eCommerce

eCommerce is a fast-paced and competitive industry. Platforms like Shopify, WooCommerce, Magento, Etsy, and SquareSpace simplify the process of getting started with an online business. However, success requires careful attention to fulfillment strategies, marketing plans, and inventory management.

Managing inventory is critical, especially for businesses with physical products. This involves tracking purchases, returns, and adjustments to ensure accurate financial reporting and tax filings. For companies using drop shipping or third-party logistics, the complexity increases but remains essential for clear financial reporting.

In addition to traditional financial statements, eCommerce businesses generate large amounts of transactional data daily. This data must be managed and analyzed to measure performance, profitability, and forecast growth. A major challenge in eCommerce accounting is understanding key business metrics.

Our firm can help track and report critical figures such as:

Revenue & Growth: Consistent sales growth requires proper revenue recognition (e.g., ASC 606).
Profitability Metrics: Includes gross margin, operating margin, and net income.
Customer Acquisition Cost (CAC): The cost to acquire a new customer.
Customer Lifetime Value (CLV): The total revenue expected from a customer.
Average Order Value (AOV): The average spend per order.
Churn Rate: The percentage of customers who stop purchasing.
Compliance: Ensuring proper sales tax reporting and licensing.

Partnering with Integral CFO, INC. can ensure accurate financial reporting, allowing you to focus on innovation and growth.