Do you know your line item profitability?

Do you know your line item profitability?How transactional accounting reveals the financial insights you may be missing

To the seasoned world of accounting, ecommerce is still in its infancy. As such, it’s no surprise that bookkeeping practices of old are often used to serve the most basic needs of this decidedly modern industry. For example, although journal-entry accounting can be a quick way to summarize and book revenue and expenses of an ecommerce business, it falls short in providing many other important pieces of like which products are making or losing money or which geographic areas are cheapest to ship. This is especially true for those selling complex product catalogs on multiple sales channels.  

What’s wrong with journal-entry accounting? It lacks depth.
Modern electronic accounting systems like QuickBooks, Xero, and NetSuite are not journal-entry accounting systems. While they do provide the ability for an accounting professional to directly enter ledger changes as a journal entry, this feature is provided as an intended method of correction or as a means of entry for otherwise unbookable items. This feature is not intended to be used as the regular method of entering product sales, merchant expenses, vendor purchases, or shipping fees—which represent just a few of many commonly misused journal entries.How transactional #accounting reveals the financial insights you may be missing. #Ecommerce @QuickBooks @Xero #Unify Click To Tweet

Also in a journal-entry system, the bookkeeper or accountant may complete a single batch entry to the sales income account for all revenue generated by the transaction. He or she also may post a batch journal entry for any merchant account expense on the order, and yet another summarized entry for any fulfillment fees booked for that order. So this bookkeeper would have taken several actions to book very generalized information about this order and, while the information itself is correct, it still lacks depth. Basically, journal-entry accounting is a temporary bandage on a problem that will only grow and become unmanageable as the business grows.

What is transactional accounting?
Transactional accounting is when entries are created from transactional documents such as bills, invoices, and credit card charges. This type of accounting allows for much greater transactional detail than a simple journal entry, while simultaneously creating a link with related transactions such as purchase orders, bills, and payments. Many accounting systems like QuickBooks Online and Desktop, Xero, and NetSuite are built around transactional accounting. For example, instead of making a general-ledger entry to a sales-income account to book revenue from a single online sale (or a day of sales), a receipt is filled out with a deposit to account, products, and services with prices and inventory relieved or removed, as well as merchant and shipping charges. Continue reading

Accounting Just Got Easier for Amazon Sellers on Xero

 Post navigation Accounting Just Got Easier for Amazon Sellers on XeroJust click once to settle your accounting!

Making sense of fees and other costs can be a frustrating experience for Amazon sellers. Now a new enhancement to Webgility Unify simplifies accounting for Xero users who sell on Amazon. With Webgility 1-Click Accounting, it’s now fast and easy for sellers to post Amazon Marketplace orders, refunds, expenses, and payments into Xero.

In fact, Unify users can now swiftly reconcile their Xero accounting with their Amazon Settlement Report, eliminating the need for any additional data entry or a separate clearing account. Webgility Unify automatically syncs the Amazon Settlement Report with Xero, making batch reconciliation easy for both sellers and accountants. “Managing a business’ finances from a central dashboard is a far more beautiful experience,” says Steven Larsen, Product Partnerships Director at Xero.Click once to settle! Accounting just got easier for @Amazon sellers who use @Xero #Unify Click To Tweet

Xero offers an open app ecosystem that gives users an opportunity to select technology that best suits their needs as their company grows. Webgility Unify’s integration with Xero enables small business owners and their advisors to track sales and automate accounting across online marketplaces and ecommerce tools.” Continue reading

NEW FEATURE: 1-Click Accounting for Amazon

Webgility 1-Click Accounting for AmazonEcommerce sellers have been asking, and today we’re delivering.

We’re thrilled to announce a fast and easy way to settle and sync Amazon deposits and costs with QuickBooks Online or Xero. Webgility 1-Click Accounting for Amazon is a new enhancement to our Webgility Unify software that allows sellers of all sizes to automatically post Amazon orders, refunds, expenses, and payments into accounting software. In doing so, this feature eliminates the need for any additional data entry or a separate clearing account.

Why does this matter so much to Amazon sellers? Because settling up properly is a key making more money on the world’s biggest marketplace. And since most Amazon sellers operate with wire-thin margins, they need to have more visibility into sales, fees, and returns in order to turn a profit. Amazon sellers also need detailed information in their trend reports, in a much more granular fashion than they can get from Amazon. Webgility Unify provides sellers with automation, data analytics and business insights to help them reduce data entry costs, improve margins, and drive higher ROI on Amazon.

Because the Amazon Settlement Report contains settled, unsettled orders, and refunds from previous sales cycles and is only delivered by Amazon every two weeks, it’s difficult for sellers to reconcile their accounts between reports. This forces the creation (and maintenance) of a separate clearing account for Amazon sales that come in during that period. Webgility 1-Click Accounting allows sellers to instantly—and automatically—settle in accounting all in one batch once they receive their Amazon Settlement Report.NEW 1-Click #Accounting for @Amazon--a fast, easy way to settle costs with @QuickBooks or @Xero #Unify Click To Tweet

Webgility Unify makes reconciliation easy for both sellers and their accountants. With Webgility 1-Click Accounting, Amazon sellers can now see a complete list of orders from the current settlement period, whether they’ve received payment from Amazon, and what Amazon has charged them in fees and expenses.

