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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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How Can You Benefit From An Accident Attorney?

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Need Legal Help With Your Co-Founder Agreement_ Consult Commercial Lawyer

If you have suffered an accident and suffered injuries due to the carelessness of other truck drivers, the first thing you need to do is file a claim with an experienced 18 wheeler accident attorney. A law firm specializing in this type of case, Zehl & Associates can help you obtain justice and compensation for your injuries. Zehl & Associates law firm is known for its expertise and commitment to promptly resolving truck accidents and claims.

File a claim

It is easy to file a claim for truck accidents like this. There are many causes of truck accidents. The responsibility starts with the truck driver to ensure that the load he is carrying is appropriate for the vehicle, that it is not overloaded, and that the vehicle is maintained in proper condition. If the trucking company doesn’t provide a settlement that fully compensates customers and their family members for their losses and injuries, then take the matter to court, where experienced 18 wheeler accident attorneys remain undefeated.

Truck accidents also create a negative impact on the victims and their family members. Sometimes, due to lack of information, the injured person may have the wrong impression of the cause of the accident. He may conclude that the negligence of the other party was the main cause of the accident. The verdict in such situations may be prejudiced as the jury might overlook reasonable negligence or reckless driving as the determining factors. Such verdicts and settlements will have far-reaching effects on the victim and his family. Therefore, it is very important to retain a competent lawyer who has experience in fighting cases.

The firm Zehl & Associates has several attorneys who specialize in different areas of the law. They can therefore provide a complete legal package to clients. Most of the attorneys at Zehl & Associates are graduates of the American Bar Association’s Legal Services Section. This ensures that they possess the skills and the knowledge required to win a good compensation case. Most of the law firm’s attorneys have worked successfully as prosecutors or defense lawyers, and therefore they have a proven track record to back them up.

An important function of the accident attorney is to assist the clients during the litigation process. The lawyer communicates with the client on a one-on-one basis. Legal consultations are held regularly, and most of the lawyers attend to their clients at the accident location. The lawyer will analyze the case and conduct a thorough investigation before presenting it to the client for a settlement.

Efficient lawyers

The firm’s lawyers are well aware of the best options available to them in the current scenario. They are aware of the opponent’s weaknesses and try to make counterattacks to counter any accusations leveled against them. In addition, the firm’s lawyers are aware of the importance of evidence in the present-day legal scenario and try to acquire them for their clients. The firm has top-grade investigators who are equipped with the right knowledge and resources to recover the evidence. Many of the pieces of evidence have been proved to be vital in courts of law.

Get best compensation

The attorney at Zehl & Associates helps clients recover the losses they have suffered because of an auto accident. However, the firm also takes care of the expenses that are incurred during the recovery process. Many people believe that legal assistance at the time of filing a claim is extremely important, but this is not true. The attorneys at Zehl & Associates take care of all the intricate works, such as drafting the claim, getting it registered at the court, and then wait for the verdict. Once the verdict is out, the lawyer at Zehl & Associates helps the client get the compensation they deserve.

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All You Must Know About PMAY Scheme 2021

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The PMAY Scheme, widely known as the Pradhan Mantri Awas Yojana, is a Government initiative that aims to offer housing to the urban poor at affordable costs by the end of the year 2022. Set in motion on 1 June 2015, the scheme offers an initial interest rate of 6.50% per annum that you can avail of for a period of up to two decades, i.e., 20 years. Those who are part of the Economically Weaker Section or EWS and Lower Income Group or LIG categories can avail of the PMAY CLSS Scheme before the last date, i.e., 31 March 2022. 

What Are Some of the Major PMAY Scheme Benefits?

Listed below are some of the benefits of the PMAY Scheme:

  • The scheme provides a subsidy interest rate of 6.50% p.a. on housing loans to beneficiaries for a tenor of 20 years.
  • Senior citizens and individuals who are differently abled are given precedence in the allotment of ground floors. 
  • Sustainable and eco-friendly technologies are used for building homes. 
  • The PMAY Scheme houses all the urban regions, including a total of 4041 statutory towns while prioritizing the Class I cities in the country. The Government aims to do this in phases.
  • The scheme’s credit-linked subsidy aspect (CLSS) is implemented in all statutory towns in India. 

Who All Can Benefit from the PMAY Scheme?

The PMAY Scheme will prove beneficial for people falling under the following categories:

  • MIG I (Middle Income Group I) with an annual salary ranging from Rs.6 to Rs.12 lakhs
  • MIG II (Middle Income Group II) with an annual salary ranging from Rs.12 to Rs.18 lakhs
  • LIG (Lower Income Group) with annual salary ranging from Rs.3 to Rs.6 lakhs
  • EWS (Economically Weaker Section) with annual salary up to Rs.3 lakhs

Additionally, individuals falling under the OBC/ST/SC category and women under the LIG and EWS categories can also avail themselves of the PMAY Scheme benefits. 

What Are the Various Types of the PMAY Scheme?

The scheme has two sub-categories divided based on its area of focus. These are:

  • PMAY-G (Pradhan Mantri Awas Yojana – Gramin)

Previously referred to as Indira Awas Yojana or IAY, the scheme was named PMAY-G in the year 2016. It is focused on offering accessible and affordable housing spaces to suitable beneficiaries in the rural areas (excluding Delhi and Chandigarh). The cost of developing these housing units is shared by central and state governments in a 90:10 ratio for hilly/North Eastern regions and a 60:40 ratio for plain areas. 

  • PMAY-U (Pradhan Mantri Awas Yojana – Urban)

This scheme is aims to provide budget housing in urban areas. To this day, 4331 cities and towns have been listed under the PMAY-U Scheme, which is all set to operate in three phases.

