once and provide borrowers with a fair idea of monthly outflow that will contribute towards your repayment procedure.

  • Choosing the right tenor- The repayment of any loan is made through monthly EMI that makes their repayment convenient since they can choose a feasible tenor that will not be stressful. After getting a fair idea of the monthly EMIs, individuals can decide whether they can manage to pay a high EMI and choose a short tenure period or pay a pleasant EMI amount and extend their loan period. One can also focus on ways to reduce home loan tenure and EMI to further ease repayment. 
  • Easy calculation- Borrowers, who want to know the exact figure of EMI repayment, they need to enter the loan amount, interest rate, processing fees and loan tenor and the amount will be provided by the calculator.
  • Comparing Interest rate- The interest rate charged by financial institutions regulate the cost of home loan. When individuals pay their home loan EMI, the home loan interest rate charged decides how much of an amount is to be paid to the lender. Choosing a short tenor reduces the interest rate and allows individuals to compare several financial lenders’ different rates.
  • Choosing the principal amount- Though the financial lenders calculate the higher eligible amount, it is not necessary to borrow that particular amount. Borrowers should try to arrange the maximum down payment to keep the EMI amount minimal.

Hence, a home loan calculator is a handy financial tool that gives instant and accurate results, thereby helping individuals customise home loan based on their comfort and convenience.

To meet your needs, some reputed housing finance companies offer a home loan amount of up to Rs.3.5 crore over a flexible tenor period of 20 years. 

Top HFCs also provide pre-approved offers to simplify and quicken the lending process. These offers are available on several financial products, such as home loans, loan against property and more. You can check your pre-approved offer by providing your name and contact details.

Hence, using a home loan EMI calculator, users gain a fair idea about their financial obligation associated with the credit option and gauge their financial standing.

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Finance

Women Outfit Ideas For Valentine Day 2021

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Valentine’s day comes with the promise of romance in the air. And on that special day, we all love to look good and attractive. When it comes to women’s fashion wear for valentine’s day, the choice is endless. You can either go simple and elegant or you can pick something bold and classy.

To help you get started with your dress shopping this Valentine ’s Day, here is the list of the best outfit ideas.

Flaunt A Sheath Dress

A sheath or a shift dress is very popular for special days like valentine’s and dates. This dress is pretty simple, yet looks perfect for the evening. A shift dress in soft colours or a dark one will definitely set the right mood for your romantic date. Some of the best colours to choose are pink, coral red, dark maroon, navy and bottle green. Pick the right size for comfortability and fittings while buying a shift dress online.

Stylish Tops With Palazzos

The most simple and smart looking dress idea for this valentine’s day would be a pair of the flared palazzo and a stylish ladies top. Embroidered tops are great or you can choose a crop top and wear a shrug on top to make the appearance more regal. Earrings, bangles or just a nose pin will look dazzling with tops and palazzos. 

Ravishing High-low Dress 

Go for the high-low hemline if you want to impress your special one. A dark or bold coloured high-low dress is simply perfect for your first valentine’s. You just need to wear a pair of heels or bellies, carry a clutch and wear your hair down. To highlight your dress, wear very little makeup and stay natural. If you are wearing a sleeveless and low neckline high-low dress, you can also drape a scarf.

Appealing Red Saree

Nothing creates magic like a stunning red saree. You can wear a classic chiffon or silk red saree and pair it with designer tops for girls. Instead of the regular blouse style, do a little experiment and wear a shirt style tp or a tunic kurta with your saree to make a bold and fresh statement. Oxidised jewelry or simple stone studded jewellery will look awesome with your red saree look. To accentuate your coverall attire, do a stylish hair bun and get bold eye makeup.

Elegant White And Red

Just like every time, red and white is the most demanding and evergreen combination for valentines day dress code. Wear a white tunic with a deep red palazzo and you need nothing else to look fashionable. You can also go ethnic and wear a red and white combination anarkali suit with silver jewellery. A white top with a long ethnic red skirt is another fabulous choice for your evening valentine day outing.

