Do Amazon sellers need QuickBooks? Yes!
QuickBooks gives you a look at your company’s overall financial health regardless of where you sell, making it a crucial tool for running a business of any size. Fortunately for Amazon sellers, QuickBooks has an easy integration with Amazon to import order information.
What can QuickBooks Online do for Amazon sellers exactly?
It enables accurate inventory management, assists with transaction complexities, streamlines general bookkeeping, allows for better cash flow management, improves reporting, promotes efficient communication, and increases the security of financial data.
Manage Inventory Efficiently
QuickBooks can help regardless of whether you are shipping your own products or using a 3PL (third party logistics provider). However, it is especially beneficial for drop shippers because you can sync products across various sales channels and warehouse locations.
Furthermore, when inventory needs to be removed from counts because it is damaged, lost, or has become obsolete that can easily be tracked as well. More accurate inventory tracking informs manufacturing, purchasing, and marketing decisions to improve cash flow management.
Assist with Transactions
Small business transactions are not always simple, and international orders can be especially tricky. QuickBooks makes it easier to accept international payments across various currencies and then standardize currencies using current exchange rates.
It also calculates and documents sales tax collected across the US and Canada, which is one of the most difficult parts of running an ecommerce business. Instead of waiting until month or quarter-end to calculate these manually, or using a standalone sales tax software, QuickBooks offers real-time data on tax figures to simplify the process for you.
Streamline Essential Bookkeeping Activities
Amazon sellers often sell through other channels as well, such as their own ecommerce sites, Google Shopping, or Etsy. QuickBooks lets business owners streamline their bookkeeping by providing a place to centralize these activities. In fact, when the integration between QuickBooks Online and Amazon was announced, Rajneesh Gupta, VP of Global Enterprise Partnerships at Intuit said,
Small businesses are increasingly looking for ways to seamlessly manage their business, while reducing the time it takes to do so. This integration allows both small businesses, and the accountants who serve them, to better manage a business owners’ purchases and overall books.
Smart budgeting and forecasting rely on clean books. QuickBooks’ robust functionality facilitates these activities by providing the insights needed to create and tweak existing budgets and forecasts. Better bookkeeping enables better cash flow management, ensuring sustainable business operations.
Within QuickBooks standard financial reports are available, as are more customized SKU-level reports. Reporting is important for keeping all business partners and employees on the same page and is essential for investors and business partners, making it a top priority for business owners. QuickBooks allows everyone to stay updated on real-time business financials regardless of location, which is crucial with more people working remotely than ever before.
Using an online accounting system instead of a more entry-level, in-house solution allows communication to continue even when key personnel are out of the office or a disruption to regular business operations occurs. In QuickBooks you can set permission levels to give employees access to specific types of data, further improving communication and efficiency without needlessly increasing risk by sharing log-ins. When employing a third-party bookkeeper or accountant, a cloud-based accounting software like QuickBooks keeps everyone on the same page regarding payroll, cash flow, taxes, and regulatory matters while keeping data safe.
Find out why having a bookkeeper is essential when using QuickBooks to manage your business finances.
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