  • Phase I: The target was to cover a total of 100 cities across states and union territories between April 2015 and March 2017
  • Phase II: The target was to cover an additional 200 cities across different states and union territories between April 2017 and March 2019
  • Phase III: The target is to cover all the remaining cities by the end of March 2022

How to Calculate PMAY Subsidy

The scheme aims at simplifying the whole house-purchasing process for the economically weaker and urban poor in the society through easy, affordable EMIs. The interest rate comes cheaper than the commercial rates, allowing subsidized loans to individuals. 

The steps to calculate the subsidy under the PMAY Scheme are simple. Log on to the official Pradhan Mantri Awas Yojana website and enter the following details:

  • Entire loan amount (in Indian currency)
  • Interest rate (in percentage)
  • Actual tenor (in months)

Next, click on ‘Calculate’ to find out the EMI or monthly installment amount payable in rupees. 

PMAY FAQs

How can I apply for the PMAY scheme online?

You can apply for the PMAY Scheme through the official website. You will need your Aadhaar Card details. Once you log on, simply follow the instructions to fill out your details and submit your application after a thorough check. 

How long can it possibly take to receive the PMAY subsidy?

Normally it takes about 3-4 months for the PMAY subsidy amount to get credited to the beneficiary’s account. This is subject to the Government’s verification process. 

Can women apply for the PMAY scheme?

Yes, the scheme prioritizes women under the LIG category who are running a household. However, if your father/husband/any other family member, whom you live with, has already applied for the PMAY Scheme, your application will not be accepted. 

The Final Word

The PMAY Scheme is a boon to the economically backward sections of the society as it aims to provide the basic necessity of shelter at affordable cost, thus ensuring housing for all by March 2022. We can conclude that this Government initiative has significantly improved the lives of beneficiaries in recent years. 

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7 Reasons How Mi LED Smart TV Market In India

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Xiaomi is a well-loved brand in India, not just for its range of smartphones but also for LED TV sets. The company launched the Mi TV 4 way back in 2018 as the slimmest TV in the world! This Mi LED TV possessed a 4.9 mm width that was 30% slimmer than the iPhone 7. This was the first time Xiaomi brought its popular Mi TV in India after launching the Note 5 Pro and the Redmi Note 5.   

Not only did it outdo tech giants like LG, Samsung, and Sony, but also it introduced a device with 4K Ultra HD and other great specifications at an affordable Rs. 39,999! The price factor is one thing to love about the Mi LED TV. What are the other reasons? Let’s find out.

Reinventing TVs 

All of the Mi TV model launches have shown us that the other competing TV brands were overpriced! The Mi LED TV has current technology, good hardware, and even better software. At the same time, viewers could access online and offline content for an exceptionally enhanced experience.  

Thinner build 

The Mi TV is very thin and outshines other products with this unique feature. Consumers generally prefer thinner TVs as the compact size means that they can fit in most households. It is less clunky and makes your home neater while enjoying the best technology. 

Larger screen 

Thinner doesn’t mean smaller when it comes to the Mi TVOf course, you do get several screen sizes to choose from. Viewers can enjoy a truly cinematic experience on a huge screen without frames. HDR displays that support 4K resolution in a billion colors offer crystal-clear viewing. The sound is Dolby audio that delivers a real-life sight and sound.       

Faster, smooth software

The key to a good television is its internal components, so the same can be said for the Mi LED TV. Xiaomi adds their quad-core processors equipped with top-end graphics units. While we have generalized the details here, each TV has its specification that gets more advanced in various models. These specifications power the smart tv experience for which these TVs do well. Just like the smartphone, the TV comes with RAM and data storage too.   

User friendly 

Even with so many mind-blowing specifications, the mi tv is surprisingly easy to use. They are powered by a unified remote that responds to voice commands. Besides, this remote is compatible with the set-top box. It features a universal search setting to help you find media from over 400 supported channels – either from the configured set-top box or media partner providers like ALT Balaji, Voot, Sony Liv, HotStar, to name a few. For more entertainment, the TVs even work with Chromecast so that you can stream directly through your smartphone.  

Smart TV technology 

There is a possibility that the Mi TV that you buy has software from Xiaomi called Patchwall. The Patchwall UI is a very cool app that uses AI technology. It evolves to adapt to the users viewing and media search patterns. Patchwall also provides recommendations, suggested content from the partner platforms and the set-top box.   

Superb pricing 

Xiaomi targets the smartphone market by giving them top specifications at affordable pricing. The company has picked up the same strategy for marketing its Mi LED TV range. The secret behind these super-low prices is local manufacturing. Xiaomi partnered up with Dixon technologies for local production of upcoming TVs. So far, they have a total of nine Mi LED TV models that start at Rs. 14,499 onwards. The models prepared for the 2021 market aim at targeting lower groups with an even lower price range. The newer models are officially Prime, and Netflix approved.   

Easy installation 

A Xiaomi-certified technician is ready to help you install the TV. Buyers can contact any of 700+ Xiaomi service centers for a 24-hour quick installation that is free. You do have to pay for any wall mounting, though. The service centers are available via email, chat, and phone.   

Easy purchase 

If you are interested in any new mi led tv ranges but aren’t eager to pay the full price, you have one more option. That’s the No Cost EMI facility on the Bajaj Finserv EMI Store. The store offers the biggest range of electronics, including many Mi TV models with easy pricing. With social distancing, you can have your new TV delivered to your home. Along with easy EMI, you can get a down payment facility on select products. Go ahead and shop online on the Bajaj Finserv EMI Store using your EMI Network Card.

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