The right ecommerce accounting tech stack gets your finances in order, helping you avoid a nasty bill from the tax agencies and a lot of headaches.
Here’s what you need in your financial ecommerce tech stack.
General Ecommerce Accounting Software
Money flows in and out of your company. You need ecommerce accounting software that keeps track of all incomings and outgoings, from sales to marketing spend to inventory fees.
There’s one big name in accounting software, Quickbooks, but there are other options out there. A big benefit of Quickbooks is the ease of integrating it with other software. A big drawback, particularly for younger ecommerce companies, is its price.
A more budget-friendly ecommerce accounting software option is Wave. It’s free!
Accounts Payable Software
You’ve got bills to pay. You need ecommerce accounting software that streamlines payments so you can keep the lights on and your website online.
Bill.com is one option. It lets you approve and pay invoices automatically. It also has accounts receivable and expense management options to give you a more holistic view of your company’s money in and out.
Sales Tax Software
Trust us. You don’t want to ignore sales tax, especially when you run an ecommerce company that sells to customers in every state.
Even if you don’t have a physical presence in a state, you may need to pay sales tax there based on the volume or amount of your sales in a specific jurisdiction. How do you determine your sales tax nexus or financial connection to each jurisdiction?
Ideally, you don’t. Your sales tax software does. Even better, it’ll collect and file sales tax for you. So you can focus on your company’s growth.
Financial Planning and Analysis Software
What’s in store for your company? If only you had a crystal ball.
Financial planning and analysis ecommerce accounting software, aka FP&A, doesn’t predict the future, but it comes close. It helps you develop your company’s budgets, review performance and forecast your financial future.
FP&A software helps you answer big questions like whether you should borrow money. Or, what will happen if your revenues drop or increase by X%?
FP&A software allows you to test out various scenarios and make informed decisions about your company’s future.
Ecommerce accounting software options for FP&A include Vena and DataRails. Both are ideal if you use Excel to keep track of your company’s financial data, as they work with your existing spreadsheets.
Want or need to build your company’s ecommerce tech stack from the ground up? Check out our post on the five solutions you need for an ecommerce tech stack.
If you’re ready to add sales tax software to your ecommerce accounting tech stack, contact us today to see how TaxCloud can help you calculate, collect and file sales tax across the U.S.