With Webgility 1-Click Accounting Amazon, sellers can:

  • Automatically post Amazon orders, refunds, expenses, and payments as a batch directly into QuickBooks or Xero
  • Instantly reconcile the seller’s accounting with their Amazon Settlement Report with no additional data entry
  • Sync Amazon sales and refunds daily—individually or as a batch
  • Track Amazon fees/expenses as separate transactions or records them as one line item
  • Sync historic data from Amazon Settlement Reports going back 120 days

For an even deeper dive into this new feature, join our CEO, Parag Mamnani on a webinar on February 22, 2018 at 10 a.m. PST / 1 p.m. EST: Mission Possible—Easy Amazon Reconciliation.

TRY UNIFY FOR FREE

 

How to Conquer Amazon

Webgility 1-Click Accounting for AmazonHint: Just take it one Settlement Report at a time

I get this question a lot: “What are the biggest hurdles SMBs come up against when considering selling on Amazon?”

SMBs are often intimidated by the prospect of selling on Amazon, but the exposure Amazon offers is beyond anything else in the market. And because hefty Amazon fees add up quickly, it’s hard to actually turn a profit. In fact, many sell on Amazon just for the exposure and consider themselves lucky to break even in the end. But it doesn’t have to be that way—because Amazon sellers operate with such wire-thin margins, they must make sure those margins are fully optimized. How so? #SMB tip: The secret to conquering @Amazon? Take it 1 Settlement Report at a time. #Unify #Staytuned @ParagMamnani Click To Tweet

From a high level, lack of visibility into Amazon margins in real time is one of the great hurdles SMBs must overcome to make it work, and the secret lies in the Amazon Settlement Report. Because Amazon delivers this report every 14 days, the typical seller needs to create a separate clearing account for deposits that come in while they wait for their Amazon actuals. Once it arrives, the seller has to manually input all those details into QuickBooks or Xero, which can introduce costly errors and confuse an otherwise tidy accounting system. When Amazon reconciliation is handled properly—and, ideally, automated—a seller can stop all the data entry, no longer ballpark these important numbers, and finally settle up with confidence.

Webgility Unify software eliminates the need for manual data entry and ensures that sellers’ data—financials, inventory, and shipping—is totally accurate and timely. This vastly improves the experience for sellers and their trusted advisors, because they can focus on learning from their data to gain insights to use strategically in real time. Our goal is to help all sellers—including those on Amazon—build sustainable businesses that grow instead of just maintaining back-end operations. I believe 2018 will be a tremendous year for ecommerce sellers, especially those who seek solutions with technology. When you’re ready, we’re here to help. 
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We’re headed to Xerocon!

We’re headed to Xerocon!Yes, it’s true—Webgility’s hitting the road again as a Kickoff Exhibitor at Xerocon 2017 in Austin, Texas, on December 6-7. In fact, we’re so excited about this trip, we’re inviting all Xerocon attendees to stop by the Webgility lounge for a demo of Unify and to share the secret phrase “make selling easier” for a chance to win an Amazon Echo. Continue your Wednesday evening with Webgility and trusted partner, ShipStation, for cocktails, apps and more fun raffle prizes at Revelry Kitchen + Bar from 5-8pm on December 6. Register in advance here.

At Xerocon, we look forward to revealing how our enhanced integration enables accountants and online sellers to

  • quickly track revenue across sales channels like Shopify and BigCommerce;
  • simply and accurately record expenses and fees from marketplaces such as Amazon and eBay;
  • better utilize Xero’s powerful inventory capabilities by syncing price and quantity with online sales channels, automatically building their inventory list in Xero from their sales channel data; and
  • sync data between Xero and shipping apps such as ShipStation and ShippingEasy.

As you know, our Unify software features a powerful integration with Xero that makes the tracking and syncing of financial data and inventory easier than ever. We’re so inspired by the creativity and innovation of Webgility’s Xero users, we’ve added more functionality to Unify to make selling easier for this special community. We stand by our mission to make it possible for online sellers to focus on their passion and growing their business rather than wasting their time on operational logistics.#Xerocon! Join Webgility/@ShipStation @RevelryKitchen+Bar, 5:00 on 12/8. RSVP: http://bit.ly/2zEANlh Click To Tweet

If you’re in Austin next week, please stop by to discuss how—by integrating with powerful cloud computing partners like Xero—Unify brings efficiency, order, and scale to otherwise chaotic workflows and business operations.

To RSVP for the Webgility/ShipStation cocktail party, click here: https://www.eventbrite.com/e/shipstation-webgility-networking-happy-hour-tickets-39658236854