Some other great options in red and white are: midi or mini skirts in red with white tops, red cape tops with white jeans or you can wear a red and white gown. 

Asymmetrical Dress

The dress is the most preferred outfit for valentines day. And asymmetrical dresses always make the top of the dress list. The symmetric hemline looks offbeat, attractive and very classy. You can also pair a legging with an asymmetric dress and drape a dupatta to make a fusion style statement. 

Flared Long Kurta

Gown style flared kurtas are very much loved by modern women for their elegant look. Flared kurtas can be worn with churidars or leggings. If you are wearing ankle-length flared kurta, you can ditch bottoms and wear it like a dress.

Hope this valentine’s day, you look bold and beautiful and feel confident. 

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Finance

Some Facts You Must Know When You Apply Personal Loan For Women

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The number of women borrowers in India has increased significantly in the last few years. As per a report, female borrowers numbered around 2.4 crore in 2014 compared to 7.8 crore in March 2020. It just goes to indicate how the mindset has changed regarding borrowing among women in the country.

  • According to a December 2019 survey, women contributed approximately 15% of the total personal loan borrowers.

Fortunately, a personal loan for women is available against a standard set of qualifications, making them easily accessible. While the requirements remain gender-neutral, they indicate an increasing inclination of women in arranging personal financing conveniently. So, here are a few essential facts you must know about these advances, included under the eligibility requirements and application process, for easy financing.

Eligibility criteria for personal loans

The following simple personal loan eligibility criteria enable borrowers, including women, to avail hassle-free funding.

  1. Maintain an impressive credit score and history

The minimum CIBIL score requirement from some of the reputed lenders in the market is 750. Thus, borrowers must aim for a CIBIL rating higher than this particular score if they plan to secure a personal loan conveniently. 

Applicants with scores over 800 also stand a chance to acquire additional benefits, such as favourable rates, higher principal amounts, and much more. If one’s current score does not meet the minimum requirements set by a lender, a borrower must check out things to improve his/her personal credit score.

Nevertheless, taking care of factors such as maintaining a balanced credit mix, keeping the credit utilisation ratio in check and the likes always help maintain an individual’s credit profile for easy borrowing.

  1. Meet age specifications

Generally, salaried employees aged between 23 and 55 years are offered personal loans.

Match minimum income requirements

To acquire a personal loan for women, you must also possess a stable source of income. Monthly earnings should thus be around Rs.25,000 or more to qualify for these forms of credit. 

However, the exact specifications regarding earnings can vary based on your city of residence. If one’s income is limited, she can opt for a Flexi personal loan for women to ensure repayment affordability. Under such an arrangement, lenders provide a pre-sanctioned amount to borrowers for multiple withdrawals, with interest charged on such withdrawals only.

For instance, if this limit is Rs.1 lakh and a borrower utilises Rs.25,000 from this amount, he/she would only need to bear interest on the latter sum and not on an entire principal sanctioned.

How to apply for a personal loan?

Borrowers can complete the following steps for an easy and convenient loan application – 

  1. Depending on the financial institution selected, visit its official website and navigate to the personal loan application section. 
  2. Next, fill up an online application form with the required personal, financial, and other details.
  3. Proceed to choose a suitable loan amount and ideal repayment tenure from the available options. Generally, the personal loans for women come with tenures ranging between 12 to 60 months.

Note that while an option to apply offline is available, one should avail a personal loan online to acquire the best deals. Borrowers can also compare the various rates and terms before choosing a low interest personal loan. For interest rate affordability, one can look for NBFCs like Bajaj Finserv.

The financial institution also provides pre-approved offers to hasten and ease the process of lending. One can avail these offers on personal loans, business loans, credit cards, and more. You can check your pre-approved offer by submitting your name and phone number.

  • Around 30 million women borrowers acquired credit in India, as per a CIBIL report from 2019.

Evidently, women are borrowing more frequently today than ever before. It is due to increased financial independence among Indian women, which has enabled them to avail and repay such credit efficiently.

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